Financial Security: What it means to me
For 15 years, I worked in the financial services industry. I held my Chartered Life Underwriter Designation, a mutual funds license and helped families create financial plans to protect from the risks of death, disability, while at the same time, save for their future needs. Be it a home, education, retirement, travel, cottage, whatever mattered to each person. The plans had to be flexible enough to manage life’s unforeseen circumstances, yet stabile enough to create a foundation of security.
The interesting thing about money is that if you speak to 5 different people, you may get 5 different answers on how money is viewed. In a study done in New Zealand, it was discovered that there are 5 different money personality types.
The enterpriser who is a future oriented planner. The minimalist confident in their saving ability as they value a simpler life. The socialite is a joyful, risk taker, a generous emotional spender, who lives today and doesn’t think about tomorrow. The Contemporary focuses on paying down debt and maintaining a saving account to increase financial resilience. The Realist is very conservative with risk. Highly values money yet is not confident in their money handling ability. People may have some elements of each of the 5 types of money personalities but leans towards one predominantly. How we think about money, does impact how we live our lives.
I have met people to afraid to spend money on themselves and I have met people who would never think of spending a dollar on anyone other than themselves. What matters to your financial security is the belief that you personally hold. Your belief system inevitably creates your reality. If you believe that your needs will be met, they will be. The correlation is that you have the ability to do the work to achieve that. That too is a belief. This is faith in action. I know people who acquire what they need or desire all the time, because their belief that it is so is that strong.
Now, I am not saying that from time to time, we don’t experience financial upheaval, or challenges. We all do and always will. That is the cycle of life. The economic cycles of expansion, contraction, recession, recovery and growth. In our lives, we have times of great affluence, influence or prosperity, gains in friendships, gains in weight, gains in experience. Then there will be times of contraction, weight loss, austerity, focusing inward, less spending, more sheltering. Recognizing the cyclical nature of the world, be it the weather, the seasons, the economic times, the political times, the relationship of parent/child -child/parent ei the child if they both live long enough will parent the parent. There is always a cycle. Where on the curve of the cycle are you now? Here is a method to plot that.
The wheel of life assessment is a common tool used to asset one’s life. The circle contains 10 sections which are important to maintain a balance or equilibrium in your life. Imagine the spokes of a wheel. (you know, the things we used to weave ribbon through on our bicycles) Remembering that life, if viewed as a wheel, and one that is actually in constant motion, the balance part becomes increasingly important. We want our wheels to support us, to carry us forward and keep us upright. When learning to ride a motorcycle, our instructors would say, keep your eyes up and look to where you are going. In life, it is the same. If we look down, we go down. How often did we fall off our bikes, when our attention went to either what was behind us, or the road below us. We must look up and push forward. To look forward and believe that the road ahead holds adventure, reward, opportunity, joy and fulfilment.
The 10 elements on the wheel of life assessment tool are 1. Health, 2. Family, 3. Relationships 4. Social, 5. Financial, 6. Career/Business, 7. Education, 8. Hobbies, Fun/Leisure/Recreation, 9. Spiritual Growth,10. Contribution, and Creativity
I add this important paragraph to emphasis that money is only one aspect of life. The other 9 are just as important. Sometimes, we judge ourselves just on the money portion, abundance of or lack thereof, forgetting that all the other aspects are essential to a balanced life.
Your money views or values are instilled by your family, your culture and your environment. Money views can change if you choose to look at them and make adjustments if your current views are not serving you. If savings was never taught as a goal to aspire to, it may not be of importance to you. Some people believe the only good investment is real estate. Debt for the purpose of gain, or investment is a concept sometimes known as using “Other people’s Money” was very popular in the 1980s. It had its risks, and rewards. Gambling today is not only trending but is growing at an exponential rate. Not that long ago, gambling was considered irresponsible. Today many people have an app on their phone. I am not recommending gambling just observing that something has changed, in how it is now presented. Whether a person believes being in the stock market is too risky or is the only way to decrease the risk of the deflation of the dollar, it is the belief that matters. There will always be bad investments that don’t provide the reward that was promised. There will be good opportunities that bring you more joy, than you could have imagined.
It is beneficial to work with a financial planner who is there to educate you on the options available for savings, investments and risk reduction and tax savings. You want a person with whom you can build a relationship, not someone who just wants to make a sale. Someone who understands your values, knows your family and your objectives. So that when the life insurance policy or the critical illness policy needs to be paid out, they are there to assist with all the decisions to be made at that time. Someone to celebrate with you, when you have your retirement party or send a BonVoyage card as you leave on a family cruise.
Financial security comes when you have confidence that the decisions you are making are the right decisions for you. Feeling secure with your own unique plan. Be that being a technical nomad, or a homeowner with a vacation property. Or a tiny home, and a Harley. It is your life, your choice, your money. Take the road, make the choice and enjoy the ride. If you get to a dead-end, or don’t like the scenery, change your route. The experience you gain along the way has value too. Life expands and contracts. As my mentor would say, “You have to exhale, you cannot just inhale.” I believe that as we use our talents, money, and time to serve others in a beneficial way, the rewards flow back to us. And wouldn’t that qualify as a life well-lived?