When you think about the future, what do you see? Throughout our lives, we have dreams and aspirations, and the key to bringing them to fruition is creating goals. At some point in our lives, we have all said, “I wish I would have planned better for. . . .” The secret is deciding what we really want to accomplish, focus on, and financially prepare for.
Retirement, while being an important goal, is not the only goal for most of us. The future is tomorrow, next week, next year, and 30 years down the road. The future is not tied to a single age or stage of life but rather a lifetime.
A shortlist might look something like this: buying a home, remodeling a home, replacing a vehicle, taking a vacation, retiring, getting out of debt, college for children or grandchildren, preparing for financial emergencies, creating a fund to take the entire family somewhere special, buying a second home. Your list can be endless.
Once you have created a list, whittle it down to your top 5 to 10. Prioritize the top items by what you believe will bring you fulfillment and joy. If you have a partner, you may need to negotiate and compromise so the list encompasses dreams and goals for each of you.
Now dig deeper. Your list will probably tie closely to what you value. If retirement is your goal, visualize yourself in retirement. How will you spend your time? Do you want to have a certain lifestyle, live in a particular city, or travel to see family or the world? Now look at the financial side – how much money will you need monthly or annually at that time?
Knowing when you want to retire and how much you will need to spend are important factors in determining how much you need to save and invest now to bring this dream to fruition.
You can keep any of your goals top of mind by finding a picture that depicts your goal. Hang it on your fridge to remind you what you are working towards.
The same exercise can be used for any of your dreams. Tying your goals and values together will help you stay on track. For example, if you value home ownership and have decided that buying a home is one of your top goals, you will be better prepared to pass on that shiny new car when the impulse hits.
This is also a great tool to teach children and will help them become better savers and spenders. After all, it’s not all about saving. It’s just as important to enjoy the money you work so hard to earn.
Our wealth advisors can help you discover your top goals. We have the tools and resources to build a financial plan, creating a path that can help you benchmark, track, and reach your financial goals.
A final thought, the years will come and go. Make them count! Take the time to create a plan that incorporates your values and goals so you can enjoy the fruits of your hard work and create lasting memories.
