Your financial plan should be specific to your family. That's why I created the Decision Lab framework.
There are five key decisions you've got to make to transform your wealth to significance. And the trick is that you can apply this framework to any decision — big or small — that you're making in your life.
Let me tell you about Ken.
Decision 1: Decide who you are.
Ken was an entrepreneur friend of mine who started his business with his wife and built it up to something he was really proud of. When he was deciding who he was, he had an identity as an entrepreneur — but above that, he had an identity as a husband and the leader of his family.
He also saw himself as someone who gives back to others. Someone who is a leader. Someone who cares about his community.
So those were the things that were important to Ken. And knowing that changed everything that came next.
Decision 2: Decide where you are.
You might say, "Hey Sanger, how do I decide where I am? I just am where I am."
Yeah — but you've got to decide to do some things about where you are. In Ken's case, he had a business worth a lot of money, but he didn't really know how much. So we had to decide to go get a valuation. Decide to understand what our strengths are. Decide what mindset to have and how to look at ourselves.
We got the valuation. Turned out the business was worth a little bit more than what he had anticipated.
Decision 3: Decide where you're going.
A lot of you have probably set out making decisions without even getting to this point — not even knowing where you're going.
We didn't do that with Ken. Ken said: "I want to retire one day." He was in his 60s, but he wasn't ready to quit. He wanted to travel with his family. Take his adult kids and their kids on vacations where they could bond as a family.
And so we had a really precise idea of how much that was going to cost.
Decision 4: Decide how you'll get there.
By understanding how much his business was worth — Decision 2 — Ken realized that if he left his business, he could totally fund his lifestyle in the way he'd imagined for himself, his children, and his grandchildren.
He didn't need to keep working. He didn't need to double the size of the business. He didn't need to invest a bunch of money into R&D. He was fine where he was — as long as he could find a buyer.
But here's the second part: if he just gives up his business, he's giving up his entire identity. That's where he gets his sense of meaning, purpose, social connection — not to mention the money. So selling isn't as simple as just finding a buyer.
Decision 5: Decide who matters.
This is where it all came together for Ken.
Of course his children matter. Of course his wife and grandchildren matter. But there were two other groups:
His employees. He wanted to make sure they were taken care of when he sold the business. And he did — he made sure they were able to share in the profits, since the business sold for much more than he actually needed.
Young entrepreneurs in his community. He didn't want to sell his business and go sit on the beach for the rest of his life. He started coaching, training, and giving back to people who were three or four decades behind him in their entrepreneurial journey.
To this day, Ken thanks me for going through this framework with him. Because he says: "I was in no place to sell my business. I wouldn't have sold it. I wasn't even thinking about it."
Deciding to sell freed him up to live the life that brought him ultimate significance.
The mistake most people make.
When we're faced with a big decision, it's almost always a "how" decision. How am I going to get more clients? What investment strategy should I use? Those are how decisions — and you absolutely need to make them.
But before you do, you have to go through the first three: decide who you are, decide where you are, and decide where you're going. Only then, with the appropriate context, can you decide how you're going to get there.
And then you still have one more — who matters. Whether it's your family, your employees, your community, or charitable causes that are important to you.
If you'd like to walk through these five decisions for your own situation, that's exactly what our Decision Lab is designed for. Your first conversation is free.
This article is based on a conversation from The Decidedly Podcast. Insights, advice, and comments provided by Sanger Smith, Shawn Smith, and guest speakers should not be considered personalized financial advice or recommendations. This content is produced solely for informational and educational purposes. For personalized guidance, book a free conversation.
