Why do we concentrate on finances when creating plans for our future? We all know that there's more to life than money. But somehow money has been allowed to dictate the meaning of our life.

Life planning is a new approach to financial planning. It keeps the focus on you and your goals, not on the money you make. The idea is that you decide what you want to do with your life. A plan is then created to help you achieve your aspirations.

The process is quite similar to what you may have already experienced when you first met with a financial planner. The first questions are usually related to your income, your debts and how much money you'll need for retirement. These are quite personal questions, but ones you would expect from your financial planner. You will also have covered other issues such as your children's education savings, your estate, and your investment risk tolerance.

But what about you personally? Aren’t you more than just an ATM, dispensing money for this investment fund or that savings account? You have a life too, and isn't your life more important than deposits and withdrawals? Life planners believe that it is. And they know that what you value may be different from your neighbours, your family, your co-workers and your friends.

Life planners place emphasis on your past, your current situation and your future goals. They also focus on your values, morals and ethics. They will gain knowledge on how you value money, obstacles you may now be facing, your hopes and fears for the future, and what kind of legacy you want to leave behind. Based on this information, a life planner will create a financial plan customized to meet your personal life goals. Life planning still requires you to answer questions about your finances – you need to fund your dreams somehow – but only after learning about what really matters to you.

Life planning goes a few steps beyond "basic" financial planning. It represents a change from making life decisions based on your finances to making financial decisions based on your life.

This is a monthly article on financial planning. Call or write to Rick Sutherland CLU, CFP, FDS, R.F.P., of Fundex Investments with your topics of interest at 798-2421 or E-mail at rick@invested-interest.ca.