Don’t Ignore Your Symptoms

October 10, 2016

“…the upside of painful knowledge is so much greater than the downside of blissful ignorance.”― Sheryl Sandberg

Do you ever get that nagging feeling that something isn’t right with your finances? Should you brush it off or dive deeper? On the blog today, my fellow planner Cyrus Purnell, CFP writes an intriguing guest post about the importance of not ignoring your financial symptoms:

Are you getting that nudge that things are not working the way they should in your finances? Don’t wait until a problem shows in your credit report or as a shortage in your checking account. Take the time now to diagnose where that nagging feeling is coming from.

I came into 2016 not feeling my best. I was tired all of the time. I was always cranky. My kids were walking on eggshells. I was sick more often.

I went in for my annual physical and there was no sign of anything wrong in all of my tests. But the way I felt told me something was wrong. When I would talk to my doctor and peers about it, their answer was pretty simple, “Oh Cyrus, you are just getting older.”

Thankfully, that answer was not good enough for me. I took steps to investigate why I was not feeling well. I began looking into everything from what I was eating to what time of day I was eating it. I started tracking my sleep. I plunged into reading blogs and listening to podcasts about health.

I finally figured out the culprits and gradually felt several years younger. I am convinced that if I stayed on the road I was on, the way I felt would eventually show up in the form of a bad diagnosis. While I did not enjoy feeling the way I was feeling, the discomfort probably saved me a lifetime of issues.

On paper, you may not be financially sick. Your income may be more than your bills, your credit score may qualify you for anything you want to purchase and when you compare your financial situation with your friends and family, your circumstances may look fine. In spite of all of this, you may still have anxiety about where you are financially. You may be experiencing financial stress.

In our own 2016 Financial Stress Research, we uncovered that 85% of us are experiencing some financial stress. Our research also showed that unmanaged financial stress can result in problems like depression, hours of lost sleep, and overeating. It is at the onset of financial stress, before it becomes unmanageable, that you want to take steps to do something about it. You can start to alleviate financial stress by taking a C.A.L.M.™ approach to cash management:

Create a plan. Create a new plan to manage your cash, calculating necessary expenses and establishing a way to track them. A financial coach, such as a CERTIFIED FINANCIAL PLANNER™ professional, a financial or credit counselor, or an employee assistance program counselor, can provide assistance as needed.

Automate bill payment and savings. Put everything you can on autopilot, setting up automatic bill payments for monthly expenses and transfers to emergency and other savings.

Lower nonessential spending and debt. Track expenses for several months, looking for opportunities to reduce spending on nonessential items and to make extra payments on debt.

Make progress. Make progress by focusing on small, achievable goals, accomplishing one before moving on to the next.

Don’t ignore your symptoms. Look at the early stages of financial stress as a gift. By paying attention to the early discomfort of financial stress and following the C.A.L.M. approach, you can meet the source of your financial stress head on and save yourself from a more difficult recovery down the line.

Do you have a question you’d like answered on the blog? Please email me at [email protected]. You can follow me on the blog by signing up here and on Twitter at @cynthiameyer_FF.

 

How Financial Wellness is Like Weight Loss

April 28, 2016

I always like to say that financial wellness is a lot like weight loss. When I came across this article in Vox about “surprisingly simple tips from 20 experts about how to lose weight and keep it off,” I realized just how true that is. Here are the weight loss tips and how they apply to financial wellness:

1. There really, truly is no one “best diet.” Scientific studies have found that all of the various diet plans have about the same modest long term results. What matters is finding one you can actually stick to. The same is true of money management systems and asset allocation strategies.

2. People who lose weight are good at tracking – what they eat and how much they weigh. They tend to count calories and weigh themselves at least once a week. In the same way, you need to track or otherwise limit spending, continually re-balance your investments, and periodically run a retirement calculator to make sure you’re still on track.

3. People who lose weight identify their barriers and motivations. Like with diet and exercise, we usually know what to do with our finances. The hard part is actually doing it. Start with knowing the “why” that motivates you. Then look for the barriers that are standing in your way of taking action.

