Financial Independence – Not Just for the Royal Family
Financial independence is one of the most common goals among our clients. Recent news revealed this also is a goal for certain royal family members. Prince Harry and his wife Meghan (the Duke and Duchess of Sussex) announced they will “step back” and work to become financially independent. Luckily, you don’t have to be royalty to reach financial independence.
To make progress toward financial independence, it’s essential to understand your current financial situation. All you need to get started is a sheet of paper, a bit of thought and a touch of action.
Make a List
First, list your assets (what you own) and debts (what you owe). Your assets minus your debt is your net worth. Second, list your income (what you earn) and expenses (what you spend). Tracking earning and spending can highlight opportunities to increase savings. These lists are unlikely to include any castles or “land and titles,” but they’ll help you establish your financial position.
Use the newly created lists to set goals. For example, the royals are planning to start a new charity, split time between countries and spend more time raising their son. Common goals include reducing and eliminating debt, funding college and saving for long-term goals. Whatever your goals may be, it’s important to define them so you have something to work toward.
Action toward goals tends to get rewarded. You may not need to hire a PR firm to announce your goals to the queen, but taking the initial steps to achieving your goals is important. Focus on small victories. Time is your biggest asset, and small victories lead to large victories.
There’s truth to the adage that what gets measured gets managed. Periodically revisiting your goals and celebrating the milestones are important parts of the path to financial independence. The queen may not be in favor of changing course, but it’s natural for your goals to shift over time. Stepping back to measure your progress will help you ensure you’re still working toward the right goals.
Everyone’s journey to financial independence is different. It often helps to work through this process with professionals. Accountants, attorneys and financial advisors can be important team members on this journey. Who knows—maybe someday you’ll have lands and titles. I hear there’s an opening in the royal family.