Since October is National Financial Planning Month, it would be appropriate for me to highlight a few things the Stainsby/Hurley Group does “day in and day out” for our clients.
Before we jump in, let’s agree to keep this simple.
Spending and setting a budget are where we will start.
It may surprise you that some people are usually better at one of these, and to be honest, it’s not always spending. Spenders tend to continue to be spenders in retirement, and savers continue to be savers. Once we have done the necessary planning for business owners, individuals, and families, it can be extremely difficult to help them either save or spend, depending on their ingrained habits. Even if they know objectively the results of their plan, it is difficult to break people of these habits. Habits control people, for better or for worse. Our job is to marry the plan and the habits of the client, to blend utilizing and enjoying the client’s resources with actively preparing to have these resources for 20, 30, or 40 years down the road.
Reducing bills and expenses and leveraging your time ties into your budget.
Treat your budget like a business. Take a look at it at least once a year to see where you can cut costs and better use your time. Sometimes, it is worth eating at home for money reasons and for health reasons. While there are other times when eating out is better for the sanity of all; less cleanup and more time to spend on more important activities.
Debt will most likely be one of the expenses in your budget.
I can’t tell you how many conversations I have had with clients regarding the advantages/disadvantages of paying off a home, car, business, etc. If you are a devoted follower of Dave Ramsey, you have learned that debt is to be aggressively paid off. This would be the case for those who aren’t disciplined and who are prone to make bad financial decisions. But not all debt is bad, and each situation should be looked at uniquely. Remember, the goal isn’t to feel better right now; it’s to plan better right now. This may mean that you need to pay off high-interest debt, or it may mean holding onto low-interest debt so that you can better use your money elsewhere.
I will address one last topic regarding saving.
I haven’t met a person who doesn’t like to “auto” save. It solves a few problems for us fallible beings. We don’t have to remember to do it, and we will forget that we are doing it. Our human nature is bent towards being in control, and this is a great safeguard against doing just that. With that being said, keep in mind that we are human, and the things that tend to be wise in this life are those that protect us from ourselves. Hiring a financial planner is the first step. We provide accountability, coaching, and encouragement. We connect with you where you are and help you get to where you want to be. What a journey!
October 2024
