Use the Past and Present to Drive Future Success

As we approach the end of another year, it is common for us to reflect on what has happened during the past year and beyond, and one area that is often looked at is finances. Unfortunately, the idea of financial planning can bring about anxiety in people because there may be things in the past they would rather not think about, and they are uncertain about what the future holds. If that rings true to you, welcome to the club, but I would challenge you to reconsider whether you want to remain a part of that club. Because many of us are inclined to pay more attention to the negative thoughts that come into our minds, we may take a negatively skewed view of our financial situation. That isn’t to say that you should sweep problems under the rug, but instead you should try to take a balanced view of your situation and recognize that there very likely are some positives that you can take from what has happened for you financially that you can build on to give you encouragement to take more positive steps in the future. As I often stress to clients, rather than focusing on end results, which you don’t necessarily control, focus on the process and doing the things you have control over to the best of your ability, and it is more likely that you will achieve the results you are looking for. With that in mind, in this final issue of the newsletter for 2023, we will attempt to provide some tips for how to more effectively shape the future you want to achieve.

Gain Proper Perspective from the Past
As the saying goes, you can’t know where you’re going if you don’t know where you’ve been. One of the important things to do when it comes to looking to your financial past is to look at it for what it is and try to detach some of the emotion from it. It is very easy to allow past missteps and disappointments to make you question your ability to succeed. That doesn’t mean you shouldn’t face the realities of things that haven’t gone as intended. You should look at everything that has happened – the good, the bad, and the ugly – and both honestly and objectively evaluate what happened and why. If you had a challenging experience, rather than treating it as a negative, use it as a learning opportunity rather than beating yourself up. In addition to that, you may have to work at it, but look for positive steps you have taken, and use those to not only make you feel better but also to reinforce good behavior and habits that led to that success. There is even benefit to taking a moment to celebrate your successes. In a world where more emphasis is placed on problems and bad news, you can put yourself in a better mind frame by using past successes to propel you forward.

Be Realistic About Where You Are Today
While we are prone to looking at our past to gain perspective, the only reality of our lives is the present moment. We cannot change what has already happened, and we cannot predict the future. The things we do in the present moment can impact how the future looks, which is why working the process is so important. We can’t skip to the end of the story without turning each page that gets us there. When dealing in the present, it is important to objectively assess where you stand. That doesn’t mean that if everything isn’t exactly the way you want it, you should get down on yourself; however, you need to look at where you are and determine if you are doing the things necessary to put yourself in the best position possible for the present and the future. Financial planning by its nature is a futuristic exercise, but if it is done properly, it also addresses what is happening in the present, working to lay a strong foundation so you can look to the future with an understanding that you have taken care of the necessities of life. Some valuable basics to look at for where you are presently would be:

• Do you have an adequate level of Cash Reserves to cover unexpected situations?
• If you have debts, especially consumer debts, are you on a path towards paying them off?
• Do you have insurance protection to cover more catastrophic circumstances?
• Are you regularly saving money to provide current stability and to build for the future?
• Have you put the necessary structures in place to ensure that your financial house is organized and can function if you are no longer able to manage it yourself?

If you are not fully satisfied with the answers to those questions, perhaps you should consider changes you can make so your current situation is on better financial footing.

Envision a Bright Future
As stated earlier, the future is impossible to predict, but by putting the past in proper perspective and by taking stock of the present and putting it in a better place, you can help shape a brighter future for yourself. No matter what type of experience you have had or are having, you can use them to learn and grow so that you do better the next time you encounter a similar situation. What will happen in the future is largely a function of the decisions you are making today, so use the tools you’ve gained from your good and bad experiences to help you make good decisions that will put you on the path you seek. An important part of financial planning is giving yourself permission to shake off limiting beliefs of what is possible and envisioning the future you want for yourself. Outsiders may tell you that your vision is unrealistic, but only you can write the script for your life, and you shouldn’t let others tell you what is and is not possible. Almost anything is possible, but the questions is whether you are willing to do what is required to make it possible. Be willing to think outside the box and imagine what you want your life to look like, and then you can decide if the sacrifices that may be necessary to bring it about are worth it for you. Then you can turn what would otherwise just be a dream into a plan, and by working the process, you can bring that plan into reality.

Stewardship Emphasis

Your mindset, properly informed by current and past reality, is the key to future success.

The Empowerment Channel |Volume CCXX | Dedicated to Promoting Financial Education through Stewardship