Category: General

The New Year is almost here!

Before we dive into 2023, consider taking time to reflect on your finances from 2022. We have clear, simple steps to help you get an overview of your finances so you can start the New Year off on the right foot.

Key Takeaways:

• If you’re not where you’d like to be financially, don’t get discouraged. Instead, use it as an opportunity to grow. 
• Your short and long-term goals may have changed over the year, and that’s okay! There are ways to pivot your plan without completely derailing your savings goals. 
• Your financial advisor is here to help you manage your finances so you can spend your energy wisely on the things that matter most to you. 

Create Your Financial Inventory

Before evaluating your goals, it’s essential to check in on your financial inventory. 

Use this checklist to get the vitals of your current financial situation:

1. List your assets: Emergency fund, retirement accounts, investment accounts, savings accounts, real estate equity, other personal items, etc. 
2. List your debts: Mortgage, student loans, credit cards, car loans, medical bills, etc.
3. Look at your current credit report and score: You can use free online tools to evaluate your credit score without appearing as a credit check. Or, you can contact your credit card company and ask them to help you. 
4. List your recurring expenses: utility bills, insurance payments, mortgage, etc, 

Get A Pulse On Your Short and Long-Term Goals

If you have short and long-term financial goals, it’s time for a progress check! 

Let’s use an example short-term goal of “pay off car payment before the end of the year”. 

Ask yourself these questions: 

1. Did you meet the goal? 
2. If not, what needs to change? 

If you didn’t meet your goal, don’t let it discourage you. Use it as an opportunity to change your approach. So, what needs to change to help you achieve your goal? Do you need to spend less on eating out or lower your monthly payment to make it more manageable? Whatever it is, adjust your goal accordingly and try again.

What about your long-term goals? Let’s say your long-term goal is to save enough funds in a 529 plan to help your child pay for their first year of college. 

The average annual cost of college tuition in 2020-2021 was $19,020, and that’s without other fees, housing, books, etc. 

Let’s say your child is 10 years away from going to college. Sources say that the cost of college has increased more than 25% in the last 10 years, so let’s use that as a general estimate of how much you need to save. Using the 2020-2021 data, this means you’ll need to save approximately $24,000 for your child’s first year of college.

With that in mind, how are you progressing? Annually, you’ll need to be saving $2,400 to add to your 529 plan. Based on your progress, ask yourself these questions:

1. Are you on track to achieve your long-term goal? 
2. If not, what needs to change? 

If you’re not on track, again, don’t let it discourage you. Long-term goals are bigger for a reason because you simply have more time to achieve them. If you’re falling behind on where you’d like to be, make small changes that push you in the right direction. 

Do Your Goals Still Reflect Your Values?

Having a financial plan that can adapt is important. So, ask yourself if your goals are actually still your desired goals!

If you’ve found joy in spending time traveling with family within the last year, make it a goal of yours to continue to be intentional about spending money on traveling. 

But, it’s important to not completely derail from your overall savings plans. In essence, don’t let your new love of travel keep you from contributing to your retirement savings. There are ways to pivot your goals and financial plan without completely starting over.

Knowing how to save and spend money is what it is to be good at finance. So don’t be afraid to spend in the areas that bring you joy. 

Assess Your Cash Flow Plan

On the topic of spending, it’s time to take a peek at your cash flow plan. 

An important part of having a cash flow plan is that is something that is realistic and easy to follow. Ask yourself if you’ve been able to follow it, and if not, what needs to be adjusted. 

Maybe you had another child enter school this year and you needed to spend more on school supplies. Or, your family decided to get a pet so you have more monthly expenses in terms of pet insurance, food, toys, etc. 

Did you spend your money well? Purchasing a new car is a great example. While the “newness” of the new car may have worn off, the payments haven’t. Is this still a purchase you’re happy with? If not, how can you avoid purchases like this in the future?

Whatever your cash flow plan is, make sure it makes sense for your family. 

Review Your Retirement Savings

As you age, saving for retirement only becomes more important. Keeping an eye on your savings while you still have time to make adjustments can save you a lot of stress down the road. 

There isn’t an exact number you need to save for retirement. The best way to plan appropriately is by working with your financial advisor. They will help you figure out your retirement lifestyle plan and help you set the goals you need to get there. 

