Financial Purpose

More helpful than you realize.

Having removed various distractions from my life over the last few months has freed up my time to concentrate on things that really matter. Things like: getting out in nature, deep conversations with friends, and watching gripping television that expands my mind (Married At First Sight and Love is Blind until death comes for me, y’all). 

If you know, you know.

Cough… I’ve also found more time for hobbies that I didn’t prioritize before. I get a lot more book and reflection time these days, for example. 

A few weeks ago, during a reading-reflection session, I was nearing the end of The Millionaire Next Door (which I highly recommend) when I started thinking about my savings goal this year. I like my goal. It’s a good goal, if you ask me. But then what? What do I do after I (hopefully) reach my goal? I’ve been enjoying this challenge so far, do I continue? How would I stay motivated? What would my larger goal be? What would I want to achieve by continuing to save?

As I sat there reflecting on some of these questions, I kept arriving at the same place: I’m enjoying this challenge, I want to continue, but I don’t really have a goal to orient myself beyond this year. I don’t have clarity as to exactly why I would continue saving at this rate or even close to it. I don’t know what purpose it would serve.

Blerg. I hit a sticking point. Then I realized I wanted to get my poop in a group and figure out my purpose for saving. I wanted to figure out my financial purpose.

Purpose

Does anyone else get mildly freaked out when someone asks “what’s your purpose?” (Not that yogis and philosophers are wandering through the streets, stopping elder millennials posing this question, but…) A cold sweat starts to form at the back of my neck when I hear this. Oh no, not the purpose question!

When I was younger, I was consumed with trying to figure out my purpose. Why the heck am I here and what am I supposed to do? Like many, I hoped answers would be revealed by attending university, completing a master’s degree, and taking a few trips overseas. But surprise! All that time, energy and resources didn’t really get me closer to finding answers to the big ol’ purpose question.

Now, I’m not about to dive into how I found my life’s purpose - news flash - I’m still sussing that one out. The point here is that it's a meaty, anxiety producing question. And attempting to figure out one’s financial purpose is equally challenging. 

Financial Purpose

Before we dive into things, let’s define some terms. What the heck is a financial purpose?

Essentially, a financial purpose is the middle ground between what kind of life you want and what your money is for. It’s a purpose statement that guides your financial decisions and helps to direct your spending habits. It’s a way to orient your choices so you can work towards and ultimately achieve your goals. A financial purpose also helps you slow down and think through how you’re spending your money.

For instance, if you have a habit of making thoughtless purchases or often rationalize spending on things you don’t really need, your financial purpose creates space between the impulse of spending and the action of buying. Using your financial purpose as a lens through which you assess purchases automatically orients your decision and actions towards your larger goals.

It’s important to note that your financial purpose can shift and change over time. It isn’t static (Not like that tattoo you regret getting when you were 28 because the “cool tattooed girl” joined the insurance company you worked at and then everyone at said insurance company started getting tattoos, for example. Completely random example. Cough...). When major events happen (marriage, children, death, divorce, etc.) reassessment of your goals and purpose is likely a wise idea. 

It’s also important to highlight that everyone’s financial purpose will look different. Some will be more broad and encompassing, some will be very specific, depending on one’s life and experiences. Never compare yourself or your purpose to anyone else.

My Financial Purpose

I’m still at the beginning of this journey, and I’m conscious that my financial purpose may shift. That said, my current financial purpose is:

To build a resilient life where I have the freedom to choose the work I want to pursue, and have the ability to give freely to others.

It’s very important to me to make decisions now that will allow me to have freedom in the future. I want the freedom to choose the kind of work I want - whether it’s creative, skill-building or problem solving work, or selfcare and family care based work. I want the freedom to invest my time in work that’s meaningful to me. I also want the ability to give freely, to give my resources, time, and energy freely to causes and people I care about. 

What does implementing my financial purpose look like in action? Well… Let’s say I have to make a major purchase, like a new car. Let’s look at a few options and how they might align with my financial purpose:

1. I could purchase a brand new car, with all the fancy bells and whistles. This would result in a hefty loan to repay over many years, and increased insurance costs. Making this decision would certainly reduce my financial resilience. It would also likely impact how long I would have to work - the more you spend the less you can save for things like retirement. Spending more time working would also reduce my ability to give my time freely. 

2. I could buy a cheaper used car. This wouldn’t reduce my financial resilience as much, and if I save enough I might be able to buy a used car outright. But, if I’m unlucky and get a lemon, there could be some hefty repair costs waiting for me a few KMs down the road. I could very easily end up in a position similar to option 1 (Also, did you know that cars are super expensive, to the tune of $689,000 over their lifetime?).

3. I could get a bike, take public transit or uber, and compensate my loving friends with gas money if they offered to drive to social events. This option would definitely reduce my financial resilience the least, and would improve my health leading to an increased ability for me to give freely over time. It may also enhance relationships with my friends by spending a bit more time together.

These scenarios have different advantages and disadvantages. They present a myriad of potential futures with my butt squarely sat in some sort of seat. They also align, to various degrees, with my financial purpose. Prioritizing that purpose, one scenario certainly stands out from the rest in this example. 

At the end of the day, it takes a little while to figure out a financial purpose. It isn’t something that just magically appears in your brain, lord knows it took me a few weeks of reflection. But with a bit of work, I now have a reference point to help guide my financial decisions - big and small. It sets me on a surer path, orienting my spending and behavioural decisions toward my goals. At the very least, my financial purpose will help spur on my frugal-living journey for some time (or at least, that’s the hope).

We’ve totally got this!

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Over the past many weeks of creating content and templates, I realize that to help sustain this passion project I would be grateful for your support!

For those with a dollar to spare, I’ve set up a Buy Me A Coffee account for folks to contribute to here and there. For those frugally focused, I would be incredibly grateful if you were to share my work with your networks and folks you think would enjoy my journey (via email, social media, or homing pigeon).

A special thank you to those who contributed to my Buy Me A Coffee or shared a post! Your support means the world to me - truly.

Whether you're able to contribute or not, I’m so glad you’ve joined me on this journey!