Step 3 – Plan Together… Win Together
Similar to the title, Bach reiterates the book’s main theme – failing to plan together is the same as planning to fail together.
Take control of and clean up your personal finances – Bach provides another great tool to establish an easy filing system to simplify the chaos.
Hubby and I followed Bach’s twelve folder outline and were able to fill ten. Separately we included monthly expenses, employment info, and relevant small business folders. Either way, we’re using the ten we could – simple layout and as we did it together we both remember where everything is…
Design your own purpose-focused financial plan following Bach’s simple guidelines:
Base your goals on your values
Match goals with partner
Put your top five goals in writing
Estimate your goals financially
Make specific goals with deadlines
Act on these goals within 48 hours
I really enjoyed this chapter because Bach finally gives direct statements and ardent coaching to finally propel us into action. Our biggest stumbling block lies in that we are currently living on only one income – so significant changes are happening very slowly but surely – staying positive right?
Step 4 – The Couples’ Latte Factor
Using small stories to demonstrate how society is designed to help you “latté” your future away Bach calls the reader to a seven-day financial challenge; and later reviews the miracle of compound interest.
Good to know that we weren’t insane to have already done this – in fact, we did a one-year challenge two years ago and haven’t turned back. It’s almost like spending some time under the hood of your car – the more you know the more control you wield.
Step 5 – Build Your Retirement Basket
Bach explains how to accumulate a million-dollar retirement nest egg; reviews the “crisis” facing the CPP; and details how to pay yourself first.
Many critical topics are highlighted such as Registered Pension Plans; saving ten percent of pretax income or save twenty and finish rich; “positive action” and tons more… Take your time with this chapter – a lot to absorb but very relevant and resourceful.
Bach also assertively coaches four reminders to finishing rich:
Know what your money is doing
Invest retirement money for growth
Maximize return while minimizing risk
We’ve made a goal to max out our RRSP contributions by May 2015. It’s going to be tough but we have a great financial investor whom we are confident will guide us through the changes. Now that we’ve been achieving some of the smaller goals we’re more-so eager to go bigger.