Money should be one deciding factor in major life decisions, not the only one.
Of course, there will be a budget for everything. No one – other than perhaps Jeff Bezos – has unlimited cashflow.
But you should be able to make important life decisions based on things that matter to you, not just the bottom line.
One of my clients and their partner have always felt strongly drawn to the Montessori schooling philosophy. They practiced Montessori principles in their home and had always hoped that their children would continue those teachings in their formal education.
Montessori schools are private. Which means they would be paying tuition for their children to attend.
We had factored that in when we created their financial plan, so they were prepared for the budgetary ramifications of sending both of their children to private school.
However, when they toured schools, they fell in love with one of the more expensive options.
The school has a forest school component, which they felt would be great for their highly active daughter. It also offered a much more varied nutritional program, perfect for their vegan son. Their partner agreed.
The other Montessori school they toured was good, although a less “perfect” fit.
And, of course, public school was an option too.
If they made the decision solely based on budget, their children would be attending public school. And the public schools in their area were great – that was not the issue.
But it was intrinsically important to their family to continue the Montessori way of teaching.
And the more expensive school had made them both light up with joy when they spoke about it.
Instead of feeling anxiety about paying more than they had originally budgeted for and scrapping the more expensive school option, they reached out to me.
We ran scenarios.
We crunched numbers.
They and their partner could clearly see what would happen if we allowed for the higher tuition.
It would take them a bit longer to save for their big family vacation. They would need to slightly reduce their retirement contributions, which meant a slightly delayed retirement for both of them. Both of them would need to adjust their insurance to allow for more coverage if either ever lost their jobs.
They could also clearly see what would happen if they decided to send their children to the other school, or to public school.
There would be more cashflow for extra-curriculars, trips, and organic food. They could consider reducing their hours at their job to be home with the children more.
They were able to look at the whole picture and make a decision with their partner that aligned with their own core values.
It was not just about which option could they “afford” financially. It was also about which option they could “afford” emotionally and psychologically.
They decided to send their children to the less expensive Montessori school.
Why?
Not simply because it was less expensive.
They saw the whole picture, not just the effect on their monthly budget. Being able to cut back on hours at work ended up being a major deciding factor for them – it meant they had more time to guide their children’s education themselves, while still ensuring their children had a Montessori style education during formal schooling hours.
And that was right for their family.
That’s the freedom that having a financial plan and working with a Certified Financial Planner ® offers. It means that money becomes one of many factors in major decisions, not the only one.
It’s not about amassing vast wealth so that you can afford whatever you want, Bezos-style. It’s about having confidence in your finances and understanding the consequences of your decisions, so you can make the right one for you.
If you want that kind of freedom, too, book a call.