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Your Purpose-Focused Financial Plan

Lesson 19 from: Start Late, Finish Rich

David Bach

Your Purpose-Focused Financial Plan

Lesson 19 from: Start Late, Finish Rich

David Bach

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Lesson Info

19. Your Purpose-Focused Financial Plan

Lesson Info

Your Purpose-Focused Financial Plan

We're gonna talk about building a purpose-focused financial plan. The first two books I wrote, Smart Women Finish Rich and Smart Couples Finish Rich, I think what made these books so powerful for so many people is that I put in these books the same exact process I use with my financial planning clients. And that was I don't believe it's all about the numbers and the money, I think it's really all about what's most important to you, which is what's your why. Why are you doing all of this? What are your values? What do you care the most about? Let's create a financial plan based on your soul and your heart. I think the problem with financial planning is it's actually been what's your number and we can't relate to that. But we can relate to what we care most about. I started asking my clients what's really important, what's your why? Why are you here? What do you want to accomplish? I started asking people do you wanna be rich? Which keenly a lot of people would say yes, I don't know if t...

hey would today. But I'd say do you wanna be rich, and if you do, why? And if somebody said no I don't wanna be rich, then I'd say what do you wanna be? I wanna be financially secure. Great. Why? I wanna be out of debt. Great. Why? So this question of why helps my clients and you gain clarity around what's most important to you. Then the financial plan becomes about your purpose. What's your purpose in life? What I wanna know is why are you here today? Where are you exactly? Where do you wish you were instead? I started the class off and I said, chances are if you show up for a class called start late, finish rich, you think you're starting late, right? By the way, do you feel better now than you felt in the beginning of the day? 'Cause there's hope, right? You're like there's all of this stuff that I can do. So where do you wish you were instead and how are you going to get there? The whole goal today was to give you a ton of actionable ideas. By the way, remember I said in the very beginning of class, what's the one idea? How many of you guys got one idea? 'Kay. You didn't get one idea? Put that camera on that guy! (audience laughs) He's like no, man. Like dude I've been here for an entire day, I'm beat! (audience laughs) In the production room, where I went to check my slides before this segment, two of the guys in the production room increased their 401k plan. [Audience Members] Yeah! Yeah, right?! So that's awesome right? And these guys watch people do these shows all the time. That is gonna change their life. So here's what I would say, automatic millionaire mindset is this: what are your core values? How are they gonna help you get to where you wanna be? And here's what I want you to think about: money helps you be, this is where Nusa can just create, by the way, the most amazing visual. By the way, give Nusa a round of applause here. I salute you and bow to you, amazing. Three things, money can help you be, money can help you do, money can help you have. These are three things that I've taught for almost two decades. The challenges in our society our society is set up in the reverse of this order, which is that money is- we're designed to focus on first, what do we wanna have? What's all the stuff that we need to have to impress all those people that we don't really care about, that aren't paying attention. What do we wanna have? Which often forces us to do things that we don't wanna do to pay for the stuff that we wanted to have, and we never get to focus on who do we want to be. And so, so often in life, you see people, and maybe you've experienced this in your own life, where you're workin' so damn hard for the stuff that you wanted to have, for the things you wanna do, you wake up at some point and you're like this is not who I even wanna be. I don't feel in my life like my life is working the way I wanted it too. People get to the journey and they go I thought this was gonna feel different than this. Happens a lot with success, by the way. People put their whole life into building a business and their whole life into success, and they get the success and they get the brass ring and they're like, now what? I flipped this on it's head and I say who do you wanna be first. And now, it's not on this slide, but I just started teaching something else, and you can write this in, you're the first one to hear me say this, who do you wanna become? Who do you wanna be, who do you wanna become? Because we're all starting- there's a whole movement across America to reinvent. There's this rebirth thing happening in this country and I think a lot of it's that there's a real realization like, you know what, this is not just all about the money. And I'm tired of accumulating stuff and I wanna have less stuff and more being. So I want you to think about who do you wanna be, who do you wanna become, and I want you build your financial plan around your values first, and your goals second. What I would do with my clients, and what I teach- the books that actually teach this specifically are Smart Women Finish Rich and Smart Couples Finish Rich. I take you through the values based process. Those of you who buy the course later, we give you the values based process in the worksheets, in the quick-start system. I'm gonna walk you through pretty quickly how to do this, but you, what you wanna do, is you wanna create what's called a value circle. You've actually got this in your handout. I tell people make a long list of your values. Go home tonight, think about what's most important to you. That's a value, not a goal. So if I go back real quickly here, a value would be security, a goal would be retire with one million dollars. A value would be freedom, the goal would be pay off your mortgage. A value would be happiness, the goal would be be debt-free. A value could be peace of mind, the goal would be don't worry about debt. A value could be family, the goal would be spend more time with my kids. A value could be spirituality, the goal would be go to church or temple. When you look at lives that aren't working, typically it's because someone's got values, and someone's got goals, and they're in conflict. And so, that conflict is like this all the time, where they're spending money is not matching up with their value system. And the way you fix finances is you go what are my values, and what are my goals, and you get them to work together congruently. You do that and you've got basically an unbreakable force that pulls you towards what you really wanna go do in life. Does this make sense? It's kinda deep and sorta spiritual and a little esoteric which is why I left it 'til the end of the class. But it's super important. So here's your exercise: write out your values, come up with five core values. Put em in a little circle, which one's most important doesn't matter, but I find that you can focus on five values. Then create five specific goals based on those values. So come up with your top five goals for the year, financially, like leave here and think to yourself five goals you've got. And then write down the value next to them as to what that goal is gonna help you achieve. Does that make sense? That way you'll be super clear. Like if I go- like the bi-weekly mortgage payment plan. That's a technique. What's the value gonna help you do? Help your freedom. Might be okay you know what, if I play this all the way, if I can pay my home off earlier, I can spend more time doing this this this and this. Setting goals that help make your values real. People underestimate the power of writing down goals to the point that I almost feel funny talking about them because