In our regular column, Money Matters, SIMON PARFITT of Pyrmont Wealth Management answers your burning questions on finance and provides financial planning and investment advice. Here, he poses a very pertinent question about our finances.
What does money mean to you?
Money means different things to different people. For some, it provides security and peace of mind; for others, it’s about buying specific items or life experiences. Each person has a different view of and relationship with money, and while I would always argue that balance is important, it isn’t for me to say what is right or wrong.
That said, I do find that people would often have a different view of money, or maybe what they do with it, if they took the time to think about what it really means to them. So, maybe find a couple of minutes to ask yourself these things:
Do you work for money or does money work for you?
In a fast-paced, work-focused environment like Hong Kong, people can sometimes seem to be in constant pursuit of working for more and more money. If you don’t stop chasing the dollars, you may find yourself with lots of money but not much time to enjoy it. The skill is to find a way to get your money to work for you as much as you work for it, affording you the time to make the most of it.
What would you do if you had more time?
People say you can’t buy more time but I would be inclined to disagree. “Life-centred financial planning” is all about working out what you would do if you had more time, then utilising your money to navigate yourself into a position to be able to do it. Perhaps that means being able to go part-time, to take a break, or to stop earlier than expected, giving you more time than you thought was possible.
What would you do if you had more money?
“Money doesn’t buy happiness”, right? Well, for some people it might, but we have all heard of the miserable lottery winner! The question isn’t always about being able to buy or do more stuff, but how you would do things differently. If, for example, having more money means you can quit the 9-to-5 to start your own business, then maybe you can plan how to get to that position.
The aim of life-centred financial planning is to answer these types of questions and more. If you would like help or need questions answered, please get in touch.
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This article first appeared in the June/July 2019 issue of Expat Living magazine. Subscribe now so you never miss an issue.