Yes, I know there is a lot of tax news happening right now. And I promise that I will speak to it very soon, as needed. But I want to amplify something this week, that I think is pretty important.
You see, for some reason, this series I've been writing here and there recently, on the financial lies we tell ourselves, has struck a nerve with my list of clients and contacts.
Replies and such have varied, but if I had to pick a common thread, I'd probably point to the fact that this series has been speaking to the niggling reasons that we all have -- whatever our income bracket -- for not pursuing the kind of financial life we'd like to pursue.
At their core, in my opinion, finances reflect a spiritual reality. Money is nothing but an objective marker for what we most value. It's a "medium of exchange", and for this reason, it's such a sensitive topic for so many. Too often, we turn it into a measuring stick ... and too rarely do we see it as a thermometer.
But it doesn't measure our "success" (or lack thereof) -- it measures the states of our hearts.
So look -- I prepare taxes and do accounting for a living. I'm not a philosopher. But for me and my family, it's deeply important that we are honest with ourselves about our failures and our self-defeating beliefs. Because they reflect themselves most clearly in our finances.
So, all that said, here's the next installment...
Michael Kessler's
"Real World" Personal Strategy Note
How We Lie To Ourselves About Money
Part 3: "I can't save or invest until..."
"The successful person has the habit of doing the things failures don't like to do." -Albert E.N. Gray
So, I've written about two lies thus far, and they impact far more than those who have not chosen to save or invest. It may seem as if they are restricted to those who have NOT yet done so ... but if you are among the minority of those who have disciplined yourself to begin saving and investing, I'd like you to also consider this:
What is the next financial challenge that you are yet to begin?
It may not be about "beginning to save or invest" -- but it might, in fact, be that giving more will sap you from the security you've found *in* your savings and investments.
Or, it could be that you're just comfortable, and you'd rather not rock your financial boat with more steps outside of your zone.
Well, I suggest that you take what I've been writing, and apply the principles of it to whatever new challenge your inner being is crying out for you to take on.
That said, the first lie I wrote about was: "I will get my finances in order as soon as ..."
The second is: "Now that I look at my finances, I can't begin to save because ..."
Are you starting to see a pattern?
Too often, we look ahead to some mythical future which would finally give you the green light. Could it be that the green light is already on?
The third lie is "I can't save and invest unless or until ..." People put many conditions as prerequisites for getting their finances in order, but these also are just lies we tell ourselves.
Some think saving and investing is only worthwhile if it is some large dollar amount. Not true. Saving just a dollar a day between age 20 and 65 at a (hypothetical) 6.5% return results in over $100,000. That means if you spend $10 on lunch eating out each day instead of bringing food to work from home, you are very possibly robbing yourself of as much as an extra million dollars (or more!) in retirement.
When clients don't think they can start saving, I suggest we start small, maybe $100 a month. When they don't notice the impact in their daily lives, we gradually start increasing the amount.
Everyone in America can save something. Whatever you save, the magic of compound interest produces incredible results.
So my friends, stop lying to yourself, and let's start building your financial future.
Warmly,
Michael Kessler
(516) 449-2852
