A Modern Blueprint for Financial Longevity and Prosperity.
Envision yourself at 80 or 90. It might seem a world away, but given the leaps in health and technology, it's a reality many of us will live to see. More than just surviving, you'll likely be thriving — launching new ventures, traveling, exploring, and even starting businesses.
However, here's the truth: longevity requires liquidity. Your aspirations, adventures, and activities will be fueled by your financial decisions in your 20s and 30s. Gone are the days when retirement meant winding down. The future is about ramping up, changing lanes, and diving into new experiences. But every pivot and every passion comes with a price tag.
"At Outset, we don't use the word 'retirement'—to us, it's a 'dirty word' because we believe no one truly retires. Instead, it's about preparing for an active and fulfilling future. Remember, 59½ is a significant milestone, as it's when you can access many of the financial tools highlighted in this section. Long-term savings is about creating a self-sustaining financial ecosystem for a lifetime of ambitions. Soon, you'll transition from being employed by someone else to essentially employing yourself. Your "paychecks" in the years ahead will come from the investments you make now. The depth of your pockets then will be determined by the wisdom of your choices now.
“Financial safety first” isn't just a mantra; it's a mindset. When you feel financially safe, you are not anxious. By securing your financial footing early on, you're not just guarding against unpredictability; you're laying the groundwork to take bigger, bolder steps later. Mentally you will be stronger. Think of it as the safety net that lets the trapeze artist perform without fear. Your solid financial foundation is that net, giving you the confidence to swing high and reach for those ambitious dreams.
Dive into this section with seriousness. The tools and strategies listed here are your tickets to a future where age is just a number, and ambition knows no bounds.
1. Level Up Negotiation Skills
Life is an ongoing series of negotiations. It revolves around discussions and agreements, whether about your pay, a contract, or even where to eat out next weekend. Fine-tuning your negotiation skills isn’t just about improving the outcome of those discussions, but it's about valuing yourself, ensuring you get what you deserve, and driving better outcomes in your personal and professional life.
What to Know:
Why It Matters: From commanding higher salaries and obtaining better job benefits to navigating personal situations, negotiation skills can significantly boost your financial health and overall life quality.
Honing the Skill:
- Dive into Books and Articles: Many resources are at your fingertips.
- Online Courses: Platforms like Coursera, Linkedin Learning, and Udemy are brimming with courses tailored to negotiation.
- Practical Approach: Start small. Haggle at a yard sale, then progress to job offers.
- Role-Play: Mock negotiations can offer invaluable practice.
- Feedback Loop: Always look for feedback and refine based on it.
Understanding Your Worth: Before stepping into any negotiation, especially for salaries, it's essential to know your worth. Research market rates for your role, consider your experience and understand the value you bring.
Negotiation Isn't Just About Money: While salary is important, consider other benefits and perks that might be negotiable, like vacation time, flexible hours, and professional development opportunities.
Prepare and Practice: The more prepared you are for the negotiation, the more confident you'll be. Role-playing with a friend or mentor can provide valuable feedback.
For Gig Workers: Clear contracts with well-defined terms give legal cover and ensure you're rightly compensated. Negotiating is a crucial skill for a gig worker’s financial health.
Women & Negotiation: Women, in particular, face a unique set of challenges, from wage disparities to caregiving roles. Knowing how to navigate these with an intelligent negotiation can be game-changing. Familiarize yourself with women’s distinct challenges, as it can help inform your negotiation approach.
Questions To Consider:
1. Are you conscious of how you navigate daily negotiations? Remember, handling the small things often mirrors how you'll approach the bigger ones.
2. How can you be more mindful in these everyday exchanges?
3. Have you ever sold yourself short in a negotiation? If so, why?
4. How often do you practice or read up on negotiation techniques?
5. Have you researched market salaries for your position in your location?
6. What other benefits or perks are important to you besides the salary?
7. Do you often undervalue yourself, and if so, why?
Next Steps:
- Dedicate a week to actively notice and document daily negotiations, no matter how minor they seem.
- Reflect on a recent negotiation: what went well, what didn't, and how you might approach it differently next time.
- Seek out a friend or colleague and engage in a mock negotiation to practice and refine your skills.
- Use online tools and resources to research typical salaries for your role and experience in your region.
- Create a list of key points you want to discuss during the negotiation.
Completed:
- Noted daily negotiations for a week.
- Reflected and evaluated a past negotiation for learning.
- Practiced negotiation in a real-life situation.
- Researched market rates and determined personal value.
- Identified key benefits and perks for negotiation.
- Practiced negotiation with a friend, mentor, or colleague.
Did you know: The Beatles had to negotiate their iconic appearance on the Ed Sullivan Show. When the Beatles were rising in fame and looking to break into the U.S. market, their manager, Brian Epstein, knew that getting them on the Ed Sullivan Show would be a game-changer. However, Ed Sullivan initially offered them a standard rate for newcomers. Epstein used a masterful negotiation tactic: he agreed to let the Beatles perform for less money in exchange for top billing and two appearances. The result? A record-breaking 73 million viewers tuned in, propelling the Beatles to unprecedented stardom in the U.S. Sometimes, it's not just about the money, but the bigger picture.
2. Digital Financial Tools & The Human Touch
The digital age presents an abundance of financial tools. From budgeting apps to investment platforms, there's seemingly a solution for every financial query or task. Yet, with this convenience comes the risk of detachment. It's easy to view digital numbers as merely abstract figures rather than hard-earned money, potentially leading to careless spending or mismanagement.
What to Know:
Pros of Digital Tools: They offer convenience, real-time tracking, and can automate tasks like bill payments or savings transfers.
The Risk of Detachment: With swipes, clicks, and instant notifications, it's easy to lose the tangible feel of money. This detachment might make it easier to overspend or make impulsive financial decisions.
