I’ve been thinking a lot about purpose recently. Specifically, what is the purpose of financial planning? What am I trying to achieve in the work I do with clients? And how do I want clients to feel after doing this work?
My definition of a successful financial planning relationship has evolved. Early on, I thought it was all about clarity and peace of mind. If I could help a client understand the various components of their financial lives (clarity) and rest easy knowing that they were on the right path (peace of mind), that felt like a huge win.
And it is a huge win. But I’ve realized that it’s not enough.
I don’t just want my clients to enjoy peace of mind. I want them to plan their lives with a sense of purpose and possibility. One of my deepest hopes for all of my clients is that they will use money as a tool for living lives they can be truly proud of.
I’ve come to think of financial planning as the art of possibility. This, I believe, is the highest form of the profession I’ve come to love so much.
Again, none of this is to say that clarity and peace of mind aren’t important. They’re essential.
If I were to draw this out for you, it might look something like this.
At the bottom of the pyramid, we have clarity. Clarity should be at the heart of every financial planning relationship. In part, it's about knowing what you own and what you owe. It’s also about achieving a basic understanding of your cash flow and getting a sense of your current long-term trajectory.
Next comes peace of mind. This is when you feel confident that you're on the right track, that no important details are slipping through the cracks, and that you're going to be okay both now and in the future. Peace of mind frees you from persistent, nagging worries about finances that can cloud your thoughts and drain your energy.
Finally, we are able to access the realm of possibility. Clarity and peace of mind are the secure base from which you can begin to think big and ask yourself some important questions:
- What do I really want from life?
- How do I want to spend my time, and with whom?
- If I could live anywhere, where would I choose?
- How might I structure my ideal work week?
- What is the highest and best use of my unique talents and gifts?
These are what my colleague Jeremy Walter aptly calls "off the balance sheet" conversations. They're the questions that no spreadsheet or financial model can answer for you. They're deeply personal, often challenging, and potentially transformative.
Overcoming the Scarcity Mindset
It's important to recognize that thinking in terms of possibility often requires us to overcome, or at least temporarily ignore, our tendency to think in terms of scarcity. This isn’t easy, as feelings of scarcity are often rooted in decades of lived experience.
It's also completely normal to experience feelings of scarcity, regardless of your income or net worth. I've worked with clients across a wide spectrum of financial situations, and I can tell you this: the business owner with an eight-figure net worth can feel just as anxious about money as the young professional just starting out. Scarcity isn't about the numbers on your balance sheet—it's a mindset, and no one is above it.
Recognizing and addressing these feelings of scarcity is often the first step in opening yourself up to possibilities. Overcoming a scarcity mindset is ultimately a topic for another day, but if you’re interested in learning more, I recommend checking out the book “Scarcity: Why Having Too Little Means So Much” by Sendhil Mullainathan and Eldar Shaffir.
The Possibility Formula
Let’s assume for a moment that feelings of scarcity are not holding you back. What does it take to start thinking and living in terms of possibility?
I’ve come to think of it as a simple, yet powerful formula:
Possibility = Creativity + Planning + Courage
Let's break down each component:
Creativity in financial planning isn't about coming up with wild investment schemes or questionable tax-minimization strategies. It's about recognizing the status quo—the default mode set by our culture, expectations, and unquestioned beliefs—and then deliberately choosing to envision alternatives.
It's about imagining a life that's more in line with your values and aspirations. This might mean rethinking your career, your living situation, or how you spend your time. Creativity is what allows us to see new options.
Here are just a few of my favorite examples of creative financial planning:
While creativity allows us to dream, planning turns those dreams into achievable goals. It's the process of taking our answers to life's big questions and translating them into real-world action.
Planning involves asking questions like:
Thoughtful planning turns ideas into a coherent strategy and actionable steps, creating a path between your current reality and your desired future.
Courage is the final and often overlooked ingredient in the Possibility Formula. It's one thing to know what you want and have a plan in place to make it happen. It's another thing entirely to actually do it.
Changes that arise from deep reflection and careful planning require courage because they often mean going against the grain. Even when we know deep down that a particular path is right for us, it can be incredibly difficult to take that first step.
One thing I’ve come to love most about being a financial planner is that I get to be a consistent source of encouragement for my clients. Sometimes a series of nudges from someone(s) who believes in us makes all the difference.
I should know! Launching Two Trails was the realization of a dream many years in the making. If it weren’t for my wife and others cheering me on, I almost certainly wouldn’t have found the courage to become an entrepreneur (easily a top three decision in my life).
Why the Possibility Formula Matters
The Possibility Formula is more than just a way to think about financial planning—it's a way to get more out of life. It bridges the gap between the numbers on your balance sheet and the life you want to live.
We trade our most precious resource—time—for money. The Possibility Formula is how we transform that money back into meaningful experiences and opportunities. Because at the end of the day, money itself isn't what's important. It's what that money allows us to do, be, and experience that truly matters.
Taking the First Step
If you're curious about the possibilities in your own life—if you're wondering what your "second trail" might look like—I invite you to take the first step. Schedule an initial, no-obligation call with me. Let's explore how we can apply the Possibility Formula to your unique situation and start turning your financial resources into a life that excites you.
Every great journey starts with a single step. Take yours today: