The question you should start with when you’re thinking about financial wellbeing and the impact of considering the tradeoffs.
Let’s start with a question…one I’ve got to thank fellow money expert Lesley Thomas for…
What’s your money story?
It’s probably not a question with a particular definitive answer. I know my own answer is influenced by a lot of the stories I tell myself about money.
Stories which sometimes serve my life. Stories which sometimes don’t. However, asking what money means to you provides a really useful insight…
It lets you decide which stories are serving you and which ones are holding you back from the life you want to live.
Often the stories we tell ourselves which might result in more money are the ones where we might need to consider the trade off’s…
Consider this example. Let’s assume you’re telling yourself this story…
“I should be fully financially independent by 50”
Firstly, is it possible? Certainly, but that’s not the most pertinent question…
The one that springs to mind for me, is “What do you need to sacrifice in order to get there?”
There’s always tradeoffs. Whilst there’s loads of different ways to build wealth, it typically comes by exchanging human capital with financial capital.
So, what’s the sacrifice?
It’s probably a number of things, but certainly involves some sacrifice of time.
Time spent at work whilst you could spend walking your kids to school.
Time and money spent on holidays where memories are being built, instead of popping the money into your investments and spending the time working!
Time with people you love and like.
It’s interesting isn’t it. There’s nothing wrong with an aspirational financial goal (I believe they’re really important!).
However, thinking about what the trade off’s are along the way, as well as the stories you tell yourself about money, might change your perspective on your financial goals and the sacrifices you’re prepared to make to get there.
So, I’m curious, what stories are you telling yourself about money…and have you ever considered what sacrifices you’re willing to make in other aspects of your life to achieve your financial goals.
As always there’s no right or wrong, but I’d love to know your thoughts!
