Our personal values will influence any financial decisions we take as they ultimately play an important role in many aspects of our day-to-day living, but are more prominent in the way we manage and shape our finances. Principles and standards that guide our behaviour and decision-making are called values, as they influence our thoughts, attitudes and actions, and shape our goals, priorities and the way we approach many situations in life.

In figuring out and understanding our values and how they correlate with our finances, we will find ourselves in a better position to create a financial plan that aligns with our goals and values. This makes it easier for us to make financial decisions by avoiding unnecessary expenses and ensuring our money is being used in a meaningful and fulfilling way.

Our values give a sense of clarity and purpose to our vision of the future. By identifying our core values, we get a better understanding of what we stand for and what matters most to us. Values influence our approach to financial risk and at the same time guide our financial actions and decisions. We then become risk averse and make it a priority to build a stable financial foundation through saving and investment. We also have a moral compass to lean on when faced with decisions that hold a high financial risk.

Kenny Meiring, a Certified Financial Planner™ at SFP, has shared with us the importance of integrating your values into your financial planning at SFP. He believes that doing the right thing speaks to values, as values act as a compass for checking whether you are doing the right thing. “A key value that I use is to always act in the best interest of the client. As a financial adviser, you are responsible for ensuring the financial wellness of your clients is achieved. By putting the client’s best interest at the centre of your approach as an adviser and taking time to understand the client’s needs, thoroughly exploring the different potential solutions, recommending the one that gives the client the best result, and ensuring the client understands the solution are key values that are important in values-based financial planning.

“By integrating your values and interests into the centre of your planning, you will be able to make the right decisions, learn a better way to approach any financial goal, and effectively enhance your financial life.”