Get a scoreboard - what is not measured cannot be managed

The saddest thing in the world is to be told you have a certain number of days left to live.

I felt a terrible anguish on the hanging in Singapore of a young Australian who no doubt had committed the murderous act of drug trafficking. Yet to be given an appointment with death is an unimaginable event not just for him, but for his family, friends, community and any thinking person who knows that it is happening. 

To then see his dead body wheeled out of the gaol to his waiting mother for transport back to Australia, like clockwork, was ugly.

Can we learn from such ugliness? We sure can. In the last days of their life a person on death row is focused, accounting for every hour as if it was a drop of water in a vast desert. Not a second wasted, one last letter, one last hug, one last goodbye.

When we live our day-to-day lives with such focus and precision the results are truly amazing. 

What is not measured cannot be managed.

In a financial sense, to know exactly where we are at and know that we have a plan that we are executing towards a set of well thought through goals is a transforming personal and financial event. Even better, it frees us to pay attention to the people in our lives that matter most to us.

What you want is a Net Worth Report that simply delivers to you a summary of your current financial position with supporting detail. 

What we do is undertake this exercise for clients, generally at year end tax time, showing what another year’s effort does in the financial sphere. We have never seen any client achieve less by knowing exactly where they are starting out from and measuring progress towards their goals!

Questions

Ask yourself:

  • If I had my financial universe sorted out, knowing exactly where I am and where I am trying to get to, would it free my mind to pay attention to the really important people in my life? 
  • Are there other things in life I should be writing down and monitoring my progress?

Ask your accountant:

  • What is a Net Worth Report?
  • Do you prepare Net Worth Reports for your clients?
  • Would you please prepare one for me?
  • Why have you not prepared one that is up to date?

This article was taken from the book 'Your Money, Your Choice', written by Brett Kelly. For more information on Brett, please visit his website: www.brettkelly.com.au.