Life can change in a matter of seconds. In 2005, Andrew Hartshorn suffered an injury that changed his life forever. While driving a motorbike with friends, the young and active Andrew fell off his bike and suffered a host of injuries that left him paralyzed from the chest down. Faced with the reality that he would be bound to a wheelchair for the rest of his life, Andrew had a choice: sink or swim. He could either be hamstrung by the injury and become cynical or make do with the situation and live the best life he could.
He chose the latter. Luckily, this was made possible by some wise financial decisions he had made in years prior based on the advice of an astute financial planner. So, at 25 years old, Andrew was financially secure enough to retire. While this proved to be a bit dull and he returned to work before long, he was still grateful that he was able to have enough money to live comfortably after a life-changing injury. It’s this sort of financial foresight that Andrew is now preaching as a Senior Financial Adviser at Finwest.
It’s also the sort of foresight that Andrew says is severely lacking in the mining industry. While the pay in the industry can be fantastic, and we’re seeing plenty of young professionals pulling in more than $100,000 a year, Andrew is worried that they’re not handling the money in a way that will pay off years down the road. These workers are making a massive sacrifice socially and personally, working long hours away from their friends and family, so it’s natural that they may want throw caution to the wind and enjoy their money.
But, Andrew says, they need to realize that they are incredibly fortunate to be in the position they’re in. The money they’re making can be easily managed in a way so that these workers can retire at the age they want to. Because let’s face it, nobody wants to be working in a mine when they’re 70 years old. And perhaps best of all, young professionals can still buy the things they want to: whether it’s a new and terrible tattoo or a nice car. It’s just about planning their financial lives around these sorts of things and factoring them into the equation.
The most important part of financial planning is knowing what you want retirement to look like. Maybe you want a boat and plenty of time to go fishing. That’s great, but do you know what you need to be saving to make that happen? You might be surprised to learn that you don’t need as much money to retire as you think you do. You also need to consider the fact that life is dangerous. Things happen, and sometimes you’re not able to work. If that happened, would you be financially prepared?
Remember: it’s not about making more money. It’s about knowing how to move money in the right directions. Talk to a financial planner to see if you’re in good shape to meet your retirement goals.
Listen to my entire conversation with Andrew here.