Forethought Planning Podcast

Ep 84: Are You Living in the Now, Present or Future?

March 08, 2022 Shannon Foreman Season 1 Episode 84
Forethought Planning Podcast
Ep 84: Are You Living in the Now, Present or Future?
Show Notes Transcript

IOn today's episode, we are going to touch on short-term vs. long-term. 

Have you ever found yourself in a scenario where either you're living too much for the present and not enough for the future? Or maybe you're too worried about the future and missing out on the present? Or maybe you're just locked in the present so much that your head is literally buried in the sand? 

Well, today's podcast is for you, my friend. 

Watch the podcast here:

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Securities offered through LPL Financial, a member of FINRA/SIPC. Advisory services offered through Advisors' Pride, a SEC registered investment advisor. LPL Financial, Advisors' Pride, Forethought Planning and the guests of Thrive For[e]ward podcast are separate and unaffiliated parties. The views expressed here are those of the participants, and not those of Forethought Planning, Advisor's Pride, or LPL financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. LPL Financial and Forethought Planning do not offer legal services.  

Hello there friends. Welcome to the Thrive Forward podcast. On today's episode of the podcast, we are going to touch on short term versus long term. Well, Shannon, what does that mean? Have you ever found yourself in a scenario where either you're leaving too much for the present and not too worried about the future or too much worried about the future that you're not worried about the present, or not even being present? Or maybe you're just locked in the presence so much that your head is literally buried in the sand? Raise your hand while you're either in the car at the gym, or at home? Or in the office while listening to this podcast? I don't care who's around you. Have you ever felt in that situation? Do you know somebody that has felt in that situation? Well, today's podcast is for you, my friends. Let's tune in, make sure you share, we'd love for you to take us on social media. And if you so would love to this would mean the world to us if you subscribe to The Thrive Forward podcast so you don't miss any other great episodes like today. Alright, let's get to the content.

All right, there are three ways that I talked about short term versus long term and intro to this podcast. And we're going to touch on each one of those and why they might not be the best space for you to live? And rather, how can we have a combination of all of them to really help you thrive in your finances. So money touches every aspect of our lives. If you're a first time listener to the Thrive Forward podcast, you maybe haven't seen me heard me say that before. But if you are a long term listener, then you know that this is something that we talk about quite frequently. Well, that being said, when we start to live our lives, we end up knowing that the things that we want to do and places that we want to go and the experiences that we want to have the people that we want to experience it with, can end up costing us what we want to be able to do, should it cost us our future? Should it just cost us what we've planned for? What does any of that mean? So let's start breaking it down, I want you to understand that I have met clients in every one of these stages, and sometimes clients in the same household who are at two different stages. So remember that our stories with money are so personal, and we come from them in different directions. So how do we start negotiating with ourselves having realistic conversations, and help us to get into a healthy headspace? So I am a firm believer in knowing that we have to enjoy our lives, not necessarily at the expense of other things, or the expense of of our security. I think a lot of times, what I ended up seeing with most of my clients is not necessarily security in the aspect of like literally the securities that they buy. But that cushion of knowing that they're going to be okay, so many individuals, whether they have two nickels to rub together or several million dollars to their name, sometimes can have some sort of worry affected around their money. Let's talk about the individuals who want to live for the now the individuals who like I don't know what's happening in the future, nor do I want to even worry about what is happening in the future I want to focus on now I want to go on that trip, I want to experience life I want to go out to eat, I want to do all the things with my friends, I want my kids to have all of the things that they want to do and participate in every activity they want. I don't want to worry about what's happening in the future I'm gonna live for now. Like right now, I'm gonna do all those things. Well, the reality is that is such a beautiful space to want to live in. And to do all of those things. Now, I'm going to give you a gut check. You are going to have a future. At some point, you're going to have a future and no one else is going to be saving for you. You might have a retirement plan through work, and they might be contributing to it only if you're contributing to it. And maybe you're one of those lucky ones that actually does have a pension that their employer participates in, or they are part of a union participates in a pension. But most Americans are not. And especially if you're a business owner, no one else is saving for you. But even if you're not a business owner, even if you are working for someone else, and maybe you're a highly compensated individual, and you make really good money, so you want to reward yourself for all of the hard work as a frickin Bentley, I want you to as well. But we should think about the amount of money that we are Saving the amount of money we are spending the amount of money, we are investing in the amount of money that it just takes for us to experience those dreams, we want to dream.

