One of the first steps of any successful financial plan is creating a financial mission statement. A financial mission statement will include all of your thoughts, dreams, and fears in one message that you can share with your financial team. The goal of this statement is to ensure all stakeholders in your financial future, including your spouse, CPA, financial advisor, lawyer, and others, are working on your behalf toward the same goal.
What is a financial mission statement?
Many clients often feel strange actually writing their goals, fears, and dreams on paper. But creating a financial mission statement is a very important step in your financial plan because it specifies your goals and hopes for the future.
A financial mission statement is one message that covers all of your current thoughts, dreams, and fears about your financial future. For instance, your financial mission statement might say, “My financial mission statement is to use my money as a tool to live my best life today, help my children with college, leave a legacy to my spouse and kids, and fulfill my retirement lifestyle that we’re dreaming about.”
Questions to consider when crafting your financial mission statement
The main goal of any financial mission statement is to clearly define your “why.” Why are you embarking on this financial journey? Consider this question and these others when you are crafting your financial mission statement:
What motivates you?
What is most important to your financial future?
What do you need to do to achieve your goals?
What does your financial team need to do to help you achieve these goals?
Once you have all of these questions answered, narrow your financial mission statement down to two or three sentences.
What to do with your financial mission statement
Now that you have crafted your financial mission statement, what should you do with it?
The first thing you should do is share it with your spouse. Make sure everyone at home is on the same page when it comes to your financial mission. Then, share it with your financial advisor. Don’t be afraid to explain to them how important this mission is to you and get them on board. And finally, keep your mission statement handy and easily viewable so that you can check in periodically to make sure you and your team are still focused on the same goals.