Discover how defining your financial why helps you spend intentionally, build wealth, and stay motivated on your journey to achieving your financial freedom.
Why Your Financial Why Matters
If you invested $500 every month for the next 30 years in an S&P 500 index fund, you could retire with more than a million dollars. But right now, that same $500 could buy you a new wardrobe, a weekend getaway, or that new purse you’ve been eyeing.
So, how do you choose between instant gratification today and the ability to retire comfortably tomorrow? That’s where your financial why comes in.
Your financial why is your purpose. It’s what keeps you focused when you’re tempted to splurge or when progress feels slow. It keeps you grounded when you feel like you’re in a tug-of-war between present you and future you.
Future You: The Person You’re Building For
One of the biggest reasons people struggle to save or invest is that they can’t visualize who they’re doing it for, their future self.
As behavioral psychologist Hal Hershfield explains in this article, “people don’t identify with who they’ll be in the distant future. That future person is a stranger to them.” When you think about it, that makes sense. Why would you sacrifice for someone you barely know?
That’s why getting clear on your financial why is so important. When you see Future You as someone you deeply care about, like your child, parent, or best friend, your motivation shifts. Saving becomes an act of care, not deprivation.
The Future You Exercise
To connect with my future self, I tried something I saw on the Netflix series Money, Explained. Hal Hershfield suggested using technology to see what you might look like years from now.
So, I went on TikTok and used the Aged filter. My reaction? “Who the hell is that?!”
That person felt like a stranger, and honestly, it was a wake-up call.
Once I recovered from my initial shock, I realized two things:
- I want the freedom of choice. I want the freedom to retire early, enjoy my investments, and not depend on anyone else.
- I want to take care of her. My future self deserves a peaceful, financially secure life. I’m investing and saving for her because she deserves it.
That became my financial why:
To build a life where I’m work-optional, financially free, and able to create generational wealth for my family.
I want my daughter to have security, my mom to feel supported, and my future self to live joyfully, not paycheck to paycheck.
Finding Your Financial Why
When instant gratification feels so good (and let’s be real, it usually does), your why keeps you grounded.
Whether you’re paying off debt, saving a down payment for a home, or investing for retirement, get clear on why you’re doing it. “Because I should” won’t keep you motivated, purpose will.
Here are a few questions to help you find your financial why:
- What will paying off debt or saving allow me to do?
- What do I want my money to make possible?
- What financial stress do I want to eliminate for good?
- What brings me genuine joy or peace of mind?
Once you’re clear on your why, use it as your anchor. Without it, it’s easy to drift back into old habits, such as overspending or chasing short-term satisfaction.
Pro-Tip: You can still enjoy life now and plan for the future. Here’s how:
- Add “fun money” to your monthly budget for guilt-free spending.
- Create a “Random Shit I Want to Buy” sinking fund for spontaneous purchases.
- Reward progress, not perfection.
Being intentional doesn’t mean being restrictive. It means your money finally aligns with what matters most to you.
What’s Next?
You’re not going to slip, fall, and land on your goals. You need a plan.
If you’re ready to start aligning your spending with your values, start by clarifying your financial why. Once you have it, every dollar will have direction and purpose.
For help getting started, check out my Free Aligned Spending Plan to start aligning your spending to your goals.
