When your money is flowing well, and you’ve done the hard yards, do you need to be actively thinking about it all the time?
Unless you’re doing it for fun (like me!), I don’t believe the answer is yes.
This question came up for me when Finn Kelly from Wealth Enhancers introduced me to the concept of the ‘life balance sheet’.
Unlike your personal balance sheet which is Assets - Liabilities = Equity (or Net Worth), your life balance sheet contains much more. Money is there, but it also focuses on your time, health, relationships, experience, education, job satisfaction, quality of life, network and flexibility.
It’s not dissimilar to a Wheel of Life, or several other frameworks I’ve encountered through studying coaching and self-development.
These frameworks help us see that there are several important facets of our lives, and they often reveal when we’re exerting in one area over others.
Where’s the weight?
If you were to score yourself (perhaps out of 10) in each category on the life balance sheet, how would it look?
Would it look the same if you’d done it six months ago? Do you want it to look the same six months from now?
For me, the answer is no on both counts. I’ve been thinking a lot lately about our natural flows of energy, and it’s helped me to be comfortable with two truths:
1. Perfection is a myth.
It’s not practical or possible to score 10/10 for everything, at the same time.
Vanessa Bennett from Next Evolution Performance introduced me to the concept of ‘energy credits’, and how we choose to spend them each day.
When I applied this to my life balance sheet, I realised that when I invest in one area, it impacts another. I don’t believe that we’re operating on a one-in-one-out system, but there is an impact.
An example I’ve raised before is the impact of pushing hard for a promotion and a payrise. Will the additional money from that effort add more value to your life or detract from it? Will it outweigh a possible negative impact on your relationships and health?
The important part is to ask the question, and reflect on what it brings up.
2. We like to mix it up
As humans, we enjoy putting our energy towards things in waves. We’re constantly making decisions around our priorities, reflecting that there are phases where aspects of our lives are more important than others.
Ideally, these decisions are conscious and intentional. This makes a difference when we sit back and realise that we’re not as fit as we were a year ago, because we consciously chose to put our energy towards our career (for example) more than our physical health. Or that we’re not smashing the lights out at work because we want to be more present at home and in our spirituality.
This awareness has given me an enormous amount of peace. It’s removed a lot of the frustration associated with having incredibly high standards.
It’s also been liberating for me to understand that it’s healthy to have ‘power periods’ when I want to. I can enjoy putting my energy into different things at different times.
A fresh focus
After years of having the pedal to the metal with my finances, I’m now consciously choosing to put less of my energy in this direction.
It was scary at first, and felt very foreign. But using the life balance sheet has helped me to understand that there will be another wave in the future where a focus on finances will naturally feel right.
For now, the time, money and energy I’ve invested in this in the past has freed me up to focus on other areas.
Hello to family, relationships, health and a different kind of happiness!
Where are you putting your energy? Is the balance right?
I will be hosting a Q&A on Instagram Live on Tuesday 1 October at 7:30pm (AEST). If you’d like to ask a question, please go to @rfpritch on Instagram during the Q&A or send me a message prior!
Financial Standard Power 50
I’m thrilled to have been nominated for this year’s Financial Standard Power 50. If you’d like to vote for me, you can do so here. Voting closes on Friday 27 September. Thank you so much!