The Way Most Design Their LifeMost people live life going through the motions with very little intentional thought about what they are doing and why. Most have even less intentionality when they spend their money. They wake up each morning, grab their cup of coffee, eat a quick bite, and rush out the door. They then arrive at a job (that they may not like) for the rest of their life. With a mile long checklist, the job is completed as demanded by those in charge. Their current life often provides little satisfaction. But they take solace in the thought that “One day, it’ll all be better, and I’ll be able to live the life I want to live.” After work each day, they grab the kids with barely enough time to decide whether to eat out or cook at home. With the kids in bed, they are already falling asleep, too, as they close the door. But then there’s the laundry, dishes, and the work that they took home. They take care of all of the things that need to be done, and then finally get in bed. Tomorrow they get to repeat it all over again – having not done a single thing that they actually wanted to do that day. They remind themselves, “One day, it’ll all be better, and I’ll be able to live the life I want to live.” That is how most people live their lives. Constantly looking towards retirement when they’ll finally get to live the good life. It doesn’t have to be this way, though. We can live the good life now.
Intentional Living Starts with a New PerspectiveThe story above doesn’t have to be “the way it is.” However, in order to change, a new perspective is required. We’ve written before about how most physicians and other high-income earners have a spending problem. While doctors earn a high paycheck, many feel that once they finally got there they deserve to spend that money. In medicine we have worked hard to earn that paycheck through years of sacrifice and delayed gratification. However, the spending problem we have is what prevents most people from living the good life. The big houses, nice cars, private school education, designer clothes/gadgets, and failure to pay down our debt with the same money all leads to a bad financial situation. The question is this. Does spending money on these things make us happy? Are we spending our money intentionally, or just following the example provided by others? In the personal finance community, there is a quote that has made its rounds, and for good reason:
This is what happens when we aren’t intentional with our spending. It is pointless, and often leads to worsening the burnout we have at work.
“We buy things we don’t need with money we don’t have to impress people we don’t like.”~Dave Ramsey
Living an Intentional LifeThe financial independence community has taught me one thing repeatedly: living the life you want to live doesn’t happen by accident. You have to intentionally design your life that way. Instead of going through the motions blindly and hoping to one day get to the good life, the people in the financial independence community do just the opposite. First, they sit down and decide very intentionally what they want their life to look like. They design it in their minds. The tool I most commonly recommend to acomplish this are the Three Kinder Questions. Using this tool, you can determine what actually makes you happy (hint: it’s not the cars, house, and private school education). Next, they look at their spending to see if their financial choices reflect their values. And then, once they have a clear image in their mind, they start to make financial decisions that will allow that life to happen. It usually means making changes to their current spending so that they can pay off their debt faster, obtain financial independence sooner, and start living that life today. They also follow their progress – I use personal capital to do this – to help provide encouragement and to stay on track.
The ChallengeWhile many of us won’t have to face bullets flying around us as we flee for cover, I hope it doesn’t require an experience like that to bring things into proper perspective on what truly matters to us. Figure it out, and then chase after it with everything you have. Today. If things that giant checklist begins to get in your way, then institute a Hell Yes Policy, which will allow you to focus on the things that truly provide value in my life. Then, design your backwads budget to reflect those values. If something is getting in your way – and it doens’t make you say “Hell Yes!” – just say no.
Have you spent some time intentionally thinking about how you spend your money and your life? What changes did you make? Leave a comment below.