In my communication with clients who do not follow through on advice I have given them, they usually apologise and give an excuse for their inertia. What I have started to reply is something along these lines: Don’t apologise to me, it’s yourself you are hurting.
Good intentions without actions will not help you become financially independent.
What does financial independence look like? It means retiring from work when you want to. It also means no debts after you stop working. Successful retirement means you will have a positive net worth. And that you retire with your own cash stash, not depending on CPP, a pension, or an inheritance. Illiquid assets like a house, boat, car, jewellery, art are not part of your cash stash. Inflation will erode the value of your dollars and you will need more of them in the future to buy the same items.
I will categorically state right here that investment returns in your accounts are only a small part of the action plan needed to achieve financial independence. Almost all your success will depend on your present behaviors and habits. Are you productive or a procrastinator? Do you take counsel or try to do things on your own. Do you follow every financial or material fad?
With this in mind I have composed a progress report that outlines in detail what actions are needed to achieve financial independence. I have compiled it by observing the habits of some of my clients who have paid off their mortgages early, funded their kids’ education, and slowly and steadily built up their long term investments. Yes they still had fun along the way.
We work together to increase your net worth, which is assets minus liabilities. It does take a time commitment but it is well worth it in the end to achieve financial security. All of us can make time to be good stewards of our financial capital. Do like some of my clients do, schedule it into your calendar.
With the price of cheese today ignoring your financial future might mean you will not be able to afford mac and cheese let alone pork chops or roast beef. Do you believe in being kind to your future self?
Do you want a future with no regrets? The other more important 4 letter word is hope. That is my currency and what many of my clients have said I give them.
A word about where you will score on the progress report. The closer you are to 100 the more likely you will be to achieve financial security. A minimum of 60 means you are on the right track with room for improvement.