It’s time to get back to basics. If you’ve been listening to the last few episodes, you know that we are taking a break from our usual format to review the basics of personal finance for solopreneurs so that you can master your finances to create the life you want.
On this episode, we’re talking about planning for major purchases. Do you plan these out ahead of time or let them sneak up on you? Listen to this episode to hear what you should be doing to ensure that you are living the life that you truly want to live.
You will want to hear this episode if you are interested in…
- Planning for major purchases [1:22]
- A negative story to learn from [3:21]
- A positive story to learn from [5:44]
- How these lessons apply to you [9:12]
Major purchases need to be a part of your overall financial plan
As part of the annual review process with my clients, we discuss any upcoming major purchases. While it is important to set aside money for any planned major expenses, it is crucial to understand how they fit into your overall financial plan.
As you develop your financial plan you’ll want to put some thought into what your overarching goals are. What do you really want to achieve with your money? Do you want to buy a property? Be debt free? Go on that dream island vacation?
Now that you understand what you are working towards you can consider the major expenses that you have on the horizon. Are they really worth it–or will they delay your goals?
A tale of two clients
In this episode, I share a tale of two clients. One didn’t put much thought into a major purchase that I advised against and ended up saddled with a large amount of debt on a piece of equipment that he didn’t really use.
Rather than helping him improve his business, that purchase hampered his cash flow, prevented him from buying other items, and delayed him from reaching his true goal.
Another client wanted to buy a piece of land out in the country. To help him achieve that goal he saved up a down payment for a business that would help him build the wealth needed to buy his dream property. Over the next 15 years, he scrimped and saved rather than making frivolous purchases that would delay him from his goal.
Now he owns that land and lives out in the country just like he envisioned.
How will you plan to reach your goals?
What about you? What are your goals? How much do you need to set aside to get you there? What will you say no to achieve them?
Put a plan in place to get you where you want to go. Always keep your ultimate destination at the forefront of your mind–especially as you consider major purchases. Don’t let distractions get in the way of living your best life.
Connect With Gabe Nelson
- BOOK – The Solopreneur’s Money Manifesto by Gabe Nelson
- FREE Downloadable Resources at https://www.gabenelsonfinancial.com/resources/
- EMAIL: Gabe (at) GabeNelsonFinancial.com
- Follow Gabe on LinkedIn
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