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Value Creation Blog

Is Bigger Really Better? – Retirement Planning

Posted by Josh Patrick

BigLittleDogs

I’ve been thinking about this question for a few weeks now. It seems that we assume bigger is better. Is it? I think the answer to this is it depends. It depends on whether bigger takes you away from your life mission. It depends on whether bigger helps you live a better life.

Bigger often means more work.

If you want to have something bigger it usually means more work. If you want a bigger house, it definitely is going to be more work. If you want a bigger job, that is likely

 to mean more work. If you want to play a bigger role in your community you’re going to have to spend more time on community activities.

Bigger can be a lot of fun. There’s the challenge that comes with making something bigger and better. There’s also a cost that goes along with it. You have to always decide is the cost worth the outcome you get.

Bigger when it comes to a paycheck is often a good thing, but is it?

For most of us our paycheck is our biggest asset. If you work for another company and you ask for financial planning advice I’m likely to say that the more you can increase the value of your paycheck, the safer your financial life is going to be.

To increase the size of your paycheck you’re probably going to have to work harder. You probably will have to put in longer hours. You might even have to upgrade your skills. All of this takes time. It’ll take time away from something else that you’re doing right now. You might want to ask yourself a question “Is the extra time and effort for a bigger paycheck worth it?”

Bigger for your company might not be a good thing at all.

I remember when I first got into business my father and I had a regular argument. I would say that growing the business was important. What I really was saying was having a bigger business was important. My father would counter by saying having a bigger business wasn’t worth anything if profits didn’t also grow.

Several years later I realized my father was right. Growing a business without growing profits is a total waste of time. If you grow your business and profits don’t also grow, you’re putting your business at risk. I’m hoping you’re from the school where growing profits is more important than growing sales.

Once you have a certain amount bigger won’t make your life better.

Research has shown that making more money won’t necessarily make you happier. Once you reach a certain level of comfort in your life having more money will have a diminishing effect in making your life better. Some would even argue that having too much money makes your life less good.

There comes a point when you need to ask whether having more is really what you want. You should ask whether there are other things in your life that are more important than having a bigger paycheck, house, boat, or business. It’s not about having more toys, it’s about the quality of life that you live. You need to ask yourself which is more important.

At the end of the day the answer is: It depends.

Like all questions I love, this one has the same general answer. I love a question that has “it depends” as an answer. When you have an answer like this you get to ask yourself my very favorite question which is, “why?” Why is it important for you to make more money? Is working more hours in your best interest? Why is it important for you to upgrade your skills?

Don’t just answer this question with I want more. Answer this question with why you want more. How specifically will having more make your life better? If you don’t have a good core reason for more, you might want to start a conversation with yourself about being happy where you are. It even might make you focus on other things that can make your life much better than more. It’s really all about what you want.

We’ve put together a special report on the basics of retirement planning. This report will help you ask yourself whether you’re doing the right things that will allow you to retire. To get this report, click on the button below.

Basics of Retirement Planning

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Topics: retirement planning, cultural change, value creation, financial planning

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