Stop Obsessing About Making More Money, Focus on This Instead

Quora is an online community devoted to “bringing together people from different worlds to answer the same question, in the same place — and to learn from each other.” It's pretty easy to get lost on the platform finding great answers from experts and novices to a wide range of questions.

Recently one user asked, “What do most people misunderstand about money and personal finance?”

Scott Sonenshein, Management Professor at Rice University chimed in with a great answer we had to share. Sonenshein contends that most people misunderstand the relationship between money and the rest of their lives. They hustle to earn more and don’t really know why.

By misunderstanding the role of money, people end up sacrificing true happiness, fulfilling relationships, and meaningful hobbies for the sake of earning “just a little more.” So how do we avoid this trap and discern the role of money in our lives? According to Sonenshein,

“The best way to figure out the role of money is to reflect on and define our life goals.”

Read More: How to Create a Simple and Effective Life Plan

By reflecting on and defining your life goals, money becomes more than numbers in an account. Work becomes more than the 9-5 grind. In the context of a broader life plan money receives purpose and work is put in its proper place. With definite goals in place you gain a powerful decision filter for personal finance decisions.

After defining life goals you can calculate the income necessary to reach your aspirations, and see which goals will or will not be helped by making more money. For instance, if a primary life goal is to spend more time with your young children, taking a promotion that requires more travel and work on weekends is a poor plan.

“I think we are better served by thinking of money as a means to accomplishing goals, instead of being a goal itself. Start with: what do you really want to do, experience, and contribute through your life?”

These questions inform the crucial first step of BrightPlan’s Plan for Life approach. When beginning a financial plan we invite users to begin by getting inspired about what their future could look like. What do you want to plan for? Do you have goals for travel, education, starting a business, charitable contribution, major purchases, or a leisurely retirement?

Read More: Why Getting Inspired is the Critical First Step to Reaching Your Goals

Saving money and investing wisely are important. We want to help you make informed financial decisions that make many of the goals listed above possible. But rather than obsessing over making more money, first step back and focus on defining your life goals. By discovering inspiring life goals personal finance becomes truly personal.