The 3 Dimensions of Wealth - Financial
The skillful blending of the three dimensions of your wealth - Financial, Personal and Social allows you to build a legacy of your values, influence, and money so you can truly make a difference in the world.
Take a moment to think about the five most significant events in your life and a few things immediately pop into your mind. For me, it was my wedding day and the births of our two daughters. People rarely site money or financial events in the top five, so when I talk about wealth and the planning related to it, I refer to three dimensions- financial, personal and social.
The financial dimension consists of your net worth, money and investments, income and expenses. If wealth consisted only of the financial dimension, then wealth planning would simply be a series of business decisions to review and adjust periodically. I find that 99% of financial plans people bring to me for a second opinion stop right there. And that creates a problem.
A friend and colleague of mine who teaches continuing education for financial, legal and estate planning professionals asked them how many of the plans they present actually get implemented. Most said only 2 out of 10. He then asked “Why do you think that is?” Their answers varied, ranging from complacency, procrastination and being afraid of dying to being afraid of doing the wrong thing.
I disagree. The problem is that most financial and estate plans address only the financial dimension of wealth. If we merely look at the numbers, it’s just not that exciting. Although some have a fascination with numbers, I find most people think that’s not a lot to motivate anyone to act.