Goals-based planning: unlocking financial wellbeing in a fast-paced world

January 9, 2025

In a world shaped by rapid changes and economic uncertainties, financial wellbeing has become essential to overall health and happiness. Recent events, including the global pandemic and economic disruptions, have highlighted the critical link between financial stability and mental, physical, and social health. As people navigate these challenges, taking charge of financial futures has never been more crucial.

Ortec Finance, a risk and return management technology provider aimed at supporting investment decisions, recently delved into the power of goals-based planning.

The concept of goals-based planning offers a clear path from financial stress to confidence. Unlike traditional financial advice, this approach emphasises setting specific, achievable goals tailored to an individual’s unique values and circumstances. It provides a structured roadmap for better decision-making, empowering individuals to adapt to changing financial landscapes.

Ortec urges firms to visualise financial wellbeing as a pyramid. The foundation consists of basic needs—achieving financial stability and security. Progressing upward, financial independence marks the next stage, culminating in financial freedom at the pinnacle. This framework mirrors Maslow’s ‘hierarchy of needs’, with each level reflecting evolving financial goals as life circumstances change, it explained.

However, barriers such as low confidence and the mental strain of financial scarcity can hinder progress. By focusing on setting and tracking realistic goals, individuals can overcome these challenges, ensuring their financial decisions align with long-term aspirations.

Technology plays a transformative role in delivering financial advice, making it more accessible and personalised. Advanced digital tools and platforms enable financial advisors to serve a broader audience while tailoring advice to individual needs. This technology-driven approach is empowering more people to achieve financial stability and freedom.

For financial institutions and employers, promoting financial wellbeing is not only beneficial for individuals but also a strategic business advantage. By supporting the financial health of employees and clients, businesses can improve mental wellbeing, productivity, and loyalty. Leveraging data-driven insights and adopting customer-centric strategies, organisations can create lasting financial well-being and gain a competitive edge.

Read the full story and download a full guide on goal-based planning here.