Have you ever felt like your financial goals and your life goals don’t quite match up? Like you’re working hard, saving, and investing, but somehow it’s not bringing you the fulfillment you thought it would? If this resonates with you, you’re not alone. This is where values-based financial planning comes in, and it’s something that I have taught plenty of times to women whom I’ve coached and to my attendees during my financial seminars. I usually get positive comments like “Ameena, I loved the topic —it was such an eye-opener!” or “Great talk! I’ve never heard about this kind of financial planning before.”
I honestly love talking about this during my seminars as this has taught me to stop wasting my time, energy, and resources on things that don’t matter and to shift my focus on things that really do matter. If you’re curious about this, let’s dive into what it is, why it matters, and how it’s different from traditional financial planning that financial advisors in the Philippines conduct for their clients.
How Values-Based Financial Planning changed my perspective in life
A few years ago, I found myself feeling unfulfilled despite achieving several financial milestones. I was diligently saving for retirement, had a growing emergency fund, and even invested in some promising opportunities. Yet, something felt off. My goals, while financially sound, didn’t feel connected to what mattered most to me.
That’s when I discovered values-based financial planning. I took a step back and asked myself: What truly brings me joy and meaning? One of the answers was spending quality time with my family, especially creating memorable experiences together. Another was supporting causes that resonated with my desire to empower women in financial literacy – the very reason why I created The Thrifty Pinay which, at present, has paved my way to spend more time with my family and loved ones.
The shift was transformative. For the first time, my financial decisions felt deeply fulfilling. I wasn’t just saving for a rainy day or aiming for generic milestones— I was actively building a life that reflected my values. And you know what? It made sticking to my financial plan so much easier because it wasn’t about sacrifice—it was about purpose.
Why I Teach Values-based Financial Planning in the Philippines
As a personal finance speaker, I’ve seen firsthand how transformative values-based financial planning can be. When I introduce this concept during my seminars, attendees often have “aha” moments. They realize that financial planning doesn’t have to be a daunting and impersonal process. Instead, it can be a powerful tool for creating a meaningful, fulfilling life.
As shown in the photo above, one of my favorite parts of these sessions is hearing participants share their core values and seeing how their financial goals shift to reflect what truly matters to them. It’s inspiring to watch people move from feeling overwhelmed by money to feeling empowered to use it as a tool for living their best lives.
Furthermore, my client was able to gather reviews from the attendees and here’s what some have shared after creating their own values-based financial planning:
Who started Values-Based Financial Planning?
Values-based financial planning is quite a brand-new concept in the Philippines and has gained some traction over the years as people have started questioning the “work-save-retire” formula of life. The term was popularized by financial planning expert Bill Bachrach. He realized that traditional financial planning often misses the mark because it focuses too much on numbers and not enough on what those numbers mean to the individual. In other words, it’s not just about spreadsheets and strategies that you get from a traditional financial planning conducted by financial advisors and financial planners—it’s about aligning your money with your life’s purpose.
It’s not just about spreadsheets and strategies that you get from a traditional financial planning conducted by financial advisors and financial planners—it’s about aligning your money with your life’s purpose.
In his work, Bachrach emphasized the idea that financial decisions should be rooted in your core values. Think of it as putting the “why” behind the “how.” For instance, if one of your values is family, your financial plan might prioritize saving for family vacations, your kids’ education, or even taking care of aging parents. The idea is to create a roadmap that reflects what truly matters to you.
Why Values-Based Financial Planning Is Important
So, why does this matter? Why can’t we just stick to traditional financial planning and call it a day?
Here’s the thing: As what I have learned about the traditional financial planning through an RFP course, it focuses heavily on goals like saving for retirement, buying a house, or growing your investment portfolio. And while these are important, they can sometimes feel disconnected from the bigger picture of your life. You might end up chasing goals that don’t truly resonate with you or you might end up sacrificing things that actually matter just for the sake of ticking off financial milestones.
