It’s 4:30am, pitch dark and cold outside. I’m 11 years old, and I’m getting out of bed at this ungodly hour for that long lost childhood ritual - a paper route. I get into the car with my accomplice (“Mom”) - to hit what seems like an enormous task: deliver papers to 400 houses before school starts!
Looking back on it now, I’m not even sure how I did it. But I know one thing - we needed a plan. You simply can’t get into the car, wander around to 400 houses, and hope to have time for pop tarts before going off to class.
Since that experience, I’ve always been a planner. I’m the one making spreadsheets and maps before every family trip - including scheduled time for getting lost! So with personal finances, I’m no different. After years of experience and mistakes (including a chaotic but profitable first home purchase story) and a lot of research and refinement, I have come to realize two important financial lessons:
This is how we planned our paper route - starting with our house, knowing where we needed to go, and detailing our path to success.
I wish I could give you the simple formula for wealth building; something like “Buy fewer lattes, invest in these stocks, and try this one weird trick to be financially free!”
We all wish that were possible. The truth of financial planning is both simpler and more complex. It comes down to following these four steps:
This approach is simple, but not easy. We often miss our goals and experience frustration along the way, not due to lack of desire or motivation, but due to lack of knowledge or clarity. This is where a trusted guide can help. It’s the difference between following a recipe you downloaded online and having a master chef in the kitchen with you while you cook, helping you along the way.
So let’s take a look at each of these steps:
Money is a means to an end. What are your life goals? To buy a home, plan your dream wedding, have kids? Or start your own business, travel, indulge in your favorite activities, maybe retire early? Getting psychological, do you use money to ensure safety and security, build self-confidence and empowerment, and/or experience joy? Maybe you need to get your spending under control so you’re not living paycheck to paycheck - and can experience relief? We all think we want the same thing - more money - but underneath it are your passions, hopes, emotions, and fears. Getting clear on that is an essential first step.
How much money do you bring in? How much money do you spend on food versus clothing versus taxes? What is your current projection to retirement goals? How much debt are you in? Do you even know your net worth? These are questions that need to be answered to provide a personalized map from your current state to your desired future.
For some of us, this is the most difficult step. It means not only means going through a vulnerable audit and facing all of your mistakes from the past, but understanding the emotions that drive your choices, and those that stem from your parents (and their parents). It can be painful - and in some cases it’s like opening up your financial diary, something that has become taboo in our society. During this step, it’s critical to have someone you trust to take care of you as a person, not just your wallet.
If done right, creating a new budget should be fun and enriching, kind of like mapping out stops along a road trip to your destination. Unfortunately, many of us jump straight into a restrictive budget. Without the previous steps, it becomes an overwhelming, frustrating, even painful exercise where you have to cut everything just to make it all work. Imagine a freeing budgeting exercise, one that too few people experience.
As a financial coach, I offer my clients several different systems to help them track and manage their spending, fitting the right system to each person. There are tricks to the trade here that can make it fun and engaging, with an abundance mindset!
This is the deal breaker step. It may be easy to download a recipe or a diet online, but sticking to that diet or knowing when and how to deviate from it will completely alter the course of your journey. Having that chef or personal trainer in the room with you to coach you along the way, to pick you up when you fall, to encourage you when you reach your milestones, and to help you make key adjustments significantly increases your chance to reach your goals.
You have built years of habits and it will take time to adjust, but having someone hold your hand along the way makes it easier and reduces the chance of catastrophic failure.
Take the First Step
All journeys begin with taking the first step. Start with something positive and dream what life would feel like for you with a strong financial plan in place.
And if it feels overwhelming or you don’t know where to start…I know a former paperboy who is trusting, caring, and a strong planner who can help you hit your “houses.”
What are your financial goals and challenges? Let us organize and optimize your personal finances and create a custom plan for you.
I truly care about you as an individual (or couple). I take an “old-fashioned” approach of working 1:1 with individuals and couples to coach them to their personal financial goals. I get to know my clients better than anyone else, financially. I understand what makes them tick, their habits, personality, and spending patterns. I use this information to create a custom plan that works for them. I hold their hand along the way and in many cases, optimize their financial house for them. I go deeper than most financial planners, which may not be as lucrative as taking an indefinite fee of assets under management, but I guarantee improvement & results,” a taboo word in the financial industry.
We all have to manage finances, despite whether or not we're wired to do so. Having a trusted expert in your corner to guide you through your unique situation can be a game changer for those of us who were never taught the fundamentals of personal finances. Learn from my mistakes, piggyback off of my successes, and accelerate progress towards your goals. I can’t wait to serve you!