How to Create a Values-Based Financial Plan for You or Your Business

Money is more than just numbers. It’s a tool to help you live the life you want or grow a business that makes a difference. A values-based financial plan lets you use your money in ways that match what you care about most, like family, community, or the planet. 

This guide will show you how to build a values-based financial plan step by step. We’ll keep it simple so anyone, even a fifth-grader, can understand. By the end, you’ll have a clear financial strategy to reach your personal wealth goals.

The Power of Values-Based Financial Planning

A values-based financial plan is a smart way to manage your money by focusing on what you believe in. It’s about making choices that feel right for you, like saving for your kids’ future or supporting businesses that protect the environment. This type of planning helps you create a financial strategy that matches your personal wealth goals and makes a positive impact.

With values-based financial planning, you decide what’s important. For example, if you care about helping others, you might donate to a charity. If you own a business and value fairness, you could ensure your workers earn a good wage. Unlike regular financial plans that just look at saving or spending, values-based financial planning connects your money to your dreams. It’s like giving your wallet a purpose!

This approach works for everyone. Individuals can use it to plan for big things, like buying a home. Businesses can use it to grow while staying true to their mission, like using eco-friendly materials. By choosing values-based financial planning, you make sure every dollar you spend or save helps build the life or business you want.

Why Use Values-Based Financial Planning?

Using values-based financial planning has big benefits. Here’s why it’s awesome:

1. It Fits You: Your personal wealth goals come first. Want to travel or start a shop? Your plan makes it happen.
2. It Feels Great: Spending on what you love, like helping animals, makes you happy.
3. It Builds Trust: Businesses that use values-based financial planning show they care. Customers love that.
4. It Keeps You on Track: You focus on what’s important and skip wasteful spending.

With values-based financial planning, your financial strategy becomes a map to a life or business you’re proud of.

Step 1: Figure Out What You Care About

To start values-based financial planning, you need to know your values. These are the things you care about most, like family, helping others, or saving the environment.

How to Find Your Values

Think about these questions:

• What makes me smile every day?
• What do I want to do with my life?
• What kind of world do I want?

If you care about family, you might want to save for a big family trip. If you love the planet, you might buy from eco-friendly shops. Businesses can think, “What do we stand for?” A café might value community and host free events.

Write down five things you care about most. Here’s an example:

• Keeping my family safe
• Helping the environment
• Supporting my town
• Learning new things
• Being fair to others

These values will guide your values-based financial plan.

Step 2: Set Your Money Goals

Now that you know your values, set personal wealth goals. These are things you want to do with your money, like buying a house or growing your business. Your goals should connect to your values.

Examples of Money Goals (h3)

Here are some personal wealth goals based on values:

• Value: Family – Save $10,000 for a family vacation in three years.
• Value: Environment – Put 10% of your money in green companies.
• Value: Community – Give $50 a month to a food bank.

Businesses might have goals like:

• Value: Fairness – Pay all workers fairly by next year.
• Value: Planet – Use only recyclable packaging by 2026.

Make your goals clear and easy to track. Try this trick:

• Clear: Say exactly what you want, like “Save $5,000.”
• Trackable: Check your progress, like “Look at savings every month.”
• Possible: Make sure you can do it with your money.
• Matches Values: It should feel important to you.
• Has a Deadline: Set a time, like “In two years.”

Your personal wealth goals are the stars you’ll aim for in your values-based financial plan.

Step 3: Check Your Money Situation

Before you make a values-based financial plan, look at your money. This means knowing what you earn, spend, save, and owe. For businesses, it’s about profits, costs, and debts.

How to Check Your Money

Do these steps:

1. Write Down Earnings: How much money do you get each month? For businesses, list all sales.
2. List Spending: What do you pay for, like food, rent, or supplies?
3. Look at Savings: How much have you saved or invested?
4. Check Debts: Do you owe money on loans or credit cards?

This helps you see what you can do. If you spend a lot on stuff you don’t care about, you can stop. That gives you more money for your personal wealth goals. A business might find it’s spending too much on ads and switch to supporting local events instead.

