The Balance Sheet of Life


Happy New Year one and all, I'm back after a well-deserved break. Here's hoping that 2022 finds you well and that 2021 hasn't taken too much of a toll. Many might argue that this is the best time of year to reflect on what’s worked well for you and what's worked not so well. And taking that into consideration you could surmise that where you are today is directly proportional to the decisions you made in the past, and where you will be tomorrow is directly proportional to the decisions you make today. 

When we take time to examine our balance sheet, we will come to realise that it’s not much different from a financial one except that the balance sheet of life is far more precious in my opinion. The best investment anyone can make is in themselves. Investing in their education, expertise, knowledge and skills. Understanding and leveraging your intellectual property is priceless and will give you a good indication of your assets and liabilities.

Remember where you are today is directly proportional to the decisions you made in the past, where you will be tomorrow is directly proportional to the decisions you make today. Now let’s look at the three phases of life.

Phase one is the accumulation phase. For many, this will come about in their twenties and early thirties. Having secured some type of education it will be time to leverage that to forge a career. Once established we tend to see the acquisition of a permanent residence, starting a family and all the trappings associated therewith.

Phase two capital appreciation generally starts around the mid-thirties to the late forties. If everything has gone to plan, your chosen career path is now paying big dividends and you’re now able to capitalise on the gains made during the accumulation phase.

The third and final phase is capital distribution gearing up for retirement. This is where you get to enjoy the fruits of your labour. You’ve followed the plan and navigated the challenges of life. To this end, your ideal balance sheet should look like this.

It’s time to celebrate, your debt-free, with no more loans or credit card debt to worry about. It’s time to experience life on your own terms and be a guiding light for the next generation.

Life ends; when you stop Dreaming, Hope ends; when you stop Believing, Love ends; when you stop Caring, And Friendship ends; when you stop Sharing. Work hard dream big.

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