To most, the whole financial process isn’t much fun. It feels like an arduous activity that leaves you dreading the topic right next to getting your oil changed. Just another thing I should do. I challenge you to leave those assumptions at the door, specifically for this topic. We’re going to talk about your future and how you design it.
What is Design?
Design is an invigorating thing for me because it allows me to think about creating things with a purpose, with intentionality; creating tools for your future self. I’m sure there are things that as a child made your world light up. The thought of what your wedding might look like, that cabin you want, or that trip you can’t wait to take.
If you’ve read my post about budgeting, savings goals are where you get that latitude to have some fun. This is where you design how to align your priorities with spending. Where you put those goals from thought to reality.
I would recommend you take a week or two to think about what those things might be and find that clarity. Maybe you already know, even better.
Easy Math
Write down your goals with approximate amounts and timelines. Here are some examples:
Down payment (20%) on house in 5 years = $60,000 ($1,000/month)
International trip in 1 year = $2,500 ($208/month)
Potential Future Wedding in 5 years = $20,000 ($333/month)
New Camping Equipment in 1 year = $1,200 ($100/month)
Prioritize
Once you have completed this, determine how they fit into your monthly budget (I hate these just as much as the next guy but it’s a foundation to get you to the fun part).
Maybe all of these fit into your budget. Fuck yeah! (You’re either loaded or you might look for bigger dreams). Most of us are probably going to take a look at the math with an “Ugh…How am I going to do this?” This is actually one of my favorite parts.
Take a look at your spending from top to bottom. This is where you get to evaluate what’s most important to you. Is having your own apartment more important than saving for that down payment? Could all the eating out and happy hours be curbed to get you on your international trip?
There’s absolutely no judgment here. The whole idea of this exercise is to get you thinking about what’s most important to you so you can prioritize appropriately.
The Third Door
Let’s also take a look at the third door; this doesn’t need to be so simple. If that math isn’t working out, we have another lever to use. More income! This could be negotiating a raise at work, taking on a side gig, or selling some shit you don’t use anymore. There are many opportunities to find a side-hustle for that extra income.
Conclusion
The purpose of this exercise is not to cast judgment or tell you where to spend your money. This is an introspective activity designed to uncover what’s most important to you. We all get caught up in the day to day and don’t take enough time to stop and prioritize. If you take the time to do so, you won’t regret it. It will be your time to get creative and design a life for your future self.
