Plan for Today and Tomorrow

If you are not in the right place, a change of some sort is in order.

Maybe your family is expanding and you need more space or you’ve become empty nesters (alternatively called “free birds”) and less space is required. Perhaps you are not as active as you’d like and living in a place where people are out and about would serve you well. Or, maybe your social circle is smaller than you’d prefer and you need to repot yourself among those of your kin. Or, perhaps the cost of living has spiked and you need to make changes to rebalance your finances.

Any of these reasons above and more can be cause for making a big change – like a move – or smaller changes, like modifying your existing home or changing how you relate to your place (such as making an effort to pursue new friendships).

Prioritize the Needs of Today

It is important to listen to and prioritize the needs of today. For one, these needs are the most certain. If you require more space because the family is on top of each other, don’t overthink it. Respond to what’s in front of you. If you feel lonely, reach out to friends you haven’t seen recently or join a club.

The obvious benefit of prioritizing today's needs is that you see the immediate impact. Your brain sees the connection of cause and effect. You are reminded of your agency to create a better life.

But, there’s something else: you create momentum. You experience the positive impact of change and are more likely to become willing to make bigger changes. There is tremendous friction in moving to a new place. If you can improve your current place based on the needs of today by taking smaller steps, it may set the stage for bigger changes in the future if you believe such changes are worth it.

But also have an Eye to the Future

While addressing the needs of today can offer immediate gratification, it is also critical to look to the future.

The best places work for you today and tomorrow.

To do this, creativity and vision are required for your life circumstances and your place.

For example, for your life, consider the following questions:  

1. What predictable life transitions may happen in the next five to ten years? And for others close to me? Consider elements like: first job, getting married, having kids, empty nest/free bird stage, retirement, desire to travel and lead a “lock and leave” lifestyle, etc.
2. What uncertain life transitions may happen in the next five to ten years? And for others close to me? Consider elements like: change in relationship status, loss of a job, change in health, need to be closer to family or have family closer to you, ability to drive safely, etc.

For example, for your place, consider the following questions:

1. What predictable changes may happen to your place in the next five to ten years? Consider effects of: climate change; economic growth expectations (including impact on traffic and housing density); implications of financial health/distress of a country, state, metropolitan area, neighborhood, block; demographic shifts, such as ability/inability to attract young people; cash needs for your home, etc.
2. What uncertain changes may happen to your place in the next five to ten years? Consider effects of: real estate market volatility; cost of living; culture and value shifts; close friends and family move; political changes, etc.

Understanding how the future may unfold can help you think through the best set of possible places for your particular circumstances.

The Costs of Only Near-Term Thinking Are Real and Often Significant

Why go through the trouble?

The risk of not thinking about the future is that it raises the probability of requiring a change in place and potentially at an inopportune moment. This can be costly.

For example, suppose you are in your mid-60s and move to your “dream” home in the country to escape the hustle and bustle of life. It may be exactly what you need at the time: more space for family when they visit and an opportunity to disconnect in a good way. This is the type of lifestyle you imagined in retirement.

However, at a certain point, say in your 70s, you begin to see the downside of your current place. Local healthcare options are limited and getting worse. It is hard to find people to help you take care of your property. The stairs are becoming more challenging to navigate. The total cost of ownership of your home is putting stress on your finances.

A change in place becomes necessary because it doesn’t fit well with your new life stage. All of the hassles of a move and finding a new place that is right for you become center stage. And, you hope that real estate market gods comply; who’s to say that when you want to move is a good time to sell?

The best places work for us today and have the option of working for us tomorrow under a number of reasonably predictable scenarios. As the field of finance has proven, options hold real value.

Predicting the Future has Limits

We are awful at predicting the future. Even in our best of worlds, our crystal ball is foggy. We’re going to be wrong.

And, more than that, there is no one place for that will work for us under all conditions. It’s why the notion of a “forever” home is a fallacy.

Ultimately, we’re trying to avoid this all-too-common refrain of regret: “Oh, I wish I thought of that.”

With proper place planning that focuses on today and tomorrow, you will be far less likely to utter this line and be subject to the hassles and costs associated with making a mistake in where you live.

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