If you already have an idea of how much you’d like to save, then check in on your progress. Do you want or need to contribute more to reach your goals? Or, do you want to contribute to a Roth IRA in addition to your 401k? 

While it may seem like retirement is far away, saving for retirement is a lifetime strategy. 

Examine Your Investments

The best investment strategy is one that grows with you over time. Have you evaluated your portfolio recently? 

Of course, every investment involves some level of risk. But, your risk tolerance should adjust over time to reflect your season of life. 

For example, as a young working professional, placing more assets in riskier investments like stocks may benefit you. While the potential for large gains is there, it also allows you time to recover in the instance you incur a loss. 

On the other hand, when you’re nearing retirement and want to maintain your investments rather than continue to earn, your portfolio should be heavier on less risky investments like bonds. 

Work with your financial advisor to check in on your asset allocations and risk tolerance level. By ensuring your portfolio is diversified and at the right risk level you’re setting yourself up for potential gains. 

Start The New Year On The Right Foot

A New Year means a new chance to take your finances to the next level. 

As a busy working professional, you may not have enough time to dedicate to managing your finances. Don’t be afraid to reach out to a professional financial advisor for help. 

We’re here to help you manage your finances and reach your goals so you can focus on what’s important to you. So, rather than keeping a watchful eye on the stock market, you can watch your children’s sports games.

If you’re ready to evaluate your finances and take your money to the next level please reach out to us today. 

The Holidays are the season of giving! 

If you’ve thought about donating to charity, but aren’t sure where to start, we are here to help!

We’ve compiled information on how to morph your values into actionable items, creative ways you can give, and the tax implications of charitable giving. 

Key Takeaways

• Your personal values are the driver behind charitable giving. 
• There are many ways to give to charity, you aren’t limited to just giving money. 
• There are different tax vehicles you can use to both help your desired charity, and also potentially help you save on your tax bill.

Purpose-Driven Money

If you’re just starting your giving journey, setting philanthropic goals is the best place to start. 

At AVID Planning we approach finances from the lens of what we call a Purpose-Driven Money System. 

In essence, this approach answers the question of: 

How can you make your money work for you?

Financial life planning with our Purpose Driven Money System pushes you to view your finances holistically. This gives you the opportunity to create a better vision for your finances by following these 4 steps: 

• Starting with your core values
• Defining your “10” (aka creating a vision for your ideal life)
• Taking SMART steps to get there (significant, meaningful, attracting, rewarding, timely)
• Remaining consistent, but adapting when necessary

If charitable giving aligns with your values, it’s time to decide how you want to give to others. 

Choose Your Charitable Path

So, you know what your core values are, now what? 

Let’s take a look at an example. Say you value empowerment, how can you convert that into an actionable item? 

You could consider setting up a scholarship for young women entering the fields of math or science at your local high school, supporting a new local business via marketing or funding, or simply donating to a charity that helps empower others (like a professional clothing closet for people that need work clothing). 

If you’re married or in a long-term committed relationship it’s important to consider your partner’s values too. You may value some different things or have different priorities on where you should give, so compromise is key. At the end of the day, make sure whatever you decide is meaningful and affordable for both of you.

How Much You Should Give

There isn’t a universal giving amount that suits everyone because all of us each have our own unique priorities and financial situations. If you’re able, sources say to start with 1% of your income and slowly work your way up. 

There’s no legal limit on how much you can donate directly to a registered 501c3 charity, but there is on how much you can deduct from your taxes. More on that later!

Be Creative

When considering how much you should give to charity, it’s important to remember that the opportunities for giving are truly limitless. You aren’t limited to just donating money!

While charities rely on consistent, reliable funding sources, they also often need help in other areas that don’t involve finances. If you find yourself in a place where you want to give to charity, but can’t necessarily afford to yet, don’t let that stop you. Reach out to your desired charity and see how else you can help.

The charity might need consistent volunteers, assistance securing donations from others, or even just lending a helping hand every now and then. 

Make It A Family Tradition

Giving in creative ways also gives you the opportunity to involve your whole family. While you and your spouse might be supporting the charity financially, your children could volunteer their time and give back in their own way. 

Even better, make it a family tradition. You could volunteer annually at your local food bank to help prepare for Thanksgiving, hold an annual winter clothing drive on behalf of a charity, or donate new items to be given away as Christmas gifts. 

