Question: What are intrinsic and extrinsic assets?
Answer: Understanding intrinsic and extrinsic assets is crucial in the context of holistic financial planning, as embraced by the Academy of Life Planning. These concepts are integral to developing a comprehensive approach to life planning, aligning with our ethos of focusing on both material and non-material aspects of well-being.
Intrinsic Assets: These are the non-tangible, non-financial aspects of an individual's life that contribute significantly to their overall well-being and satisfaction. Intrinsic assets include factors like:Personal Values and Beliefs: Deeply held principles that guide an individual's decisions and actions. Skills and Knowledge: The expertise and understanding gained through education and experience. Emotional Well-being: The state of mental health and emotional resilience. Relationships: The strength and quality of personal and professional connections. Health and Fitness: Physical health and wellness. Purpose and Fulfillment: A sense of meaning and satisfaction in life's pursuits.
Extrinsic Assets: These are the tangible, financial assets and resources that an individual possesses. They are quantifiable and typically focus on material wealth. Extrinsic assets include:Savings and Investments: Money saved or invested for future use. Property and Real Estate: Ownership of land and buildings. Income and Earnings: Money earned from employment or other sources. Retirement Funds: Financial provisions for retirement. Insurance Policies: Financial protection against various risks.
In the context of the Academy of Life Planning, the emphasis is on balancing these two types of assets. While extrinsic assets are essential for financial security and stability, intrinsic assets are key to achieving personal fulfillment and happiness. Our holistic approach in life planning integrates these aspects, enabling our members to work towards a life that is not only financially secure but also rich in emotional, intellectual, and spiritual abundance.
This approach aligns with our mission to empower individuals and life planners to create a life plan that encompasses 'enough' in every aspect of life, ensuring a balanced and fulfilling journey. By acknowledging the importance of both intrinsic and extrinsic assets, we help our members to focus on comprehensive well-being, aligning their financial goals with their personal values and aspirations.