True financial wealth isn’t just about hitting specific monetary targets. It’s about crafting a life where your resources are aligned with your values and aspirations, leading to a sense of fulfilment beyond the bank balance.
In Brian Portnoy’s The Geometry of Wealth, he explores how financial success is ultimately about achieving funded contentment—a balance between purpose and prosperity. This idea resonates deeply with those looking to build wealth in a way that truly serves their life goals.
Through this lens, we can identify four key dimensions of financial wealth: Purpose, Priorities, Planning and Progress.
Each dimension builds on the other, creating a holistic approach that transforms financial planning from a numbers game into a process of aligning your money with your life’s purpose. Let’s break them down:
- Purpose: Defining the “Why” Behind Your Wealth
Every successful financial journey begins with a clearly defined purpose. What drives your desire to accumulate wealth? Is it about creating security for your family, pursuing a passion, contributing to causes you care about, or experiencing more freedom in your day-to-day life? Understanding your “why” gives context to your financial decisions and shapes the way you approach money.
Purpose isn’t about a one-time decision; it’s a guiding compass that allows you to navigate through the complexities of financial choices. As Portnoy emphasises, when we have clarity about what brings us joy and contentment, the idea of wealth extends beyond material gain—it becomes a tool to help us lead a meaningful life.
- Priorities: Aligning Financial Choices with Purpose
Once your purpose is clear, the next step is to identify your priorities—those aspects of your life that are most important to you and deserve the lion’s share of your financial attention. Whether it’s prioritising retirement savings, funding your children’s education, travelling the world, or buying your dream home, these priorities flow naturally from your defined purpose.
CAVEAT: It’s a huge challenge to remain focused on these priorities, particularly when life throws distractions your way. Having a clear understanding of your values and goals helps filter out the noise, allowing you to stay on track with decisions that contribute to your bigger picture. In short, your priorities act as the bridge between purpose and planning.
- Planning: Building the Roadmap for Wealth
This step is all about structuring your finances to reflect your priorities. Financial planning is where the tangible elements – budgets, investments, tax strategies, savings, and cash flow – come into play.
A well-thought-out plan transforms abstract goals into achievable milestones. It might include setting up an emergency fund, building a diversified investment portfolio, adjusting your spending habits, or optimising your retirement savings. At this stage, it’s essential to work with a financial planner who can help you map out strategies that are not only efficient but also personalised to reflect your unique life path.
- Progress: Measuring and Adjusting Along the Way
Finally, progress is the measure of how far you’ve come and what adjustments are necessary to stay on course. In The Geometry of Wealth, Portnoy suggests that real financial progress isn’t about constant comparison to others; rather, it’s about measuring your success against your own definition of “enough.”
Progress is a dynamic process that requires regular reflection and adjustment. It’s about celebrating milestones, reassessing priorities as life evolves, and making tweaks to your plan when necessary. Sometimes, that means realigning investments, and sometimes, it means simply taking a step back to reevaluate your definition of wealth in the context of life changes.
At Northern Cross Wealth Management, we believe in financial strategies that go beyond the numbers and delve into what truly matters to you. Let’s work together to clarify your purpose, prioritise your goals, plan effectively, and track your progress on the path to a fulfilling and financially secure future.
