fbpx

How to Pursue Financial Independence Without Burning Out

How to Pursue Financial Independence Without Burning Out

Originally aired 6/30/2021

Watch

 

Matches, campfires, and even stars will all eventually fizzle out. In this episode, we’re talking about how to fan the flame and keep your pursuit of financial independence from burning out!

You’ll learn:
– Tips to stay the course on your journey to financial independence
– The financial equivalent to a bad batch of cookies
– One thing financial independence is NOT

Downloadable Content:

What’s the Plan? A Manifesto for Your Life, Your Worth, and What Happens Next

Listen

SHOW NOTES

Sky Full of Stars

  • The most massive stars can burn out and explode in a supernova after only a few million years of fusion.
    • A star with a mass like the Sun, on the other hand, can continue fusing hydrogen for about 10 billion years.
    • And if the star is very small, with a mass only a tenth that of the Sun, it can keep fusing hydrogen for up to a trillion years, longer than the current age of the universe.
  • Now, your pursuit of financial independence won’t last quite that long, but how can you keep it up without burning out along the way?
  • Remember Your Why
    • “Wow, this is hard! Did I really sign up for this? I am about to throw in the towel!” Are these the questions keeping you up at night as you push yourself along your financial journey?
    • Ask yourself: What’s the reason you started pursuing financial independence in the first place?
    • If you find yourself burning out often (like those New Year’s Resolutions we’ve all long forgotten about but will probably take another stab at next year), odds are your connection to your why isn’t very strong.
    • 5 Whys:
      • Ask yourself “Why?” five times – more if necessary – until you can’t go any deeper.
      • A shortened example: Why am I pursuing financial independence?
        • Because I want to save money
          • Why?
            • Because I want to provide for my family
    • Whatever your why is, keeping it in mind is important to keep you going.
      • Your why is the reason you don’t turn to retail therapy when you get stressed. Your why is the reason you put money into a college plan instead of spending it on the latest trend.
  • Financial independence means options and the freedom to make the moves you want, not just the moves you have to.
  • Feeling secure about the future starts with how you see your future.
    • We’ve got 10 ways to shift your perspective on financial planning. It’s called What’s the Plan? A Manifesto for Your Life, Your Worth, and What Happens Next.
    • Click here for your free copy.

Too Much Time on My Hands

  • Don’t try to do too much at once
    • One of the quickest ways to burn out with anything is to try and accomplish all your goals at once.
  • Multitasking is a myth.
    • The human brain cannot perform two tasks that require high-level brain function at once.
      • What actually happens when you think you are multitasking is that you are rapidly switching between tasks.
    • The cerebral cortex handles the brain’s “executive controls.” Those controls handle the brain’s task processing.
      • There are two stages to this:
        • Goal shifting: what happens when you switch your focus from one task to another.
        • Rule activation: turns off the rules (how the brain completes a given task) for the previous task and turns on the rules for the new task.
      • So, when you think you are multitasking you are actually switching your goals and turning the respective rules on and off in rapid succession.
      • The switches are fast (tenths of a second) so you may not notice them, but those delays and the loss of focus can add up.
  • If multitasking on a daily to-do list isn’t productive, how could it be productive for your financial future.
    • We often see people try to pay off debt, save for their child’s college, save to go on their dream vacation, pay down their mortgage, and save for retirement all at the same time.
    • The result is minimal impact because their focus is diffused so widely.
    • Now, this isn’t to say that you can’t have a couple of goals at a time to work toward.
      • But the more diffused your focus is, the longer it will take to see results. The longer it takes to see results, the easier it is to start feeling a little burned out.

Celebrate Good Times, Come On!

