Virtues in Finance
Virtues are habitual dispositions towards the good that form the basis of our character.
How are they Related to Finance?
When you bring the virtues into your financial decisions, you begin to see money as a place to grow, rather than a burden to carry.
Prudence
The prudent person thinks clearly, plans for uncertainties, and uses reason to make wise decisions. A prudent investment portfolio strikes the right balance of risk and opportunity for your goals and circumstances. A prudent financial plan prepares you for the risks you face with strategies to overcome them.
Temperance
Our emotions have a habit of leading to poor financial decisions. Poor cash flow management from impulsive or emotional spending can lead to a crushing debt burden. Chasing returns and the fear of missing out can lead to taking on too much risk, and neglecting appropriate diversification. Temperance is exercising the restraint and self-mastery to avoid these mistakes.
Fortitude
The future is uncertain and our financial future faces many potential risks. We must determine which of those risks are best to avoid, which to should be reduced, and which risks we should accept. Accepting those risks that are prudent and worthwhile can be intimidating, but are often to the long-term success of a financial plan. Having the courage to carry out and remain committed to a plan is a key aspect of living virtuously with your finances.
Justice
Justice is about the responsibility we have to our family and community. Supporting our family with responsible spending, caring for their needs to enable them to flourish. We support our community by giving our time and money. Justice is also about promoting the common good and living as responsible citizens. We do this by investing responsibly, according to our values.
Liberality
Liberality is the virtue of detatchment from money. This virtue enables generosity, helping us use our resources without fear or attachment. At its heart, liberality understands that money is a tool, not an end. Practising liberality brings freedom: freedom from greed, from comparison, and from the anxiety that comes with holding too tightly.
Magnificence
Magnificence is the virtue of doing something great with your money. It’s not about extravagance or show, but about directing significant resources toward something truly worthy that inspires others. This virtue joins vision with responsibility, guiding us to spend wisely on what has lasting value. Magnificence reflects excellence at scale: building, creating, or supporting projects that elevate the human spirit. It transforms generosity into greatness by using wealth, talent, and effort to bring about beauty, order, and meaning, reminding us that our best work is meant to serve something greater than ourselves.
