Real financial planning goes far beyond spreadsheets, securities and stocks. It’s about connecting money to life. And sometimes, the most important questions aren’t just “Can we afford it?”, but, “Is this the right decision for our lives right now?”
In a recent conversation with clients, a seemingly simple question was raised: “Can we afford to upgrade to a larger home?” On paper, with stable incomes and good credit, the answer was yes. But digging deeper revealed that affordability and alignment are not the same thing.
If this were you, we could say that you can make the numbers work, but is this truly what you want to do, knowing what this means for the rest of your financial life?
When we look beyond affordability and apply financial modelling, several important factors might come to light:
- Hidden interest costs: Most of the new monthly bond repayments would go towards interest rather than equity in the early years.
- High upfront expenses: Transfer duties and transaction fees could add up to a substantial sunk cost.
- Asset imbalance: A growing portion of your wealth will be tied up in property, rather than in accessible, income-producing investments.
- Bonus dependency: Past spending habits could reveal patterns that show lifestyle inflation has crept in, with bonuses or other windfalls being used to “catch up” rather than build financial stability.
These insights help us pause and reflect, expanding the conversation beyond the paperwork. We can more easily consider alternative conversations around what life could look like if you proceeded with the purchase, stayed put and invested the difference, or restructured your current portfolio. The long-term implications for retirement, financial freedom, and stress levels are also then all brought into focus.
Reframing the question
With the couple mentioned above, as the conversation unfolded, they realised the initial question wasn’t just about buying a new home. It was about how they wanted to live. With this insight, they were able to consider improving their current space, renting instead of buying, and exploring properties that could provide additional income.
These discussions led to a more creative and values-based conversation: What kind of lifestyle are we trying to build? What trade-offs are we willing to make?
This is a deeply valuable process as it’s not just financial, but personal. Again, financial planning is not just about answering, “Can I afford this?” It’s about aligning today’s choices with tomorrow’s vision. It’s about building a strategy that balances wants and needs, today and tomorrow, logic and emotion.
When financial planning focuses on more than just money, when it helps us gain clarity on our values, priorities, and long-term aspirations, it becomes one of the most powerful tools for building a life that feels both meaningful and secure.