May I just start by wishing you a very happy new year, and I hope you had a great Christmas break.
This blog post is part 1 of a special 4-part series during January all about building financial security and freedom through your business. Our mission at The F Word is to inspire our clients and readers to build a business that will give you the future you want, and to give you the tools and support to make it happen.
Even if you’re not already a client, the information in this blog series could seriously impact on your financial future IF you take action of course!
Become the architect of your own Financial Future
Can you imagine how it would feel to no longer have to worry about your future?
And I don’t necessarily mean building significant wealth, although that might be important to you, but to know there will be “enough” – whatever that looks like for you.
Well, now you’re back at work, at the start of a brand-new year, take some time to think about what you’re doing it all for. Is your business on track to give you the financial security and freedom you want for your future?
Chances are you won’t know. Most people don’t have a plan of what financial freedom looks like for them. So, I’d love to encourage you to jump off the treadmill before the busyness of the year overtakes you, and think about this incredibly important subject.
It will most likely change your life if you do!
And before you know it, it’ll be December 2019 and you’ll have lost a whole year where you could have made a big difference to your future.
What does financial freedom mean?
Financial stability and strength give you the freedom to become who you want to, to achieve what you want, live the life you want, and to realise your personal and business potential. Without financial pressure.
Financial freedom and security are very personal things, and no one else can tell you exactly what they look like for you, but they might include:
- Not worrying about unexpected costs or financial emergencies
- Being debt free
- Being in full control of your finances
- Free to live the life you’ve chosen without financial pressure
- Having the money to build the business you dream of without financial constraints
- Knowing you can stop working early, if you want to
- Not worrying about your retirement
- Knowing you have a choice for how you spend your days
- Building a legacy to leave behind one day
- Having enough money to help other people
When it comes to how much money this means, ie what is your X number, that is of course very different for everyone.
You need to know your X number
Everyone has an X number. The amount of money they need to feel financially free.
For some people this is the number they need to hit so they never have to work again and can stop work early, for others this is the figure they need to have when they retire to give them the life they want and be secure.
Your X number is going to depend on a lot of different things, all personal to you:
- How much you want to earn a year?
- What plans you have for your life?
- Where do you want to travel to?
- Where do you want to live?
- What sort of lifestyle do you want?
- How do you want to help other people?
Knowing this number is your critical starting point, although I do get that it’s not an easy thing to come up with if you haven’t thought about it before. Don’t worry as it won’t hold you up in the other things you can do to start building a better financial future.
But until you know where you’re heading, how can you possibly know if your business is on track to deliver it for you?
Your next-step action plan
If you don’t know your X number, get an appointment with your financial advisor as soon as you can to start this process. You’re going to need to put some real thinking into this process – which I think is a great thing. Far better to have given your future proper thought now than just wait and see what you end up with (a tactic favoured by far too many business owners, and not a particularly successful one!)
Next week I’m going to be talking about making sure you’re not abdicating any aspect of your financial future to anyone else.
Have a great week!