I have sat with plenty of folks in my life and in my career where they might be taking their last breath. And they wish they could have done something or wish they could have done that. And so many of you have seen loved ones. And so you don't want to live in that space. You want to do all the things, you want to reward yourself for all of the things that you work so hard for. Can you do that in a way that isn't hurting you in the long run for your financial future? How are you working on being able to establish healthy habits that allow for you to save today, spend, enjoy and live those experiences, while also saving for that future? If we ignore it, and we only live in the present, of that fast paced life, or that relaxation life, or that I don't want to worry, I'm just going to push it off. If the future comes, I'll let the future slapped me in the face when it gets here. Look, the future doesn't want to slap you in the face. The future actually would really like it if you came to life prepared a little bit more than that. Unfortunately, we see so many of us Americans who are struggling to live paycheck to paycheck, because there is that mentality of and we're going to talk about this on the next step is so this month, keeping up with the Joneses is a real thing. So how do you stop doing that? Well, we can tune into that next episode, you can subscribe to the podcast, so you don't miss it. That being said, or you classifying yourself as I want to live in the now so that I can live up to something somebody else has. Or I feel like I'm maybe going to miss something if I don't do it now, what if you saved and you did that in a year? And maybe you are spending that money and it is going very well for you. You're not carrying any credit card debt, you're not carrying any consumer loan debt. But are you saving anything? And if you're saving things? Do you have money set aside if maybe you didn't have that job anymore? Or if you have that? Are you investing in anything? If you are investing and you've done financial planning, and you're still able to live this lavish lifestyle traveling and doing all the things that you want to be able to do high five, that's not what I'm talking about. But I am talking about those individuals who are not taking responsibility to think about their whole financial picture. Yes, I exceptionally want you to live the life you want to. I had a friend once asked me, Shannon, why don't you travel more? Like why don't you go on trips? Why don't you do these different things? This was a this was many, many years ago. And he said, You know what? I just have different priorities right now. Um, do I want to travel all over the world? Yeah, I do. I would love to take my kids all over the world. I'd love to do all these different things. In fact, when COVID hit, did I have that little bit of like, what if? What if I don't get to take my girls to Europe? What if I don't get to have Jim see London? Like, I want him to what if we don't get to lay on a beach somewhere tropical and sip pina coladas? Um, what if I get like, what if I work too hard to do these things that I forgot about living in the present. And so I did listen to that friend, a little bit twofold. I kept doing my job of saving.

And then I decided that we were going to all his saving and all of this spending in a healthy way. I was going to take my family on a trip. And I was going to take my parents and my kids and my husband and we're going to go to Walt Disneyland because my parents had never been my kids never been and my Dad has Alzheimer's and what super cool way of being able to experience something before his care declines than doing something that big kids get to do. Little kids get to do it. But we're big kids in our household and, and we wanted to have that same experience. So we went and it was wonderful. And I was able to pay for it and not worry about how I was going to pay for it when I came back. And I think a lot of times when we get in those scenarios, we live this lavish place and then maybe second guessed that later, or don't have an appropriate plan in place and this same friend in the future. Fast forward a few years. This friend came back to me and we were having a conversation about how I had the only debt I had was my mortgage in house. So proud of myself for paying off my debt and using my income responsibly and how I'd set this goal for myself from where I wanted to be from a network perspective, by the time I was 40. And where where I always add to that goal, and how hard I've worked while also still being able to build a house, we love to have COVID put a wrench in our travels, but we have been able to we took a summer vacation, we're taking a spring break trip, we're taking a another another trip, and we've set a goal that will travel every quarter. So I listened to that brand. But at the same time I have made myself the give that myself the freedom to know that I am planned well into the future. Then on the flip side, I have some individuals who I come across, who are so worried about that future, that they don't live for the present, and they don't enjoy themselves. And sometimes we see these differences. When it comes to maybe even spaces we are in in our lives, like a lot of that, that live for now short term mentality, I usually see with, you know, my 20 to 40, mid 40s 50s clients, where it isn't as much about the future as it is for wanting to experience life right now. And as they get closer to that 50 Number, the panics that sound a little bit if they haven't planned appropriately. And even if they have planned appropriately, there's something about hitting this major milestone in our lives of retirement, and making sure that we are going to have enough because logistically, my friends, so much changes, you go from having for most individuals a stable paycheck, you know, either once a month, bi weekly, some of us get paid every week, you know that, that element of we'll call it security, quote, unquote, or that ability to understand that something's coming in to take care of us goes away when we retire for most of us. And so then where does that income come from? And where are we? And how do we how do we make this a better space for ourselves to feel more confident? You know, my answer is always going to be financial planning. Financial Planning is going to help you understand that, but also some of those emotions of understanding that we we did get to save all of those years, if we've, if we've done the saving. By the time we get to retirement, now's the time for us to enjoy it. And I get so many clients who those first couple years of retirement, it's hard, hard being able to switch that mentality from Save to spend. Because we've been in this space and maybe even our own, you know, money stories or Well, stories have changed us from understanding it's okay to spend this money that we save so hard for what do we do now that we've gotten to this point? How do we deal with the fact that that's that or we're panicking every time the market fluctuates? Are we going to have enough because we've been through those points before where we've seen that decline? Now, most of the time, it's come back up if we've stayed invested, and we have a move to cash, and we have the ability to make sure that that dollar stretches, the other pieces were probably much more understanding that expensive expenses have grown. And that's our little friend call it inflation. And is that going to continue to happen? And are we going to be susceptible to some of those things