Pro-Tip: Ask your employer for their support. Some employers have a charitable giving matching program as part of their benefits package. Meaning they may match what funds you give or volunteer as a company.

Be An Engaged Charitable Donor

Being an engaged donor can help ensure your donations and efforts go in the direction you want them to. In addition, knowing where your donations are being used can help both you and the charity identify where additional support is needed. 

Of course, all charities have administrative and operating costs. You can always ask the charity to disclose how much is being spent in those areas to encourage transparency. There are also websites like Charity Navigator that can help you identify charities that are known for using their resources well.

Tax Implications

Because you’re already gaining fulfillment from giving, tax efficiency is the icing on the cake!

The IRS authorizes tax deductions to charities that qualify for tax-exempt status. If you aren’t sure if your desired charity fits in that category you can use the IRS Tax Exempt Organization Search tool. 

As we mentioned earlier, there are limits on how much you can deduct charitable contributions from your adjusted gross income (AGI). But, since there are different ways to donate funds to charity, their limits are also different. 

In 2022, the limit for cash contributions is 50% of your AGI. For non-cash contributions, like stock shares are 30%. 

Common Options For Giving

There are a few common tax vehicles to assist you in your giving journey. Each of them has its own benefits, so let’s take a look at a couple and see what could suit you best.

Donor Advised Fund (DAF)

This is a private fund administered and managed by a third party that distributes charitable contributions on your behalf. 

DAFs carry immediate tax benefits. When you add funds to your DAF, you immediately receive the associated tax benefits, but have the ability to distribute funds later on when you’re ready. In addition, the funds in the account grow tax-free. 

They also aren’t just for cash. You can utilize other forms of financial contributions like stock shares, mutual funds, real estate, etc. 

Appreciated Securities

If you donate assets other than cash directly to a charity you can avoid paying capital gains tax. This means that while the charity receives the full donation you get to save on your tax bill. 

Non-cash assets are things like gains on your investments.

Need Help Getting Started?

If you’re feeling overwhelmed by the idea of choosing a charity, deciding how much to donate, and deciding how to donate, don’t be afraid to turn to a professional for help. 

At AVID Planning we’re passionate about helping you reach your personal and financial goals. With our Purpose-Driven Money System, we can help you identify your personal values, set goals, and put them into action.

If you’re ready to get started please reach out to us today. 

One of the most significant ways to feel appreciated at work is by being compensated appropriately. But what should you do if that’s not the case?

Ask your boss for a raise! 

We know that asking for a raise can be nerve-wracking, so we’ve compiled a list of what you need to feel confident and prepared walking into the negotiation room.

Key Takeaways: 

• Know exactly what you want and have evidence to show why you’ve earned it.
• Don’t let fear of retaliation or rejection keep you from asking for a raise.
• Have a plan for what you’ll do if your company can’t or won’t give you what you’re asking for.

Must-Have #1- Evidence

Contrary to what you might think, you won’t get a raise simply because you deserve it, even if you have a stellar work track record. You must ask for what you want. 

Perhaps the most compelling way to illustrate to your supervisor that you deserve a raise is with data and evidence. 

First, tie your efforts to the company’s success. Did your project improve the team’s productivity by 30%, an all-time high? Did you help your division boost profits by 25%? What added efficiencies did you implement, and did it save the company money?

Numbers are hard to deny, so be specific and actionable regarding how the company has benefited directly from your work. 

The best accompaniment to quantitative data is qualitative data. So include things like positive feedback from supervisors, coworkers, clients, customers, etc., where you got praise for your work. 

It’s often beneficial to store these in a “smile file” or “work wins” folder to streamline the preparation for conversations about raises and performance reviews. If you’re looking for a new job, it may also help you demonstrate your skills in a resume/cover letter or help you find a reliable reference. 

Positive messages are also nice to review if you’re having a rough day and need encouragement. 

Now that you have your evidence, it’s time to get out your crystal ball. 

Must-Have #2 – Predictions for the Future

While interviewing, your now boss may have asked, “where do you see yourself within this company in 5 years”? Let’s revisit that idea and prepare your plans for helping your company grow. 

What do you anticipate bringing to the table in the coming days, months, or years that benefit the company? And, how will you explain why what you’re doing supports your need for a raise? 

