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- End Goal is Priority (Driver #7 Mindset ~ End Goal is Priority)
- Think in terms of the future value of every Dollar Spent. This is a major change in the way we think. Most often we are focused on what we ‘want’ today and never give thought to were we are going financially speaking.
- Calculate your 5-year cost of every ‘want’ purchase (Item multiplied by 1.33 = 5-year cost). I do a mental calculation of how much an item really costs, especially for items I’m not sure I need.
- Calculate your 7-year cost by multiplying the item cost by 1.50. You can do the same mental calculation for larger purchases. The future value really tells the value of saving and investing versus satisfying present day ‘wants’.
- Every $ saved is less time needed to work. I often think of the fact that every dollar I save and invest today is less time I will need to work as I approach retirement. For example, say you save and invest $10,000 over the next couple years and that $10,000 increases in value by 50% ($5,000), now you have $15,000 available at retirement versus zero if you did not save and invest the $10,000. That’s a $15,000 Win by following Driver #7!
- Have an exit plan at retirement (move to more an affordable State). It’s never too early to think of your exit plan. Start thinking about and writing down your plan. This is an exciting process because nothing is off the table. Dream of your ideal life at or near retirement, where do you want to live, what hobbies or part-time job would you like to have. What will bring real meaning to your life?