By: Bosco Tan
I’m turning 30 this week.
For the first time since my last week in high school, I’ve stopped to reflect on life. As cliché as it sounds, it’s a much needed moment of clarity.
What a lot of people tend not to do is to see their financial lives in context. It’s so easy to get caught up with short-term “saving-for”s. What might be more important is looking 10-15 years ahead:
This totality of “where you’d like to be” is precisely what financial planners do with clients. The best news is it’s really not very hard to DIY – with a bit of paper and a pragmatic imagination.
While I want to live like a king tomorrow onwards, my chances aren’t great. What I can achieve is perhaps an earlier retirement, or perhaps working for 6 months and travelling for another 6. Depending on when I’d like these to happen, my financial decisions change.
I see financial decisions to include my career choices. The reality is salary affords the ability to spend and make investments. So I work backwards to determine how much money I need to be making today and what career path I should be on.
So if you’re like me, and is finding inspiration to plan for the future this week, remember to do the following:
And finally, just stay happy. That’s the only plan that’s guaranteed to work out exactly!
Bosco Tan is a Co-Founder of Pocketbook, a new Australian company seeking to make personal finance, budgeting and managing money ridiculously simple. He has years of experience working with big corporates to achieve their strategic and budgeting goals. He is now hoping to use these same principles to help individuals. Bosco is also a keen property and angel investor. You can connect with him at http://www.linkedin.com/in/boscotan.
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