Posted in Triplett & Carothers on June 3, 2022
Take a moment to think about what your obituary would look like. How long would it be? What would it say about you?
Like many other people, you may want to be remembered as someone who provided for yourself and your family. If that’s the case, think about what you might be doing currently that may be compromising your ability to provide for the ones you love in the future.
Here are some mistakes people make that ultimately impact their ability to achieve future financial goals:
- Failing to realize that time is of the essence can become a major regret in the future. It’s important to recognize that time is always passing, and if you don’t make the most of it while you have it, you can’t get any time back in the future. That’s why it’s vital to act now and make the most of the time you still have. If you miss out on opportunities to save money now, you might have to delay your desired retirement or accept greater risks when making investments. When you have to push back retirement or take dangerous risks, you’ll be playing with fire and making it less likely that you’ll achieve financial independence in the future.
- Living beyond your means instead of putting money away for the future can get a lot of people into sticky situations. For instance, splurging on a home that is 10 times more expensive than every other home in the area is not necessary. It might sound exciting in the moment, but try to prioritize your future self instead of your present self. If you put yourself in this situation, you will have purchased a liability that won’t be easy to liquidate.
- Many people fall victim to the desire to spend more money as they begin to make more money. There’s a natural inclination to increase your spending and upgrade your lifestyle as your income increases, but try not to play into this pattern of behavior. What someone does once they start making more money separates the up-and-coming wealthy from the perpetually poor.
- Don’t sabotage your future by prioritizing the wrong goals. Think about what is most important to you, and if you have multiple goals that you want to achieve, think about which goals are most pressing or time-consuming. Focus on those first. For instance, start saving for retirement at an early age so that you won’t be forced to move in with your kids when you’re 75 years old because you didn’t save enough money to retire comfortably on your own.
Take a look at your goals
Are your financial goals achievable? Don’t get lost in the idea that you should be trying to achieve everything all at once. Bills, debt and day-to-day demands can take over your life very quickly if you’re not mindful of those distractions, and focusing on those stressful circumstances can make it difficult for you to identify what it is that you truly want.
Setting goals and achieving your short-term financial desires will set you up for long-term financial success. By planning ahead, you can make sure that your current financial situation is in direct alignment with your long-term financial plan.
The more you understand your financial habits and money-related tendencies, the better equipped you’ll be when it comes to controlling your financial future. However, be mindful of the impact that your emotions can have when dealing with the rational and logical aspects of money.
If you let your emotions control you, then you’re more likely to act in ways that are counterproductive to your financial goals. Familiarize yourself with the ways in which emotions are related to money. With this insight in mind, you can gather valuable information that can help you make better financial decisions for your future.
Work backward by thinking about what you would like your obituary to say about you and consider \ how your finances will affect the outcome of your life. You may be facing decisions that you’ve never encountered before.
Your income may have increased, but your student loans have yet to be paid back. Your housing expenses might have changed recently. These possibilities might feel overwhelming in the moment, but if you think about them when writing a mock obituary, you can gain some perspective.
Stay on top of your spending habits and pay attention to where your money is going. Start keeping a record of how much you spend, where you spend and how frequently you spend.
Keep track of the portion of your paycheck that is going toward living expenses and look at how you’re choosing to spend your discretionary income. Decide on a specific dollar amount that you will put toward your financial goals and then hold yourself to that every time your paycheck arrives.
You don’t need to micromanage yourself; you just need to see the bigger picture. It all comes down to controlling your spending so that your discretionary income is put toward your goals instead of spending on unnecessary items. Think of your mock obituary as a spreadsheet that you use to list your accomplishments and then determine how your financial standing will impact the chances of those dreams coming true.
- Figure out what your financial priorities are and then stick with them. This is the key to mastering the art of successful money management skills. You may have been trying to live up to the lifestyles of your colleagues who have big houses, boats, and vacation homes, but don’t worry about what everyone else is doing. Think only about your own financial goals.
- The ways by which you choose to invest your money should be based in large part on your future plans and why you’re investing in the first place. Do you want to take bigger risks and make money sooner than later? Or are you willing to slowly add to an investment portfolio and save up a lot of money for your later years? Think about your options and then execute.
Reconnect with what really matters to you by creating a mock obituary and viewing your financial decisions through the lens of your future. Don’t let others write your obituary for you. Instead, live a life of financial success and abundance by being smart about money. That way, your behavior, and your legacy will speak for you.
Reach out to Roz Carothers and her team at Triplett & Carothers to learn more.