what I'm about to say, you've all heard it before. How many of you have heard that you should write out your goals? Okay. So it's January, what day is today, January what? [Audience Members] 19th. 19th. The few people who actually write out goals will write them out, make new year's resolutions usually the beginning of January. There've been all kind of studies done that the average person basically falls off their goals by January 17th. Which means a whole lotta people across America, at this point right now, have already given up on their goals for the year. So there have been massive amounts of research that simply show for a fact that people who write their goals out statistically achieve those goals at like an 80-90% more likelihood than people who don't write out their goals. I could give you a zillion documented cases of this, and you've probably heard some of them. What I have taught for a long long time in my seminars, specifically Smart Women Finish Rich, we've had a half a million women go through those seminars with this worksheet, you write out five goals for the year, you list those five goals. You make them specific, measurable and achievable, you use the form that we gave you, you've got a downloadable form, for five goals to write them out, where you put down your values, you put down why it's important to you, actually maybe we- yeah we have it right here, we gave you three. You make a specific measurable, achievable and compatible with your values you go home and you come up with five goals for the year. And I will tell you that it's worth looking at them more than once. Like putting it in front of you on your desk, putting it in your bathroom, making multiple copies, putting it on your phone, take a picture of it, put it on your phone, look at it every morning. Great. more likely you will get there but I will tell you a little secret about writing these things out 'cause I have never understood why this is true but it is true, you write out five goals like this on a piece of paper, you stick them in an envelope. And you seal the envelope. And you stick the envelope in the drawer and you date it. You come back and you open up that envelope in a year, you will be shocked how often you have achieved those goals. I have been writing goals out on paper for 20 years. And many of my goals have been insane, like they should have never happened. Now they don't always happen in a year, but I'll go back and I'll see those goals and I'll be like "Whoa, that was just a fantasy." In 1994 when I'm like I wanna teach a class called Smart Women Finish Rich and then someday I wanna write a book and then I wanna go out and teach it to a million people I just made it all up. I have the paperwork, the word's there. I go back, I'm like, I have these, I wanna go on this TV show and do this, I wanna go make this happen and do that. And I go back and I'm like oh, my God, it came true. So there's serious power in writing this stuff out and there's a spirituality to taking what's inside of you putting it down on paper, and committing to it. But don't get all freaked out like oh, my God, I wrote it down on paper and now I gotta look at it all the time. No, sometimes just put it on paper, stick it in an envelope, stick it in your drawer, you'll be shocked. I want you to build a dream team. Why do I want you to build a dream team? Because sometimes it's great to do this on your own, and it's even better to find people who will support you. I always ask the question, who will support you? Sometimes it's super cool to find other friends that you can do this with. That might be your spouse, that might be your best friend, you might be taking this class and you're like, I'm totally into this, I wanna go do more on this, I wanna... Talk about this with your friends. See if you've got some friends that wanna do this journey with you. Let's use credit card debt for example. Maybe you're in credit card debt and you're like, you know what? My dream- that's one of my dreams, I wanna get out of credit card debt in the next two years. And you're talkin' to your friends and you're like, you got credit card debt? I'm makin' it my dream to get out of credit card debt in the next two years, you wanna do this with me? We could work together as a team on this. That's one small example. Maybe you wanna be a real estate investor. Great. Whatever the dreams are, getting a dream team around you can change it and make it more real. Now, with that being said, you also need to avoid dream stealers. How many of you know people that are really good at sucking the dream right out of your life? Do we wanna name them right now? You know who these people are, right? And often they're family, right? Often they're the parents or the sister or the brother and sometimes unfortunately it's your spouse or your kids. The weirdest thing that people do is they go to an event like this, they get super excited and motivated, and then the first thing they do is take it to the dream stealer. 'Cause you're all excited and you wanna show it to this person 'cause you're hoping they're gonna go, oh, my God that's amazing! You should do that. In the back of your head you're like they're gonna just rain all over this parade. Don't take it to those people, okay? Don't let anybody else steal your dreams. If you have these people in your life you can do what I call quiet file them. I hear people all the time say you know what you should just get rid of these people, get them out of your life. Sometimes you can't get them out of your life. But you don't have to pursue more pain by dialing it up. You have a choice to not dial in new pain. I'm here to officially give you permission to stop dialing pain. You have people in your life that are stealing your dreams, don't dial them up. Fair enough? Who's on your dream team? What's your first action for you dream team? And by the way, if you're like look I don't wanna do this, I don't have anybody on my dream team. Then that's okay, then you become your first dream team. Over time, I guarantee you because I've put it out into the world, you're thinking about it, you'll find some people. Make a list of who could steal your dreams Don't just think about this, actually put their names down on paper. Seriously, no joke, have that somewhere around you to remind yourself I'm not going with my new plans to these people. Which takes me to the finishrich clarity question, I started the class by asking a question, if we were getting here together one year from today, what one thing has to happen for you to feel you've made great progress on your financial future? What I want you to do is think about that on the way home today. What's the one thing? I told you I want you to take one action step. So write down the one action step and go act on that today. Again most of what I taught today came out of this book The Automatic Millionaire. So if you're looking for more from me and you wanna read the most current book this is the one that just came out, it's The Automatic Millionaire, if for any reason you are not yet a part of my community, I would love you to come and join me. Come join me on I'm sorry, back slash David Bach and then come and join me also on my website. At right there on my website you can opt in, that little opt in box, and I have what's called, right now we do a three bullet newsletter, every Sunday I send out three tips. Every Sunday it's what I either like, love, thinkin' about, learnin' about sharin' with the people that are in my community. Hundreds of thousands of people get that, we'd love to have you come and join us. And with that I just wanna say a profound thank you to all of you, for spending the entire day with me to learn how to live and finish rich. I am grateful that I got the chance to be here with you, I hope I have helped you at home, I hope I got to make a huge impact in your life, thank you for tuning in, thank you for watchin' me. To the CreativeLive team, give the CreativeLive team here a huge round.