4. Diets often fail because of unreasonable expectations. People tend to overestimate what they can achieve in the short run and underestimate what they can achieve in the long run. Don’t try to save too much too fast. Instead, set big long term financial goals that motivate you and then see how much you need to save to achieve them.

5. People who lose weight know how many calories they’re consuming – and burning. Similarly, you need to know how much income is coming in and going out. Making sure the latter number is lower than the former is the only way to increase your wealth.

6. There are ways to hack your environment for health. For example, don’t surround yourself with unhealthy foods. Simple things like where your food is served from and what size plate it’s on can also affect how much you eat. For your financial life, don’t put yourself in situations where you’re likely to spend more and try to automate your savings as much as possible.

7. Exercise is surprisingly unhelpful for weight loss. More accurately, exercise alone isn’t very effective since people often eat more to compensate for the calories they burn. Earning more income can have the same effect when we automatically spend more as well.

8. Weight loss medications aren’t very useful. Neither are “metabolism boosting” supplements. Complex, sophisticated, and high-fee investments are the weight loss medications and metabolism boosting supplements of the financial world. Stick to the basics.

9. Forget about “the last 10 pounds.” If they’re that hard to lose, people generally gain them back. Most of the health benefits came from the other lost pounds anyway. Likewise, trying too hard to save more can backfire if it starts to feel like too much deprivation. Allow yourself to splurge now and then too.

So what’s the main thing that weight loss and financial wellness have in common? They are both about making small changes over a long period of time. Instead of looking for the quick fix, find an approach that you can stick with.

 

4 Things An Actuary Can Teach Us About Money

February 08, 2016

In a post last week about how choosing the right life partner can be the most financially wise choice you ever make, I wrote about how my husband Steve is my financial inspiration. He truly is a “financial hero,” who’s made wise choices about money his entire life. I am continually impressed by his natural talents as a money manager. I came to my financial beliefs and behaviors the hard way, learning from missteps I made in my 20’s…not Steve. He was born this way – a sensible, long term, evidence-based investor.  Continue reading “4 Things An Actuary Can Teach Us About Money”

Want to Quit Your 2016 Budget? Don’t!

February 02, 2016

If you have read any of my prior blog posts, you probably know that I have a thing for chocolate. I even do a run called “Hot Chocolate” held  in January. I do the 15K, about 9 miles, with water and chocolate stops along the way. Once I am done, you are given hot chocolate and I gulp it down in about 30 seconds. Despite the sub-freezing temperatures, I enjoy the runs because they gives me and my friends uninterrupted girl time to catch up. Continue reading “Want to Quit Your 2016 Budget? Don’t!”

In Defense of Tax Refunds

April 03, 2015

My friend Sana is awesome. She has the ability to point out a view that I may not have considered before and makes me take a step back a minute and consider other angles.  Maybe this blog post can do for others what she has done for me at times.  
 Continue reading “In Defense of Tax Refunds”

Can You Really Save More Tomorrow?

January 26, 2015

We hear a lot in the news about concerns that Americans aren’t saving enough for retirement. It’s not surprising for news to lead to an increased concentration on saving for the future. On average, retirement planning may be the top financial planning priority but that doesn’t necessarily mean that everyone shares this sense of urgency. Continue reading “Can You Really Save More Tomorrow?”

I’m Thankful For…

November 24, 2014

As a parent, I am constantly trying to instill an “attitude of gratitude” in our children and the best approach is to model this attitude as much as possible along life’s journey. I always try to devote time for regular prayer and meditation but I am also adding a simple but formal gratitude journal to the weekly routine. As a financial planner, I know that I could do much more to encourage others to do the same. Continue reading “I’m Thankful For…”

Sometimes It’s Okay to Punt

October 06, 2014

Football season is an exciting time of year as fall has officially arrived and even the hot and humid southern states get some relief. Personally speaking, I am a college football person. Although I may be an unbiased financial educator, there is admittedly a great deal of bias when it comes to my allegiance to certain colleges and universities on the football field. You will likely hear screams of “Roll Tide,” “Go Tigers” (the orange ones from Clemson in the Palmetto State), and occasionally “Go Wildcats” (K-State- I have to support my grad school) if you are in my neighborhood on a typical college football weekend. (Yes, similar to my investment portfolio, I like to maintain a diversified portfolio of schools to support but also have the documents to prove that I am not a fair-weather fan of the first two programs on my list.) Continue reading “Sometimes It’s Okay to Punt”

What Are Your Monkeys and Bananas?

