Who are you? Who do you want to become?

Identity-based financial goals are more powerful than you think.

“The goal is not to read a book. The goal is to become a reader,” writes James Clear in his bestseller, Atomic Habits. When it comes to financial planning, we can learn much from this brief nugget of wisdom.

Many of us set financial goals based on outcomes.

“I want to save X amount.”

“I want to retire at 60.”

“I want to pay off my bond in 15 years.”

And there’s nothing wrong with that. Goals give us direction. But sometimes they don’t give us enough motivation, especially when the path gets difficult. Sometimes we need to dig a little deeper.

That’s where identity-based planning can help.

The power of identity

James Clear’s work on habit change offers a simple but powerful idea:

If you want lasting change, don’t just focus on what you want to achieve, focus on who you want to become.

The goal isn’t just to save.

It’s to become someone who saves.

The goal isn’t just to invest.

It’s to become an investor.

The goal isn’t just to be generous.

It’s to become a giver.

This shift changes everything. Because when your actions reinforce your identity, every small step becomes part of something bigger.

So how does this work in financial planning?

Let’s say your goal is to grow your wealth. That’s a good outcome, but it’s also abstract.

Now reframe it: “I want to become the kind of person who consistently invests in their future.”

See the difference? One is a destination; the other is a decision about who you are and how you show up.

You might:

• Set up a monthly debit order to your investment account
• Track your spending with curiosity instead of guilt
• Start reading investment articles, not because you need to, but because it’s what investors do

Every one of those actions confirms your identity, and builds momentum.

Life will throw curveballs. Markets will dip. Goals will need adjusting. But when your actions are rooted in identity, you’re more likely to keep going. Because even when the numbers don’t move, you’re still becoming someone you’re proud of.

So here’s a reflection question for us all: Who are we becoming through our financial decisions?

If we start there, the rest, budgets, investments, retirement plans, can be built around that foundation.

Because good financial planning isn’t just about reaching a target. It’s about helping you become the kind of person who lives the life you’ve always wanted.