Class Materials

Free Bonus Materials

Automatic Millionaire Starter Kit

Bonus Materials with Purchase

Finish Rich Quickstart System
Pay Yourself First Graphic
Visual Notes 1
Visual Notes 2
Visual Notes 3
Visual Notes 4
12 Steps to Live & Finish Rich Graphic

Ratings and Reviews


Wow! I wish they taught this in school and I would be in a better financial position in my life than I am today. However, I feel hopeful and empowered after watching David Bach speak and I am taking the first step by upping my 401k. I appreciate the realistic approach to wealth and not a get rich fast scheme we all too often hear and the esoteric approach to wealth/happiness that was discussed at the end. Wealth is truly freedom, not just being "rich". Thank you again David and Creative Live!


As a self employed musician and artist, I have been a long time follower of David Bach! Every penny made as an artist counts, and David will help you make the most of it. This class and his books are life changing! I started following him 15 years ago. Financially I have had amazing years, and very rough years, which I know is very typical for artists and musicians. With David in my corner, I've always had peace of mind. From the beginning, when I was in deeply debt and couldn't even afford health insurance David gave me hope. Because of David's teachings, I now own my home free and clear, and have a nice retirement account building, as well as savings, and accounts growing for my children. While both my children are under the age of ten, I take every opportunity to teach my children how understanding money can free you to follow your dreams! A huge YES for this class! Thank you David!

Muniesh Khandelwal

S.M.A.R.T class. Action items well discussed. This is a must have class for those who want to move from a fixed mindset to growth mindset, literally through their own wealth portfolio. This class will show one the balanced pie approach towards wealth, it will challenge you to take action, and it will show you if one follows the strategies and takes actions, they will have a wealthy and a wise life. So glad at myself, that I invested my time to take this class

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