For example, has your work brought large profits to the company? Explain that you want to reinvest those profits into hiring a junior employee to build your team. Not only does this show initiative, but also growth and development for yourself and the organization.

Considering personal growth, will you pursue an additional post-secondary degree, on-the-job training, certification, etc.? And how will that benefit the company? For example, getting a management certification to sharpen your skills and help the company retain its top talent.

Must-Have #3 – Make Sure the Timing is Right

As with most things in life, timing is everything. Inopportune timing can cause a denial for even the most deserving employee.

Prior to setting up the meeting, consider these items: 

• Budget Constraints
• Company’s policy of giving raises throughout the year rather than at a designated time
• Does your manager know this is coming?

If you’re unsure where your company stands in terms of budget or policies regarding promotions, reach out to your human resources department for guidance.

In addition, make sure to alert your manager about what you’re looking to discuss. Allow them the same courtesy of preparing for the meeting that you’ve had by giving them a heads-up.

Must-Have #4 – Know Exactly What You Want

Honesty goes a long way, and this conversation is no different. Be honest with your supervisor about your reasoning for the raise. And we don’t mean equating it to the rising costs of living. 

While that’s valid, it may not go as far as explaining to your supervisor how the raise is mutually beneficial. You could talk about things like taking on additional responsibility, growing into a leadership position, your longevity with the company, etc.

You can also do some research (Glassdoor is a great tool) to determine what other companies are paying for similar roles, management levels, and years of experience. 

Also, ask for what you want, but be open to negotiating. The average pay raise is 3%, but you could ask for more with the intention of meeting in the middle. Most people ask for raises of 10-20%, but your number could differ depending on your experience, success in your role, or other competing offers. 

Must-Have #5 – Confidence

Even though it may be challenging, lead this conversation with confidence. When you’re well-prepared and conduct yourself professionally, you will garner respect and can have a more productive talk. 

Remember, your supervisor and company should be invested in your growth and will likely be receptive and willing to hear you out. 

If you’re prepared with data, evidence, and a clear ask, take comfort in knowing that you did all you could to set yourself up for success.

Know Your Worth

Before the meeting, it’s important to take some time and think about what will happen after the conversation is over. What if they can’t give you what you’re looking for? What if it’s not the right time for the company to make changes? No matter the reason, what will you do if the conversation doesn’t go how you want it to? 

Will you start looking for other opportunities? Or reformulate your raise “ask” at another time? Planning for multiple outcomes may help ease your concerns should the meeting not go as you hope.

Identity-Based Considerations

Raise conversations aren’t one note. And we’d be remiss if we didn’t acknowledge that these conversations can be even more challenging for some people than others based on preconceived notions and societal biases. We’ll address the two most common: gender identity and those from marginalized groups.

Gender

While both men and women ask for raises, typically, employers are more willing to say yes to their male workers. A study found that 82% of men who asked for raises were successful, compared to only 74% of women. 

Beyond that, the gender wealth gap continues to prevail regarding base salary and compensation. A Glassdoor report uncovered that women must ask for a larger raise percentage, roughly 21%, to remain commensurate with their male counterparts.   

So, women are more likely to ask for less money and don’t get raises as often as men, two significant problems in the wage disparity space. 

The workplace also teems with gender biases and the characteristics that each gender “should” assume—the confident male leader, the reserved female helper. All these biases can impact your raise discussion, and it’s essential to understand the larger context of these issues as you prepare. 

Even though the wealth gap persists, it’s actively closing because women speak up, display their leadership skills, and, importantly, ask for the raises they rightfully deserve. 

Members of Marginalized Groups

Raises are also more challenging for those in marginalized communities, like women, people with disabilities, the elderly, people that identify as LGBTQ+, or other racial minority groups (Black and African American, Asian American, American Indian, Alaska Native, Hispanic/Latino, Middle Eastern American, or Native Hawaiian and Other Pacific Islander).

Members of marginalized groups are typically less likely to ask for a raise or negotiate their salary. So, keep these things in mind if you’re feeling hesitant. 

• Don’t assume your salary is non-negotiable.
• Talking about your accomplishments isn’t bragging.
• Be confident in your abilities and what you bring to the table.

While stepping up to the table to ask for a raise won’t fix years of inequity in the workplace, it’s a great place to start.

