Understand How Big Financial Changes Affect You in the Long Run
At least once each year you will likely experience some big financial change. It could be a large stock award or having a baby. Or it might be missing out on a bonus round or a major repair on your home.
This is simply part of life and knowing to expect the unexpected in your finances is a great step toward wisdom. When something like this happens, whether planned or not, it's important to know the long-term perspective.
- How does this change things financially for me going forward?
- Am I still on track to do the things I want in life or are some other adjustments needed?
- Does this create the opportunity to do something more in life that I hadn't thought was a possibility before?
Most of these events won't really affect you in the long-term, though some of them will. Having this perspective will help you make much better decisions in the short-term that drive the results you want in the long-term.