Many of my clients aren’t having the impact they want to in their work and it causes them a lot of stress and anxiety. Part of the challenge is that they don’t know how to define impact for themselves so they’re using external definitions of success that feel out of alignment with what they truly want.
What ends up making a difference is identifying their values and creating the definition of impact that works for them. That’s where they experience freedom, self-expression, and authenticity.
The same can be said for the impact we can create with our money. I was really taken by the idea in “The Soul of Money” by Lynne Twist that when we align the acquisition and allocation of our financial resources with our most deeply held values, we experience a lot more satisfaction, meaning, and fulfillment. Just like impact at work, when it’s not clearly defined we’re distracted by shiny things, we overanalyze, we get stuck in analysis paralysis and we’re underwhelmed with our impact.
I fell into this trap a few years ago when I wasn’t sure how to have the financial impact I wanted. Over the past two years, I’ve created my own framework to define my personal financial impact and I hope it helps you think about the impact you want to have with your money.
One of my biggest values in life and in business is generosity. Ever since I started my business, I’ve wanted to have an impact with my finances but I was caught in the never-ending wheel of finding “the best way to do it”. Normally I’m quite good at taking action, but here I was stuck in analysis paralysis, stressing about it, asking myself the same questions again and again, and ultimately, not taking action.
What I discovered is that I was asking the wrong question. It wasn’t about finding the “best” way, it was about finding the way that worked for me. So, similar to how I help clients identify values to create their own definition of impact, I started thinking about my own values and areas of life that I really care about. I had to define a system that worked for me and got me excited about my impact instead of using external definitions of success.
Step 1:
I started looking at the issues in society where I feel “an unusually vivid pain or frustration around the status quo of a particular issue or topic” as per Tara Mohr’s framework in Playing Big.
I narrowed it down to 5 impact areas where I feel deeply committed:
Black women in business/politics - the landscape in business and politics is incredibly male and incredibly white and we need more Black women’s voices in all areas of society.
Access to healthy food - it’s absolutely unacceptable how many people don’t have consistent and easy access to healthy food.
Fighting Islamophobia - Islamophobia has been on the rise since 9/11 and it continues through harmful legislation, stereotypes, and misrepresentation.
Ending cash bail - cash bail is an infuriating and wildly unjust system that disproportionately impacts people of color and keeps people behind bars.
Representation in media - much of the media is filled with harmful stereotypes (race, gender, religion, etc) and there’s an opportunity for more people to see themselves portrayed in media.
Step 2:
From there I identified organizations (ideally Black-led) that supported each of these areas and for some, that had a personal connection to my local community:
Step 3:
Then I set up systems for success by making monthly donations to each of those organizations from my personal finances. On the business side, I started donating 5% of my income and I focused on organizations like the Black Career Women’s Network and projects like Black Womxn Thriving. I curated a list of organizations that I want to support and then I make donations as soon as money comes into the business. It makes me feel connected to the impact that I’m making and reminds me of the power I have as a business owner to align my finances with my values.
So here’s how to follow the process to create the financial impact that feels good to you:
What are 3-5 areas where you feel unusually vivid pain or frustration about the status quo?
What organizations are doing great work in those areas?
How do you want to structurally set up your impact? (Monthly donations, list of organizations you get to choose from, etc)
As always, I share my version as an example, not as the way that you should create your financial impact. I have no idea what the right system is for you and only you can answer that question for yourself.
When I look at my list of impact areas, I feel incredibly motivated to make a difference. I hope this framework allows you to find the list that does that same for you.