You Know What They Say About Assuming…

It usually makes “assum” out of “ing”…

Have you stopped to think about what assumptions you have in your overall financial plan?

Are you assuming your income will increase?

Are you assuming your income will decrease?

Are you assuming the number of family members under your roof will remain the same?

Are you assuming that a move is in your future, or that a move is not in your future?

What if you adjusted just one of these factors?  Would your goals change?  They most certainly would.

Sometimes we are so set on a goal that we forget why we set that goal.

Just as an example,  I set a goal once to run a certain number of miles in order to prove to myself I could.  By the time I was done running those miles, I had assumed a *small-time* reputation as “a runner.”  I actually forgot why I started that goal and just kept on runnin, and runnin…

Until I arrive at motherhood, or at least several years into it, and realize, the entire goal was based on the assumption that I had time, and lots of it, to myself.

I had started to wonder if I was no longer a runner, when in fact I should have wondered, why is this goal not working anymore?  And then I could have seen, it was because the assumption – of plentiful time – had disappeared.

Enter new goals.  These new goals are based on new assumptions.  They fit our lifestyle better, they decrease stress, and they give us a united purpose.

Keep in mind: goals are not always golden.  Keep track of your assumptions so that you know when to change your goals.

Gambling… and in Detroit

Okay, so I’ve been wanting to tackle this for a while, and I’m going to be perfectly honest with you.

Part of me wants to do this.  http://abcnews.go.com/Business/video/detroit-unveils-home-auction-website-23334007

Ridiculous, right?  I live at least a thousand miles from Detroit, have no contacts there, and oh by the way I don’t have $1000+ waiting around.

Still, the prospect of insta-earnings on a rental like this has me battling that inner voice.

This inner voice is not the right one.

When starting a foundation, gambling may not be the way to go.

What is the difference between risk and gambling? Risk is calculated. Risk is researched. Risk is leveraged. Gambling… is more of a gut reaction. Be careful.

Now, if you live in Detroit, and have the means, the friends, and guts to do this, by all means, go ahead.

We’ve decided it’s not the season for this kind of wealth building.

For richer or for poorer

Getting Over My Bias

Let me be honest: I have a bias.

I had never liked a book that to me seemed to compare parents, as it was entitled Rich Dad, Poor Dad.  I always rolled my eyes at it 1) because it was a trend, and I do not lemming (yes, I made that into a verb) and 2) it seemed to compare parents by their wealth.

When a conference speaker initially mentioned Robert Kiyosaki during her talk, my eyes were programmed to roll.  I needn’t have done that.

I should have read his writings that day.

But I wasn’t motivated enough then.

Fast forward three weeks.  I turned a year older. Now, legacy is a loaded, urgent word. It’s joined hands, I suppose, with my biological clock.

I have an urgency to equip my children with tools that work.  Birthdays, and today, tornado threats have a way of making things more dramatic.  Plus, I see now that every decision I make has consequences that stretch into my children’s lives.

I sense for many reasons the financial plan that worked in my twenties, may not work now. When on a hunt for financial tools that matter, I found and read a Kiyosaki book geared toward my children. It’s entitled Rich Kid, Smart Kid.

And my sense of urgency has never been greater.

Lasting Lessons for Your Progeny

Reading about Kiyosaki’s wealth philosophy, which he cleverly discusses through father-son dialogue, I saw a huge potential for change in how I approach constructs of wealth.  In doing so, I might perhaps arm my children with greater potential as well.  The first phrase opened my eyes; the rest energized me.

  • employee mindset
  • parental strategy
  • financial field trips
  • real-life report card

These forced me to think about not what I say to my children, but how what I say is demonstrating what I believe.

How can I craft lessons out of spontaneous conversations?

How can I set up true experiences to demonstrate the importance of financial know-how?

Is an asset truly an asset?

Possibly, most importantly, was his gentle way of challenging my definition of assets.  I do not want to spoil the surprise.  It will blow your mind,, especially if you have a middle class situation.

I am excited to be able to refer Rich Kid, Smart Kid to you.  I do not know how it will affect you, but I know you will be energized as a parent, and a teacher.