What if “love, time and health” are further down your list?
Nothing wrong with that.
If the #1 goal is financial wealth then I have a question…
Let’s say you achieve this financial plan… then what?
I have spent years coaching high-performing amateur athletes. For many, their answer to “then what” was working towards qualifying for a World Championship in their sport of choice. It’s an ambitious goal that takes years to achieve, if at all.
Of course, once you achieve athletic goals…
Then what?
A better approach could be to work directly towards your ideal life, building financial wealth along the way.
Wealth, like family, is a game with a long time horizon.
Story Time
12 years ago, I consulted with two families where the main breadwinner was entering middle age. The assignment was to build a plan for financial security late in life. Their #1 goal was security, not wealth.
A series of meetings boiled down to:
Simplify the balance sheet in a tax-effective manner.
Swap into low-cost financial products.
Agree an annual “new money” investment allocation.
Reallocate energy spent on financial “worry” into something productive.
Both breadwinners are high-energy individuals. By giving themselves peace-of-mind, they unlocked the ability to increase focus on their careers.
The best asset we have available is ourselves… …and that’s where we want to invest our time & energy.
Human Capital
Human Capital Inventory
If the goal is financial wealth then start with an inventory of human capital:
Work Habits
Education
Skills
Applied Education
People Management
Project Management
Peers, Friends, Colleagues
Don’t get distracted by the financial balance sheet. Where both these individuals excelled was increasing the productivity of their human capital.
They were willing to change roles, find jobs and move cities to achieve their goals.
They were multi-skilled, able to fill multiple roles within their organizations.
They were willing to inconvenience themselves…
To do the “right thing” - whatever that meant in the situation.
To continually learn new skills.
These traits made them reliable, and trusted, within their organizations.
While they developed their careers, their balance sheets remained:
Simple
Tax Efficient
Low Cost
Growing
Because they became masters at multiple games, they are highly-employable.
Their wide range of employment options gives them comfort.
They continue to work extremely hard.
They continue to learn new skills into late-middle age.
Questions To Ask
Is my current field an area where people “get paid?”
If not then time to retrain and relocate.
Is my skill set sufficient to progress my career?
If not then time for night school.
Take formal education in your area of greatest weakness.
What areas of my personality might be holding me back?
All the self-made people I know are great with every kind of person. Their peers love hanging around with them.
An interest in others, and the capacity to listen… valuable and trainable skills.
Am I willing to work, for a decade, to achieve my goals?
What habits are holding back my mojo?
I hope this helps you move towards a satisfying outcome.
Remember my tip about working directly towards your ideal life. We don't want to discover we were climbing the wrong mountain.
Thanks for this one Gordo, one of your best. I restacked this quote because it's so true, and so very important to consider. "Reallocate energy spent on financial “worry” into something productive."
Good timing for your article. Thank you!