Setting Intentions and Financial Goals

Define Clear, Measurable Processes

Most people start financial planning with outcomes — like saving a million dollars by retirement or paying off a mortgage. These goals set direction but don’t create momentum. The Modern Money approach focuses on processes — repeatable actions that move your money with purpose.

An outcome is “save a million dollars by 65.” A process is “automatically save 15% of each paycheck.”

Outcomes define where you’re going; processes determine whether you’ll get there.

For example, you might want an emergency fund equal to two months of expenses. The process could be saving 5% of each paycheck until you reach that amount, then redirecting that flow elsewhere.

Desired outcomes help you design effective processes, but once those flows are running, the focus shifts from chasing numbers to keeping movement consistent. Over time, your savings grow, debt shrinks, and freedom expands — not because you predicted the result, but because your system ensures steady progress.

Distinguish Between Needs, Wants, and Future Plans

A balanced money system starts by knowing what sustains you, what enhances life, and what builds your future.

• Needs are essentials — housing, food, transportation, insurance, minimum debt payments. They keep your foundation stable.
• Wants are comforts or experiences — dining out, travel, or hobbies. They’re not bad; they make your system livable when chosen intentionally.
• Future Plans are forward-focused — savings, investments, education, or entrepreneurship. They turn today’s income into tomorrow’s opportunity.

Recognizing these distinctions clarifies how money should move. Once you can see what each expense represents, you can channel it more deliberately through your flows.

Aligning Flows with Your Values

Money always moves — the question is whether it moves in line with what matters to you.

Alignment isn’t about restriction; it’s about design. Every dollar should strengthen something you value — security, freedom, connection, or growth.

Ask yourself:

• What do I want my money to make possible?
• Which expenses feel unnecessary, and which truly support my life?
• If my finances were mapped out, would they reflect my real priorities?

When your flows align with your values, financial decisions feel intentional rather than forced. A canceled subscription or reduced impulse spending becomes a way to redirect energy toward what matters most.

Here’s how needs, wants, and future plans connect to the four important flows we discussed earlier — the structure that keeps your system balanced:

This integration turns spending into alignment. Every dollar has a defined role — some flows sustain, some protect, some build — together creating a system that adapts and moves you steadily toward the life you want.