There are certain Key Force Multipliers (KFMs) that will get you where you want to go faster than you ever thought and further than you ever dreamed.
In February 2020, a British Airways passenger plane took off from New York City and landed in London less than five hours later, breaking the record for the fastest subsonic flight between the two cities and reaching London almost two hours early.
The short flight time was not planned. The plane was the same as always. The pilots and crew were the same as always. The number of passengers on board was the same as always. So…what was different?
The tailwinds.
The flight was riding a much stronger than usual jet stream, with winds over 200 miles per hour propelling the aircraft.
At times the plane reached speeds of 825 miles per hour. The pilots didn’t need to do anything different except take advantage of what nature was providing, keep the plane on course, and hold on for the ride.
There are Six Key Force Multipliers that are a lot like those tailwinds. Real Financial Planning includes a 4 (four) step process we call the “Four Keys for Life” Financial Planning System, helping you arrive at your destination with more confidence. At their core, these multipliers automate and motivate you to get past the inertia that is so detrimental to reaching the goals you’ve set. They also acknowledge that we’re all just human, and sometimes painfully so.
And that’s okay!
When the financial planning profession was born in the late seventies, it was not where it is today. Instead, financial planning focused on selling investments and insurance, without a whole lot of thought about the client as an individual. But as my husband Ed and I were working our way out of debt, with four children to raise and eventually send to college, I kept asking myself how I would want to be treated if I were a client. I didn’t want to have to be afraid like my parents were. I wanted things to be easier, with a clear path and thought this was probably how everyone else felt too. I believed that if I could figure out a system or a process that worked for us, those same techniques and strategies could work for others as well.
While getting my own family on a solid financial footing, I found six strategies that made saving and investing not only easier but also more productive, and less vulnerable when we needed the money back for tuitions and our 2nd home. The six KFMs can turbocharge the process and provide the tailwinds that work for anyone in any situation. They provide clarity and motivation to be strategic, and that momentum makes success almost inevitable.
Please don’t underestimate the power of the Key Force Multipliers no matter where you are in the wealth spectrum; the leverage occurs when you apply them consciously and consistently. If you make a habit of applying the six KFMs once a year, you can achieve what you want sooner than you think possible, and actually enjoy the process. The end result for most people is a feeling of being organized and in control, with immeasurable clarity and confidence.
Here is an example of just one of them:
KFM 2 – Specific Strategies For Execution
Keep in mind that every investment or financial product are tools, not strategies. They are like the carpet, appliances, heating, and air conditioning system (HVAC) for a home. But similar to how the items installed in a home are not the same, your financial tools can vary, based on your needs and how you implement them. That’s why strategies are far more powerful when they are congruent with your personal situation, integrating your goals and priorities. Real Financial Planning also has to be realistic, and based on only your resources, cash flow needs, tax situation. It’s also important to understand family dynamics and needs of each member. Everyone is unique.
Also, let’s be real. There are necessary expenses like premiums for insurance which seem like a detractor — not a multiplier. The right kind of insurance is simply a tool used to transfer risk, and the “cost” of not having it is uncertainty. Therefore, in the end, having insurance can actually be a multiplier in terms of providing options a family might have if the unthinkable occurred.
Tax laws seem to change with every administration, so it’s important to understand what you can do today, what it might look like in the future and always stay informed and in touch with your tax advisor. For some, it makes sense to pay taxes now. For others, it is better to wait. This is where a robust tool that can run yearly tax projections integrated with annual income and expenses can make a difference. When you apply customized projections based on your goals, it removes the stress of having to guess about what your future holds.
Knowledge is not power. Execution is.
Think about structures that are designed for strength. A builder can take 100 (one hundred) bricks and arrange them into ten columns to create a wall with 6 (six) columns of twenty bricks each. It will look solid and do an adequate job of dividing a room in half, but if that builder wants a wall strong enough to withstand gale force winds and hold a roof up over the house, he or she is going to have to use a staggered pattern so the bricks in each row overlap the gaps in the row below them. The new wall contains the same number of bricks as the first, has the same amount of mortar, and is the same height and width, but it’s exponentially stronger. All it took was a fresh perspective and a change in how the bricks overlapped to make a huge difference in function.
A real financial plan with a portfolio of staggered bricks is similar to that strong wall.
How the bricks are put together makes all the difference.
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