How to Write a Personal Finance Vision That Fits You

A vision statement empowers, inspires, and keeps you accountable as you work toward your goals.

In the realm of personal finance, it's not just about managing numbers and spreadsheets—it's about crafting a future that aligns with your deepest values and aspirations. A personal finance vision statement is your compass, guiding you toward a financial life filled with meaning, purpose, and intention

Creating a personal finance vision statement is not just an exercise in wishful thinking. It's a transformative process that empowers you to take control of your financial destiny. Vision statements are not just about flowery language, but actionable goals that you can reference over and over. With a concise, powerful, values-driven financial statement, you will have a roadmap that resonates with your dreams and the future you envision.

1. Reflect on Your Values

At the heart of your personal finance vision statement lies your values—the fundamental beliefs that guide your decisions and shape your life. Your financial values are the compass that will keep you on track as you navigate the complexities of personal finance.

Take a moment to reflect on what truly matters to you in life. Is it financial independence, the ability to provide for your loved ones, or the freedom to pursue your passions? Perhaps it's a combination of all three. Whatever your values may be, they should serve as the foundation for your personal finance vision statement.

Examples of Values:

• Financial Independence: Envision a future where you have the financial freedom to make choices based on your values and aspirations, rather than being driven by financial constraints.
• Providing for Loved Ones: Picture your family and loved ones thriving financially, with access to the resources they need to live happy and fulfilling lives.
• Pursuing Passions: Imagine having the financial means to explore your passions, whether it's traveling the world, starting a business, or supporting a cause you care about.

Exercise: Take a pen and paper and jot down your top three to five financial values. These values will serve as the guiding principles for your personal finance vision statement.

2. Envision Your Ideal Financial Future

Close your eyes and take a deep breath. Allow your mind to wander into the realm of possibility. Imagine your life in five, 10, or even 20 years. What does financial success look like to you?

• Are you financially independent, with passive income streams providing you with a secure foundation?
• Have you paid off your mortgage and other debts, giving you peace of mind and financial freedom?
• Are you able to travel the world, pursue your hobbies, and make a meaningful contribution to your community?

Be as specific as possible in your visualization. Paint a vivid mental image of your ideal financial future, capturing the emotions and experiences that come with it. Here are some questions to consider:

• What does your daily life look like?
• Where do you live?
• What activities do you engage in?
• How do you feel about your financial situation?
• Are you confident, secure, and in control?
• What impact are you making on the world around you through your financial choices?

Exercise: Take a few minutes to write down your vision for your ideal financial future. Use descriptive language and positive affirmations to create a compelling and inspiring statement.

Example: In 10 years, I envision myself living a financially independent life in a cozy cottage by the beach. I have paid off my mortgage and student loans, giving me peace of mind and the freedom to pursue my passions. I travel the world regularly, immersing myself in different cultures and making lifelong memories. I am actively involved in my community, supporting organizations that are working to make a positive impact on the environment and social justice.

3. Set Clear, Achievable Goals

With your ideal financial future envisioned, it's time to break down your vision into tangible, achievable goals. These goals will serve as milestones on your financial journey, guiding your actions and keeping you motivated along the way. One way to do this is to follow the SMART framework, defined as the following:

• Specific: Clearly define what you want to achieve.
• Measurable: Set quantifiable targets to track your progress.
• Achievable: Set goals that are challenging but realistic.
• Relevant: Setting your financial goals should align with your overall financial vision.
• Time-bound: Set deadlines to create a sense of urgency.

And you’ll want to separate them based on their timeline (time-bound deadlines).

Short-term goals

These are typically accomplished within a year and serve as stepping stones toward your long-term vision. Examples include saving for a down payment on a house or paying off a credit card balance.

Mid-term goals

These goals usually take one to five years to achieve and may involve larger financial milestones such as family financial goals. This could be saving for a child's education or investing in a retirement account.

Long-term goals

These are the big-picture goals that may take over five years to achieve, such as financial independence or retiring early.

Exercise: Identify three to five SMART financial goals that will help you move towards your ideal financial future. Consider a mix of short-term, mid-term, and long-term goals to create a balanced and achievable plan.

Here are some examples of practical financial goals:

• Short-term goal: Save $5,000 for an emergency fund within six months.
• Mid-term goal: Pay off $20,000 of student loan debt within three years.
• Long-term goal: Achieve financial independence by age 55 through a combination of passive income streams and investments.

4. Use Positive, Present-Tense Language

The language you use in your personal finance vision statement has a powerful impact on your subconscious mind and your ability to manifest your goals. By using positive, present-tense language, you create a sense of belief and urgency that propels you toward your desired financial future. Here’s why it matters:

• Positive language creates a sense of optimism and excitement, making you more likely to take action toward your goals.
• By focusing on the positive outcomes, you minimize negative thoughts and self-limiting beliefs.
• The law of attraction states that like attracts like. So, the more positive language you use, the more positive experiences and financial opportunities you invite into your life.

Writing your vision statement in the present tense creates a sense of immediacy and urgency as if you are already experiencing your desired financial reality. This helps to bridge the gap between your current situation and your future goals.

Example: Instead of "I will save for a down payment on a house," write "I am saving for a down payment on a house."

Exercise: Revise your personal finance vision statement using positive, present-tense language. Focus on the emotions and experiences associated with your ideal financial future.

Example: In 10 years, I am living a financially independent life, filled with abundance and joy. I am grateful for the freedom and peace of mind that comes with financial security. I am actively making a positive impact on my community and the world around me.

5. Keep It Concise

Your personal finance vision statement should be a concise and powerful declaration of your financial aspirations. Aim for a length of two to three sentences or a maximum of 50-75 words. Here’s how keeping it short and concise helps:

• A concise, memorable vision statement is more likely to guide your financial decisions daily.
• Make sure your statement is short and clear, eliminating distractions and ensuring that your vision is unambiguous.
• Your vision statement should be impactful, with language spurring you to action and inspiring you to meet your goal.

Stick to concrete goals, strong verbs, and short language

Define your goals as concretely as you can. Focus on the most essential elements of your financial vision, including your values, goals, and aspirations. Use strong verbs that convey action and movement, such as "achieve," "create," or "manifest." And make sure to carefully review your vision statement and remove any words that don't add value or clarity.

Example: My financial vision is to live a life of abundance, freedom, and purpose, where I am empowered to make a positive impact on the world.

6. Display It Prominently

Once you have crafted your personal finance vision statement, it's time to display it prominently where you will see it daily. This constant reminder will keep you focused and motivated, especially during challenging times.

When you have it out and about on display, it helps to reinforce your goals, keeping you on track. It also helps with accountability, as displaying your vision statement publicly can help you maintain momentum and check in with others to encourage progress. Framing it can lend a sense of importance and formality, to showcase how serious you are about it.

Where should you display your vision statement?

• Your bedroom or bathroom mirror: Seeing your vision statement first thing in the morning or before bed sets the tone for your day and helps you stay focused on your priorities.
• Your desk: Displaying your vision statement at your desk serves as a constant reminder of your goals, even amidst the daily hustle and bustle.
• Your phone or computer: Set your vision statement as your phone or computer wallpaper or screensaver to keep it top-of-mind throughout the day.

A Personal Financial Vision Statement Reminds You Of Your Values

When you’re in the middle of life, it can be hard to step back and remember why you’re doing what you’re doing. This is why a personal financial vision statement can be so powerful—because it helps you realign yourself with what matters most. All it takes is a little bit of mental work to figure out what matters most and when. Check in with yourself every so often to ensure that your vision statement still rings true.