Ever found yourself standing in a store, holding the latest techie gadget or kitchen appliance or post it note set and thinking, “Do I really need this?” Your brain starts running wild, one side telling you, “Go for it, you’ve had a tough week.” While the other side, the practical side, is reminding you about the credit card bill that’s on its way.
Sounds familiar, right?
That, my friends, is a typical conversation between your “present self” and your “future self.” Your present self loves to live in the moment, to enjoy life as it comes, with less regard for the possible future consequences to your future goals or unexpected expenses. Your future self, on the other hand, is the part of you that’s concerned about your long-term goals, like retiring comfortably or having money set aside for unexpected expenses.
When it comes to personal finance, your present self and future self are often at odds, each vying for control of your wallet and insisting that they are more important than the other part of you.
But here’s the secret: understanding and respecting the needs of both selves is key to a successful personal finance journey. It’s about finding that delicate balance, allowing you to enjoy life now without compromising your future.
So, let’s dive in and learn more about this inner dialogue, shall we?
Let’s Chat About Your Present Self
First off, let’s get chummy with your “Present Self”. Picture your Present Self as a friend who loves spontaneous adventures, enjoying the sights, sounds, and tastes of today without worrying too much about what tomorrow will bring.
Sound like someone you know? That’s because it’s you, every time you indulge in a little retail therapy or splurge on that fancy dinner. It’s all about enjoying the here and now.
Your Present Self is often the one holding the reins of your day-to-day financial decisions. It’s the voice whispering in your ear to upgrade your phone, treat yourself to that designer bag, or go for the extra large popcorn at the movies because, well, why not? The Present Self loves immediate satisfaction, and there’s nothing inherently wrong with that. After all, life is for living, right?
But here’s where things can get tricky. Let’s take Jane, for instance. Jane loves to shop. She sees shopping as a stress reliever and a fun thing to do on the weekends. However, Jane often finds herself spending more than she planned, and by the end of the month, she’s always a bit surprised (and a little worried) when she looks at her credit card statement. It’s not that she can’t afford her bills, but she often wonders where all her money went and why her savings account doesn’t seem to grow.
That’s a classic Present Self move right there, folks. We’ve all been a Jane at some point, wondering where our paycheck vanished to. Recognizing this side of ourselves is the first step to better financial management.
We’ll talk more about how to strike a balance with our Future Self a little later on. So, stick around!
For now, we are going to move into meeting your future self.
Let’s Meet Your Future Self
Now that you’ve had a heart-to-heart with your Present Self, it’s time to get acquainted with someone equally important – your Future Self.
Picture your Future Self as a wiser, more experienced version of you. This is the you that has ambitions, dreams of owning a house, retiring with a comfortable nest egg, and maybe even taking that dream vacation to the French Riviera or the Canadian Rockies.
Your Future Self is the voice reminding you to think long-term. To save for retirement, to build an emergency fund, to invest for financial growth and stability over your life time.
It’s the version of you that says, “Hang on a second, do we really need that fancy new gadget, or could we put that money towards the house down payment fund or the emergency fund?”
It’s your Future Self that encourages you to prioritize long-term financial health over short-term satisfaction.
Let’s paint a picture of what financial security could look like. Imagine living in a home you own outright, no mortgage in sight. Picture yourself retiring comfortably, with the freedom to enjoy your hobbies and passions without financial stress.
Visualize yourself in the future, being able to support your family or even a cause that’s close to your heart. That’s the kind of life your Future Self is working towards.
So, remember, while your Present Self is all about enjoying life today, your Future Self is there to make sure you can keep enjoying life for all your tomorrows.
It’s all about balance, and we are going to dive into that balance in just a bit. So read on, my friend!
Linking Your Present Self and Your Future Self in Your Financial Journey
Now that we’re acquainted with both our Present Self and Future Self, let’s talk about bringing these two together in a harmonious way for our personal finance journey. The goal isn’t to completely favour one over the other, but to strike a balance between living in the present and planning for the future.
A budget can be your best ally here. WAIT, don’t stop reading. I know I just said the B word but please hang in there a little longer. It will be worth it. I promise!
Think of budget as a peace treaty between your Present Self and Future Self. It’s a way to make sure both sides get their say and that both their needs are taken into account (and some of their wants too!).
Your Present Self gets to allocate funds for current needs and desires – rent, groceries, a night out, that new book you’ve been dying to read. While, Your Future Self, on the other hand, gets to put money aside for long-term goals – retirement, home ownership, an emergency fund, future travel.
For example, let’s talk about Rachel. She realized that every month, she was running out of money and couldn’t figure out why. She earned a decent income, but her savings were nonexistent, and she often found herself stressing about money. She decided to sit down and create a budget, aligning her spending with her values and priorities (more on that in another post).
Rachel loves her weekly brunches with friends, a definite Present Self indulgence. But she also dreams of buying her own apartment in the next five years, a clear Future Self goal.
To balance these needs, she budgeted for her brunches, trimming elsewhere, like cutting back on her online shopping. At the same time, she created a monthly savings goal for her future apartment.
With this approach, Rachel satisfied both her selves. Her Present Self was happy, continuing to enjoy those weekly brunch dates, and her Future Self was content, seeing the apartment savings grow each month. That’s the balance we’re aiming for. It’s about making the most of today without compromising tomorrow. Stick around, and let’s explore how to create such a harmony in your financial journey!
