What if your future self, at 60 years old, could suggest to you at 25 to reduce your spending and give your credit card a “purchase pause”? Or at 35 you could ask yourself at 80 what changes you made to your lifestyle to provide a fulfilling and prosperous life?
It’s not that crazy a concept.
In 2013, Hal Hershfield, formerly of Stanford University, conducted a study that found differing conceptions of our future selves can dramatically influence the long-term choices we make. Specifically, people who identified most with their future selves planned their life with the long-term in mind, saving more money and consequently amassing more wealth.
With 2019 well and truly under way and Australians likely nursing a financial hangover from the Christmas period expected to total nearly $30 billion for the first time, according to finder.com.au, many of us are likely reassessing the future.
Personally, I’ve found factoring in my future-self beneficial in some life-changing decisions.
Despite not being aware of this concept at the time, I still vividly recall the day after visiting a construction site in London’s Docklands in my late teens when I decided I wanted to live there one day. More than a decade on, I ended up buying my first home there. Sounds simple, but it wasn’t and required less consumption and more saving back then for benefits in the long term.
Planning buying your first house in your teens may not be for everyone, but it’s hard to argue that if you want to change your overall financial future for the better, who better to have a chat with than someone with your best interests at heart and who you trust – yourself?
So, what’s the trick?
Firstly, for some fun, it may help to try an app like FaceApp to digitally age a photo of yourself.
Then, imagine that older version of yourself 10 or 20 years down the track giving you the keys to your future home, sharing an anecdote about selecting wedding rings, speaking warmly about your growing family or putting more away in superannuation.
Put simply, mindset matters, and it helps to adopt a positive attitude, particularly towards financial health.
In an age of curated social lives, whether it's possessions, lifestyle or jobs, just because someone else is following a particular path doesn’t mean you have to. Find your own path and decluttering your possessions and finances is a good start. Review your budget, plug spending leaks, consolidate accounts, opt for less paper, shop around for utilities and review your insurance cover.
Then, put your future-self first by committing to a savings plan, today.
Planning for the long term also means reducing risk and maximising opportunities, today. So be cognisant about how you use credit, plan for unforeseen events and take advantage of tax concessions in super. Lastly, ongoing investment in skills, capabilities and knowledge will only help in this rapidly changing world. You’ll thank yourself in a few decades time.
Changing habits is hard, I know. However, there is power in long-term thinking – and a quick chat with your far older self is a good place to start.
Lali Wiratunga is Chair of 50PLUS, a Westpac Employee Action Group which aims to create a supportive culture around the diverse needs of mature age employees. He also serves as Chair of Plate It Forward, which donates restaurant-quality meals and provides training and employment opportunities to vulnerable community members.
{"topicSelector":[{"tagId":"newsroom:topics/economy","name":"economy","description":"Explore more Economy insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Economy","url":"/news/topic.economy/"},{"tagId":"newsroom:topics/banking","name":"banking","description":"Explore more Banking insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Banking","url":"/news/topic.banking/"},{"tagId":"newsroom:topics/digital","name":"digital","description":"Explore more Digital insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Digital","url":"/news/topic.digital/"},{"tagId":"newsroom:topics/diversity","name":"diversity","description":"Explore more Diversity insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Diversity","url":"/news/topic.diversity/"},{"tagId":"newsroom:topics/workplace","name":"workplace","description":"Explore more workplace insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Workplace","url":"/news/topic.workplace/"},{"tagId":"newsroom:topics/community","name":"community","description":"Explore more community insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Community","url":"/news/topic.community/"},{"tagId":"newsroom:topics/sustainability","name":"sustainability","description":"Explore