Tag: debt free

Remember what you’re working for

For the high achievers out there, remember what you’re working for. Some people refer to this as finding your “why.” Why are you working so hard? What is it that you really want?

Sure, you may like what you do, you may find enjoyment getting recognition or accolades from your employer, or you want to be seen as successful in the eyes of your peers/family members, but is that in alignment with what you actually want?

I’ve been working hard for a long time. I worked in high school, worked my way through college, and upon graduating I worked multiple jobs and many hours of overtime to pay off any student loans I had, pay off cars, a mortgage, etc. But after having kids, I had to re-prioritize my life goals. Did I still want to earn financial freedom? Absolutely. But I need to do it in a more sustainable way so I can see my family. Working 60-70 hour work weeks will help me earn income, but at what expense?

The questions I had to ask myself were:

1) What am I working so hard for? What is my new why? The answer to this, I think, is to create the best life possible for my family. That doesn’t necessarily mean to have or to make the most money though. Instead, I think it’s to raise respectful children with good work ethics who are happy with life…and me NOT being around just so I can earn more money or do something I’m “passionate” about is actually a very selfish thing to do.

2) Instead of racing the the financial freedom finish line, am I willing to maybe work a few more years to have a better quality of life (more free time to spend with my family, friends, and hobbies)? The answer to this is yes. What’s the point in rushing to retirement when you might lose your family (say, if you get divorced as a result of never spending time with your spouse), you lose your health (because you’re “too busy” to work out), lose your friends (because you never hang out with them anymore), and have no hobbies (are you just going to sit at home and watch tv all day)?? That life would be so unfulfilling to me.

So, as I conclude, I just want to say that everyone is different. We feel different things, have different goals, and are in different stages of life. Our life experiences are different. Our expectations are different. There is no right or wrong when it comes to why you’re working as hard as you are. But the key thing is to think about what you’re working for and adjust your time accordingly.

The importance of being in a position of financial strength

Are you in a position of financial strength?​
Are you in a position of financial strength?

Always aim to set yourself up to not have debt so that you minimize your risk of making stupid financial decisions. When you’re desperate, you feel you have to take drastic actions. Most of the time, those drastic actions are long shots to actually pay off (a most like playing the lottery). You get blinded by “the opportunity” and gamble with your money, hoping for the big payoff. But in reality, you would be far better served making small, rapid improvements with your money habits.

So how do you set yourself up for success? First, go back and look and your bank statements for the past 3 months. Print them out. Figure out where you’re spending your money…you’ll have necessary expenses (housing, food, transportation, insurance, etc) and unnecessary expenses (“fun money”). What can you cut out to bring your spending down and your savings rate up? And out of your necessary expenses, what is really necessary? Yes you need a place to live, but are you living in a place that is making you house poor? Did you purchase a car with expensive payments? Are you going out to eat every night instead of making a healthy (and cheap) dinner at home? When you complete this exercise, you’ll see just how much extra you’re draining from your bank account. From there, it’s up to you to make a change.