Values-based financial planning, on the other hand, is all about clarity and alignment. It starts by helping you identify your core values and then uses those values as a filter for every financial decision you make. Here are a few reasons why this approach is so powerful:
- It Brings Fulfillment: When your money is aligned with your values, every financial decision feels purposeful. You’re not just saving or investing; you’re funding a life that reflects what’s most important to you.
- It Reduces Stress: Money can be a major source of stress, especially when your financial choices feel out of sync with your life. A values-based plan helps you focus on what truly matters, making it easier to let go of unnecessary expenses and financial pressures.
- It Promotes Long-Term Success: People are more likely to stick to financial plans that resonate deeply with their values. It’s easier to save for something meaningful than for a generic goal that doesn’t inspire you.
- It Builds Legacy: By focusing on values, you’re not just planning for your own financial security; you’re also creating a roadmap for how your money can impact your family, your community, and even future generations.
Values-Based Financial Planning vs Traditional Financial Planning
Now that we’ve established what values-based financial planning is and why it’s important, let’s talk about how it’s different from traditional financial planning.
1. Focus on Values, Not Just Goals
Traditional financial planning often starts with a question like, “What are your financial goals?” It’s a great starting point, but it’s also a bit surface-level. Goals can change, and they often do. Values, on the other hand, are more enduring. Values-based financial planning flips the script by asking, “What’s most important to you in life?” The goals come later, as a natural extension of those values.
2. Personalized, Not One-Size-Fits-All
Traditional financial plans can sometimes feel cookie-cutter. Save this percentage of your income, invest in these funds, retire at this age. Values-based financial planning is deeply personal. It’s about creating a financial strategy that’s as unique as your fingerprint because it’s based on your individual values.
3. Holistic Approach
While traditional planning might focus heavily on numbers—like net worth, savings rates, and investment returns—values-based planning takes a more holistic view. It considers not just your financial health but also your emotional, mental, and even spiritual well-being. After all, what good is a robust retirement fund if you’re not living a life that makes you happy?
4. Guided Conversations
In my seminars, I’ve noticed how eye-opening it can be for attendees when we start with conversations about values rather than numbers. It’s not about “How much do you have?” but “What do you want your money to do for you?” These guided conversations help attendees gain clarity and prioritize their financial goals in a way that feels deeply personal.
5. Empowerment Over Obligation
Traditional financial plans can sometimes feel like a list of obligations: Save X amount. Pay off Y debt. Invest in Z fund. Values-based planning, however, is empowering. It frames financial decisions as opportunities to live out your values rather than obligations to meet some external standard.
How to Get Started with Values-Based Financial Planning
If you’re intrigued and want to try this approach, here’s a simple process to get started:
- Identify Your Core Values: Start by asking yourself what truly matters to you. Family? Freedom? Adventure? Health? Community? Write down the top five values that resonate most with you.
- Assess Your Current Financial Situation: Look at where your money is going right now. Are your spending habits aligned with your values? If not, where can you make adjustments?
- Set Values-Driven Goals: Once you’ve identified your values, set financial goals that align with them. For example, if adventure is one of your values, you might set a goal to save for annual travel experiences.
- Create a Plan: Work with a financial planner who understands the importance of values-based planning, or map out your own plan to align your spending, saving, and investing with your values.
- Regularly Reassess: Life changes, and so do priorities. Make it a habit to revisit your values and financial plan regularly to ensure they’re still aligned.
Values-based financial planning is more than just a strategy; it’s a mindset. It’s about putting purpose behind every peso and aligning your financial choices with the life you want to lead. Whether you’re just starting your financial journey or looking to revamp your existing plan, this approach can bring clarity, fulfillment, and long-term success.
If this resonates with you and you’re curious to learn more, contact us for a coaching session or join one of my seminars. Together, we’ll explore how to make your money work for you in a way that reflects your deepest values. Because at the end of the day, financial planning isn’t just about the numbers—it’s about living a life that truly matters.