3 Ways to Know If You Are Making the Right Life Investments

Category: Financial Freedom

Have you ever stopped and suddenly realised that you have been making the wrong decisions? Living the wrong choices and now suffering the consequences?

Whether it be in a relationship, a job, or with your finances, sometimes we are just plain blind to it until something, or someone wakes us up.

I know this has happened to me many times. This year marks 20 years of running my own business. Today, while packing up and prepping for an office move, I came across so many items that I’ve purchased over the years, that are no longer of any use. It turns out that many if not most of these things were a poor use of my precious capital. And, I have to admit, most of them were not well thought out investments, made with the aim of making me and my company more money for the long term. Rather, they were things or ideas that seemed appealing in that moment. I didn’t really question what, if any, long term value did they hold.

This spending without a plan didn’t seem to cost me that much at the time. But when I reflect back, I now see it was the opportunity cost that was the real price tag. If I had put that money into something that increased in value, what would it be worth now? If I had spent that time on a project that was successful, how much profit could have been made?

I have realised that planning in business and your life both have to be seen with the overlay of future you. What’s the benefit of this decision in ten year’s time? Will this add to my overall life plans and goals? What time will this take that I could be putting to my family or other more viable ideas? With this in mind, I have developed these three questions which should be asked ahead of every spend decision or choice on where and how to spend your valuable time.

1. What am I doing this for?

Profit? Pleasure? Future growth? Have a clear idea of your endgame. If it turns out to be pleasure more than not, you may find yourself making decisions future you will regret.

2. What’s the best case scenario for this decision and what’s the worst?

Can I afford the consequences? If you can’t afford worst case scenario, don’t do it.

3. How will this fit into my life in ten years?

How can you think it out now so that it is maximised in the future? Make decisions only after careful consideration. Undoing them is costly. Take your time.

As I have seen again with my Five Pillars diagnostic, time is as valuable a resource in growing wealth as money itself. How you invest your time and money now will have a massive impact on how you live your future. I’m definitely a work in progress.

Until next time

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Vanessa Stoykov

Vanessa has been passionate about writing and storytelling since her days of hiding under the doona with her torch to read after bedtime.
Kathy Skantzos

Kathy is a yoga-loving world traveller who also happens to moonlight as a business journalist and writer. She was the finance editor of news.com.au and the Managing Editor of CEO Magazine (Asia) before joining Vanessa and the evo squad.
Shayne Sommer

Shayne is second dan black belt in karate, and a budding romance writer with a difference. Why? Because she writes romance stories that always have a money lesson.
Antoinette Colbran

Specialising in stories for 50+ women, Antoinette draws from her own experiences to help other women avoid the pitfalls and see the benefits of understanding their money situation.
Michael Crooks

Michael Crooks is a more than 20 year writer and documentary maker who has worked with Time Inc and the BBC, who wants to expose the truth from real victims of financial crime to help others avoid their mistakes.
Kim Payne

Kim Payne has spent the past three decades as a speaker, trainer, business coach, and consultant in financial services. She has worked with and transformed hundreds of brilliant, educated, high achievers who are chronically under-living.
Rebecca Pritchard

Rebecca Pritchard is on a mission to help men and women achieve equality when growing a family.
Antony Perring

Ant is a writer, designer and business builder with a love of food, design and good living. He writes on food and money in an easy to do way.
Julie Hyde

Julie Hyde is a leader of leaders. A disruptor and a powerful people enabler who empowers leaders to make big things happen.
Joshua Pennell

As a Dad to four kids and a business owner, Josh is passionate about family and finances and is known as The Family Finance Guy.
Sid Lal

Sid is a serial entrepreneur who set up his first business when he was still in University. Since 2009 he has been heading Bruce Clay, first in India & more recently in Australia.
Lou Johnson

Lou Johnson believes in the power of sharing stories to build empathy, understanding and connection. Growing up surrounded by books and storytelling, alongside her drive to make a difference led her to a highly successful career in book publishing.
David Rae

Dave is a CERTIFIED FINANCIAL PLANNER® professional and has been a financial adviser since 2003. He works with a range of clients and has a strong focus on ethical and sustainable investing.
Natallia Smith

Natallia specializes in assisting pre-retiree single women—whether they are never married, widowed, separated, or divorced—understanding deeply the importance of financial stability during life's pivotal moments such as separation, divorce, retirement, and the loss of a loved one.
Mark Hoy

With over 15 years of experience in financial services, Mark established Wollemi Wealth Management in 2013. His business is built almost entirely on referrals and word of mouth — a testament to the trust, integrity, and long-term relationships he forms with his clients.
Derek Gascoigne

Derek Gascoigne is the State Manager for UniSuper Advice in Victoria and Tasmania. Derek has been with UniSuper for over 15 years, and his career in superannuation and financial services spans 27 years and counting.
Annika Bradley

Annika Bradley is Head of Advice Strategy, Research & Technical at UniSuper. She brings over 20 years of experience across investments and wealth management in both the public and private sectors.
Wayne Leggett

Wayne has been a recipient of numerous industry awards and was one of the first to qualify as a Certified Financial Planner (CFP). He has been heavily involved in industry affairs at the highest level, including serving as national president of the Association of Financial Advisers (now FAAA).
Conrad Francis

Conrad Francis is the Founding Director of Inspired Money, a Perth-based financial coaching and financial planning, mortgage broking and money coaching firm he established in 2011.
Andrew Beks

Andrew Beks is a Chartered Accountant and the founder of Simplified Business and Accounting.