One of the things I often enjoy talking to my clients are: how to reach their goals.
Whenever someone chooses to work with me, it’s because they recognize that they need help in their financial lives. Sometimes when we start talking, they may think it’s one set of goals, but the more we talk and work together, their goals tend to evolve and become clearer over time.
When I saw this graphic by Carl Richards from Behavior Gap, it spoke volumes to me. You know the saying, ‘a picture is worth a thousand words’? This was exactly so.
It might sound simple, but that’s exactly why it resonates so much. When you have a financial goal, you need to create a plan to reach those goals, decide which types of investments will fit your plan, and then the cycle continues.
When I read “investments that fit the plan”, it does not always equate to stock investments. The more I thought about it, the more I came to the conclusion that it meant any type of investment that needed to be made.
Let me share a few examples to make my point:
1) Are you trying to get out of debt? You will need to make an investment of discipline to get there. You will need to reduce your spending, while simultaneously putting more towards the payments in order to successfully eliminate the debt.
2) Are you trying to buy a home? You will need to make an investment of diligently putting money away. Doing the research of what you will need to purchase the home. Where will you buy? How much home can you afford? What monthly payments will be based on mortgage payments? This will be an investment of money and time.
3) Are you trying to protect your family in case you are not around? This will be to consider both life insurance and estate planning. Sometimes this exercise is a difficult one as you have to face your own mortality – however, once you have done it, you will be glad you did. And if unfortunately something happens to you prematurely, your family will thank you for thinking and planning ahead. This will be an investment of thinking, planning ahead and putting important things in place.
4) Are you trying to plan for retirement? This is an investment of discipline, time, and money. The earlier you start with this goal, and the more consistent you are, the more you are likely to reach your goal.
These are just a few examples of some of the investments you need to make in order to successfully get to your goals.
What financial goals are you working towards? I’d love to see if I can help you.