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AprilTHOUGHTS: Advice from your future self!
I recently read an article in the WSJ (behind a paywall) that made me reflect on my life in future years. Professors Christensen & Hershfield’s work here suggests that when we clearly visualize our future, we’re more likely to prioritize long-term financial planning. This mental shift makes retirement goals, or the next life act feel more real and motivates us to make impactful changes today.
Inspired by this idea, I informally polled friends and clients for personal finance advice. I asked, what nuggets of wisdom would you offer your younger self? Here is a sample of what I heard:
- Start saving early, compound interest is powerful. The earlier you invest, the longer your money grows. Even small sums add up over time.
- Life is unpredictable, so build a safety net. Emergencies happen, and a solid financial cushion can prevent unnecessary debt and stress.
- Enjoy life. It’s okay to indulge, but as you have heard me say often, not at the expense of your future self. Balance is key.
- Plan for healthcare costs. Typically, medical expenses are higher than expected in your next act, so factor them into your Plan.
- Appreciate what you have, chasing more won’t bring happiness.
Now, imagine it’s 2040. Take a moment to reflect on your life, what have you accomplished? Now, rewind to the present. What will you do differently to ensure that vision of your future self? What steps can you take now to set yourself up for success?
Written By: Ronsey Chawla, MBA, CFP®
