From crisis to life transformation
Major upheavals in your life, whether
planned or unplanned, will bring discomfort in the short term. To cope, you will need to clearly see the likely future
benefits. MONEY MATTERS
FEW people go through life without changing their life direction at some point. This could be as the result of an unplanned event such as a work transfer, an event beyond their control such as redundancy or the end of a relationship, or extreme dissatisfaction with their current situation.
Disruptive events can be positive, such as a work promotion or the start of a relationship, or negative, such as the failure of a business or the death of a partner. Even among the group of people whose lives are in a steady state, there are some who secretly yearn to be doing something different that will give them greater happiness and fulfilment.
What results is often termed a mid- life crisis that can involve sudden changes in relationships, careers, finances and lifestyles.
An unplanned fundamental change in your life can be extremely stressful. A typical immediate reaction is to try and retain as much of the old life as possible. This is particularly evident when a relationship breaks down, with one or both partners being unwilling to let go of the family home, the holiday house, the business, the private school education for the children, and so on.
The consequences of this reluctance to let go can be a long drawn-out process for settlement, and extreme financial pressure due to high levels of debt or high ongoing expenses.
Whether the change you face is planned or unplanned, the most important first step is to create a new vision of how you want your life to be. Change involves taking risks and letting go of things that have previously given you comfort and security, such as your job, your house or other assets and even friendships. The transition can involve discomfort in the short term and to cope with these negative aspects you will need to clearly see the future benefits flowing to you from your new vision.
There are four important ingredients for transforming your life:
1. A clear and compelling new vision of how you want your life to be and why.
2. A willingness to let go of the things which will hold you back from achieving your new vision.
3. A plan for the changes you need to make.
4. The courage and motivation to take the necessary action.
The greater your financial resources the easier it may be to transform your life, but lack of money should not be a barrier. Here are some examples of how people have made drastic changes in their life: A businessman who sold his business and his house, invested the proceeds to generate an income and travelled the world with his family. A couple who sold their home, purchased two rental properties to produce an income and went to live in Africa for two years.
You can reduce the amount of risk involved with transforming your life by preparing a budget showing how much money you will need and where you expect it to come from.
Have a back-up plan to cover areas of risk, and set limits on how much you are willing to risk so that if things don’t turn out as planned, you have sufficient resources to try a different approach. During the transition, stay focused on your vision. Imagine yourself living your new life – your imagination will produce the energy and creativity you need to bring it into reality.
Liz Koh is an Authorised Financial Adviser and author of
The advice given here is general and does not constitute specific advice. A disclosure statement can be obtained free by calling 0800 273 847.
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