Living For the Now
One of the most important things a financial planner can do for clients is to help them prepare for the future, especially for a time they no longer wish to work. In the profession this is often called financial freedom or financial independence. To achieve this you will need to be putting money away (investing) now to make sure you have money in the future.
Putting money aside for the future could mean forgoing things now so that you can do them later. Without it, people could be in serious financial trouble when they are older. Or you will have to work longer or spend less on what you want. We also need to balance all of this with living a great life now and not putting off things that are important to us.
Don’t Wait
Sadly, I am writing this blog on the day of a funeral for my client and family friend Sue. She died at the age of 57. I know from our conversations the plans that she had for the future, the dreams she still harboured and the things she wanted to do in the future. It is devastating to know she won’t get to do these things.
However, I also know that she didn’t put everything off that she wanted to do. She was focused on spending time with the people that mattered the most to her. A few years ago, she purchased a caravan which was something on her bucket list. Nothing made her happier than having a glass of wine, sitting outside her caravan and watching the world go by.
It is so important we don’t put off things we could do today as we might not be lucky enough to do them later.
We Are Only Here Once
The phrase “life is not a rehearsal” is often used by financial planners. This is very true and something that drives both my financial and personal decisions, as well as the fact we are only here once. It is my responsibility to live a great life and make sure my clients do too.
Don’t get me wrong, this doesn’t mean being reckless and spending money on stuff that doesn’t matter to you. It means understanding what really matters to you so that you are fulfilled in every aspect of your personal life, career, hobbies and family. From a financial perspective are you spending money in a way that is aligned to your values?
So if you were to die tomorrow, what would you regret not having done?
What Matters Most?
Currently, my main priority is to be around and spend time with my family whilst the kids are young (and still like me). My children are 4 and 7. I love being able to pick them up from school or take them to their sports classes. I enjoy (mostly) spending time with them. This was the reason I set up my business - to control my time and not have to commute and work in a way that aligns with me.
Yes, I would like to take more expensive holidays, have a bigger house, buy a holiday home. These are all financial objectives of mine but they all feed into my bigger purpose - “having great experiences with my family”.
Building an Intentional Life
I believe the key is to be intentional in the way you live your life and the actions you take. It is so easy to go through the motions and before you know it, 5 years have passed. Take the time to ask yourself the following:
What is really important to you?
What do you want to do more of?
What do you want to do less of?
Who do you want to spend your time with?
How do you want to spend your time?
What do you want to use your money for?
If you need an insight into what your current priorities actually are, check your bank balance and your diary. They never lie.
Planning
Living for the now doens’t mean you don’t plan for the future. You need to be preparing for longer-term goals as well as enjoying your life. Life would be much easier to plan for it we knew when we were going to die, but we don’t. So, we need to combine living for the now whilst planning for living a long life. This is where planning is key. It helps to know the following:
How much does my current lifestyle cost?
How much money does my dream life cost?
How much will I need when I want to stop work? (Don’t kid yourself - it’s definitely no less than what it is now)
How much can you afford to put aside now, or will you need to put aside?
When do you want to work till?
Are you willing to work longer so you can do more things now?
Balance
Maybe you have things on your bucket list that you think, one day, I’ll do them. Often people think there is no way I can afford that now. It will have to wait. Why not figure out a way to do them now? Often it all stems from uncertainty - not knowing how much money you will need or that you be alright in the future. You worry that you will not have enough!
Doing your own financial plan will bring that clarity. It is not about going without. It is understanding what you need to do with your money to live the life you want now and in the future.
The key is to balance living for the now and preparing for the future. We live in a world of abundance, meaning it is possible to spend and enjoy life now, as well as having money to put aside for the future. First, you need to get clarity over what you really want.
YOLO
I couldn’t get through this blog without using this phrase. We all want to live the best life possible. I am fairly certain when we look back on our lives we won’t think I should have worked harder, saved more or had more stuff.
The things that we look back on will be the time we spent with friends and family, the holidays we took, the experiences we had, the communities we were parts of, the kids football coaching, the school plays and sports days, the laughs, the joy and the love.
Let’s make sure we live a life full of doing what really matters to us now.
Remember, YOU ONLY LIVE ONCE.