Imagine being in a race where the finish line unexpectedly moves away from you faster than you can approach it. This is the challenge many face when pursuing their financial aspirations.
While you might believe you’re steadily advancing toward your goals, factors like taxes, inflation, and interest rates can push those goals further away, often at a pace you’re unprepared for. Inflation, in particular, is a silent factor many overlook in their financial strategy.
Watch the final installment of the three-part Secret Formula series, hosted by George Antone on the Wealth Amplifier YouTube Channel to discover how you can start to win an unwinnable race:
Evaluating Your Financial Progress
Throughout life, you work diligently, believing you’re progressing towards your financial goals. However, there’s a way to determine if you’re truly advancing or merely being outpaced by the financial system’s forces. The shifting goal post in this analogy represents your financial aspirations. The faster it moves due to external pressures, the harder it becomes to reach.
Discovering the Key to Financial Planning
While working at Intuit Corp during the late 1990s, I was involved in the development of several FinTech products, including the Quicken Financial Planner (QFP). This software aided users in retirement planning, offering various predictive scenarios using intricate formulas. Deep within the program’s code, I stumbled upon a critical equation – the “Breakeven Formula.” This formula is crucial in evaluating if an investment propels you towards or away from your financial goals.
Consider your current investments: your home, stocks, bonds, mutual funds, and perhaps rental properties. While it might seem like your assets are growing annually, there’s a caveat.
Even if your investments grow in value, inflation might be undermining your purchasing power at an even more rapid pace. The Breakeven Formula is a tool to gauge whether your asset appreciation truly outweighs the financial pressures working against it.
Make use of our FREE INTERACTIVE Breakeven Calculator to assess your progress in the financial race.
How to Win the Financial Race?
It’s essential not only to keep running towards your financial goals but also to understand and adjust for the factors that might be moving them further away.
Make sure to watch Part 1 and Part 2 of the Secret Formula with George Antone to truly benefit from this insightful information.
