Navigation

Do you remember a time when you needed to handwrite directions to your friends house for a party? Most millennials probably have no idea what I am talking about. The person you were talking to on the phone would give you street names in order to have turn-by-turn directions so you could easily find it. Most likely, they would also provide landmarks to let you know if you haven’t traveled far enough or if you went too far and wind up lost. You have to retrace your steps in order to backtrack to get back on course.

Nowadays we have GPS. It has certainly evolved from the Tom Tom or Garmin, (even MapQuest) because now we have it embedded into our phone. We can literally never get lost anywhere (unless their is no reception). The GPS unit keeps us on target.

Let’s apply the same concept to our personal finances. We wander into debt, but we cannot wander out of debt. We need written instruction as to how money is going to be used (a budget). We have to have a clear vision as to where we are going. Same goes for savings. We need to set a destination and move toward the end goal.

The one thing I love about navigation is the updates in real time. Let’s say there was an accident and traffic is moving slower than usual. The line toward your destination turns orange, and if it is really bad, red. The estimated time of arrival (ETA) continues to shift based on how quickly the accident can get cleared.

Your money is the vehicle. YOU are operating the vehicle (your money) and telling it where to go based on guidance from the navigation system. If you detour (take on debt), it will take you longer to get to your destination (retirement, house savings, etc).

If you are unorganized, work with someone who has followed a plan to build a positive financial future for themselves. It probably wasn’t an easy road for them, but they stuck with it and made it to their destination. If they haven’t reached the destination yet, they are well on their way.

*We would love to partner with you in order to co-author a plan to work together to achieve your goals. We want you to succeed, you just have to want it more than we do!*

Published by MadsenFinancialCoaching

Madsen Financial Coaching was created to bring awareness to personal finance. When you pay attention, you win! We work with clients to understand their behavior and relationship with money, as well as basics of personal finance such as: following a budget, eliminating debt and building an emergency fund to name a few. We want you to succeed, and it starts with your willingness to put in the work.

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