Financial strategies involve many variables that keep people up at night; things like:
· Rates of return
· The economy
· Interest rates
· Tax laws
· Inflation
· Unexpected life events
Almost all of these financial variables are outside of anyone's control. The outcomes for these variables cannot be predicted, and when we try to create strategies around things we can’t control, there almost always is a high level of stress around that.
There really are only two variables that are 100% in your control:
1. How much you spend/save.
2. The degree to which you protect yourself and others against the events that can derail you.
Think of these like 2 train tracks. Train tracks need to be perfectly parallel. If there is a bend or a break in one, the train topples over. Similarly, your savings strategy (ie building wealth) should be perfectly parallel to your protection strategy (ie protecting wealth).
These two things are really the only two variables that live within your control. Even though you can't control those others as they are swirling around, when we focus on what we can control, it helps position you in a stronger place to handle the unpredictable and take advantage of unexpected opportunities that come up. Because of this ability to effectively pivot around the unpredictable, the potential for financial stress and disorganization can decrease significantly, and your likelihood of success can increase significantly.
Not sure if you’re taking full control of the only things that you can? Reach out to us; we’ll provide you with a Financial Balance Scorecard that will help you answer that with certainty.