Step 4: Make a Financial Strategy

Your financial strategy is the plan to make your values-based financial plan work. It covers how you’ll budget, save, invest, and spend.

Budget for What Matters

A budget helps you control your money. In values-based financial planning, you spend on what you love. For example:

• If you value learning, save for online classes.
• If your business cares about the planet, buy eco-friendly products.

To make a budget:

1. Write down what you earn and spend.
2. Put money toward your personal wealth goals first.
3. Cut back on things that don’t match your values.

Save and Invest Smart

Saving and investing help your money grow. In values-based financial planning, choose options that fit your values. For example:

• People: Save in banks that support good causes or invest in companies that help the planet. Check out the CFA Institute article on values-based investing for ideas.
• Businesses: Use profits to fund projects like community gardens.

Always check where your money goes. Make sure it supports your values-based financial plan.

Spend with Purpose

Every time you spend, think about your values. Buy from shops that care about the same things you do, like fair pay or green products. Businesses can pick suppliers that match their mission. This makes every dollar part of your values-based financial plan.

Step 5: Build a Values-Based Financial Roadmap

Your values-based financial plan is like a map. It shows you how to reach your personal wealth goals. To build a values-based financial roadmap:

1. List your values and goals.
2. Write down steps, like saving $100 a month or investing in a green fund.
3. Set checkpoints, like “Save $2,000 by next summer.”
4. Check your plan every six months.

Businesses can make a roadmap too. For example, a store might plan to “Use only local suppliers by 2027.” Share it with your team to stay focused.

Step 6: Keep Checking Your Plan

A values-based financial plan needs updates. Things change, like getting a new job or starting a family. Check your plan to keep it working.

How to Check Your Plan

• Every Month: Look at your spending. Are you following your financial strategy?
• Check Goals: Are you getting closer to your personal wealth goals? If not, change something.
• Update Values: If what you care about changes, fix your values-based financial plan.

Businesses should check every few months. Ask, “Are we spending on what matters?” If not, make changes to stay true to your values-based financial plan.

Problems You Might Face

Values-based financial planning is great, but it can be tricky. Here are some problems and how to fix them:

1. Hard to Find Good Investments: It’s tough to find companies that match your values. Fix: Look for special funds that focus on things like the environment.
2. Costs More: Green products or fair suppliers might be expensive. Fix: Start small and save up.
3. Losing Focus: You might spend on stuff you don’t care about. Fix: Keep your personal wealth goals in front of you.

Planning ahead helps you stick to your values-based financial plan.

Tools to Make It Easier

You don’t need to do values-based financial planning alone. Try these tools:

• Budget Apps: Apps like Mint show where your money goes.
• Investment Sites: Sites like Wealthfront have options for value-based investing.
• Money Experts: Talk to someone who knows values-based financial planning.

Businesses can use tools like QuickBooks to track spending and keep it value-focused.

Stories of Values-Based Financial Planning

Let’s see how values-based financial planning works in real life.

Story 1: Emma’s Plan

Emma loves her family and animals. Her personal wealth goals are to save for a new home and help a pet shelter. She makes a values-based financial plan:

• Saves $200 a month for a house.
• Puts 10% of her money in animal-friendly companies.
• Gives $30 a month to a shelter.

After two years, Emma has $4,800 saved and feels happy helping pets.

Story 2: Sunny Farms’ Plan

Sunny Farms is a business that loves the planet and community. Its financial strategy includes:

• Buying food from local farmers.
• Giving 5% of profits to a community center.
• Using solar power for the farm.

This values-based financial plan makes customers love Sunny Farms. Sales go up 10% in a year.

Wrap-Up

Values-based financial planning is a fun and smart way to use your money. It helps you focus on what you love, set personal wealth goals, and make a financial strategy that works. Start by listing your values and taking small steps. Every choice you make with your values-based financial plan gets you closer to a life or business you’re excited about.

Want to learn more? Read this CFA Institute article on values-based investing. Get started now and build a values-based financial roadmap to make your dreams real.

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For a bigger picture on integrating ethics into your finances, read the full guide to ethical financial planning.