Money only matters if you have a plan for what to do with it.
Knowing the WHY behind your financial goals is more helpful than aiming for a specific dollar figure in the bank.
Most of our clients want more. They want a better lifestyle. They want security, comfort and opportunities. They want to give their kids opportunities, whether private education, university, sporting trips or just an early inheritance. For themselves, they want to retire earlier, travel more, enjoy their hard work and create memories. Whilst we love our clients to have big goals, big dreams and big plans, what we love more is to encourage our clients to understand WHY they have these goals.
Planning to be a millionaire by the age of 30 / 40 / 50 is great, but WHY do you have this goal? Is it actually a means to an end – you want to be a millionaire so you can work less and travel more (in which case, the real goal is not to be a millionaire, but to travel). Or are these dreams egotistical – you want to be able to tell your friends that you are a millionaire, or to be just proud of your bank balance?
We had a client recently who had the sole goal of being a millionaire by the age of 40 – and he will do it. But when we asked why he had that goal, he couldn’t answer. By the end of our conversation, it became clear that the one million dollars was just the means to an end. What he fundamentally wanted was to retire at the age of 55, buy a small bay cruiser and live on a canal home in Mooloolabah. He also wanted to gift each of his three children a deposit for their first home and he wanted to have the time give back to his local community through charity work. He didn’t necessarily need one million dollars, he simply needed to be in a strong financial position to achieve those goals. Now that we had worked out his why we were able to build a strategy – and he had newfound motivation to achieve his goals.
It may sound clichéd, but having a big bank balance does not necessarily mean you are successful, it does not make you a better person and it certainly does not guarantee happiness.
We know lots of lonely, nasty & unhappy millionaires! It simply means you have done well managing your finances and made some smart decisions, or just done things the old fashioned way by working bloody hard! Success is about creating memories, experiencing life and sharing the love. Being in a great financial position makes things ‘easier’, eliminates financial stress and creates opportunities, but it should not define success.
When it comes to money, you will be successful if you have a defined plan to achieve goals that are consistent with building memories, experiences and opportunities. In the end, the money in the bank doesn’t mean much until it has been taken out and used to achieve something!
If you would like assistance with setting and achieving your financial goals, please contact us to book in a free consultation on 07 4646 4970 or at email@example.com
Written by Chris Black, Director at Fortress Financial Solutions
Fortress Financial Solutions founder Chris Black is an award-winning financial planner based in Toowoomba who specialises in superannuation, investing, business succession, cash flow management, retirement planning and personal insurances (including life insurance, income protection, total permanent disability and trauma insurance).
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