Advice That Never Grows Old

“The truth is that most of our current wealth is the result of diligent savings, not high returns.”

These words came from Lana Wong in an interview for MoneySense’ Guide to Retiring Wealthy.  “Save diligently” is advice which never grows old. 

Some things stick like glue.  Things you read or things people say become embedded in your memory.  Once in a while they mystically reappear.     

I remembered snippets from this publication, “How I planned my way to financial freedom”. When I found the book, June 19th, 2011, was scribbled at the bottom of the article’s last page.  At the top, I had written “very good, recommend”. 

The reason this article came to mind now is directly related to a financial plan I am currently creating for a couple. Everything Lana said in her interview applies to my couple’s situation.    My clients didn’t chase high returns.  They were following the same route directed by Lana.

Lana said, “All I did was make sure to take advantage of any pension plans or savings plans that my employers offered. I also maxed out my RRSP contributions every year.”   This works!  Lana said it did. I have seen the same results in my clients’ financial projections who diligently saved and minimized their debt over the years.  Now they are able to comfortably retire in their late fifties.   

There are many smart people, like Lana and her husband, Randy, who apply what they know they should do at a young age.  They follow through with their own advice.

Lana’s wisdom is profound. “My biggest motivation wasn’t becoming rich.  No, I started saving money because I was lazy.” 

When we recognize our weaknesses, we can take control of getting the ball rolling in the right direction.  Lana knew she had a war to fight against her weakness.  She developed a battle plan.  That was to simply start saving. 

She goes on to say, “I realized that if I saved just $50 a week when I was in my 20’s, then I’d never have to worry about money later on.  I figured I might even be able to retire early.”

Lana wasn’t sure she could retire early…she only thought she “might” be able to.   “Might” has a way of deterring many people.  When we are not entirely certain, reluctance fights against our best intentions.  We simply give up. “What’s the use! I can’t save… I just blow it.”  

We do ourselves a favor when we heed Lana and Randy’s advice.  They learned three important lessons which they willingly shared in the interview.

• Set goals.
• Always live below our means.
• Train ourselves to be happy with what we have instead of always wanting more. 

I feel a personal connection to Lana.   She grew up in Moose Jaw, attended the University of Saskatchewan, and worked for a consulting company in Regina before moving to Vancouver when she was 31 years old.   You are not reading “How I planned my way to financial freedom” from a textbook on personal finances.  This story is personal. And personal stories are relatable.   By sharing Lana and Randy’s never-grow-old advice, I hope you will be motivated to create your own happily ever after retirement story. {To read the full article, click here.}