You Don’t Need a Retirement Vision
Many financial experts say that you should have a retirement vision in mind in order to stay focused on your financial goals.
Well, I don’t have a retirement vision.
I’m still over 20 years away from retirement and asking me to define what I want my retirement years to be, all I can answer is “I want to have enough to do the things we want to do.” And, to achieve that, we consistently contribute 15% of our income into a retirement account. That is the end of the planning and excitement for my retirement vision. I just don’t know yet. And thinking about the twilight years certainly doesn’t motivate me towards any of my financial goals.
I’m not saying that you shouldn’t have a retirement vision, and if you do, that is fantastic. Some people know they want to travel, want to spoil their future grandkids, or even provide financial support for their family. But, for me, it’s too far off and too distant to have an impact.
So, how do I stay focused on my financial goals?
We create a 3-year vision focused on where our family will be and the type of life we want to have.
Why does a 3-year vision work?
It’s a short enough time that I can actually picture myself then. This makes focusing on goals leading up to this timeframe more realistic, meaning I’m more likely to stick with these goals because future-me is just around the corner waiting to reap the benefits of my awesome planning! I find it much more motivating to stick to a goal when I can picture myself in that moment. 70-year old me is too distant to have a personal connection. I’m not going to change my habits or stay focused on my goals if I can’t truly picture myself then.
It’s enough time to make significant progress towards that goal. It can take a year just to get clarity and focus on what you want to accomplish. If you’re just starting to get a handle on your finances, it may take some time to develop those healthy habits. When you combine solid financial habits with a laser-focused vision, chances are, you’ll be able to make significant progress towards that goal within 3 years. As each year passes, you’ll be so excited to see the progress that you’re making, that you’ll be cheering yourself on, supporting yourself as you get closer and closer to that goal!
It’s flexible enough to change as life throws you curveballs. You can have the best laid out plan, but unfortunately, you don’t really know what life has in store for you over the next three years. New priorities may come up and life may change in an unexpected way. You may also simply change your mind when suddenly that alpaca farm you’ve been dreaming about has lost it’s appeal. Goals set within a moderate length of time will allow you the flexibility to ebb and flow with life. You won’t feel like a failure or like you made a mistake when you shift your goals. You’ll still have made progress and can redirect progress towards your new goal.
So, if the question “What does retirement look like for you?” is not inspiring you to focus on your financial goals, try shortening the time frame to three years. You’re close enough to who you’ll be to have a personal connection, you’ll have enough time to make significant progress, and you’ll still have the freedom to change your mind based upon where life takes you.
