Joe Kennedy was a wealthy Wall Street investor in 1929, and he famously said he exited the market before the crash when a shoeshine boy started giving him stock tips, as there were no more "greater fools" to join the party.
To get somewhere tomorrow, you have to know your position today.
It’s as if you are buying an airline ticket. To reach your destination, you have to know more than where you want to go. You also need to know where you are.
So this step is a really important one - benchmark what I like to call, “your current financial reality”.
Budgeting! The very mention of it makes us wince. Why? Well, I reckon it’s because budgeting confronts us with just how much money slips through our fingers - and what little we have to show for it. But that’s one of its purposes - getting a kick in the backside is sometimes good for us.
An old Darwin connection tracked me down during the week. Man, did we have some laughs. In between tall stories, (let's call him Bill) reminded me of a casual conversation we had about wealth creation nearly 20 years earlier. I can’t remember it, but in the end he went with a conflicting approach from a competitor. It went a bit like this:
As human beings, we often feel a tension between what is good for us now and what is good for us in the long term. We see this most often as a tendency to delay action or procrastinate.
Bad news sells. Newspapers know that, which is why the headlines can be so darn depressing.
I despair at the financial media in particular at the moment. The shouty and scary and overhyped nature of the so-called “news” headlines correlates exactly with the crisis in their business model.
Retirement ought to be the time of your life. And for many retirees that holds true.
Some would say that they were happily retired, while others wouldn’t even admit to being retired at all! That’s the point – this next phase of your life will be about living the kind of life that YOU decide.
Is there any more that can be written or said about Goal Setting? Its impact on performance is said to be the most researched theory of motivation in the field of organisational psychology. There have been hundreds, maybe thousands of studies completed. Some, like the 1953 Yale Graduates Study have legendary status, although apparently, it never happened.
Do you remember the Kerrigan family in the classic Australian movie, The Castle? They saw themselves as the “luckiest family in the world” when Dad got a great deal on a property in Bonnie Doon with a mobile kit holiday home overlooking massive electricity power lines. “How’s the serenity?” was one of many famously comical lines.
One rainy afternoon in 1940, an inspired 15-year old boy named John Goddard sat down at his kitchen table in Los Angeles and wrote three words at the top of a yellow pad, "My Life List." Under that heading he made a list of everything he wanted to achieve.