If you invest $500 a month for 30 years in a total stock market index fund, you can have one million dollars when you retire.
That sounds great and all, but buying something you want right now is way more fun than investing $500 a month for 30 years for a future version of yourself to enjoy.
Future You
If your future self is like a stranger to you, spending 30 years of your life investing for a stranger will be tough. It can be especially hard when you can put those $500 a month to good use RIGHT NOW. You work way too hard to be cooking every day. That money can go towards eating out or you can disconnect and book a nice Airbnb for the weekend.
Your Why
When instant gratification feels so good, you need a really good reason to stick to your financial goals. That’s where Your Why comes in. Your Why must be so powerful that the temporary joy you get from spending money on things you don’t care about, pales in comparison. Whether you’re pursuing financial independence or saving for your home down payment, get clear on why you’re doing what you’re doing.
This or That
It will make it easier to answer the question “Do I want to spend $100 (at least) on a 2-hour brunch or do I want to set aside $100 in my Cancun sinking fund so that I can spend a week relaxing on the beach this summer?”
When Your Why is strong and you’re walking through Target looking at overpriced throw pillows, instead of saying “Why not? I work hard, I deserve it”, you can think of how you can spend that money on something you actually care about. I am not saying not to get the pillows. I am saying you can plan ahead:
- Add them to your monthly spending plan and buy them when you’re ready,
- Buy them with your fun money,
- Create a sinking fund called “Random Shit I Want to Buy” or “Home Decor” (whatever floats your boat)
Total Sidebar And A Little Unrelated
When did we as a society agree that it was okay to pay this much for throw pillows? I must have missed that meeting because I most definitely DO NOT agree! I love throw pillows but what’s with the $30-$50 price tag PER PILLOW? And sometimes it’s just the pillow cover, no actual pillow included.
Anyhow, back to our regularly scheduled program…
My Why
My Why can be broken down into two categories:
Freedom
- Freedom of time is priceless to me. Being able to choose what I do and when I do it is my ultimate goal.
- Future Me will be work-optional and will go on 3-4 vacations a year (mostly by a beach somewhere).
Generational Wealth
- A financially secure future for my daughter
- A future where my mother can retire without having to work well into her 70s.
These two things hype me up like no other and keep me motivated.
Your Turn
If you’re still working on defining Your Why, visualize Future You. It doesn’t have to be a version of you 20-30 years from now. It can be 1 year from now.
- How does she feel?
- How is her home?
- What are her days like?
- What are her hobbies?
Use your answers to define Your Why so you won’t get caught off guard at your favorite store asking yourself “Why not?”
What’s Next?
You’re not going to slip, fall, and land on your goals. You’re gonna need a plan.
Want to start spending your money on the things that truly matter to you? Get my Free Aligned Spending Plan and start matching your spending to your goals.
