Traditionally, financial planning has emphasised building a large retirement corpus, reflecting a global norm driven by the need for security. However, this focus on accumulation can sometimes overshadow the pursuit of a fulfilling life today.
Recent statistics, like the Dh13.8 billion increase in savings deposits in Q1 this year, highlight a growing awareness of financial security, but they also invite us to reconsider our approach: is it enough to simply accumulate wealth?
While accumulation is often seen as the ultimate financial goal, focusing solely on this can negatively impact happiness and long-term satisfaction. More people are now embracing intentional living, which prioritizes personal values and experiences over mere accumulation.
What does intentional living look like?
Intentional living is about making decisions with clarity and purpose, focusing on what truly matters to you. This might involve dedicating more time to family, pursuing a creative passion, investing in meaningful experiences, or simply savouring the present moment with friends and loved ones.
Financial stability remains essential, but the emphasis shifts towards creating a fulfilling life now, rather than postponing joy and satisfaction for the future. By aligning your financial resources and tools with your personal values and implementing thoughtful planning, you can significantly enhance your everyday experiences.
Crafting a vision
To begin living intentionally, start by envisioning your ideal life and setting clear goals.
For instance, someone who loves travelling and exploring new cultures might allocate a portion of their disposable income each month for philanthropy and cultural exploration, allowing them to contribute to causes regularly and enjoy cultural experiences without overspending. The key is to determine the income needed to cover essential expenses while allowing for intentional spending on your priorities.
“Is it enough to simply accumulate wealth?”
How much can this “budget” be stretched to have an experience every three months? Such financial considerations should be specific and broken down into manageable steps, even if it means going down to a granular level of what it costs per day.
Mindful spending, then, becomes about making conscious choices with your money, and prioritizing expenditures that enhance your quality of life. It’s not about deprivation but ensuring that your spending reflects your values while supporting your day-to-day sustenance and long-term goals.
Keep it simple, keep it steady
Adopting intentional living involves discipline and practical steps. Start by reflecting on your values: What truly matters to you? What activities, people, experiences, or causes bring you joy and fulfilment? Can you add another stream of income without being consumed by the grind of working all the time? Use these reflections to guide your decisions.
“The key is to determine the income needed to cover essential expenses while allowing for intentional spending.”
Next, set specific financial goals that will support your intentional living. Determine what financial targets you need to hit to live the life you envision — both now and in the future.
Consider collaborating with a financial coach or wealth architect who can understand your personal circumstances and help break these goals down into manageable actions. They can suggest behavioural changes required to achieve your goals, set up automated transfers to your savings and investment accounts, and ensure your basic financial security is in place.
Establish a minimum expense threshold for your monthly needs. Any additional income can then be used to enhance your intentional living experience.
