Financial advisory websites often showcase images of happy retirees engaged in activities such as golf, sailing, and long walks on the beach, promoting the idea of peace of mind as a key benefit of wise wealth management. However, peace of mind is not a one-size-fits-all concept and can vary from person to person. It is essential to understand what brings peace of mind to each individual in the context of financial planning.
A fourfold framework is presented to help individuals identify what brings them peace of mind based on their orientation towards growth, protection, giving, and living. Those with a growth orientation may find comfort in pursuing higher highs and taking on greater risks for potential gains, while protectors focus on maintaining a sense of security by being well-prepared for emergencies and insurable risks. On the other hand, givers derive peace of mind from acts of service and sharing financial resources with others, while those with a live orientation prioritize present-moment experiences and flexibility in their lives.
Each of these orientations has associated benefits and risks that individuals need to be aware of in order to achieve true peace of mind. Growth-oriented individuals may connect their self-worth to their net worth, leading to perpetual dissatisfaction, while protectors may live in fear of the unknown and spend too much on protective measures. Givers may feel guilty about their financial success and sabotage themselves, while those with a live orientation may struggle with learning from past experiences and preparing for the future.
Understanding one’s primary orientation towards peace of mind can help in developing a comprehensive financial plan that encompasses all aspects of one’s financial goals and values. By acknowledging and balancing traits from each of the four orientations, individuals can create a personalized approach to wealth management that prioritizes peace of mind and the pursuit of their most important life goals. Ultimately, true wealth is not just about a number but about achieving a state of peace and contentment that allows individuals to live life on their terms.
