Learn To Optimize The Money You Earn

Time is money, and money is time. Think about how much time you should invest in organizing your approach to money and its accumulation.

This article is slightly revised from the original published here in 2012.

If you own your own business or are a professional like a doctor, lawyer or engineer, the number likely is greater than 100,000.  If you are an employee, it is likely to be more than 70,000.

Together with your skills, risk, and sacrifice of other things that would have been nice, those hours represent the economic value of “You.”  We can agree that the value is quite large.  Enough to pay for your living, fund your retirement and leave something for the children.

Write 100,000 on a piece of paper.

Now stroke off zeroes until you come to the number of hours that you will spend in your lifetime, planning what to do with the huge sum you will make in your lifetime. Be honest.

I presented this idea in a seminar once, and after I stroked off a couple of zeroes, someone in the back said, “Get real.  Stroke off the one.”  It is not far from reality for most people.

Most give the financial planning task to people who ask too few questions to find out what you want, do not ask enough about priorities or policies, and do not supply enough options.  Typically, they are quite interested in your current and near-future resources and less in what they will become.

Most people don’t do financial planning because they don’t know how.

You might want to consider learning a little more about it.  Your part is actually straightforward, and knowing that part, you immunize yourself against weak methods from others.

The key

Don’t get caught up in the details. Have a clear idea of what you want to achieve with your money. Know when you want it to provide income for you to send. Have a basic understanding of how income taxes and compound returns work. Know your risk tolerance for investment and the potential for loss of your ability to earn.

Spend less than you earn and set a little aside for unforeseen events

Financial planning is organized common sense.

I build strategic, fact-based estate and income plans. The plans identify alternate and effective ways to achieve spending and estate distribution goals.

Be in touch at 705-927-4770 or by email at don.shaughnessy@gmail.com.

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