By: Maria Williams
More and more, the middle class is beginning to feel like an out-of-reach fantasy for most Americans to achieve. While the inflation rate is decreasing, mounting prices, income inequality, and the general sense of imbalance of the last few decades mean that people all over America have changed their spending habits to reflect the uncertainty of the times.
The extent to which finances define the narratives of American lives, or their ‘money story,’ is deeply informed by generational trauma. Money represents worth and security in our society. So, when an individual’s sense of safety is denied by their circumstances, it can manifest in financial insecurity.
Especially for young earners – who have not yet learned the ins and outs of financial literacy – different kinds of scarcity can shape life narratives of both emotional and economic insecurity. “So many of the younger people I work with tell stories of feeling like they’re not making progress, that they feel like they’re behind everyone else. And by nature of this insecurity, they can’t talk to anyone about it,” explains Dace Dekruif, CFP®, founder of Silver Strand Financial Planning (SSFP).
Silver Strand Financial Planning offers financial services such as holistic planning, investment management, estate planning, planning strategies, college planning, and financial coaching for clients anywhere in the USA. Dace founded SSFP after over twenty years of traditional investment banking to empower his community to find abundance in life and freedom in their finances through ongoing advice and education.
The vicious cycle of financial insecurity is only exacerbated by the major economic and social transformations of recent times. A Wells Fargo study finds that 67% of Americans have reported that they’re spending less, and 45% have put some of their life plans on hold due to inflation. Even with the increasing frugality, two-thirds report that they have little leftover after bills are paid. Within families, a third of Americans find money as a source of conflict in their relationships, a fraction that rises to 47% for younger couples.
As reasonable as the general population’s concerns are, it is simultaneously true that median wealth in the country has increased since the 80s. So, how can Americans begin to reverse the toxicity of their current relationship with money and feel safe in life and finances? Silver Strand Financial Planning has delineated a comprehensive method to reach financial health from any starting point.
Dace’s methodology’s cornerstone is a ‘Personal Statement of Financial Purpose,’ or PSFP, that he encourages clients to write. “It creates the guiding light for everything we will work together to achieve,” says Dace. Two or three sentences that define someone’s values and goals for what they desire to achieve in the long run can deeply inform how they make their daily financial decisions. “We can go slow, stick to the path, and appreciate the journey along the way,” Dace explains.
Rather than writing one’s PSFP with assets, debts, or income in mind, the first step is to define a client’s ‘why.’ Some of Dace’s guiding questions are: “What does money mean for you? When you’re old and with your loved ones, what will you feel happy about when you look back on your life?”
Dace recounts one of his sessions—a couple that felt they didn’t have enough time with each other due to their jobs. “Part of their PSFP is to enjoy each day, and that’s a lovely purpose to have. They wanted to travel, but have 80-hour work weeks, a sick dog, and life just gets in the way,” he remembers. “As the conversation continued into their expenses, They said they buy a lot of organic, good food because they love cooking and spending dinners together.” This moment allowed Dace to reframe his clients’ perspectives. Rather than ‘travel’ as the end goal, he showed them that their values were already fulfilled through that time together.
Second, clients are encouraged to analyze their ‘big picture ideas’ and narrow them down to their core values. “It’s often scary for younger clients to define their goals and values. Usually, because they are afraid to materialize the possibility of failure by writing their dreams down on paper.” Although Dace recognizes that condensing one’s entire self into a few sentences is difficult, “it’s important to plan and maintain your finances with intention; it sets you up for success.”
Finally, clients can turn their now solidified values into a memorable message that sticks with them throughout their lives. “The biggest themes I find across all my clients is a desire for generosity, freedom, family, and happiness,” Dace notes. SSFP manages to decenter the burden of perpetual accumulation from their clients’ money stories. Instead, they emphasize the values behind why people want to maintain their financial growth in the first place. The driving force of Dace’s practice is to enable clients to appreciate the existing abundance of life through conscientious and effective long-term financial management.
“Life isn’t a straight line from A to Z. But when we keep honoring our values, nothing can stop our ability to find freedom in where we’ve arrived.” By staying accountable to oneself and engaged with the routine, Dace ensures “you can grant yourself the ability to live life around what’s most important to you.”
Published By: Aize Perez