September 26, 2014

One of the phrases my coworkers and I used a lot (at another firm during my career) in times of frustration was “monkeys and bananas.” That was our way of saying that we were operating under a bunch of constraints and no one could explain a logical or rational reason for those constraints.  “That’s the way it’s always been done…” is the beginning of an explanation that would always irritate me.  Just because something has always been done that way doesn’t mean it’s the way it should continue to be done.  So…how does that relate to monkeys and bananas??? Continue reading “What Are Your Monkeys and Bananas?”

How to Invest: A Tale of Two Investment Theories

August 06, 2014

My first exposure to investment theories was during an economics class I took in college. I was always sort of a geek when it came to graphs and numbers—which I guess explains my degree in statistics—so I was captivated when the professor drew an example of the efficient frontier on the chalk board. It made perfect sense to me. Continue reading “How to Invest: A Tale of Two Investment Theories”

What Baseball Can Teach Us About Investing

July 09, 2014

This weekend, I watched my nephew play in a baseball tournament.  They played very well in their first game, outscoring their opponent by more than ten runs.  They played well in their second game too but an unfortunate mix up in fielding assignments when there were two outs cost them two runs late in the game that proved to be the difference. It was a hard loss and for the next few days, all I could think about was that one play. If only they had made that play they would have gotten out of the inning with the lead and quite possibly won the game. Continue reading “What Baseball Can Teach Us About Investing”

Millennials’ Retirement: Create a Sense of Urgency Today

November 11, 2013

Back in October, I took a fun little road trip with my dad and my son to Atlanta to see some postseason baseball action.  I love baseball and have been a Braves fan since childhood, enduring many peaks and valleys.  Although I try to see at least a couple of games in person each year, this game was special since it was the first playoff game my father and my 4-year old son had ever seen.  (My father had also overcome some serious health issues over the past year so it was a blast doing the tomahawk chop together and trying to catch batting practice home runs.)  Continue reading “Millennials’ Retirement: Create a Sense of Urgency Today”

Is it Possible to Think your Way to Financial Success?

October 14, 2013

Think for a moment about how optimistic you are about your personal financial situation.  Are you confident that your financial life will improve over the next 12 months? Your response to these questions provides invaluable insight into your ability to achieve future financial success.  Continue reading “Is it Possible to Think your Way to Financial Success?”

The Secret to Creating Wealth From Your Paycheck

March 18, 2013

Robots have replaced many jobs that people used to do.  Luckily, they haven’t replaced all of them but there is something to be said for programming a robot to do a job.  They just do what they are told. They don’t have to make decisions.  We can actually learn something from our plastic and steel computerized robot friends about wealth building.  Take the human component of decision making out of the equation to have more cash and more income in retirement. Continue reading “The Secret to Creating Wealth From Your Paycheck”

Is a Big Fish Sinking Your Financial Boat?

February 01, 2013

The photo accompanying this article is pretty striking.  Fish sinks boat!  Marlin 1, Boat 0. It reminds me of a newspaper article I saw many years ago titled “Deer Shoots Man” that talked about a hunter who leaned his rifle against a tree while taking a quick bio-break, and as he walked away, a deer ran past the tree causing his gun to fall and fire a shot directly into his gluteus maximus.  Continue reading “Is a Big Fish Sinking Your Financial Boat?”

What I Learned About College Savings from Being a Hoarder

July 30, 2012

“Is it better to save part of my annual bonus each year for my son’s college or save monthly?” was the question I fielded from a caller to our financial helpline.  The image of seven cameras in my downstairs closet popped into my mind.  You might ask what a pile of cameras has to do with college funding.  A lot actually – in fact the decision making process behind the pile of cameras may be a major determiner of success in saving and investing for college (or any other goal for that matter).  Continue reading “What I Learned About College Savings from Being a Hoarder”