Always on My Mind

Here’s an honest but somewhat sobering thought: Money will always be on your mind.

I mention this because some people have a notion that at some point in their lives they will no longer stress about money. That may be true. Money, at some point, may no longer induce worry or anxiety, but that doesn’t mean it won’t still consume a generous portion of your thoughts.

And that holds true regardless of the wealth you accumulate. As Willie Nelson crooned, “You were always on my mind.”

We generally go through three broad money phases in life. As we approach adulthood, we think about all of the money we will make. Money is aspirational. As we start careers and perhaps start a family, we realize how expensive life can be. Money is scarce. When we reach retirement, we are amazed at how much we have been able to accumulate. Money is plentiful.

It doesn’t work this way for everyone, but for most people, these phases ring true.

Regardless of the phase, however, you never stop thinking about money.

I want to focus on the last phase particularly. Because this is the period in which some people think – innocently, though naively – that money becomes an afterthought. The thinking goes, “Once we have built up our savings to a certain point, we will no longer have to think about money.”

In reality, the nature of your thoughts simply morph.

Assuming you have done well in life and built up a sizable nest egg, you start running new money scripts through your mind. You begin to contemplate what to do with your wealth. A common consideration is how to dispose of it at death.

Are your children going to fight over what you have accumulated?

Which assets should go to which child?

Is there a difference between being fair and being equal?

Should you give money to kids now or at death?

Do you give money to grandchildren?

Will taxes be an issue, or can they be avoided?

And the thoughts don’t end there. For those who have amassed enough wealth, they often wonder if everything should go to their children. That opens up a whole new set of questions.

What percentage of my wealth should I give to charity?

Which charities should I choose?

Are there ideal ways to structure my gifts to charity?

It’s a never-ending feedback loop. I don’t mean to make that sound awful or stressful. But, make no mistake, your thoughts about money will be a constant companion in life.

The key is to keep money in proper perspective. It’s simply a tool. Don’t let it control you. Don’t let it paralyze you. It can be used for amazing things – to give you freedom to do what you want in life, to help charities to do wonderful things, to make the lives of your family or friends a little easier.

But you must have a perspective and direction that guides you in dealing with your wealth. Without that, you are aimless, floating whichever direction the wind takes you.

For those of you in the third phase of life, spend quality time thinking about how you want to handle your wealth…see, there are those pesky thoughts about money again.

Money may always be on your mind, but with a little contemplation and preparation, there’s no reason those thoughts can’t be joyful.