If you remember I fell off a ladder getting Christmas lights down out of the garage on December 1, 2019. I tore my ACL, MCL, and meniscus. I have spent most of the year working on recovery getting my knee back and the ability to walk without a limp. I spent time focusing on improving my knee so that I could walk and even run like I could before the fall. I have spent a lot of time thinking about ladders.
I love this picture of my first grandchild which kind of matches the look my wife gave me when I said I needed a new ladder. Even though I fell off a ladder that does not mean I will never get on a ladder again. Setbacks in life are common the question is how will you adjust to them. The same thing can happen in your financial life.
Preparing for the Unexpected in Your Finances
Are you prepared for those unexpected events and does your plan have the flexibility to deal with this quickly changing world? I have been taking additional classes this year and expanding my knowledge base as I recover from my fall. One of the areas I found more helpful in working with individuals and couples is working in the area of cash flow. What I learned over the decades working with individuals and couples is that when they realize they can retire or continue to work is a life-changing event.
Just imagine that one day you wake up and decide to go to work just because you want to rather than you have to? You don’t have to because you are debt-free and have enough in savings to provide your income until you pass. Would you look at the world in a different way? How did all these people get there? How did they reach that ability to have a choice to work or not but still have the lifestyle they want to have?
They all have one thing in common, they saved. They budgeted and lived a lifestyle that reinforced their values. This does not mean they lived simply or even drove the same car for 20 years. What it means that each of them looked at their income and said how should I spend it. Once you ask yourself this question, you will find your mind starts arranging things for you to think about. You will need to come up with some sort of hierarchy of what is more important to you. Because this hierarchy will help you decide where to spend your resources (i.e. income). Something to start thinking about and it is the first rung of your financial ladder.
Back to the ladder. It is now November 27 2020 and time to start decorating the house for Christmas again. This year I have a new ladder and new rules. I can only get on the ladder when my wife is with me. I must make sure the ladder is firm and stable before I climb.