While preparing financial plans for clients – I have come across many pain points which otherwise prevent individuals to navigate a healthy, secured and confident financial future. These include huge debt, flamboyant lifestyle, excessive risk taking, no clarity of financial goals, inadequate insurance, juggling major life transitions and many more. All the cases handled though have unique life stories to share of different people with different mindsets. None though beats the case I recently handled of an individual in his late 40s, who was starting from ground zero – only bread earner with nil financial assets & nil insurance. A series of medical illnesses in the family, unstable career, high spending, some bad investment decisions resulted in a financial sinkhole for him. There was no silver bullet which could instantly solve all his financial problems.
I was glad he approached to atleast take the first step. Given his precarious financial situation, the importance of taking baby action steps could not be underscored. It was not just about planning for the future but also getting his present house in order.
Interestingly, he thought there was not enough earnings and savings to plan! Also, considering the long runway ahead, it was a bit overwhelming for him as to where to begin.
Such reasons are the most common why many people delay in planning their finances.
Here is how I was able to help my client:
- No negative talk on the cost of inaction and delay in the past during conversations.
- Providing clarity on what he is trying to achieve with money going ahead.
- Breaking goals into small specific tasks – no overwhelming checklist.
- Regular follow-ups – being his accountability buddy.
- Starting very small with investments – automating them.
It is all about taking the first step, just one step.
Earlier overwhelmed by inaction, the confidence fueled by the first step creates a domino effect followed by a series of timely actions. I have experienced this with many of my clients who demonstrate an unyielding resolve to streamline their financial life.
Once the momentum is created, clients pro-actively engage with me to initiate more investments, pre-pay more debt, reach out to me for even the slightest development which could have a bearing on their financial plan. They are really charged up to take it further and it becomes easier to work with such clients.
In conclusion, avoid looking at the rearview mirror of your life to breed financial regrets in the future. Because the biggest mistake isn’t starting late – its not starting at all!