I hate running on the treadmill. It’s not that I enjoy running anyway, but I prefer to feel like I’m somewhere else when I’m running.
I want to see the goal line in front of me.
We often don’t live life with the same philosophy. We tend to get caught up in the mundane tasks without a vision of the end goal in mind. And it connects with our finances as well.
Why is financial vision important? Money is an incredibly powerful and versatile tool. But the tools we have are finite. Think about what you could do with a million dollars. You can think of all kinds of possibilities for using a million dollars, but how much can you do at once?
A financial vision is critical to successful financial planning as it prioritizes the steps in your financial efforts. Perhaps your vision is to retire to Florida. This vision frees us from the treadmill of simply accumulating wealth and focusing primarily on investment returns. Now you can focus on the steps that will help you achieve your financial vision, like setting a target date to move south or saving to buy a home.
You may not consider yourself a visionary person. However, your financial vision doesn’t have to be complex or sophisticated. It can be as simple as “I don’t want to be a Walmart teller when I’m old!” Ask yourself the following questions to inspire your creativity:
• How does my financial situation fit my life purpose?
• If money doesn’t matter, how can you increase your overall satisfaction with life?
• How can I use my finances to improve my physical or mental health?
• What do you want my life to look like in 10 years?
This last question reminds me of my last point: dreaming in high resolution photos. Be specific about what you want to achieve. Want to retire to Florida? What does your home in the Sunshine State look like? What is your daily routine? How long have you been tanning? Create an actual mental (or physical) image of the vision you want to achieve.
It’s easy to get stuck in the middle of your daily work. And let’s be honest, financial planning can be successful without a vision, in the same way running on a treadmill can help you lose weight. But vision brings more life and color to your financial plan, sharpening it like a razor blade.
Envision your ideal retirement and run towards the finish line.
Kyle Kent Advisor to the Financial Strengthening Group. You can contact him by: 800-928-4001.