How to Save Like a Rock Star with Your 'Future Self'
Did you know that establishing a connection with your ‘future self’ can lead to better financial decisions? Often, we tend to prioritize near-term goals over long-term financial ones. But, when we make quick money decisions, we sometimes forget how it will impact our future self. By incorporating our future selves into the financial picture, we can adopt a long-term perspective that will help avoid short-term impulse spending.
Get ready to embrace your ‘future self’ to help motivate you to save like a rock star! Imagine you fast-forward 30 years into the future. Now picture your financial situation during that awesome time. By visualizing your future self, you can be inspired to take action in planning for your retirement, today. It’s all about making that connection between your present actions and what lies ahead.
For instance, let’s consider Tim. He just discovered that he’s going to be a dad! Cue the excitement and a dash of financial panic. Tim and his wife never saw this coming, and it wasn’t part of their master plan. But guess what? This surprise made Tim picture a vibrant future with his growing family. It sparked a fire in him to jump into action today by reassessing their long-term financial goals. To prepare for whatever un-planned financial situation may come your way, here’s 4 ‘future self’ techniques you can apply:
1) Empower your future self with clear financial goals. The choices you make today will shape your future and your wallet. When you acknowledge this connection and actively save for what’s to come, you’ll ensure your future self is living the dream. Set clear and realistic goals like when you want to retire, the kind of lifestyle you desire, and those sweet financial milestones. Outlining these goals provides a clearer sense of purpose, ignites urgency, and encourages diligent saving.
2) Fantasize your future retirement. Practicing visualization techniques can be a powerful motivator for saving. Close your eyes and imagine your future in retirement—no work stress, just pure bliss. Visualize the peace of mind, financial security, and the freedom that comes with a rock-solid retirement plan. This powerful exercise will supercharge your commitment to saving.
3) Embrace technology and automate your savings. Let’s face it, life is full of distractions and competing priorities. But to counteract this, technology can also help you stay the course. We’re living in an era where apps and online platforms can make saving for retirement a breeze. Take advantage of nifty apps and automated tools that offer savings options, automatic transfers to retirement accounts and more. Simplify the saving process, make it fun, and before you know it, you’ll have a solid savings habit while minimizing effort.
4) Save for the future, but live for today. While it’s crucial to focus on saving for the future, it’s also important to fully enjoy the present. Diligent savers know to limit their spending to a maximum of 4% of their income per year. That way, they get to enjoy life now while keeping those retirement dreams alive. It’s all about finding that sweet spot between securing your future and savoring the present.
Motivating yourself to save more for retirement requires a multi-faceted approach that taps into the power of envisioning your future self. Set those clear goals, visualize your dream retirement, leverage technology like a pro, and strike a balance between saving and living your best life. It’s also important to know that this future self connection strategy isn’t just limited to retirement planning, It can also be applied to other aspects future saving, such as life insurance needs, long-term care, Social Security claims, and Medicare, yielding positive benefits for your future self.
Don’t forget to bring a financial advisor on board to make this journey even more amazing! While these strategies can help shape your the retirement savings process, it’s important to approach it with a balanced perspective and personalized advice from a qualified financial professional. With NIHFCU Wealth Advisors you have access to an experienced financial professional who cares as much about your future as you do. Speak to a representative today.
Resources:
Forbes.com
