Although there is no great secret to becoming rich or financially secure we should always be aware of the opportunities that exist in our environment that can affect our situation. Although there is plenty to be said about the influencing factors I’ll focus on the one I see as the biggest factor- the self.
How so you may ask?
It is important to understand ourselves in order to get a grasp of what we can and cannot influence but my bottom line remains that the choice is with us- we can chose to act or not to act- therefore at the end of the day we only have ourselves to turn to.
But the self I am referring to here is, understanding at what development stage we are in order to know rip all that exists around.
- Phase I (birth to 20 years)- The infancy/childhood and formative/teenage years
- What is happening to your career: You’re enrolled into some sort of education system seeking knowledge and skills in certain areas that will allow you to gain money
- What is happening to you income: You’re mostly dependant on your parents or guardians for income
- What is happening to your expenses: You have little to no expenses that you are responsible for and your own expenses are mostly taken care of by your parents or guardians
- What you should be thinking about: Setting yourself apart in skills and knowledge to be marketable
- Phase II (21 to 40 years)- The positioning and consolidation years
- What is happening to your career: If still in the education system, you are seeking higher education. If you’re in the labor sector, you’re m oving from bottom to mid or top level employment. You’re either self-employed or an employee.
- What is happening to you income: You’re increasingly earning more money
- What is happening to your expenses: You’re increasingly having more expenses be it in the form of paying rent, maintaining a car, education yourself or other family members, caring and providing for your family etc
- What you should be thinking about: Saving and investing more of your income into areas that will have good returns in order to secure a stable lifestyle for your family and a good retirement
- Phase III (41 to 60 years)- The actualization and golden years
- What is happening to your career: You’re at top level employment
- What is happening to you income: At the peak of your earning capacity
- What is happening to your expenses: You’re at the peak of your expense ladder- you have a home to maintain, a family to provide for ,you are paying your children’s education, you indulge in expensive hobbies etc
- What you should be thinking about: Striking a balance between your Earning, Spending, Borrowing, Saving and Investment patterns to provide a sustainable lifestyle for your family and still secure a comfortable retirement
- Phase IV (61years +)- The legacy and Iconic years
- What is happening to your career: You’re retired
- What is happening to you income: No income from employment unless you are an investor
- What is happening to your expenses: Slowly decreasing- your children are no longer your responsibility. You either have only yourself to worry about or your partner too
- What you should be thinking about: Enjoying the return on your savings and investments