Hi friends, and welcome back to Pocket Change Lifestyle! Today, I want to encourage and implore you to think through the financial path you’re on, and recommend you take time to review your financial plan. Perhaps that means sitting down with a Financial Advisor or coach, or reviewing your portfolio on your own. Whatever avenue you choose, my goal for you is simple – gain a better understanding of your financial life and remind yourself of your financial plans.
I recently sat through a presentation of the 401K program we have at work. I’m not privy to the specifics of a majority of my colleagues’ contribution or investment information (I know some because I’ve introduced them to FIRE), but I know many of them are NOT taking advantage of the investment opportunities. You are responsible for your future, or lack thereof! Sometimes, like in this meeting, I’m reminded that people don’t realize that retirement MUST be planned for. No one else will do it for them or you unless you pay them for it. That being said, I want to encourage you to take a few minutes to review and define what your financial path looks like.
You are responsible for your financial future, or lack thereof!
QUESTIONS FOR THOUGHT
The presenter on the other end of the phone during the meeting was reading a script, so there was no connection or feedback, and she didn’t ask her audience questions. She had no challenges for us to consider or think about regarding our financial lives, only a recommendation that we should invest. Yes, I agree with this notion, but there was no education about finances!
I feel this topic is a true tragedy of the past few decades – a lack of financial literacy. Talking about finances became taboo with the older generations and has bled into younger generations. But statistics show those same older generations have little to survive on. Perhaps it’s because of this lack of discussion. Here at Pocket Change Lifestyle, we’re open about our finances and share for you to see. We hope is to encourage others to do the same!
Here are a few questions I think would have benefited the audience in the recent presentation to think through, so what are your thoughts?
- What financial path are you on? How would you define it?
- What are your retirement goals?
- Do you have ample savings to cover an emergency? Many financial advisors and coaches (a la Dave Ramsey) suggest having at least $1,000 saved for a true emergency. Yet, statistics show (Bankrate article) that only 39% of Americans have enough to cover an emergency.
WHAT PATH ARE YOU ON?
I’ll try to make this as clear as possible –
You are on a financial path moving in some direction.
You may wander around blind, or sit on the sidelines and let life run the show, but it’s in your control to decide your financial path. If you don’t take control over your finances, life will end up in the driver’s seat as you sit back and watch the crazy unfold.
I encourage you to sit down, write out a simple financial plan with goals, and put it into action. Make a budget and adjust as necessary. Then, save for your retirement!
For us at Pocket Change Lifestyle, we’re on the path to Financial Independence (read more here), so our main financial goal is to save money for retirement. Our investment strategies are simple and mostly follow The Simple Path to Wealth’s suggestions, with some tweaks. By allocating funds towards retirement at a greater rate than normal, we’d usher that time to FIRE much sooner. Our goals have us reaching the Financial Independence peak around the age of 50-52, depending on our expenses now that Baby Pocket Change has arrived. Nothing is set in stone, but that’s the beauty of being aware and in control – you get to decide the next course of action.
Stay tuned for an in-depth look at how to get started planning for your retirement!