“Is that all I am going to get after 25 years hard work in our business!” exclaimed a very emotional and distraught colleague. Her anxiety made a little worse having learned she been replaced by a newer model. “How on earth am I going to buy another home and survive financially?”
I am sure 25 years ago neither her or her husband would have thought they would end up in this situation. They didn’t take care of their golden egg plan – and those crystal balls aren’t all they’re cracked up be – they lived life very much for the moment.
They had a lovely home, a very successful business and a great lifestyle. But what neither of them did was give enough thought to the long-term future. They were so busy borrowing against the business and the home for lifestyle, there just wasn’t enough for either of them to continue living separately the way the did as a couple.
This is an all too common story and one we are hearing from couples that are still together!
Whether you generate your income (and grow your assets) by working for someone else or yourself, you need to look after that precious goose that lays the proverbial golden egg.
We meet many business owners who are giving no thought at all to what happens when they sell the business. They think they are going to get a large chunk of tax free money that will keep them in the lifestyle they have become accustomed to.
For a fortunate few this may be true, but for the vast majority, alas, it isn’t.
The reality is that while you are revelling in the good times, you need to be future proofing yourselves by planning ahead to the days when you may not be so prosperous.
Instead of living on 100% of your income, live on 70-80% and make sure the rest is tucked away so it can go towards replacing your income when you do decide to sell or or stop work.
To be able to do this, you need to know your numbers, both in business and in life. As your income starts to grow, it is all too easy to stop looking at the numbers. Why would you? You don’t need to, business is flourishing, everything is fine.
But this is also the time when ‘Keeping up with the Joneses‘ and ‘instant gratification’ can lead you down the well-worn path of “Spend baby spend!” to join many others in wondering where it all went.
And if you think your house is your golden goose, you need to nurture that as well. The temptation to borrow against the increasing value is very tempting. If you are going to do this, do it wisely. Think long and hard about what you may be forgoing in the future, for the overseas holidays, boat or flash car now.
If your house is part of your retirement plan, then you don’t want to find yourself in the situation of still having a mortgage when it comes time to down-size and release the capital.
Before you start with the, “oh, come on, we want to enjoy our money now while we can!” Hold up a sec, we aren’t saying that you can’t enjoy life now, simply that you must have balance. What we are saying is, be aware that the choices you make now will impact your future.
Have you looked at your golden egg or is it just too scary? You know what you’re doing wrong but just don’t know how to fix it.
That is where we can help you. Click this link and book a free strategy call and start to take more care of your own golden goose!
If there isn’t a time that suits you, drop us an email and we’ll arrange something.