by: Arthur Noel B. Ladaga

Here at the Colayco Foundation, we are often asked a lot of questions. Most of it has to do with the best investment option. There’s nothing really wrong with the question. With all different kinds out there it’s hard to choose the right one. Each has its strengths and weaknesses. Different people also have different of preferences. What is it that really helps in choosing the best one? The answer is simply first and foremost, to know one’s financial objective

Your financial objectives revolve around three things: Purpose, Target, and Time. Purpose is the reason why you are investing in the first place. Target is your desired amount to reach. And lastly, time is the period you have to achieve your target.  Knowing your financial objective helps in choosing the best instrument around because each instrument is unique

And yet when most people are asked of their financial objectives, most people cannot give a straight answer. Some people reply “I want to be rich.” There’s nothing wrong with it but it’s still not well defined. Others are absolutely clueless, as if staring at an imaginary wall. And there are those who get upset and say “I don’t have one! I just want to have more money!”

Time and time again we emphasize the need to know to one’s financial objectives. Its usefulness knows no bounds. The most successful individuals are those who know their goals by heart. They can even say it while they’re sleeping. And yet at the heart of proper financial planning lies a spiritual essence that many ought to discover. Religious or not, you must realize that money is also a spiritual matter that needs to be dealt with. Knowing the spiritual aspects of financial planning will enable you to realize its importance in a more profound sense.

Separation from Money

When we do financial planning, we are actually separating ourselves from money. Most people will find this absurd. “I want to have more money. Are you telling me that I shouldn’t want it?” To separate yourself from money simply means not desiring money for its own sake!

Some of you may recall the quote “the love of money is the root of all evils…” (1 Tim 6:10, New American Bible). Money itself is not evil if you read the verse carefully: “For the love of money is the root of all evils, and some people in their desire for it have strayed from the faith and have pierced themselves with many pains.”  The real evil is to desire money for itself that one forgets the most essential things in life. One writer cleverly summarizes it this way: “What is essential is invisible to the eye (De Saint-Exupery)”

When you do financial planning, you are telling yourself not to seek money for itself. Seeking money for its sake can corrupt the human soul. How many important relationships have ended because of the distorted desire for money? How many people are miserable despite having lots of money? Self-mastery is an important trait to have when dealing with money. Money is a powerful ally to wealth but it can distort you when not properly handled.

Purpose-Driven Money

The second spiritual aspect of financial planning is to make your money purpose-driven. Once you have self-mastery over your need of money, it should be clear why you need it. You may need it to buy a house for your family. You may need it to finance your children’s education. Or you may need it to give more to the less fortunate. Any attempt to a financial endeavor without a clear purpose for your money can be likened to blind spending!

Money with a clear and noble purpose can help achieve the ultimate end of human life. Humanity only has one particular calling: to live an authentic life in accordance with the divine will. You can find this at the beginning pages of the Bible:

God created man in his image; in the divine image he created him; male and female he created  them. God blessed them, saying: “Be fertile and multiply; fill the earth and subdue it. Have dominion over the fish of the sea, the birds of the air, and all the living things that move on the earth. (Gen. 1:27-28)

To “be fertile and multiply” not only implies an increase in physical number. Being created in the image and likeness of God, you are expected to live up to it. You must continuously develop yourself to live up to your first true calling. This is what it means to “be fertile and multiply!” When you do financial planning, you make your money help you become a well-rounded person in many aspects: financially, emotionally, spiritually, and others. The same expectation applies when you use your money to help the people around you, particularly your loved ones and your community.

The Impermanence and Giftedness of Money

Lastly, financial planning reminds you of money’s impermanence and giftedness. Like everything else in this world, money lasts temporarily. You cannot take it to the grave with you. It will eventually decay regardless of what kind of physical protection it has.

Nevertheless, money is also a gift. It may be a man-made invention used to purchase
goods or services, but it is essential in daily living. People need it to buy their needs and wants. In addition, many people have difficulty earning money. The fact that you are able to obtain money legitimately (whether through active or passive income) makes you realize the importance of it in your life. You are given opportunities to earn and grow it so that you can utilize it better. This is the essence of money’s giftedness!

Saint Ignatius of Loyola, the founder of the Jesuits, gives a wonderful insight regarding the giftedness of all created things:

All the things in this world are gifts of God, presented to us so that we can know God more easily and make a return of love more readily. As a result, we appreciate and use all these gifts of  God insofar as they help us develop as loving persons. But if any of these gifts become the center of our lives, they displace God and so hinder our growth toward our goal.

Financial planning helps you value your money in a proper way. Because money is not permanent, it’s important to know precisely how it should be used. It must never be treated as your god (Matt. 6:24)! At the same time, you become obligated to grow it. You are responsible to grow your God-given gifts (Matt. 25:14-30, Luke 19:12-28) to live authentically. Money, at its innermost essence, is God-given! You are given legitimate opportunities to earn and grow it. Having a feasible financial plan helps and keeps you responsible over your money!

To See With New Eyes

Planning is a vital aspect in any endeavor that you take. It is not just about making everything clear and specific. It also involves continuously reminding yourself of the most important aspects of life. This is what financial planning does. It may seem to be a dull and boring process, but the challenge is to look at it with new eyes! There’s much more to financial planning than what meets the eye. In knowing its spiritual aspects, you empower yourself further to reach your true wealth!

Sources:

De Saint-Exupery, A. (n.d.). The Little Prince. Swansea: Department of Computer Science. Retrieved from http://cs.swan.ac.uk/~cswill/The_little_prince.pdf

Saint Ignatius of Loyola (n.d.). The First Principle and Foundation of the Spiritual Exercises. Ignatian Spirituality Institute. Retrieved from http://sites.jcu.edu/isi/

Arthur Noel B. Ladaga is the current Programs Officer of the Colayco Foundation for Education, Inc.