Make your money work for you. Although it’s sometimes hard to remember, the money you make is a vehicle to achieving your goals, not a cause for financial stress.
If you feel like you’re constantly worried about your financial situation, or like you’re mindlessly putting aside money into investments you think you “need” to have, it might be time to step back and reevaluate. And before you say it, it’s never too late!
When I meet with clients, one of the first things I like to figure out and discuss is, “What their relationship with money is”. It’s a big idea, but it’s important to force people to really consider how this relationship shaped their past and present choices. More often than not, clients realize they’re ripe for a real financial attitude adjustment. They begin to change the way they think about money and what they think money can do for them.
And that’s when the fun really begins! The next step is to dream. Write down your goals—none are too lofty or unattainable—and make your money work for you.
About two years ago, I was sitting across from my friends Troy and Dorene. Stressed about their finances, they longed to travel full-time and long-term, but didn’t know how, or if (hint: never say if) they could make it happen.
Well, Troy and Dorene are now in India, and have spent the last 18 months travelling the world with their newly formed company, Travel Life Experiences. How did this happen?
Through their hard work, motivation, and open-mindedness, and my team’s financial acumen and experience, we collaborated to realize this longstanding dream.
Troy and Dorene’s journey began with an examination of their money relationship, where they realized they had largely negative associations with it. We had lengthy discussions about their values and goals, and how they ultimately wanted to live. They then came to the decision to sell their home and possessions in an effort to rid themselves of excess and fund their new lifestyle.
Once that was taken care of, we needed to look ahead to how they would sustain full-time travel for years to come. My team and I ran three scenarios, which included earning lower incomes, living in countries with a lower cost of living, and creating their now-active business. The first looked at how long their money would last if they retired immediately; the second if they earned just $15,000USD for the next 20 years; and the third examined how long their money would last if they earned $30,000 for the next 20 years.
The third scenario proved to be the golden ticket for Troy and Dorene. It was the scenario that made them realize their dream was actually attainable. Once we put scenario 3 in motion, it became easier for them to stay on track with their budget. They began to spend and invest in only that which would help them achieve their goal.
Having a financial roadmap to guide you towards your goals and dreams changes everything. Things become accessible. You begin to realize you don’t need to spend so much on “stuff” if you’re focusing on what makes you truly happy, which frees up your money to invest more, which helps grow your wealth further, which you can use to achieve more goals, which makes you happier, which—well, you get the point.
Are you looking to create a new lifestyle and rejig your money management plan? My team and I would love to crunch the numbers and map out the scenarios unique to your situation.