Managing finances can be a real challenge for many of us.When it comes to reaching our most important life goals, we’re not talking about a game here. We’re talking about something far more relevant in our lives such as our visions for the future, values, and life goals. Continue reading “Is It Time to “Gamify” Your Financial Plan?”
I used to think that the need for Americans to save more was pretty uncontroversial. That was before I read this article called “The pernicious ideology of personal finance scolds.” The author lambasts financial advisors for “scolding people for not saving enough money” and calls the “ideology of savings scolds…ideologically pernicious.” Continue reading “In Defense of “Personal Finance Scolds””
A friend of mine recently sent me a Forbes article with the following headline: “How Blogger J. Money Socked Away $400,000 In 7 Years.” My original reaction? WHO CARES? Continue reading “J. Money Socked Away $400,000 in 7 Years – Who Cares?”
Recently, my family had one of those cold, winter weekend days where the social calendar was completely empty: no birthday parties, no basketball games, no play dates, and no plans. I am usually very eager to get out and explore all of the beauty outside of our little casa but my initial reaction was relief and joy because the “Mom & Dad shuttle” was staying at home for a change. This was an excellent plan until the excitement of a lazy stay-at-home day getting some household chores wore off and Monster #1 and Monster #2 decided they could no longer coexist peacefully in our house. Continue reading “Financial Lessons From the “Game of Life””
I was out with friends recently and a new song from Pitbull and NeYo started playing. The song created a rush to the dance floor and given that when I dance, people think I’m either having a seizure or in some sort of pain, I opted to grab beverages for our group instead of risking injury (mostly to others) on the dance floor. As I was waiting for the drinks to be poured, I started listening to the lyrics of the song. Continue reading “Don’t Take Financial Advice From Pop Music”
I have had the privilege to work with so many incredible people throughout my career as a financial planning professional. Imagine having the opportunity to listen to people as they share their unique life stories, talk about current challenges, and explore future life goals. Money is a powerful force in our lives and how we choose to use it is up to each individual. What’s even more amazing to me is the fact that the topic of money is not something that everyone is comfortable talking to others about. But sometimes the type of person that needs the most financial guidance is also one of the most challenging groups of people to actually get in front of – these are the money avoiders. Continue reading “How To Overcome Financial Avoidance”
Very rarely do I find a personal finance article that resonates me as much as one I recently read called “How to Live a Happier Financial Life.” First, I love the title. When it comes to finances, sometimes we get so caught up in the numbers that we forgot the whole point is is about maximizing happiness not money. Sometimes that means spending more money on certain things but often it actually means spending less. The article’s following points do a good job of differentiating which is which: Continue reading “Want to Live a Happier Financial Life?”
Can one single word change your financial life and perhaps completely change your life story? Sound a little too simplistic? Before you dismiss the possibility that one single word can have transformational powers, ask yourself one question – Is my financial life just a little bit complicated? Continue reading “One Word That Can Change Your Financial Life”
I recently had a flight to remember. After a mad scramble to the airport and through the security line, all I wanted to do was relax in my airline seat after a long day. I plopped down into my seat next to a guy with ear buds that I think allowed me to hear his music better than he could.
The volume on his phone was probably not that high but I could clearly hear his music and I was annoyed because I was tired, felt a cold/flu coming on, and just wanted to relax. He promptly fell asleep but I couldn’t because his music was keeping me awake. As I was sitting there trying to focus on something other than his heavy metal playlist, I longed for noise cancelling headphones!
Then I thought it would be nice to have something to drown out the noise in the advertising world the way noise cancelling headphones block out the audio distractions. Thankfully, the holiday season is over along with the 24/7 messages to buy, buy, buy. Of course, these media messages don’t talk about how to pay for all the things we buy…
Now, a month later, the bills are coming due. I heard a commercial the other day suggesting that I don’t have to worry about those bills because I can make them all go away by filing for bankruptcy. Incredible!
That’s an awesome message. Shop till you drop…then file bankruptcy. That’s not exactly the way I’d recommend people handle the holiday season! Then I remembered how nice it would be to have those noise cancelling “financial headphones” to drown out all the fiscally irresponsible messages we all hear so that we can focus on what’s important to be as healthy financially as possible.
I will use my “financial headphones” to drown out the urge to only pay the minimum on my credit card. I will also fight the temptation to buy anything that I will not pay cash for. Next, I’d use my headphones to drown out the financial talking heads who shout their predictions of the economy and the markets. If I had listened to some of the 2014 predictions,
My point is that these “experts” don’t truly know more than you or I do so don’t spend precious time listening to them. Put those headphones on! Instead choose your investments based on your goal timeline and risk tolerance.
For example, my friend has a plan to buy a house this year so her down payment is in a bank savings account. Her tolerance for losing money is zero since she needs it soon. Her short term investment goals are far different than her long term investment goals so she has a different approach to long term investing. Her Roth IRA is invested 70% in stocks and 30% in more conservative investments because she can tolerate short term market dips in order to potentially gain longer term. Blocking out the “expert predictions” can be a valuable thing in your financial life.
Lastly, if I had those magical financial headphones, I’d use them to block the constant message that I need new stuff. When my cell phone contract expires this year, I won’t buy a new cell phone just because I can. My current one works just fine. When I move into my next house, I will only purchase what I truly need – which is very little.
I also plan to turn off the TV and the computer to minimize the amount of advertising that I’m exposed to. I’m starting to think that advertising just might be a little bit too effective today! I have a business trip planned next week and I’ll make sure to pack my noise cancelling headphones. I have learned my lesson and am better prepared for my next plane ride as well as for my future goals.
When I tell people what I do for a living, I almost always get questions on how to become financially secure. As I started to talk to people, I noticed that a pattern started to emerge. People started connecting themselves to their financial situation vs. seeing their situation as a temporary situation. Continue reading “You Are Not Your Financial Situation”
One of the more interesting stories I’ve seen recently in the world of sports is about a guy named Rob Konrad, a former NFL player, who fell off his boat and swam 9 miles to shore. It took him about 16 hours, he had hypothermia, and he couldn’t walk but at least he survived the ordeal. Along the way, he was circled by a shark and had to fight waves, wind and the dark in order to make it home safely. Continue reading “Are You On a Crash Course to Disaster?”
“For last year’s words belong to last year’s language, and next year’s words await another voice, and to make an end is to make a beginning.” T.S. Eliot fans may recognize this poem, entitled Little Gidding, that focuses on the unity of the past, present, and future. Although not a well-known poet like Eliot, I’ve been writing my weekly blog posts for the past 4 years. Continue reading “Making a New Beginning”
One of the things that makes the lives of financial planners so difficult is that we usually have to get people to do what they don’t want to do, so that they can get what they want. In other businesses and professions, you’re generally either providing a good or service that will provide some immediate pleasure or alleviate some immediate pain.
Financial planning is more like dieting and exercise. Almost all the pain (saving money, taking a little more investment risk, diversifying out of your favorite stock, or taking the time to draft boring estate planning documents) is upfront for a gain (being debt free, having enough money to retire, or making sure your family is taken care of in case something happens to you) that often seems distant and far away. Continue reading “How to Be Financially Independent in 5 Years (No Matter What Age You Are)”