more sustainability insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Sustainability","url":"/news/topic.sustainability/"},{"tagId":"newsroom:topics/technology","name":"technology","description":"Explore more Technology insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Technology","url":"/news/topic.technology/"},{"tagId":"newsroom:topics/property","name":"property","description":"Explore more Property insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Property","url":"/news/topic.property/"},{"tagId":"newsroom:topics/westpac","name":"westpac","description":"Stories featuring Westpac corporate news.","title":"Westpac","url":"/news/topic.westpac/"},{"tagId":"newsroom:topics/sme","name":"sme","description":"Explore more Small Medium Enterprise insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"SME","url":"/news/topic.sme/"},{"tagId":"newsroom:topics/innovators","name":"innovators","description":"Explore more Innovators insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Innovators","url":"/news/topic.innovators/"},{"tagId":"newsroom:topics/leadership","name":"leadership","description":"Explore more Leadership insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Leadership","url":"/news/topic.leadership/"},{"tagId":"newsroom:topics/covid19","name":"covid19","description":"Stories influenced by the COVID-19 pandemic.","title":"COVID-19","url":"/news/topic.covid19/"},{"tagId":"newsroom:topics/investing","name":"investing","description":"Explore more Innovators insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Investing","url":"/news/topic.investing/"},{"tagId":"newsroom:topics/startups","name":"startups","description":"Explore more Startups insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Startups","url":"/news/topic.startups/"},{"tagId":"newsroom:topics/personalfinance","name":"personalfinance","description":"Explore more insights about personal finance, financial literacy and financial wellbeing. ","title":"Personal finance","url":"/news/topic.personalfinance/"},{"tagId":"newsroom:topics/agribusiness","name":"agribusiness","description":"Explore more Agribusiness insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Agribusiness","url":"/news/topic.agribusiness/"},{"tagId":"newsroom:topics/scams","name":"scams","description":"Stories about the latest cyber scams news and trends. ","title":"Scams","url":"/news/topic.scams/"},{"tagId":"newsroom:topics/billsbites","name":"billsbites","description":"Explore more insights from Bill Evans at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Bill\u0027s Bites","url":"/news/topic.billsbites/"},{"tagId":"newsroom:topics/data","name":"data","description":"Explore more data insights at Westpac Wire.","title":"Data","url":"/news/topic.data/"},{"tagId":"newsroom:topics/environment","name":"environment","description":"Explore more Environment insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Environment","url":"/news/topic.environment/"},{"tagId":"newsroom:topics/payments","name":"payments","description":"Explore more Payments insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Payments","url":"/news/topic.payments/"},{"tagId":"newsroom:topics/fintech","name":"fintech","description":"Explore more Fintech insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Fintech","url":"/news/topic.fintech/"},{"tagId":"newsroom:topics/politics","name":"politics","description":"Explore more Politics insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Politics","url":"/news/topic.politics/"},{"tagId":"newsroom:topics/career","name":"career","description":"Stories providing career insights, tips and trends.","title":"Career","url":"/news/topic.career/"},{"tagId":"newsroom:topics/social-enterprise","name":"social-enterprise","description":"Stories relevant to or featuring social enterprises.","title":"Social enterprise","url":"/news/topic.social-enterprise/"},{"tagId":"newsroom:topics/indigenous","name":"indigenous","description":"Explore more indigenous insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Indigenous","url":"/news/topic.indigenous/"},{"tagId":"newsroom:topics/regulation","name":"regulation","description":"Explore more Regulation insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Regulation","url":"/news/topic.regulation/"},{"tagId":"newsroom:topics/superannuation","name":"superannuation","description":"Explore more Superannuation insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Superannuation","url":"/news/topic.superannuation/"},{"tagId":"newsroom:topics/wellbeing","name":"wellbeing","description":"Stories featuring wellbeing trends, insights and stories.","title":"Wellbeing","url":"/news/topic.wellbeing/"},{"tagId":"newsroom:topics/westpac-scholars","name":"westpac-scholars","description":"Stories featuring Westpac Scholars. ","title":"Westpac Scholars","url":"/news/topic.westpac-scholars/"},{"tagId":"newsroom:topics/reinventure","name":"reinventure","description":"Explore more Reinventure insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Reinventure","url":"/news/topic.reinventure/"},{"tagId":"newsroom:topics/asia","name":"asia","description":"Explore more Asia insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Asia","url":"/news/topic.asia/"},{"tagId":"newsroom:topics/podcast","name":"podcast","description":"Explore Westpac Wire\u0027s podcast series.","title":"Podcast","url":"/news/topic.podcast/"},{"tagId":"newsroom:topics/history","name":"history","description":"Stories unearthed from Westpac\u0027s private archival collection. ","title":"History","url":"/news/topic.history/"},{"tagId":"newsroom:topics/businesses-of-tomorrow","name":"businesses-of-tomorrow","description":"Stories featuring Westpac Businesses of Tomorrow program winners. ","title":"Westpac Businesses of Tomorrow","url":"/news/topic.businesses-of-tomorrow/"},{"tagId":"newsroom:topics/tax","name":"tax","description":"Explore more tax insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Tax","url":"/news/topic.tax/"},{"tagId":"newsroom:topics/goodpair","name":"goodpair","description":"Explore more Good Pair stories, showing two people making a big difference together. ","title":"Good Pair","url":"/news/topic.goodpair/"},{"tagId":"newsroom:topics/luciscall","name":"luciscall","description":"Explore more insights from Westpac\u0027s chief economist Luci Ellis at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Luci\u0027s Call","url":"/news/topic.luciscall/"},{"tagId":"newsroom:topics/opinion","name":"opinion","description":"Expert opinions and insights. ","title":"Opinion","url":"/news/topic.opinion/"},{"tagId":"newsroom:topics/currencies","name":"currencies","description":"Stories providing currencies insights, tips and trends.","title":"Currencies","url":"/news/topic.currencies/"},{"tagId":"newsroom:topics/deals","name":"deals","description":"Explore more Deals insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Deals","url":"/news/topic.deals/"},{"tagId":"newsroom:topics/veterans","name":"veterans","description":"Explore more insights about defence force veterans at Westpac Wire.","title":"Veterans","url":"/news/topic.veterans/"},{"tagId":"newsroom:topics/analysis","name":"analysis","description":"Expert analysis on economic news and other trends.","title":"Analysis","url":"/news/topic.analysis/"},{"tagId":"newsroom:topics/IWD","name":"IWD","description":"Stories focusing on International Women\u0027s Day, on 8 March annually. ","title":"IWD ","url":"/news/topic.IWD/"},{"tagId":"newsroom:topics/rework","name":"rework","description":"Stories of businesses pivoting in the face of the COVID-19 pandemic.","title":"Rework","url":"/news/topic.rework/"},{"tagId":"newsroom:topics/10Qs","name":"10Qs","description":"\"10Qs with...\" is a series that asks leaders what makes them tick.","title":"10Qs","url":"/news/topic.10Qs/"},{"tagId":"newsroom:topics/commodities","name":"commodities","description":"Insights into commodities markets.","title":"Commodities","url":"/news/topic.commodities/"},{"tagId":"newsroom:topics/quarterlife","name":"quarterlife","description":"Explore more Quarter Life insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Quarter Life","url":"/news/topic.quarterlife/"},{"tagId":"newsroom:topics/shareholders","name":"shareholders","description":"Stories relevant to Westpac shareholders.","title":"Shareholders","url":"/news/topic.shareholders/"},{"tagId":"newsroom:topics/climate","name":"climate","description":"Explore more climate insights at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"Climate ","url":"/news/topic.climate/"},{"tagId":"newsroom:topics/esg","name":"esg","description":"Explore more insights on environmental, social and governance issues at Westpac Wire. Subscribe to the Westpac Wire newsletter to stay in the know.","title":"ESG","url":"/news/topic.esg/"},{"tagId":"newsroom:topics/boardwalk","name":"boardwalk","description":"A series of in-depth podcast interviews with board directors to find out what\u0027s on their minds. ","title":"Board Walk","url":"/news/topic.boardwalk/"}]}