I answered the phone and after greetings, Jenny said, I saw your retirement planner and have some questions. Continue I said. Well, what you’re doing sounds wonderful and I wish it were for us, but I don’t see it’s relevance. I asked her to explain with that trite old phrase - A penny for your thoughts:
Well my husband’s hours were cut by 25% and for 14 months, we’ve glared at our life savings being reduced by 39%. I know that’s exact because we watch it closely. Years ago we took a seminar that taught us how to budget and plan. For years now, every quarter we take a weekend away from the kids and our usual life to update our dreams and goals. We then discuss how we’re going to make them happen.
Six months ago we chose to stop our get-away-weekends, to cut expenses. Since then planning has stopped. Why I questioned? It’s just too depressing getting worse everywhere. We feel like we’ll be better off if we just don’t look for 2 or 3 quarters. We’re hoping it will be better by then.
Fear of finances dominates the general public or “The Masses” so intensely that people struggle to avoid it. The consequence, they continue loosing more and more wealth, without conversations that inspire them to think outside the box. Perhaps they could change their situation entirely, thereby controlling the very situation that has been controlling them.
We talked, Jenny got re-acquainted with their dreams about a vacation in the summer, the winter, new cars and a new timeshare they planned to buy. Looking closer at the real numbers and discussing their meaning, they could see they were on track for their dreams and future they wanted, although it now required extending their retirement plans 6 years out.
Over the next two weeks, I noticed in our coaching sessions a sense of hope and inspiration re-appeared, a genuine excitement about being able to live the life they love. They did it by buying a resale timeshare at fire sale prices and getting a different car. Also booking 3 vacations instead of two far in advance with two other couples, which reduced the cost and only required a deposit.
The time value of money compounded over 19 years, in their case, made a big difference in their planning for the future. The lessons here: Manage your fear & look ahead, take decisive action toward your goals, and always be willing to pay a penny for a thought that just might give you your world!
