No way to live
Posted by Faith, 17 August 2009
Matthew, my new client, was wringing his hands as he talked to me. “I’ve come to you because I’m tired of putting my life on hold, Faith.”
“Could you tell me what has led up to this, please?”
“I thought I was doing the right thing in paying off my mortgage as soon as possible, because it would save me lots of money.”
Now, it’s true that paying a mortgage early can save ten’s of thousands of dollars, possibly even hundreds of thousands. Matthew was an accountant and he had no doubt worked out the figures. Trouble is, there is more to life than just running the numbers. You need to run your life as well.
I asked Matthew what plans he had for the future.
He certainly wasn’t short of ideas and he told me, “Travel, adventure sports, taking a road trip, having meals out and drinks with mates, going to shows, meeting a special woman and doing fun things together with her.”
These didn’t sound too far out of reach, as they weren’t impossible dreams.
“So, why do you think these aren’t happening?”
“When I graduated 9 years ago I really knuckled down into my job. I was determined to get ahead in my career, pay off my student loan, save for an apartment and pay it off by the time I was 35.”
“And?”
“I’m 30 now and I’ve done exactly that except pay off the apartment. That will take another 5 years. But, I’m sick of putting all my spare money towards the mortgage. I really love extreme sports but every time I take part I feel guilty about spending the money. Due to the physical demands on my body, I’m unlikely to be able to continue such sports beyond 40, so if I wait much longer, I’ll miss out altogether. I don’t know what to do.”
Matthew was grappling with the vexed question of paying off a mortgage early versus having time and money to live the life you want. In his work, he was used to measuring the value of one course of action over another. This was easy when everything was reduced to just a number. But, he didn’t know how to put a monetary value on having fun and living his dreams.
The thing is – you can’t. While we might know that life is measured by those moments that take your breath away rather than how many breaths you take in total, we can’t put a dollar value on this.
Matthew had finally realised that his approach might be fine for a business, but it was no way to live.
The answer the Matthew’s dilemma was for him to accept a number of things:
- It is normal to have a number of goals that will compete with each other for time, money and resources.
- There will never be enough to achieve all of those goals right NOW (even wealthy people have this dilemma).
- Choices and compromises will have to be made in terms of timing, but don’t settle for just for one thing at the exclusion of everything else.
- With sufficient time, planning and prioritisation, most goals can be achieved – sometimes all of them – in a lifetime.
- You can’t measure satisfaction in life by always picking the option that saves the most money
Matthew and I worked on a financial life plan that paid off his mortgage in another 10 years, instead of 5. That meant he would have the money every year before he was 40 to:
- travel all over the world for several extreme sports challenges
- drive that big road trip
- regularly meet with his mates for a great meal and evening out.
He will be mortgage-free by age 40, which will be another remarkable achievement in his now far more interesting life, and a choice that will still save him heaps in mortgage interest costs. After 40 and free from the mortgage burden, he can continue to pursue interests that excite him at that point in time.
In addition, by really living instead of huddling like a hermit and only spending money on his mortgage, he would also get out more and increase his chances of meeting that special someone.
Like Matthew, if you want a great life you have to plan for one and then make the plan happen. You can achieve almost anything you want, given enough time and focus.
Financial Awareness Week in September
Whether you have definite personal goals, like saving for retirement or funding your children’s education, or you’re facing a raft of financial challenges, a competent financial adviser can make a real difference. The best time to get your finances under control and set your long-term goals is NOW.
Ready, Set, GOAL is the first of six key steps that will be promoted in Financial Awareness Week:
http://www.financialawarenessweek.co.nz/financial-planning/steps/step1.php
Please visit the special website at http://www.financialawarenessweek.co.nz/ for more information or to find a financial adviser near you.
Want more out of your life and money? Then buy my book Keeping the Faith - Travel the World. Beware - it is very powerful! It was awarded a top 5-star rating by the on-line financial bookstore Good Returns, along with the warning: "This book changes lives." Click here to buy Keeping the Faith - Travel the World.
See previous blogs:
Don't sweat the small stuff.
Can you grow a money tree?
What's holding you back?
Money or your life - which has more value?
The seven secret thieves
Five questions to change your life
Find that spark
Switching lives - what would you choose?
Who can I trust to help grow my money?
How to swim in a sea of money
Life can be unfair
The rule of happiness
No way to live
Anyone can be good with money
Best ways to warm up winter
Who wants to be a millionaire?
The secret of wealth
Keeping your money safe
Having it all
Win an all-expenses-paid trip for two to Europe (Part 3)
Win an all-expenses-paid trip for two to Europe (Part 2)
Win an all-expenses-paid trip for two to Europe (Part 1)
Make a change for good
A recipe for a happy Christmas
Nothing else matters
Rage, rage against the dying of the light
Make a wish come true
Buying or Selling a House – Those that care least, usually succeed
When is a good time to buy a house?
Sleepless Nights in a War Zone
Transitions - more life or more of the “same old, same old” boring stuff?