With holiday season upon us, many of us will be relaxing and spending time catching up with family. Many of us will be on the beach and a good proportion will be helping children or grandchildren with buckets and spades.
At Royall Wealth we use a very simple concept to help our clients appreciate how their money works using the concept of a bucket.
If you think of your lifetime wealth accumulation it is effectively the same as having a money bucket.
The more money you can put into your bucket, the quicker it will fill up. And if you can avoid leaks then the bucket will remain fuller for longer. The smaller the money tap that pours out of the bucket the better you will get at growing your wealth.
Unfortunately, like sand on a beach, money can slip through your fingers very quickly if you do not use the right techniques to manage your wealth. If you don’t have a clear handle on your spending this can be a significant drain on your wealth, as are the variety of taxes that we pay, some of which can be reduced significantly with intelligent planning.
We find that people with a clear plan of the future are usually the best at managing their finances. It is amazing what a specific target can do to motivate you to save or invest more. Simple things like saving or investing money on a regular basis can also make a huge difference, particularly over the longer term.
We also find that people with a clear plan are more disciplined to stick to the path of their planned direction. This helps avoid costly u-turns in plans as you are less tempted to spend on materially expensive items to keep up with the Jones’s if you know where you are headed. The shiny objects become apparent for what they are, distractions and worthless in the bigger scheme of your life.
What people really need are strong friendships, good health and time. Time to appreciate and enjoy our lives.
So when you are on holiday for a couple of weeks, take notice of how slowly the early days and first week pass compared to the second week; the second week always seems to zip by.
As you get older you appreciate that your life works the same. Your early years, teens and twenties seem to go fairly slowly and then, before you know it you are 40, 50 and approaching retirement.
In today’s topsy turvy world it is more important than ever to maintain some stability to our lives. Having a clear, coherent but flexible plan for the future helps.
So during your downtime over the summer why not think about what you really want from your life over the next few years and how your current lifestyle fits in with your plans, and what you need to do about it.
At Royall Wealth we are very good listeners. We would be happy to share our own experiences and the learning of our clients over the years. Enjoy the Summer.
To find out more about Royall Wealth please see our website www.royallwealth.com .