When I was younger, money was my master, not my servant. Maybe you identify with that. How does that happen, and how can it be changed?
Twenty something
In my twenties, money equaled food, gas for the car, rent, and not much else. After getting both a bachelor’s and a master’s degree I was unable to find a job in my chosen career. I looked all over the country; I did not believe this would change for the foreseeable future. When you are the only person in your family ever to go beyond high school the idea of career counseling never comes up. I learned there can be a big difference between “skills” and “marketable skills”.
Thirty something
In my thirties, I was married and starting a family. Money went to meeting family obligations and basic necessities. The idea of living below our means never occurred to us. But the concept could have been embraced by setting a low starting objective such as living on 98% of our means. This would have established a way of life and a way of thinking that could have been built on as the years went by. And they go by very quickly, as any grandparent will tell you.
Forty something
In my forties – just at the point when things seemed to be looking up – a divorce and all the associated financial and emotional challenges took a huge toll. I decided to start making modest contributions to a 401(k) at the very time when I could least afford to, reasoning that if I could do it under those circumstances I could continue to do it whatever the future might bring. That decision turned out to be a financial turning point in my life.
Fifty something
In my fifties I started wondering when we – my wife and I – could retire. We started saving every dollar we could towards the goal of retiring early. The ramifications of starting later rather than earlier became apparent as I became aware of the effects of compounding over time.
I began reading extensively on financial topics and realized that much of what was being made available to the public was either misleading, far too simplistic, not in the reader’s best interests, or factually wrong. So, I did my homework and waited until I was confident in my assumptions and calculations. We both retired early – ages 57 and 55 – and never looked back.
This was another turning point in my life as I started pondering more seriously the question “What really matters?” This set the stage for our sixties.
Sixty something
In my sixties we tried a variety of activities and pursued several interests because we now had the freedom to do so. We are nowhere near what most people would consider to be “rich”, but we are able to live comfortably and enjoy the freedom that results from good financial planning.
Seventy something
In my seventies I hope to continue doing exactly what I’m doing right now: writing articles for this and helping people get the maximum out of their lives based on their personal objectives while convincing them that financial matters are neither unintelligible nor beyond their abilities and control.
At this point in my life I believe I have a better grasp on “what really matters”, and am committed to following the answers.
None of this would have been possible had I not recognized that we wanted to take control over our lives to make the best of them, and that getting control over our financial circumstances was an absolute necessity in making this happen. While in hindsight I wish this had happened earlier – it didn’t – but it did occur with enough time and determination to turn it into a reality.
Do we deserve any special credit for this? No. Are we unique for doing this? Again, no. But it’s something anyone can do, and it costs nothing.
The future
So, should you bother with financial planning? Yes, but only if you want a critical tool to allow you to take control of your life. Not everyone wants to do that. And that’s your choice to make.