“The ability to simplify means to eliminate the unnecessary so that the necessary may speak” – Hans Hofmann
We understand that living the life you want is about more than just the numbers in your bank or investment account. At WellsFaber, we believe that financial freedom and peace of mind come from having a sound financial plan and focusing on what truly matters to you. As Hans Hofmann once said, “The ability to simplify means to eliminate the unnecessary so that the necessary may speak.” By embracing this concept, you can create a personal financial plan that allows you to thrive. During the lockdowns, so many of us learned that we could actually thrive on much less complexity in our lives.
Essentialism is a philosophy that encourages focusing on what is most important and eliminating the non-essential. In financial planning, this means identifying your core financial goals and working towards them, while eliminating distractions and unnecessary complexities. Practising essentialism can streamline your financial life, help you achieve your goals, and enjoy financial freedom.
To begin incorporating essentialism into your financial planning, consider the following steps:
- Reflect on your priorities: Ask yourself, “What is most important to me in my life right now?” Take time to consider your values, dreams, and aspirations. This reflection will help you identify your core financial goals and what you could prioritise in your financial plan.
- Identify the bottlenecks: Using the Theory of Constraints, recognise the obstacles or limitations in your current financial situation that hinder your progress towards your goals. These bottlenecks include high-interest debt, a lack of savings, or incorrect investment structuring. By addressing these constraints, you can transform your financial situation and make significant strides towards your goals.
- Eliminate the non-essential: Review your expenses and financial commitments, and eliminate those that do not align with your values and priorities. This could involve revisiting discretionary spending, cancelling subscriptions, or consolidating debt. By simplifying your financial life, you can focus on what truly matters and allocate resources more effectively towards your goals.
- Streamline your financial processes: Look for opportunities to automate and consolidate your financial management. This could include setting up automatic savings or investment contributions, using financial management tools, or working with a professional financial advisor. By simplifying your financial processes, you can reduce stress, save time, and ensure that your financial plan stays on track.
- Continuously reevaluate: As your life evolves, so will your financial goals and priorities. Regularly review and adjust your financial plan to ensure it remains aligned with your values and aspirations. By staying focused on what is essential, you can continue to make progress towards your goals and adapt to life’s uncertainties.
At WellsFaber, our mission is to provide professional, personal advice that empowers you to live the life you want. Through ongoing support and guidance, we can help you embrace essentialism in your financial life, achieve your goals, and enjoy financial freedom. By simplifying your financial life and focusing on what truly matters, you can eliminate the unnecessary and let the necessary guide you towards the life you’ve always dreamed of.