  • Reward Yourself Along the Way
    • One of the best parts of a long-term goal is getting to hit milestones on the way there.
      • Celebrating achievements is a way for us to see how far we’ve come and can serve as our motivation for the next big move.
    • Now, don’t hear us saying you should tear off and buy an expensive sports car to reward yourself for skipping your drive-thru coffee for the week.
    • Milestone rewards for goals only work if they don’t act counter to your end goal.
      • If your goal is to lose weight, one of your milestone rewards shouldn’t be to splurge and drink a giant milkshake. It could be to buy a new clothing item or go on a hike with friends.
      • Similarly, if your goal is financial independence, your milestone rewards shouldn’t be to go on an expensive vacation or splurge on an online shopping haul. Your reward could be to enjoy your favorite snack or get together with friends and celebrate.
    • When you honor your milestones, you’ll find that the memory of the accomplishment stays in the forefront of your mind—and you will want to work harder so you can experience that feeling again.
  • Avoid Emotional Moves
    • When you’re feeling burned out, it’s easy to get down in the dumps.
      • It doesn’t help that fear-mongering headlines are everywhere to confirm that “the world is, in fact, in big trouble.”
    • If you’ve ever accidentally grabbed the salt instead of the sugar when baking cookies, you know exactly how well money and emotions mix.
    • Making an emotional decision that sets you back in your goal can throw you further off track or, even worse, cause you to quit altogether.
      • Ex: people who pulled their money out of the market in 2008 and missed a major return.
    • One emotion we see interfere with financial independence a lot is doubt.
      • They assume they’re bad at planning.
        • This perceived shame holds people back from making better decisions. Fact is, you’re not expected to know anything. Because unless you’ve spent years studying the behavior of money, how would you know? Being “good” at money isn’t knowing something you were never taught, but choosing a team you can trust to guide you through it.
      • They assume they can’t because they never have.
        • You may be thinking “Well, I’ve never really been financially independent,” or “Nobody in my family has been financially independent.” But where you come from isn’t where you’re going. Most of the people we work with hail from humble beginnings. Some weren’t even that lucky. Where you come from is an unchangeable fact, but it does not and should not dictate where you’re headed—or what you’re capable of. We should know. We’ve been there ourselves. How you feel about your past, or even your present, shouldn’t get in the way of planning for your future. You simply can’t afford to let that happen. You don’t need special connections, insider knowledge, or a particular pedigree to get the support you need. All you need to do is call.

I-N-D-E-P-E-N-D-E-N-T You Know What That Means

  • Get a Plan
    • Just because it’s called financial independence doesn’t mean you have to go it alone.
      • Maybe you think that if you were “really” independent (or smart, or savvy), you would do all of this yourself. You would save a little on fees and pick your own stocks.
      • The problem is: Few, if any, become financially solvent or cultivate wealth that way.
      • True financial independence isn’t doing this on your own; it’s knowing who to ask and when to listen. You may worry that you can’t afford the fees. But what you really cannot afford is a mistake.
    • A financial plan and a relationship with a trusted advisor can help you keep your goal in mind, address concerns or fears, and navigate changing circumstances as they arise.
      • All of the tips we’ve mentioned earlier in the show are made easier with a plan that’s on paper, on purpose, and designed specifically for you.
      • The best place to get started is our MoneyWorks program.
        • Uniquely designed to give you the ease of technology and the accountability of a real financial coach.
        • Click here to get started now.
      • MoneyGuide
      • This program is designed specifically for those who are in the middle of their financial journey and need a coach to guide them as they balance family and finance.
        • If that’s you, MoneyGuide is a great place to help you stay on track.
        • Click here to get started now.

FINAL THOUGHTS

    • How to pursue financial independence without burning out:
      • Remember your why
      • Don’t try to do too much at once
      • Reward yourself along the way
      • Avoid emotional decisions
      • Get a plan
  •  
    • Feeling secure about the future starts with how you see your future.
      • We’ve got 10 ways to shift your perspective on financial planning. It’s called What’s the Plan? A Manifesto for Your Life, Your Worth, and What Happens Next.
      • Click here for your free copy!