I came across the coined phrase ‘Wealthspan‘ several months ago and found it useful as a label for how our financial planning should correspond with both our Healthspan and our expected Lifespan.

I like the concept of Wealthspan as a guide which helped me set up specific and timely financial goals based upon my Core Values.

My generic approach follows the broad goals of:

Security: what needs to be in place to provide security such that you can move full-tilt towards your next financial goal. This backup may be in the form of a practical college degree, 3-6 month cash net, insurance (life, disability, medical, home, auto) or regular contributions to your ‘go-to-ground’ fund. Essentially, you need to ensure that the Basic Needs of you and your dependents are secure. These needs revolve around food, shelter & safety. Not only do you have the opportunity to learn about your personal philosophy about money you also are forced to think about what really matters in life. As always, NEVER neglect your higher ranking Core Values in the pursuit of Financial Security - it is easy to convince yourself that you are doing all of this for your family,…. I’ve been there and certainly there have been many times when my Family and my Health have played 2nd fiddle.

Comfort: My definition of comfort centers around actively creating opportunities to grow spiritually. For our family these growth experiences occur during travel to different parts of the world. We can before deeply altered by real exposure to other people and conditions around the earth. Comfort, therefore, is defined by the financial base which allows us to expand our neural network beyond survival. For others, comfort may be defined by fine food & wine, charitable work, hobbies. Any time spent not pursuing the mighty dollar can be considered time of comfort.

Wealth: True Wealth is present when one no longer needs to work at a job for income. At this stage income is produced by relatively passive means. How much income defines this stage? As usual - it depends! If you have attained and maintained Security and Comfort and these stages are ‘funded’ by income that does not require your constant attention then you have achieved Wealth. I like simple and this definition is simple and individual, and possible! There are two parts to this equation: the Passive Income coming in and the Expenses going out. We should always be planting seeds of wealth during our transition through the first stages BUT we must also address spending money only in ways that are meaningful to our spiritual goals. It is really easy to buy the next TV, computer, car house- bigger and better is a pursuit unto itself but this avenue provides only a short-term high. Within days to weeks the shine is off of the latest new object ( and the Visa bill has just arrived)! If we search for deeper meaning in our lives starting with our Core Values and Core Goals we can stay on the track to Wealth.

Legacy: What assets do you intend to leave for future? These assets may not only be material they may also be spiritual (and I do not mean ‘religious’ although of course they may be). We are all here for a short time and most of us would like to think that after we die there is some evidence that we were here and we made a difference. This is why many of us take photos and videos but I suggest we need to leave something deeper, entrenched with our personal values and ideals. One of my personal Legacy Goals is a Family Foundation. Nothing huge but rather a secure financial tool defined by philosophy, mission and goals. Once my children are a little older we will create a Family Foundation starting with a small financial base upon which we will build. One of my selfish (sub)goals is to keep our kids involved with us as they seek there own lives. If we all come together once or twice a year to determine how to allocate the money we will be sharing time and space doing good things.

Have you thought about your Wealthspan?

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