It’s the only true equalizer we have as humans. We spend the same amount of it getting to the age of one, then 12, 18,21 40, and lastly, 65; retirement age (we hope). We “lose track of time”, “gain” an hour, then lose it again. We spend timewith one another, ask for time from each other. All of these are perceived truths about time; but what is real, it just keeps ticking.
Although it’s an equalizer for our lives, the one thing that isn’t equal, or even measurable, is how much time we have on this earth, to be with our families, play games, work, and on and on. The time we spend doing all these things, is not guaranteed. And yet for some reason, we all think we control it.
As a financial professional, inevitably in every appointment, what we discuss is…you guessed it, time. People often believe this equates to the ability to paying bills, or paying off a mortgage or buying life insurance.
I work with this concept on a daily basis. I am a certified dealer of time. What I can say with absolute confidence is we all run out of it at the most inopportune moment; and It’s my job to make sure others are ready at that moment. Rather, it is my calling to make sure people understand how much their (lack of) time will cost financially.
When discussing life insurance, I talk about the “economic life” that each person represents to the family, or loved a one (Or even the charity that is the beneficiary). What does your life translate to when you go to work and bring home a paycheck? Over a person’s work life span, even the minimum wage earner represents millions. And yet most people falsely claim they “only want to cover the bills.”
Almost Every appointment starts like this:
Client: “I want to cover the mortgage, or pay off all the bills”.
ME: “That’s GREAT, but what happens after that?”
ME: “Well, what about INCOME?” We have a saying here in the United States, “Nothing is guaranteed but death and taxes.” (Don’t freak out, but there are sometimes taxes after death. But that is for another conversation).
Your time on this world translates to your family as income for an undetermined amount of time. Sounds crazy doesn’t it? So, if you aren’t here, there is a missing income that must be replaced. Paying off a current bill will help the present, but do nothing for the future, and the Earth will still make its rounds around the sun, and your family will be spinning along with it.
Do you know you how much you need to cover all those ticks and tocks? Instead of guessing that number, project out what the family is earning now, multiply that out by 30, or even 40 years. With no changes, we just discovered we are worth millions of dollars over time.
So you tell me, does it make sense to “just cover the bills?” it’s time to chat, it will be well worth your….you know where I’m going with this.