Shaun Brennan DipPFS BSc(Hons)How about not saving enough for your retirement? Not taking a long-term approach to investing? Or not having a financial plan? These are certainly mistakes to avoid.
But we believe the biggest mistake to make with your money is not aligning what you do with it, to what’s most important to you.
The key is to get clear on what’s most important to you in life, then to make sure you use your money in ways that help you live your best life possible.
Unfortunately, most people don’t consciously do this because they see their money as an end, a goal, something to be chased after. All that effort, 40 hours (at least) every week, but do we feel like we’re getting anywhere?
Money isn’t a goal. It’s not a destination. It’s not the sea you’re sailing. It’s not even the boat. Money is the sail you use, to get you where you want to go. And the wind in the sail is your values.
We’re afraid to step off the hamster wheel because we have bills to pay and families to support. We’ll retire “someday”, when we’re “financially set” and do all the things we want to do. But when and how much is “enough” anyway?
Often someday never comes. We stay on the wheel. And retirees who can’t shake the “never enough” mentality end up pinching pennies instead of enjoying the life they have left.
So, what really matters to you? Who are the people you love? What are your passions? Your hobbies? The causes that really matter to you? The things you would love to do if time and money were no object? How important are material possessions to you?
If owning things makes you happy, then plan to buy as much as you can. If walking your dog in the forest makes you happier than the latest gadget, then you will have worked out what you need to change. There is no right answer here, just the answer that is right for you.
Imagine what your life would belike if the way you thought about, spent and invested your money was 100% in agreement with what is most important to you. Would that be a happier and more fulfilled life?
Visit our financial planning page, to find out more about how to use your money to make the most of your life.