Some Simple Steps to Get Your Present Self and Future Self Talking to Each Other and Working Together
Having our Present Self and Future Self coexist harmoniously might seem like a tall order, but trust me, it’s entirely doable. All it takes is a bit of conscious effort and a few simple steps.
Let’s dive in, shall we?
Start Conversations With Your Future Self:
It’s always a good time to start thinking about your future. Spend a few quiet moments each day picturing your life in five or ten years down the road.
What do you see? A comfortable home? A successful business? Regular vacations? This exercise can help align your Present Self’s actions with your Future Self’s goals.
Set S.M.A.R.T Goals:
Make your future aspirations more tangible by setting S.M.A.R.T (Specific, Measurable, Achievable, Relevant, Time-bound) goals.
Let’s say you want to save for a down payment on a house.
Make it S.M.A.R.T: “I want to save $30,000 for a down payment in five years. I will do this by reducing my monthly expenses in my food and shopping categories by $150 total. I will also find ways to bring in $200 more a month through increasing my hours at work or finding a second job or side hustle. I will add this extra $350 to the $150 I already save a month to reach my goal in 5 years.”
This gives both your Present Self and Future Self a clear and actionable plan.
Create a Budget:
Make a budget that accounts for your Present Self’s needs and your Future Self’s goals. Remember, it’s not about deprivation, but balance. Include room for fun and relaxation today (Present Self), while setting aside funds for your future goals. (Future Self).
Reassess Regularly:
Our needs and wants change over time. Make it a habit to reassess your financial goals and budget every few months. This helps ensure your plan remains aligned with your current situation and future ambitions.
Write a Letter or Create a Vision Board:
A fun and engaging way to connect with your Future Self is to write a letter to your future self, outlining your hopes and dreams. Alternatively, create a vision board filled with images and words that represent your future goals. These are great visual reminders of what your Future Self is striving for, helping your Present Self make decisions that align with those goals.
These steps might seem simple, but they can create a strong bond between your Present Self and Future Self. Starting this conversation today can set you on a path to a more balanced and fulfilling personal finance journey. Happy balancing!
Bonding is Key: How Your Present Self Can Help Your Future Self
One common financial concern for many of us is the constant stress of living paycheck to paycheck. It’s like being stuck in a financial treadmill – constantly running, but not making any real progress. Our Present Self feels overwhelmed and stressed, which does no favours for our Future Self.
Deciding to tackle this issue today can significantly benefit both our Present Self and Future Self. By taking steps to break free from the paycheck-to-paycheck cycle, we can improve our present financial situation and build a more secure future.
Imagine this: Your Present Self decides to take action. You start budgeting and cut back on what you consider non-essential spending in your life currently. You negotiate better rates for your bills where you can. Maybe you even start a side gig or freelance work to bring in some extra income.
Slowly but surely, you start to build a buffer. Life becomes less stressful without the constant worry about making ends meet. That’s your Present Self sighing with relief.
This will take time (and there will be bumps along the way) but it is time well spent if it breaks you out of the paycheck to paycheck cycle.
But what about your Future Self? Well, as you break free from living paycheck to paycheck, you free up funds that can be directed towards your future goals. Now, instead of every penny going towards immediate needs, you’re able to start saving for a house, invest for your retirement, or set aside money for further education or upskilling or whatever your future goals are.
That’s when your Future Self starts doing a happy dance.
By addressing your present financial stress and habits, you’re not just improving your current situation; you’re laying a solid foundation for your future. It’s a win-win situation for both selves – Present and Future!
It all starts with recognizing the connection between your Present Self and Future Self and making decisions that benefit both. After all, they’re both you – just at different stages of your life journey.
Conclusion
And there you have it! By understanding and addressing the needs of both your Present Self and Future Self, you can create a personal finance strategy that blends today’s enjoyment with tomorrow’s security. It’s about living a fulfilling life now without sacrificing the comfort of your future.
Balancing between the two isn’t always easy, but it is possible – and incredibly rewarding. By having open and honest conversations between your Present Self and Future Self, setting S.M.A.R.T goals, creating budget that aligns with your values, and regularly reassessing your financial plan, you can start to foster a healthier relationship with your money.
Remember, your Present Self and Future Self aren’t adversaries; they’re partners on this journey. They both want what’s best for you, albeit from different perspectives. Let them work together, let them negotiate and find a balance. This way, you can ensure you’re enjoying the fruits of your labor today while planting seeds for a prosperous tomorrow.
Next Steps
But perhaps you’re thinking to yourself, “Where should I start?” or “How do I create a budget?” or “What savings goals should I have?” or “I’m just not sure where to start with all of this. Or “ This is all too much to think about!”
Well that’s where I can help. I am launching an online membership called “Financial Empowerment Haven,” beginning in November 2025 to help people just like you embrace your financial life and finally make progress on your financial goals – one small change at a time.
Join the waitlist today, and let’s embark on this empowering financial journey together.
You will love the online community, full of people just like you ready to start building a bright financial future while kicking the financial stress you feel out of your life once and for all.
You’ve got this, and I’m here to guide you every step of the way.
Waitlist link (with all the details of the program)