The Great Money Reset summary

Okay. Let’s say you’ve done a stocktaking, run the numbers, and financially you’re not exactly looking poised to pack it all in and chase your dreams. No matter how hard you look at your bank statements, no extra zeros are appearing on your balance, and you don’t have a second – or maybe even a first – home to sell to fund the life you’d love to have. Rude!

Don’t give up. There is one thing you can do that’s guaranteed to leave you feeling more financially empowered, no matter what your salary or the state of your retirement fund. Two words: spend less.

What’s your Great Money Reset? Do you want to tell your boss at your soul-sucking nine-to-five exactly what you think of them before tossing your phone in the nearest river, then heading into the mountains to live off-grid? Love that for you! You can feel free to skip this blink. On the other hand, perhaps you enjoy your job – it’s not perfect, but you find it fulfilling, like the field you’re in, and feel challenged and excited by aspects of your work. And yet … something’s missing. You might want more money to fund hobbies you’re passionate about. Or you might crave more responsibility and recognition – the chance to become a leader in your field.

If this is you – if you feel like, with some changes to your work situation, you could bring your financial life and your dream life in line with each other – then I want you to bully your boss.

There’s more to home ownership than the dream of 2.5 children and a white picket fence: owning your own home creates infinitely more financial flexibility in your life. Selling or downsizing can provide the cash injection that helps fund major Great Money Resets. The trick is to manage your real estate portfolio thoughtfully, and let logic – not emotion – dictate decisions around when, if, and why you sell. 

First things first. Selling might be the right thing to do on paper, but letting go of the home where your kids grew up, your dog played in the yard, and your friends dropped by for impromptu dinner parties can be tough. Feel your feelings, but don’t let them get in the way of making a smart sale. Remember, letting go of a cherished property is painful, but may lead to happiness.

Let’s say you’re the CFO of a major tech company, but your passion lies in crocheting quirky Christmas ornaments. Or you’re a corporate lawyer with dreams of inventing an app connecting dog-owners with dog-sitters in your local area. Or … well, you get the picture. So many of us work in conventional roles, but dream of turning our hobbies or ideas into side-hustles … and then turning our side-hustles into our main hustle. Guess what? It’s totally doable. The trick is to design your dream job with financial sustainability in mind.  

Chaotic times, like the pandemic, can spur entrepreneurialism, providing an impetus to start a business or side hustle aligned with your passions. But whatever your side hustle, when starting out, go slowly – begin with a side hustle while keeping your job. This allows you to test ideas without excessive risk. Think of this phase as a Great Gradual Reset. Growing your business incrementally allows you to experiment, troubleshoot, and grow without the specter of bankruptcy looming over your head.

You might not  think a Great Money Reset is on your horizon. But the need for a Reset can come along when you least expect it – a sudden shuffle at work can leave you longing to pack it all in and retire early; a health scare can see you realize that your time on Earth is finite, so if you ever want to motorcycle around Vietnam, you’ll need to do it sooner rather than later. It’s a smart idea to start planning for a potential Reset now – that way, you won’t be scrambling to figure one out at the last minute.

Ideally, you should start your financial planning five to 10 years in advance of a potential career or life change. Project what your future spending needs will be, and use that projection to set a savings target. Within your planning, make sure to prepare for worst-case scenarios – get wills, life insurance, disability insurance. Let’s hope that you won’t need to use that insurance – but trust me, not taking it out is not making a saving. Don't jeopardize your family's well-being.