63: Defining Financial Purpose By Viewing Money As A Tool Rather Than A Goal with Derek Hagen

63: Defining Financial Purpose By Viewing Money As A Tool Rather Than A Goal with Derek Hagen

No client actually cares about maximizing their wealth.

Every client cares about maximizing their life. Therefore, money should never be a goal. It should simply be a tool. A tool that funds the life you want to live.

That’s why every client needs to define their “financial purpose.”

It allows clients to align their money with what’s truly most important in their lives (rather than what they think is important). But the challenge is knowing how to do this with clients.

Fortunately, Derek Hagen does this with his clients and teaches advisors a process for defining financial purpose to align their money with their life.

We discuss:

  • The two exercises he uses to clearly define what’s most important to clients (Values Cards and “Life-in-Perspective”)
  • Why clients need a “Statement of Financial Purpose” and how to help them craft one
  • His four-step process to help clients get “unstuck”
  • A real-life example of how he helped a client reign in their spending
  • Why we should diversify meaning in life just like we diversify portfolios

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Resources:

  • The featured partner for this episode is Knudge, an automated system to help clients actually follow through on their tasks and reach their financial goals

 

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