Most businesses use key performance indicators (KPIs) to measure both short-term execution and progress towards long-term goals. For example, a well-oiled sales team knows that if they make X number of prospect calls every week, they’re going to convert X% of those calls into new business. Consistently executing on today’s KPI keeps the company progressing towards its larger goals.
You might identify KPIs that are important to your financial plan as well, such as how much money you’re earning, saving, investing, and spending, how many years you are from major life transitions, ages that can trigger important planning decisions, and what having “enough” really means when you’re getting ready to retire.
But Life-Centered Financial Planning encourages folks to focus on not just money, but on how their money is helping them to live their best life possible. To get a fuller picture of your true “wealth,” develop some personal KPIs that measure your progress in these areas.
Wellness
You can draw a few pretty straight lines between your health and your money: if you’re eating well and exercising regularly, you’re increasing your chances of avoiding costly medical problems in the future. The goals you set and track with your phone or smart watch could, literally, be saving you money and adding years to your life.
But exercise can also boost our moods, stimulate our minds, and provide opportunities to connect with people. A small goal, like taking a walk through your neighborhood three days every week, could be the start of a healthy habit that improves multiple aspects of your life. Maybe neighbors start joining you on your walks. Maybe walks turn into runs. In a year or two you might be travelling someplace new to run a half-marathon.
Relationships
Some folks resist “relationship goals” or blocking time for friends and family because it can feel impersonal or take some of the fun and spontaneity out of spending time with loved ones. But when you’re wrapped up in the hustle and bustle of work and shuttling kids to extracurriculars, real quality time often gets pushed to the side.
A mix of large and small KPIs can improve your connections with the people who matter most. Set a family vacation time KPI, check everybody’s schedules, and block off those weeks as far in advance as you can. Set regular friends and family goals as well, like playing a monthly round of golf with your old foursome or having dinner together with your family every Sunday night.
Personal Development
Stop kicking yourself about the New Year’s resolutions that didn’t make it into February. You can set achievable goals any time of the year that will build towards tangible progress. Just set your sights on a goal that motivates and inspires you, and break it down into actionable steps:
If you want to learn Spanish, block 30 minutes every day to drill your flashcards, and a weekly goal for new words learned.
If you want to be healthier, set a KPI of hitting the gym three days every week.
If you want to make a career change, your KPI might be the amount of money you need to save to cushion your pivot, or the class hours you’ll need to earn a certification.
If you want to be more intentional about giving back, set a weekly volunteer hours KPI, or work with your Licensed Financial Planner on establishing annual charitable goals.
Our suite of interactive Life-Centered Planning tools can help you establish impactful personal and financial KPIs, as well as action plans to keep those numbers trending in the right direction. Schedule a meeting and let’s start investing more of your time and money into the most rewarding parts of your life.
