Ok women read this one carefully.
As one of my mentors Lisa Nichols says “money is a dignified conversation to have” and that’s the one I’m starting with you today.
When I do a first coaching session I have clients rate themselves in 7 keys areas of life out of 10, the area of finance and money is one of them so I know the numbers.
If you haven’t worked with me yet in any capacity then know my intention is to unravel you, to challenge your beliefs and help you change in order to become who you want to be in order to create the life you want to have.
Taking women from exisiting to really living is where it’s at.
I know for most families men are the main income earner and men often manage the money. If this is your household you are going to want to pay extra close attention.
During a training session with some of my mentors & coaches on the weekend I learned a formula that blew my mind and gave me a hard reality check so I’m sharing with you now.
You will need pen, paper & calculator (unless your a mind math person)
1. Write down the amount you saved last year. Be brutally honest with this number, it might be 0.
2. Based on retirement age being 65 how many years until your main income earner hits that? Write it down. (You can do this for each of you later)
3. Number from 1 x Number from 2
Eg. $7000 x 21yrs = $147,000
This number is the total savings (not incl interest accrued) you will have by age 65 on top of your super.
4. How many years after retirement age do you think you will live?
Eg. 30 so until age 95
5. Divide the number from 3 by number of years
Eg. $147,000 divided by 30yrs = $4,900
This number is what you would have to live off annually.
6. Divide answer from 5 by 52.
Eg. $4,900 divided by 52 = $94.20
This is how much you would have weekly on top of your super to live off.
Now if you keep saving the number you did last year is this going to be enough for you?
How are you feeling now?
My instinct was fuck no that’s not enough, I better get hustling.
It’s important for women to take responsibility for their own financial well being and I’ll tell you why.
Life can change in the blink of an eye and if all of a sudden you become the person solely responsible for your finances are you ready?
I know 15yrs ago when I became suddenly single with 3 & 4yr old girls to raise and no work history for 5.5yrs I wasn’t. I made it a priority and still do.
This area in my own life is the one I am working on this year to shift closer to a 10. I have a clear plan.
Do you? What’s your plan?
Would you like help coming up with one?