The Importance of Relationship Equity

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By John Corron, CFP®, Wealth Advisor –

As financial planners, we speak with clients and people in our communities about equity regularly. What is it? Simply put, equity is ownership in an enterprise that has or is expected to have a tangible value now or sometime in the future.

Without current or future expected value, equity isn’t worth all that much, but if resources are dedicated to investment in an enterprise that you believe in, there is almost always the potential for significant reward in your ownership of it.

Consider Your Relationships

I challenge you to take a step back and consider the relationships in your life. Whether you have ever thought of them as an asset or not, you and the people in your life invest in them. What are the resources that you put into them? Sure, there is money for financial support and shared experiences, but time, energy, attention, love, patience, encouragement and understanding are all contributions we make in our relationships.

As we know, relationships can be good or bad, just like investments. We may invest significant amounts of our non-monetary resources into a bad relationship and lose time, faith and happiness as a result. We may not get as much out of our relationships because we don’t invest enough time and energy into nurturing them to their full potential.

Many of us have put the effort and investment into relationships with great people, and we’ve experienced incredible returns as a result. Those relationships motivate us and make us feel safe, supported, encouraged and loved. They may open doors for us, give us ideas or allow us to dream when we otherwise wouldn’t. These winning personal investments in relationships may give us the courage to challenge ourselves beyond our own perceived limits and believe that more is possible than we have imagined for ourselves.

If we fail, these relationships pick us up and turn our eyes toward the future and the goodness and potential that await. When we’re walking forward again, these relationships are the ones we talk through our challenges and celebrate our victories in.

The Importance of Relationships

Yes, I am a Financial Planner, and I guide clients every day toward making sound decisions with their financial resources. But I have found that those who are most satisfied in life don’t necessarily have the largest investment portfolios. They have a community of relationships they love investing in and experience returns far greater than any financial gain alone could provide them.

I encourage you to spend some time thinking about the investments you are making in the relationships in your life. I’m willing to bet that investing less in the bad ones and more in the ones that lift you up will be far more fulfilling and long-lasting than the best investment call you’ve ever made.

The most valuable relationships in our lives are worth the equity we build in them – in some cases, many times over. They need investment of time, energy and intentionality from everyone involved to grow into something truly valuable. Perhaps the best part is that you don’t have to share the gains with anyone, and the more you put into those relationships, the greater the potential return on life, which you can imagine has more potential value to all of us than financial return on investment.

Maybe we would all be better off investing more of our time and energy into the relationships that fulfill us, whether markets are booming or busting.

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