Each month, in our Game of Life blog series, I’ve covered major events that are common in one’s life journey and how these events can impact us financially. This month, instead of focusing on a specific event, I would like to focus on the journey between these major events.
This morning, as I was getting ready for my day, I listened to a podcast by Andy Stanley called Your Move. The particular episode that I listened to is titled “The Beginner’s Guide to Predicting Your Future” (nope, not The Beginner’s Guide to Predicting the Stock Market, which is impossible on a day-to-day basis, by the way ?). The premise of the episode is that direction, not intention, determines our destination. Your Move is not a financial podcast, but this concept nails it when it comes to obtaining financial goals.
You see, it’s not enough just to set goals and have good intentions. You have to be willing to head in the direction that will lead you to reaching those goals.
There are many choices that you make throughout life that determine your financial direction and ultimate destination. I can’t cover all of those choices in a blog post because there are simply too many. However, I can tell you one path to take that will always lead you in the right direction. It’s simple: live within your means. That’s it! If you always choose the path of living within your means, you will be moving towards a successful financial destination.
Living within your means allows you to save and take advantage of compounding returns. It means having a “rainy day fund” set aside for unexpected emergencies. It provides margin in your budget so you’re not living pay check to pay check. It can even make possible the opportunity to give generously to people or projects that you want to support.
Is the path that you are on financially leading you to your desired destination? If not, it’s time for a course correction. As my GPS often likes to tell me, please make a U-turn.