The journey of life is often described by the stages we pass through. Father time has a way of shifting our perspectives and changing our priorities. This is true in life and it’s also true in our financial lives.
The three main phases of our financial lives are the accumulation stage, preservation, and the legacy/distribution period.
The accumulation stage is defined as a time in our life when a goal in the future is one of our priorities. Forcing us to address the age-old concept of delayed gratification.
Here are some lies we often believe in the accumulation stage of life:
- Procrastinating the inevitable.
- False belief that a higher income is the answer.
- Finding satisfaction in competing with our "neighbor".
- There are shortcuts and "get rich quick" schemes.
Some of the truths that will lead to a different result:
- Spend less than you earn.
- Review your net worth annually.
- Compare and compete with yourself.
- The "truth" path takes time-no shortcuts.
There are so many times during the accumulation stage of my life that I needed a dose of truth to stay on course. Having the proper counsel at the right time is crucial. This is one of the most meaningful roles we enjoy here at Compass.
Next time I will work on the other two stages of our financial journey.