The Most Important Financial Decision of Your Life (Imagine, 60 years old,…
The Most Important Financial Decision of Your Life
Imagine, 60 years old, partner suggests that for the summer you should go to your favorite holiday destination, you day dream of all the experiences you will share. Log in to bank account, wonder if it has loaded correctly as there are no 0's to see. You say: Maybe we should just stay at home this year
If you really take this principle in and apply it consistently in your life, this little talk could easily be the best financial advice you have ever received and could be worth more than 1 mil DKK
Preframe: Speech about the most important financial decision of your life
Relate it to audience
Listen carefully to what the most important financial decision of your life is, because this is something I wish I had known even earlier in life
How to do it?
Just like we spend what we have, we also tend to find a way to live off what little we might have
Take it from the top (flip chart)
If you take it from the bottom there is never enough.
View it as an extra tax. Imagine tax just increased.
Personal story: We find a way to spend what we have
How much to save
Ideally 20% or above
Example (flip chart)
“I am spending all I have, I don’t have the money to do it, i can’t afford it”
Find a way to do it. You can’t afford not to do it. If you care about your financial future and wellbeing, you must adopt this fundamental principle
Save more tomorrow
Save money from other sources, future raises
More important than the % you save is the discipline and habit of actually doing it
Start with 1% and raise it
Principle: PYF (flip chart)
Set aside a certain % of your income that is yours to keep
Set it aside no matter what
Q: who do most people pay first?
Am I saying don’t pay your bills? No
I am saying the first person that should be paid from your hard efforts is you
Decide today to make the most important financial decision of your life: PYF %
I hope I have influenced you to take action on this topic, and if not you owe it to yourself to study the importance and implications of this
I look forward to the future when I might hear one of you come to me and say thank you, that was the best financial advice I ever received. Or when you are 60 and day dreaming with your spouse where to go for your summer holiday. You can say: Pack your things, let's go.
Example: Sir John Templeton
Born in 1912. Him and wife decided that nothing less than 50% saving would be acceptable.
They invested the money. Before his death in 2008, he had become one of the wealthiest persons on the planet.
Takeaway: The principles, not the money and amount