We spend a lot of time thinking about how we’re going to retire. “How” is an important question to ask, but don’t forget about “Why.”
If you don’t have a good answer for “Why,” you won’t have much success with “How.” That’s because we’re much more effective at doing things when we have a motivation for doing them. If you asked me to lift up a car to simply test my strength, I wouldn’t even try. If you asked me to lift a car that had rolled onto my daughter, I promise you I’d find a way to get it off the ground.
So as you make those 401(k) contributions, review your quarterly statements and meet with your adviser, don’t forget to ask “Why?” Why are you saving and sacrificing? Is it so you can have more money? Money is the means, not the end. It will enable you to retire, but then what? Why do you want to retire? The stronger your “Why” the more successful your “How.”
How strong is your “Why?”