Balancing Digital & Traditional: While apps can aid in budgeting and tracking, old-school methods like journaling expenses or using cash for discretionary spending can reinforce the value of money.
Personalized Approach: Not everyone thrives with digital management. Recognize what resonates with you. For some, a blend of digital and traditional methods works best.
Questions To Consider:
1. Do you feel more in control of your finances using digital tools, traditional methods, or a combination of both?
2. Have digital tools made you more impulsive in your spending or more disciplined?
Next Steps:
- Evaluate your relationship with digital financial tools. If you find them leading to detachment, consider reintroducing some traditional methods into your routine.
- Set aside time each month to review finances without digital aid. Physically writing out expenses or income can reconnect you to your financial situation.
Completed:
- Assessed the effectiveness of my current financial tools.
- Introduced or maintained a non-digital method for tracking or managing finances.
3. Learn to Meditate A Key To Success
Believe it or not, meditation is a secret weapon for financial stability and success. Meditation isn’t just good for your mind and body; it can significantly impact your financial well-being and relationships. Starting with just 5 minutes a day can make a difference. Here's why you should make meditation a daily habit. It's more than just peace of mind, it's about making wiser money choices.
What to Know:
Enhanced Focus: Laser in on your financial goals.
Stress Relief: Less stress often equates to smarter money moves.
Emotional Control: Meditation helps curb impulsive buys.
Increased Awareness: Keeps you mindful of your spending habits.
Better Decision-Making: Encourages thoughtful choices in all financial matters.
Improved Relationships: Reduces financial tension with loved ones.
Clarity of Goals: This helps you visualize and manifest your financial aspirations.
Enhanced Productivity: Less stress and more focus leads to better job performance, potentially resulting in higher income.
Risk Management: Helps in understanding and managing financial risks more prudently.
Reduced Anxiety: Meditation can reduce the production of stress hormones and stimulate the areas of the brain associated with well-being, helping individuals manage anxiety symptoms better.
Improved Sleep: Regular meditation can increase the production of melatonin, a sleep-inducing hormone, and enhance the connection between brain regions associated with calmness and the processing of stress and anxiety. This leads to better sleep quality.
Increased Gratitude: Cultivates a sense of gratitude, which can make you more content with what you have, reducing the urge to spend money to make yourself feel good.
Questions To Consider:
1. Have you ever tried meditation to enhance your focus?
2. Does integrating a daily meditation routine assist in your financial decision-making?
Next Steps:
- Start with a simple 5-minute meditation routine daily.
- Monitor if this practice affects your financial decisions over a month.
Completed:
- Established a consistent meditation practice.
- Noted improved financial decision-making and relationships in and out of the workplace.
4. Education is Key: Dive Into Being a Lifelong Learner
Staying ahead means continuously learning in a fast-paced world. Equip yourself with knowledge and skills to make informed decisions and adapt to changing environments.
What to Know:
Learn By Doing: Real-world experience often trumps theoretical knowledge. Starting small with investments can give you practical insights without too much risk.
Upskilling: With the ever-evolving job market, continuous learning can significantly boost your career and financial trajectory.
The Power of Reading: Most successful individuals credit reading as a pivotal part of their growth journey. Books offer a wealth of knowledge and diverse perspectives.
Global Awareness: Understanding global economic trends and events can empower you to make informed decisions in your financial endeavors.
Questions To Consider:
1. When did you last invest in upskilling or a new learning experience?
2. Do you currently have a reading habit? If yes, what's on your reading list? If not, what's holding you back?
3. How do you stay updated on global economic events and trends?
Next Steps:
- Hands-on Experience: Begin with a small investment in stocks or bonds. This initial step will familiarize you with the investment journey.
- Skill Development: Identify an area you'd like to upskill in and enroll in a course or workshop.
- Reading Routine: Dedicate a set amount of time each week for reading. Start with financial books or success stories to align with your goals.
- Stay Informed: Subscribe to a reliable financial news source to keep abreast of global economic happenings.
Completed:
- Made a small investment to understand the buying-to-selling journey.
- Enrolled in a course or workshop for upskilling.
- Established a regular reading routine.
- Subscribed to a financial news source for global updates.
5. Begin a Money Journal
Dive deep into your financial psyche. Recording your monetary thoughts, goals, and concerns can provide clarity. Your relationship with money is lifelong; nurture it with introspection and purpose. Money impacts every aspect of our lives. Greed, envy, and jealousy–we all feel them, but the trick is to not let them overcome us. From birth to death, living costs money. Cultivating an honest, fearless, positive relationship with money will take you far.
What to Know:
Self-Reflection: Documenting money matters can unearth patterns, fears, and aspirations.
Relationship with Money: This bond deserves effort and care, just like any personal relationship.
Questions To Consider:
1. What are your most pressing money concerns right now?
2. What financial milestones would you like to achieve in the next five years?
Next Steps:
- Start a dedicated money journal. Aim to write in it regularly, starting with 10 minutes a day.
Completed:
- Reviewed and diversified my investment portfolio.
- Consulted a financial advisor or utilize online resources for diversification guidance.
6. Cultivate Positive Self-Talk
Your beliefs shape your reality. Cast away negative convictions about money management. Embrace the understanding that financial proficiency is within your grasp, regardless of gender or background.
What to Know:
Empowerment: Positive affirmations can reshape your financial perspective and approach.
Gender Myths: Financial acumen isn't gender-specific. Dedication and focus dictate mastery, not inherent traits.
Questions To Consider:
1. Are there recurring negative beliefs you hold about money?
2. How can you reshape these beliefs to be more constructive?
Next Steps:
- List down any negative money beliefs you have. Beside each, write a positive affirmation to counteract it.
