Have you ever sat down to look at your financial situation and just thought, “I don’t even know where to start here”? Well, you wouldn’t be the first. In fact, the majority of people we see answer “I don’t know” to many of the questions we ask them, and that’s okay.
We believe that not knowing all the answers can actually be a strength on your journey towards financial freedom. Embracing the unknown can help you uncover what truly matters to you and pave the way for a brighter financial future. So, let’s dive into the power of “I don’t know” and explore how it can guide you on the path to successful financial planning.
Embracing Lifestyle Goals:
If someone at a BBQ was to ask you “what is your financial goal?”, what would you say? Would you say something like “to pay off the mortgage” or “to retire early” without really thinking about it? What would you do if they then asked, “how are you going to achieve that?” Most people would say “I don’t know” inside their head (or something more explicit about why this person is asking these questions).
Not knowing these answers is your sign to start envisioning the life you desire. Take a moment to reflect on your dreams and aspirations. What kind of lifestyle do you want for yourself and your loved ones? By acknowledging that you may not have all the answers right now, you open yourself up to possibilities. Embrace the uncertainty, as it allows you to explore and discover what truly brings you joy and fulfilment.
Unveiling Cash Flow and Budgeting:
Do you know how much you spend on groceries each month? Or how much you spend on entertainment like streaming services, going out to dinner, etc.? There are a lot of people who don’t know where their income goes or why they are never able to save money for a rainy day.
This is a sign that they don’t know their cash flow position. Just being conscious of this is great news for you, because now that you’re aware, you can put together a budget and start to manage your finances effectively. For help on getting started, read Understanding your cashflow and How to manage a household budget.
Decoding Retirement:
This is a big one. Do you know how much you will need to retire comfortably? Many people are unsure about how much money they need, and retirement planning often feels like something you need to worry about later.
Not knowing the exact figure is perfectly okay, but leaving it too late to work out what that figure is and how you’ll effectively save it for when retirement comes around, can be detrimental.
The power of “I don’t know” invites you to explore what retirement means to you. Start by envisioning your ideal retirement lifestyle. Do you want to travel? Pursue hobbies? By focusing on your desired lifestyle, you can work with a financial planner to estimate the funds needed to support your retirement goals. And the more time you give yourself to achieve it, the easier it will be.
Remember, embarking on a financial planning journey without having all the answers is not a weakness; it’s an opportunity. By embracing the power of “I don’t know,” you unlock the potential to uncover what truly matters to you. Take the time to reflect on your lifestyle goals, seek guidance on cash flow and budgeting, and envision your ideal retirement. The journey towards financial freedom is unique for everyone, and not knowing all the answers allows you to shape a plan that aligns with your aspirations and values.
So, embrace the uncertainty, seek advice, and confidently step forward into a brighter financial future.