The founder of "life planning" believes you are mismanaging your finances.

• Often, consumers misplace their focus when managing their personal finances, according to Kinder.
• His "three questions" aim to reveal your financial goals and motivations, and encourage you to take action towards achieving those dreams.

George Kinder wants everyone to be free.

The idea of personal fulfillment or enlightenment might initially appear more relevant to the domains of religion or spirituality than personal finance.

For decades, Kinder, known as the father of the "life planning" branch of financial advice, has emphasized the link between finance and freedom.

His new book, "The Three Domains of Freedom," is a detailed analysis of the topic.

According to Kinder, founder of the Kinder Institute of Life Planning, certain types of goals can be deeply inspiring to clients.

1. The new 9-to-5 is working 10-to-4. 2. Taxes may be a blind spot in your investment portfolio. 3. A recession could upend your retirement plans.

He is most recognized for his "three questions," designed to assist individuals in identifying the core of their life aspirations.

If you accurately depict how someone's life would be if they possessed that life, clients will be highly motivated and their financial problems will be resolved quickly and effortlessly, according to Kinder.

CNBC interviewed Kinder about the importance of life planning and how many people mismanage their finances. The interview has been edited and shortened for clarity.

'You should be focused on your dream of freedom'

Greg Iacurci: What is the basic premise of the life planning movement?

George Kinder: The fundamental idea is that financial planning is about achieving financial freedom. Everyone has a dream of financial freedom, and they should be living it. This applies to people with no money, those in debt, and those with a lot of money.

GI: What do you mean by freedom?

By solely concentrating on money, individuals may lose sight of their true aspirations and identity. They frequently believe that they cannot achieve their goals until retirement or that they will never reach them, leading them to avoid confronting the issue. As a result, they attempt to optimize their financial management rather than facing their desires head-on.

The focus of life planning should be on achieving your dream of freedom. By doing some exercises, you can discover what it is and make the process of managing your finances much easier.

'People get lost in the daily stuff'

Do you believe that individuals save money or accumulate wealth without considering its purpose?

The lack of a clear vision of freedom makes it difficult for people to stay motivated and focused on their financial tasks.

The three questions serve to highlight the significance of people's priorities and aspirations, prompting them to consider how they can allocate their resources to achieve those objectives.

Is it not true that the way people save is not always incorrect, even if there are rules of thumb suggesting saving at least 15% of income for retirement? You are questioning the reason behind following these guidelines.

Instead of focusing on retirement, we should consider the concept of freedom, which can occur at any time and doesn't necessarily align with traditional retirement age.

Don't postpone your aspirations and objectives until retirement.

To achieve this quickly, we need to consider the best approach. Typically, it can be accomplished within a few months, and in most cases, it is done within three years. However, it is usually completed within about a year and a half.

You're not getting exactly what you want, but you're making progress and feeling more free from it.

Perhaps you're currently taking a two-week vacation in the countryside every few months, but now you're considering extending it to four or six weeks. You may be working remotely more often and exploring the possibility of staying in a remote location for an extended period of time. In the next year or two, you're planning to actively work towards achieving this goal as part of your financial planning and life.

'We only experience freedom in the present moment'

Is this something that everyone can implement, or is it more of a privilege for those with financial resources to achieve?

If we consider financial freedom as the measure, then those with greater resources are more likely to achieve it.

Growing up in a poor part of the country, I was born in West Virginia and lived across the border in rural Ohio. What I learned is that everyone, regardless of their financial status, has a dream of freedom and a desire to live an extraordinary life.

The primary reason why achieving the dream of freedom is not just about money but about building a passion for who you truly want to be is that when you accomplish it, you become extremely energized and vigorous.

GI: How does your new book further your work on life planning?

The main focus of the book is to provide guidance and advice on creating a personal life plan, so that individuals can live it to the fullest. The second subtitle of "The Three Domains of Freedom" emphasizes the importance of taking control of one's life and doing it on their own. The book encourages readers to take an active role in their lives and find a fiduciary if they need assistance.

Although they may appear distant, they are not truly separate.

The present moment is the only moment we experience freedom. I dedicate a third of the book to mastering the present moment and mindfulness plays a significant role in achieving this. In terms of personal finance, being at peace in the present moment makes it easier to make sound decisions.

If every institution, corporation, nonprofit, and government were fiduciaries to the truth, democracy, planet, and humanity, what if we required them to prioritize their duty to these values over their own self-interest? I believe this would solve the current chaos.