Kyoto, Japan -- We are often told that we should start investing to build wealth for the future. However, the time gap between this goal of eventually building wealth and the current situation can make it feel like the present is merely a slave to the future. This can cause people to lose the will to invest and is why, despite rational understanding, many people struggle to act on their long-term goals.
Intrigued by this common gap between goals and action, a team of researchers at Kyoto University set out to understand how financial services can support not only wealth building, but also the realization of individual values. In an interdisciplinary project, the researchers explored how the philosophical ideas of self and narrative could help bridge this gap in practical, emotional, and ethical ways.
In previous collaborative research, the team developed the Life Integrator Scale, a tool that helps individuals visualize their sense of emotional well-being as a snapshot of their 'current state' and 'ideal state' at a specific point. While the first phase redefined asset formation as part of personal well-being rather than purely economic gain, the second research phase addresses the gap between recognizing values and translating them into investment actions.
Combining philosophical analysis with financial practice, the team assessed value orientations and used narrative-based approaches -- including the Life Integrator Scale and ChatGPT -- to create intuitive character profiles that help individuals link their values to investment behavior.
"We're clarifying how individuals can align investment decisions with their personal and social values, not just rationally but also intuitively and emotionally," says corresponding author and philosopher Yasuo Deguchi. By reframing investment as a cyclical process of self-formation, this study emphasizes that investing is not only about future goals but also about cultivating identity and values in the present.
The theoretical framework behind this research also emphasizes the social nature of investing. In this view, investment can be seen as 'entrustment'. It is a social act that takes place in relationships with others, and the current generation has a responsibility to increase the positive social benefit for future generations.
This research offers new insights for financial advisory practices and for thinking about the ethical and personal meaning of investment, which could ultimately help people to achieve their investment goals.
In the future, the research team plans to develop tools and web applications that incorporate the Life Integrator Scale and narrative techniques, enabling users to explore investment strategies that align with their evolving values and life stories.
Investment is not just a financial act; it's a way of expressing who we are and who we want to become.
