Why did we stop planting trees? Seriously, what happened that we stopped planning for the future like our grandparents did on a lot less income than what we earn? Regardless of how little my Rosie made, she always had a savings account. When it was time to travel, she had her funds to join the other family members and have a good time – all on a maid’s income. When the holidays rolled around, I do not ever recall her asking me to contribute towards the food. She took care of everything because she planned.
Society would tell us that we need to spend every thing we have because we can always get it back. However, if you use a simple “savings” formula, you will see there is no catching up when you factor in interest and dividends. You spend it, it is gone. You can replace the principal but you will not be able to retrieve the earnings you would have made over time on that same amount of money.
The encouragement for this component of the Financial Quadrant is to find a base tool to use for your financial management so that when it is time to relax, you can do so. When it is time to retire, you can do so. And when it is time to pass, you will leave a legacy to your family.
Do not hesitate to ask for help. I went to Edward Jones years ago and asked the broker some very direct questions about the differences I had observed between my life and that of some coworkers – as it related to earning. I was frank in stating I was fully aware no one was interested in helping me build a legacy for my family and I was ready to learn. And that I did, she met regularly with my husband and I and we learned quite a bit about investing and future securities for our family. The time we spent with her and the next broker are invaluable.
So, for your journal entry, think about what you are doing now that will disrupt your later.
#comment #engage #GAI #finances