Draw your “LIFE timeline” to avoid blindspots in LIFE
Have you ever sketched out your "life timeline"? Your savings goals might have blind spots if you haven’t.
In this previous article, we talked about the 4-1-2-1-2 saving method. Today, I'm here to share how to set fundamental financial goals throughout different stages of life. Whether you're a parent or not, you've likely made some plans for yourself and your family's future. However, we often get caught up in societal expectations, limiting our multi-dimensional thinking. Analyzing your life visually can help you avoid many blind spots and traps!
Societal Notions of Life Stages
Many believe that at certain ages, everyone should be doing certain things. Do you have thoughts like these?
In your 20s - Start working after graduation.
In your 30s - Buy a house, get married.
Before 35 - Have children.
At 65 - Retire.
Is that all?
Issues with these Notions
These beliefs often have gaps. In my daily work, I encounter protagonists in around 90% of cases who chase these "midpoint goals" to show people and themselves that they have reached this milestone… but actually, they haven’t made adequate financial preparations beforehand. For example, only after having children do some realize how costly it is, but by then, it's too late, and they end up taking more jobs or part-time work to make ends meet. Before they know it, they've put their children through university and are now at retirement age, completely unprepared for life after work. Post-retirement, feeling incapable of working, they end up living frugally.
Some other issues include:
Being restricted by societal norms, neglecting personal joys and life goals.
Only focusing on oneself, overlooking the impact of decisions on family members.
Ignoring preparation and planning for each stage of life.
Chasing the next life stage goal without an overarching life plan.
Neglecting planning beyond 65 and not considering how the second phase of life could be even more exciting.
Not contemplating the option of early or delayed retirement due to increasing life expectancies.
Using the "Life Timeline" for Basic Life Planning and Budgeting
If you ever held onto the mindset described above, don't despair. Regardless of your current life stage, pick up pen and paper and follow these steps to sketch out your own and your family's "Life Timeline," understanding long-term goals and situations better.
*Note: This image is only for reference. Please draw out your wishes and goals in your timeline.
Step 1: Draw a timeline from 0 to 100 years.
Step 2: Outline what you "hope" or "expect" to happen in your future.
Step 3: Sketch out what you anticipate for other family members you need to support in the future (such as children, spouses, retired parents, etc.).
Step 4: Calculate and map out the expenses for each event.
Set Goals and Take Action Now
Now that you've mapped out your life plan, I hope this method can help you establish clear long-term financial goals. Did you spot things you hadn't prepared for in this "Life Timeline"? If so, use the savings method mentioned earlier to catch up swiftly!
If you wish to get a tailored life plan with some help, book a free 30-minute call via the button below. Speak soon!
