There is nothing more frustrating than spending your time, energy, and money searching for a destination that does not exist. Have you ever been lost? If so, the most important thing is to know where you are. You cannot get to your destination until you know your starting point.
Imagine being in a large airport. Your ticket tells you which gate to go to, but you are not sure where to find it. The first thing you look for is a map, and when you find it, it shows you where you are. Only then can you figure out how you need to proceed.
That’s a snapshot of life. We all have more ideas and opportunities we want to pursue than we have time and resources to achieve them. Trying to figure out where you are in life is the first step in the right direction.
When I discuss with clients what it is they want to achieve, there are three specific areas that need to be discussed after we develop clarity on where they are financially. First is income — that one is easy to define. Then we need to determine whether their income exceeds their expenses. Creating wealth is directly related to that one topic.
Secondly, we need to have clarity on their assets. Based on their agenda for living expenses and future purchases, we look at whether their assets are correctly positioned for identifying and pursuing their best financial opportunities. The wealth of available investment options creates confusion, and consequently inaction, while people to take the time to get proper advice to help make the best decisions for their future.
The third area to discuss for financial clarity is legacy. None of us will live as mortals forever, but we don’t know when our time here will end. We are selfish by nature, but when there are people and things in our lives that are important, we need to make choices about how to provide for those we love and care about as well as causes we want to support. Both require planning and taking action.
That’s the big picture, but what about now? The constant challenge is the gap between where we are and where we want to be. The good news is that the right planning strategies can eliminate futile time and effort that does nothing to accomplish your objectives; instead they can help you move from being lost to moving in the right direction. If you want good luck, then decide to do good planning.
The bad news — the gap never goes away. As soon as you get close to achieving your original desires, you add more to the list. At the same time, recognize that that means you are moving forward and having positive results.
If we are honest, there is a desire within each of us to be rich. But ask yourself —what is “rich” to you? In surveys the consistent response is that being rich means having more than you currently have.
Back to an earlier statement — wealth is created when income exceeds expenses. Rich is a state of mind. When I was 10 years old, working on the farm making $1.00 an hour, I would have not questioned the notion that being rich was making $5.00 an hour. In many countries, being rich is simply having food to eat and a home to sleep in.
We are living in a period when government policies are putting tremendous amounts of cash into the economy. Short-term, this will stimulate the economy, but it is only a matter of time before the bills will have to be paid.
The future direction of the stock and bond market, interest rates, inflation, and tax rates will always be forces that we either act on or react to. My mission is to help develop clarity for my clients — not to solve the problems of the world, but to help them have clarity of purpose for their world.
Numerous times, I have worked with clients who were fortunate to finish school in the bottom 10% as it related to book knowledge, but were in the top 10% of those creating wealth because they made good financial decisions, had the discipline to develop clarity in their planning, and stayed the course.
We will always have either the pain of regret or the pain of discipline, but the pain of discipline develops into a life of rewards. The choice is yours — and we can help!
