“Begin, be bold, and venture to be wise.”
Have you had one those days lately? Come on…you know what kind of day I’m talking about.
A day when you wished you could quit your job, move to a deserted island, and spend the rest of your life drinking out of coconuts and swimming in a blue lagoon?
Maybe your version of paradise looks different. The point is, we’ve all had those moments where we thought about escaping from it all.
But what if? That’s the real question…
Are you bold enough to ever make such a move?
The answer to that question for most of us is no, we’re not. And frankly, that’s most likely a good thing.
What I mean is, unless you’re truly prepared, a decision of that magnitude could actually be detrimental to you and your family. Not just financially, but emotionally and psychologically, too.
However, could you put yourself in a better position so that you could not only see bold moves that you could make with your life, but get yourself into a position to be able to make those moves?
As I’ve seen others contemplate bold moves over the years—and made a few myself—I’ve found there are three keys that help make people capable of a bold move:
Having a financial plan in place can make a bold move easier.
No matter how bold your next big move might be—whether it’s a new job, a sabbatical, or taking the plunge into retirement—having a plan in place could mean the difference between success and failure.
Stress testing your plan to account for things like loss of income, increased expenses, and living off cash reserves can all help you decide if your bold move is within the realm of possibility, or something that needs to be put off for the future.
Once your financial plan seems workable, the next step is to gather specifics. If you want to move abroad, start researching the costs associated with your destination. If you’re looking to change careers, start networking with people both inside and outside your target industry to get an idea of what you can expect.
The primary key to making a bold move is to not commit financial suicide along the way.
Planning up front may increase your likelihood of surviving that jump.
Bold moves are usually not about financial moves
One bold move people always ask me about is moving from two incomes to one.
You may want to do this so that your kids get more parental attention. You may also be considering this to free up someone to start a business or follow a passion. Whatever your motivation, do you have what it takes to jump and make it happen?
Dropping one career and losing that income is usually about family and, at least in the short term, is usually going to hurt you financially.
But for most people, it’s worth it. Why?
Because bold moves are usually not about financial moves. It’s about doing the thing that you will bring you and your family the most fulfillment in life. That’s is why cost, or income loss, is usually secondary.
You definitely need to analyze the financial implications of the move, but the driving factor for wanting to make the change is rarely finance based.
That’s what bold moves are all about!
You will never think about 100% of the financial implications of such a move.
A few years ago, a friend of mine was contemplating a bold move.
Both husband and wife were working in high-paying positions and seemed to be doing everything right financially.
They were live in the U.S. but had family in the U.K.. Their bold plan was for one of them to quit their job and start living in the U.K. for part of the year. Not only would they lose the income, but they faced potentially higher expenses, the complications of residing in two places at once, and more.
My friends are both smart people. They tried to think about every angle to make sure that they didn’t make a financial mistake. But in the end, you know what I told them?
Have some faith.
I’m a planner. My whole job is to make sure that you’re as prepared as you can possibly be for whatever comes your way.
I also know that there are only so many factors that we can control. And when you’re ready, the best thing to do is take the plunge.
My friends took that bold move, and now they couldn’t be happier. Of course they ran into a few bumps along the way, but with a plan in place and a team of professionals there to help them, many of their fears turned out to be minor, easily conquered problems.
Having faith to make a bold move can be scary. But once you get started, you may find that they were the best decision you ever made!
“Be bold, be bold, and everywhere be bold.”
– Herbert Spencer
I like bold moves, and I like being in a position to make them.
I never know what idea is going to pop into my head, but what I do know is that the more control and the more planning I do about my financial life, the more opportunities I see for bold moves.
Do you have a plan? Has that plan freed you up to see bold moves in your life?
If not, let’s talk.
CLICK HERE to become an Insider! Join my Email Insider Group to receive weekly tips and tricks on finance, education, home buying, insurance, Social Security and everything in between. Byron W. Ellis, CFP®, CLU®, ChFC®, CRPC®, is a CERTIFIED FINANCIAL PLANNER™ professional and Managing Director United Capital Financial Advisers, LLC, a Financial Life Management firm. The information contained in this article is intended for information only is not a recommendation, and should not be considered investment advice. Please contact your financial advisor with questions about your specific needs and circumstances.
© Byron Ellis