Welcome to the 21st issue of Metrix that Matter, a weekly newsletter from WEALTHMETRIX that helps you focus on what matters most for building and sustaining wealth. Every Saturday, we share an educational essay with actionable takeaways to guide you on your journey to financial independence.
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What you’ll learn in this issue:
- Why knowing your financial numbers isn’t enough
- The foundational question you should be asking yourself
- What a Statement of Financial Purpose is and how to create yours
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The most important financial questions have nothing to do with numbers.
Although I’ve written plenty about specific financial metrics to focus on throughout your wealth-building journey, these numbers are only part of the story.
They tell you where you stand, but not where you’re headed. They give you the “how,” but can’t answer the “why.”
As in, “Why are you building wealth?”
Until you can answer this question, everything else is just guesswork. This is the foundation your finances should be built on.
Many people don’t have a good answer to this question. Year after year, they travel the same path with no vision of where it’s leading them. They save and invest out of habit rather than intention. It’s like taking a road trip with no destination in mind.
In the financial world, there will always be investment opportunities – stocks, real estate, businesses, you name it. The more money you have, the more opportunities come your way. And without a clear destination, every opportunity looks equally attractive. It can be overwhelming.
So, how do you get clear on where you want to go?
Statement of Financial Purpose
Start with something Carl Richards calls a “Statement of Financial Purpose.”
This is simply a short sentence or two about why money is important to you. It helps you stay focused on what matters and gives you the framework to figure out what your goals are.
Creating your own Statement of Financial Purpose doesn’t require complicated financial planning. It’s about understanding what you want from your life.
Think about your values. What are the most important things in your life? Not what you think should be important, but what genuinely matters to you. If money weren’t an issue, how would you like to spend your time?
With family and friends? Making an impact in your community? Getting involved with your church? Starting a business you’ve always dreamed about?
Take these answers and put them into a few words. For example, “I want to be actively involved in my kids’ lives and activities, while also volunteering at my church.”
There’s a Statement of Financial Purpose.
Now you have a lens to filter investment opportunities through. Instead of simply considering the potential return on investment, you can ask yourself, “Does this investment align with what’s most important to me?”
Life isn’t lived on a spreadsheet. Your financial journey needs direction, not just data.
The metrics matter, but only when they’re moving you toward something that matters to you.
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Need help?
Thank you for reading. Creating a Statement of Financial Purpose is simple in theory, but can be challenging in practice. If you would like help clarifying your financial direction and building a plan that aligns with what matters most to you, I invite you to schedule a complimentary 30-minute call. We'll discuss your current situation, explore your goals, and determine if there's a good fit to work together.
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WEALTHMETRIX
https://www.mywealthmetrix.com/
(972) 267-7526
102 S. Goliad Street, Suite 101
Rockwall, TX 75087
16475 Dallas Parkway, Suite 840
Addison, TX 75001
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