happening? Well, you see, my friends, that's why it's so important to understand your own personal situations. A lot of times with my clients, I'm having conversations around cash flow. And most people when they sit down with me, they're like, why would you have these conversations about cash flow? I just want to understand what the rate of return in my portfolio is? Well, how can I tell you that you have enough or that you aren't saving enough if I don't understand what the lifestyle is that you lead, so that we can get you to a place where you are financially thriving. And you feel confident, confident enough in the future and competent enough to spend the money right now. I can't understand that if I don't understand what goes in and what comes out. And oftentimes, we don't even understand that because we haven't taken the time to do it. We haven't taken the time to sit down and assess where is it that I'm spending money. Where is it that I'm earning money? Where do I need to replace that earning money with the money I've saved from all of this is tied together but if we are stuck in our emotions in one space or another we won't get to the place that we want to go if we are too busy. Thank you about, oh, I have to do this now, because if I don't do it now, I'll never be able to do it. And I'm never going to be able to do that because I'm not going to have enough to do it. Even though I probably have enough to do it. I just haven't established myself the freedom to allow myself to. We are going to take a quick pause in our conversation about short term versus long term to highlight one of our great nonprofit organizations that we are highlighting monthly on the Thrive Forward podcast and in the forethought planning community. That is team of women, a premier professional organization located here in the Twin Cities, specifically deeply committed to developing future generations of women in the leadership spaces. Memberships include over 600 women in the C suite to young professionals who work in a variety of key industries, including business, corporate, sports, and civic organizations, they lead to inspire and make meaningful connections and rise together with over 40 different types of events that they host throughout the year. team win is proud to support women and girls from the classroom to the boardroom, focusing on leadership development, mentorship, and youth empowerment, find out more about team women by simply going to Team women Now back to more of our conversation around Short Term versus long term, or if you're putting your head in the sand. The other piece, this third mentality is something that we don't always talk about. But it's that person that is living in the present. And you see my friend, if this is you, you have buried your head so far in the sand, that you aren't paying attention to anything, you might have some things on autopilot, but you're so quote unquote busy or head in the sand that you haven't taken responsibility of understanding what your finances look like. So when that future comes, it probably is gonna slap you in the face, because you're not paying attention to anything that's going on. And you're not even looking at it, you maybe don't even know where anything is. And then maybe that life event that is going to happen, it's going to be like this, and a snap of your fingers in a blink of your eye and all of a sudden you are going to have to pay attention to your money. And you're not going to know where to start and it's going to feel overwhelming. Because you then you're going to have to think about your cash flow, where am I spending my money, what is coming in? Where are all of the accounts that I did set up, I thought I set up this at that maybe I worked at this place, and I never took any responsibility, roll that thing over or pay attention to it. Oh, by the way, I bet I should probably have life insurance to take care of my family. But I haven't applied for that. And now I have a health ailment. Or maybe I never set up the proper legal document or a man I need somebody to help me with my taxes. But I haven't thought about any of this. Because I've put my head down in the sand. And I've got busy with life. And I forgot to think about how it touches everything that I do. So either you're living too much, for now, you're living too much for the foreword, or not paying attention to it at all. So how do you have a healthy relationship with all of those things? Well, my simple answer, in all honesty, how much are you spending? How much are you saving?

