Real Financial Planning Means Figuring Out What Matters Most To You

Paul K. Fain, III, CFP^®

The true purpose of a financial plan is not about amassing wealth for its own sake. It is about building a life that aligns your money with your values, goals and sense of purpose. That — not purchasing a particular investment, or an annuity or additional life insurance — is the heart of real financial planning.

Real financial planning starts with a different question: What kind of life do you want to live? Instead of jumping straight into portfolio design or tax strategies, real financial planning begins with reflection. What brings you joy? What goals excite you — or keep you up at night? What legacy do you want to leave? Money is simply the tool to help make those answers a reality.

This approach has never been more relevant. After years of economic uncertainty, a global pandemic and rising mental health awareness, more people are reassessing what “success” looks like. For some, it means transitioning to part-time work or changing careers. For others, it means prioritizing experiences over possessions or planning for time with grandchildren over maximizing investment returns. Financial planning honors these shifts.

I get it! In recent years, I became a grandfather, and I have experienced several dramatic health challenges. Subsequently, the footing underneath my financial plan has been shifting like tectonic plates. Under these new circumstances, I have gone back to the original question: “What kind of life do I want to live?” Whether you are updating your existing financial plan, like me, or just starting the process, a financial plan should blend the quantitative (budgets, savings, insurance, investments) with the qualitative (meaning, freedom, well-being). Here is how you can start applying planning principles to your own finances:

Clarify your values: List your top five personal values — such as family, independence, service or adventure. Then review your spending and saving. Does your money reflect those priorities?

Articulate your vision: Describe your ideal life in five years. Where are you living? What are you doing? Who are you with? A vivid life vision becomes the compass for your financial decisions.

Set purposeful goals: Define goals that serve your financial plan, not just what the financial industry says you should want. Want to take a sabbatical? Support a cause? Retire early to volunteer? Build your plan around that.

Create a money map: Align your assets, income and spending to support your vision. That might mean reallocating funds from things you no longer value to experiences or security you do. Have a flexible and resilient mindset. Be prepared to navigate trade-offs, clarify goals and stay on course when life throws you curveballs — because it will.

At its best, real financial planning is both practical and deeply human. It reminds us that money is not the goal — it is the means to live a life of intention, joy and fulfillment.

This article originally appeared in the Knoxville News Sentinel online on June 20, 2025.