Retirement Planning Vancouver | Top Reasons You Fail to Reach Financial Freedom
You will have worked your whole life and when it comes time to retire, you want to be sure you are ready for it. There are some key things to address if you want to reach financial freedom. Many people fail for the same reasons.
If you think a bit differently you can then reach financial freedom you desire when it is time to retire. If you are unsure where to start in planning your retirement, you will want to sit down with a trusted financial advisor like Thomas C. Chan. He offers a free 15-minute consultation when you call him at 604-877-4211. He is an expert financial advisor who can help you get on track to reaching your goals before it is too late.
Be prepared by getting advice on a deeper and more personal level. Thomas’ passion is helping Canadians reach retirement age ready to live in a vibrant and abundant way.
The first area that most people fail to reach their full potential in all parts of their life is not having clear goals which leads to a lack of direction. This is true in retirement planning too. It is not enough to say you want to be rich, you must have SMART goals; specific, measurable, achievable, realistic and time bound. When you sit down with Thomas, he will help you with this essential part of the planning. He is knowledgeable about what it takes to make those goals a reality. You must be able to visualize what being financially free looks like right down to the fine details.
Need to make good financial decisions early on
What kind of car will you drive? What kind of home will you live in and in what location. Will you have additional properties used for vacationing? How much money do you want to have saved up? It is important that you are always excited about your goals so that you can keep motivated to achieve them. Once you have established smart goals you can plan a course of action to get to them.
Having incorrect beliefs about money will stop you from reach financial freedom. It all comes down to the thoughts in your head and this applies to all areas of your life, wealth, and health. Every thought must be captured and reframed if it is limiting your beliefs. Obviously, this is easier said than done because of our human nature. Like anything you must work this muscle to help it be strong and grow. It can become natural if it is practiced.
As you see results from this way of thinking it will motivate you to continue to keep roots in those positive beliefs. One of the reasons people think negatively about money is that they feel they do not deserve to have it. Once you turn this into a positive you will see more opportunities to create wealth. This does not happen by accident. It must be worked daily, and it all starts with your thoughts.
If you were taught that thinking about money is evil, you are not alone. Many of us were told that and made to feel embarrassed to even talk about money. The thing about money is that it is not evil or good its all in the person using it that makes it appear that way. It is important to shift your mindset to one of abundance. There is enough wealth for everyone, and you can go out and get more whenever you need it.
Reasons why we fail to reach financial freedom
Another reason we fail to reach financial freedom is due to fear or emotional ties with money. We have a fear-based mentality that we will not have enough and that drives us to a lack of confidence. We must look at the facts for it is there that we will find our fear of not having enough is sometimes not based in reality. If we look at the facts and find that it is true, that we do not have enough money then it is the perfect time to come up with a plan to do something about it.
The key here is to act on the plan. Many people think about it but do nothing and that just allows the problem to grow. Financial independence is what motivates those who do not let fear paralyze them. It is a long process to cut ties with the fear of not having enough but one quick tip to help is do not get caught up in the social media messages we find daily. Limit your exposure to this comparison game.
Peer pressure is another area that keeps us from gaining financial freedom. You may feel pressure to spend more money than you need to due to your peers spending money on lavish gifts, dinners, or vacations. You will need to stop worrying about not fitting in because your goals are the most important thing. It is easy to go beyond your means, but it will inhibit your ability to reach financial freedom in the end.
It is important to have three to six months’ worth of expenses saved up in an emergency fund. If you get laid off, sick or your business has a cashflow issue, you will not have your financial freedom action plan hindered because of this fund.
Avoid having debt
Having too much debt will also keep you from reaching financial freedom. Interest rates on credit cards are so high that your debt can double in four years just by not paying it off. If you do have a credit card, be sure to keep the limit low enough to manage and always pay it off every month.
Another thing that keeps us from becoming financially free is sticking to only one source of income. Having only one source can be very limiting as the tax alone can be half your income. If possible, find two to three sources to help you. You can do this in two ways. Increase your own activity to create more income such as freelancing or becoming an uber driver. You may think this is going to be too much work but to get into the other lanes of creating wealth you will need to do more.
You can also use others’ time and money to create wealth such as rental properties, online courses, or stock market investments. It is necessary to be active in both income sources to get the ball rolling as well as to maintain it. One more important area to focus on is to educate yourself about money. The more you know the more you can grow.