Those two things are going to help you have a greater understanding and is a great first place to start if you're the person putting your head in the sand. Understanding those pieces, no, I don't care how much money you make or what your net worth is, look, no matter where you go, or how complex if you sit down with a wealth manager, and they're like, Oh, we can do all of these things for you. And you can do all of these things. The reality is, those things might just be the rate of return on a portfolio, the fancy design of the intricate securities that are going to be within the portfolio. But what specifically is it that you need to understand, you need to understand if you can go on that vacation, if you can buy that second home, if you can start that business, you've always wanted to, if you can give to your grandkids if you can send your kids to college, if you can do the things that actually are the things you want to experience in your life. And maybe you have accumulated wealth where you know that those things are possible, but you don't know how they're going to happen. And the reality is it all comes down to what are you spending, what are you saving? What goes in what comes out? How does your wealth, hold a true solid financial foundation for yourself to live out all of those things, starting with whether you have two nickels or 10 million. Let's understand what it is that you want your life to look like? What is that going to operate from a spending perspective? Is it realistic with the money that you bring in? If it's not realistic? How are you going to create a reality? Are you either going to shave back some of the experiences? Are you going to find a second job? Are you going to finally ask for that raise? You're going to transition jobs, you're going to start that business? What are the things that you need to do to get to the places that you want to go? And then where are you saving? Are you saving in a savings account? Do you have retirement plan set up? Do you have an investment account? That isn't a retirement account? Do you have any insurance that's protecting you from the elements of something that might happen to you or your family? You see, these are the things that make up your net worth, and having an understanding of what those things are, as well as what are your commitments, some of you might be more leveraged than you think you might, but you haven't sat down to really understand the game plan. And some of you, as I mentioned earlier, might be more leveraged because that's what people told you you needed to do to get to the place that you wanted to go. And the reality is, you don't always have to leverage. In fact, my job would be obsolete, if everybody just spent less and saved more. But the reality is, not everybody listens to that. And by saving more, I mean, also investing, because the reality is what pays you and your savings account is probably pocket lint, and you need to pace with inflation, a little bit more than pocket lint. But that being said, if we don't take that responsibility, if we don't look at and give a true evaluation of ourselves, where is it that I'm at? am I putting my head in the sand? Am I thinking too much about today? And not enough about tomorrow? Am I thinking too much about tomorrow and not enough about today? Where is it that you are at my friend, I asked you to think about that and assess and if you need a partner to help you along the way, no matter where you are in your wealth journey, we are here to support you at forethought planning. You can simply go to forethought, planning, comm and schedule your wealth assessment. We want to help you get to that place where you feel like you're financially thriving. I say this often though, clients who come to us, it is not just our responsibility, but it is your responsibility as well. We need you to take responsibility in your financial life from day to day. That old saying of you can lead a horse to water but you cannot make them drink. We can give you the advice, we can help you set up those accounts. But if you aren't doing the things that you need to do to get to the place that you want to go, we can't make magic happen. I don't have a crystal ball or crystal ball. I don't have a magic eight ball. I don't have a rabbit's foot. I am not. I rarely really really want to make a reference to a 90s hip hop song but I will. I'm a little bit shorter. You can sing it along my friends if you know what I'm talking about. I wish I was a little bit taller. I wish it was a baller wishing. Nevermind. Okay, anyway, I digress. This was inspirational until it went to the 90s Hip Hop reference. Okay. That means that

maybe you do you wish you were a little bit taller. Wish you were a baller? Well, that being said, take the opportunity to sit back and assess where it is that you're at. Do you need to understand maybe you're spending too much over here. Maybe you're trying to look too much like a baller, but you aren't really in that status. Maybe you need to save more. Maybe you need to spend more and have more fun and be in a scenario where you really do appreciate your life because you work so hard for it. Wherever you are, we would love to partner with you. And if you're not with us, and you're with somebody you trust, make sure that those individuals are assessing where you're at where you want to go and how you're going to get to that place because as I always say you are worthy of wealth. The views expressed here are those of the participants and not those of forethought planning advisors guide for LPL Financial all investing involves risk including loss of principle, no strategy assures success or protects against loss securities are offered through LPL Financial and member of FINRA and SIPC advisory services offered through advisors pride and SEC registered investment advisor LPL Financial Advisors pride forethought planning and the guests of the Thrive Forward podcast are separate and unaffiliated parties

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