Is your financial house in order?
Ever notice that politicians always frame their messaging around creating good quality, high paying, middle-class jobs?
There's a reason for that. They know that a population dependent on the government is more pliable than one that isn't. They know that if they appear to help your family's finances, you are more likely to support them come next election.
But instead of looking to politicians, why not shift your focus within: on yourself and your finances.
I sometimes find it useful to think of a family's finances as a boat, with holes; some are plugged, some need to be plugged.
How do you know what these holes could be and whether or not they are plugged? How do you know if your financial house is in order?
Consider these questions
What happens if one of the three major storms of life hits?
What happens financially if:
- you or your spouse do not come home tonight?
- you or your spouse become critically ill (e.g. cancer, stroke, heart attack)?
- you or your spouse become disabled or seriously injured and unable to work?
Are you in control of your debt or is your debt in control of you?
Everyone wants to be rich, but few realize that being rich is a math formula:
- make money, grow your money, and eliminate debt
Do you have a plan to get out of debt and are you following that plan?
Is your debt increasing, decreasing, or seesawing between both?
Do you have an emergency fund?
- What happens if your furnace dies in the middle of winter?
- What happens if your fridge suddenly stops working?
Do you go further into debt by using your credit card, or do you have some money set aside to handle this? Experts suggest three to six months of expenses set aside just in case.
When you have money in the bank, you walk taller, with more confidence, and less financial stress.
Are you investing for the long term?
No one can physically work forever. And even if they could, do you want to?
Do you know how much money you need saved such that it will sustain you from the day you retire to the day you expire?
Are you on track to achieve this number?
If not, how do you intend to meet your income needs in your later years of life?
As stated earlier, growing wealth is a math formula and one of the main inputs to that formula, besides money, is time.
The sooner you start, the more time you allow for your money to grow.
In Closing
I know I have thrown a lot at you in this article but these questions are intended to help your establish a baseline of your present situation so you can move forward from objective reality. They are not intended to scare you or frustrate you.
Knowledge is power. And transcending the establishment is all about helping you reclaim your power: One day at a time; One month at a time; One year at a time.
Know that the journey to transcending the establishment begins with getting your financial house in order - by becoming financially fit. It starts with you:
- addressing each of the above questions,
- coming up with a practical answer that works for you and your family, then
- implementing the solutions, as quickly as possible
It takes commitment and determination. And while it may sound daunting, it's no different than eating an elephant; one bite, or one step, at a time.
If this resonates with you and you need support to move forward, seek out a qualified financial professional who has your best interest at heart and whose approach aligns with the mission of this blog - your financial sovereignty.
If you do not know such a person, please reach out to me. I may be able to help you directly or refer you to someone who can.