Derek Hagen, CFA, CFP®, FBS®, CFT™

“If the ladder is not leaning against the right wall, every step we take just gets us to the wrong place faster.”

-Stephen Covey

It’s better to be at the bottom of a ladder you want to climb than halfway up one you don’t.

Climbing the Wrong Ladder: Why People Chase the Wrong Goals

In the British version of The Office, Dawn says, “Tim’s advice is that it’s better to be at the bottom of the ladder you want to climb than halfway up one you don’t.”

It’s a simple line that reveals a universal truth: many people are climbing ladders they never chose.

As advisors, we often meet clients halfway up a ladder they think they’re supposed to climb—pursuing retirement ages, net worth milestones, or arbitrary success markers. They’ve followed external scripts about what a “good life” should look like, without stopping to ask what they actually want.

Even Michael Kitces, known for his technical rigor, once said: “I pretty much don’t believe anyone when they tell me their goals, because the goal is never the goal.”

Our role as financial life planners is to help clients find the right wall—to uncover the values that give meaning to their financial goals and the life they’re building.

Stick figure stuck between two ladders — one leading to life satisfaction, the other to what they think they should do.

Terminal vs. Instrumental Values: Defining the “Why” Behind Goals

When clients first explore their values, they often identify instrumental values, the means to an end, rather than terminal values, which represent what truly matters.

Terminal values are the “why.” They reflect what clients ultimately want from life: peace, growth, love, freedom, or wisdom.

Instrumental values are the “how.” They are the actions or qualities that help achieve those deeper ends: ambition, independence, hard work, or discipline.

When we mistake instrumental values for terminal ones, clients may end up optimizing for the wrong things… chasing how to live before defining why to live.

Financial life planning reverses that sequence. We help clients clarify the deeper “why,” so that their money supports what matters most.

“Why” ladder tracing surface values to deeper ones, ending in a core terminal value.

Intrinsic vs. Extrinsic Values: Shifting Away From Approval to Alignment

Another lens for values work is intrinsic vs. extrinsic motivation.

Extrinsic values are driven by outside approval—status, recognition, or social comparison.

Intrinsic values are self-reinforcing—they feel fulfilling in and of themselves, even if no one notices.

Flowchart comparing intrinsic values as self-reinforcing with extrinsic values tied to specific outcomes.

Helping clients uncover intrinsic values shifts their focus from external validation to internal alignment. The work becomes less about achievement and more about fulfillment.

Two-panel cartoon showing a person announcing values to others vs. quietly holding values alone on an island.

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Helping Clients Discover True North: A 3-Step Framework

Values-based planning helps clients make conscious trade-offs and reclaim ownership of their choices.

Clarify the Wall — Identify what truly matters before building the plan. Ask: “What would make your life feel meaningful?”
Build the Ladder — Connect those values to actionable systems and goals. Money becomes a vehicle for purpose, not pressure.
Take the Next Step — Prioritize values when trade-offs arise. Clients can’t do everything, but they can do what matters most.

When clients see how their financial behavior aligns (or misaligns) with their values, change becomes natural rather than forced.

Client realizes they’re living by someone else’s values instead of their own — shown in a three-circle Venn diagram.

Money as a Tool, Not a Target: Aligning Wealth With Purpose

At its core, financial life planning is about alignment.

Money is not the goal. It’s the tool that helps clients build the life they find meaningful. But tools only matter if we know what we’re building.

When we help clients shift from accumulating resources to aligning them with purpose, every decision starts to serve something larger.

That’s the essence of True Wealth: ensuring that every financial choice supports a life that is deeply lived… not just efficiently managed.

FAQ: Climbing the Right Ladder in Financial Life Planning

What does “climbing the right ladder” mean in financial planning?

It means pursuing goals aligned with personal values, not just external success markers. Advisors help clients find the “right wall” before climbing higher.

What are terminal and instrumental values?

Terminal values represent ultimate life goals—like peace or freedom—while instrumental values are the behaviors or traits, like discipline or ambition, that help achieve them.

Why do intrinsic values matter more than extrinsic ones?

Intrinsic values feel fulfilling on their own, while extrinsic values depend on outside approval. Aligning decisions with intrinsic values leads to lasting satisfaction.

How can advisors help clients uncover their true values?

By guiding clients through reflection questions and trade-offs. Start with “What would make your life feel meaningful?” then build goals that serve that answer.

What’s the difference between money as a tool and money as a target?

Money as a target focuses on accumulation. Money as a tool focuses on purpose—using resources intentionally to support a meaningful life.

Want to Learn More?

Money Quotient trains financial professionals in the True Wealth process and helps them implement the concepts into their practices. The first step is to learn about the Fundamentals of True Wealth Planning.