If you have questions about asking for a raise or need advice on what to do with your extra funds when you get one, please set up a time to meet with us. 

We look forward to helping you reach your financial and personal goals.

Saving for retirement is a lifetime financial strategy. 

No matter which season of saving you’re in, we have tips for maximizing your retirement savings and why you should care about it now! 

Key Takeaways

• You can balance living for today and saving for the future with the right financial strategy that supports your goals.  
• There are multiple ways to save for retirement (401ks, IRAs, and paying down debt)
• Starting your retirement savings early will give your funds time to grow and allow more flexibility with your risk tolerance.

Changing the Narrative

There are many preconceived notions about retirement:

• It’s decades away, so why care now?
• I have more pressing and immediate financial priorities. How can I still save for the future?

These questions tap into the classic financial planning dilemma: balancing living for today and saving for the future. We don’t think these things exist in a vacuum, and with the right savings/investing strategy, you can have both. 

At AVID Planning, we pride ourselves on helping you find that balance through our Purpose Driven Money System. We can work together to bring a coordinated, deliberate strategy to your entire financial life—saving, spending, investing, giving, debt repayment, etc. 

But sooner or later, retirement is coming, whether you’re prepared for it or not. It’s our goal to help you build a plan you feel confident about. 

Invest Early And Stay in the Game

Saving a little bit for a longer period is much easier than saving a lot in a smaller time frame. If you wait until your 40s to save for retirement, you may experience a larger strain on your spending than had you started saving in your 20s or 30s. 

Why? The later you save, the more you have to play catch up, meaning you might have to redirect a more significant portion of your paycheck to your retirement accounts, pinching your monthly cash flow. 

More compellingly, saving early can help your money grow. This happens through compound interest, aka, the interest you earn on interest. 

The Power Of Compound Interest 

Say you have a savings account with $10,000. It earns 5% interest annually, and the interest compounds annually. At the end of the first year, you’ll have $10,500 in the account just for keeping the account open. 

The next year, you’ll earn another $500 in interest and $50 from the initial $500, bringing your account balance to $11,050 after the second year.

We know that $50 from two years of interest doesn’t sound like much, but it adds up over time. Remember, you earn this interest whether you contribute additional funds or not. 

While you may have many expenses competing for a slice of your paychecks, like living costs, student debt, taxes, and a down payment on a home, saving for the future is still possible.

The Unexpected Benefit of Paying Down Debt

We’re about to drop the mic here—we believe that paying down debt is part of saving for retirement. 

You’re probably thinking, “what”? Let’s dive deeper. 

Saving for retirement and paying down debt are two sides of the same coin. Putting money into a Roth IRA but letting your student loan or credit card debt snowball isn’t helpful in the long run. 

While your retirement savings might grow, your debt interest also grows. When you do this, one part of you rows your boat forward while the other rows backward. You won’t get anywhere fast!

That’s why having a strategic savings plan is essential. But how and where do you start?

Where Do I Start Saving For Retirement?

By now, you know how important it is to save for retirement and start saving early. So how do you make it happen? 

Tax-Efficient Retirement Savings Accounts

If you’ve worked in a job with a benefits package, you’re probably familiar with a 401k. But did you know that there are more options out there? The most common types of retirement savings accounts are:

• Traditional 401k 
• Roth 401k
• Traditional IRA
• Roth IRA

All of these accounts have contribution limits. In 2022, people with 401ks ages 50 and under can contribute up to $20,500. Anyone above 50 can contribute an additional $6,500 in “catch-up” contributions. If you have an IRA, the maximum contribution limit is $6,000. If you’re over 50, you can add $1,000 as the “catch-up.”

Let’s explore the nuances of each.

Traditional 401k

Employers offer and host these accounts and allow you to contribute money pre-tax. Some employers will also match your contributions up to a certain percentage.

You can typically set them up so a portion of your paycheck will go directly into the account. From there, you can select the type of assets you’d like to invest in. Pro tip: check your allocations regularly to ensure they remain aligned with your risk levels and financial goals. 

Since the dollars you contribute are pre-tax, you must pay income taxes when making withdrawals. 

Roth 401k

The main difference between traditional and Roth 401ks is how they are taxed. Unlike the traditional 401k, you contribute to Roth accounts with after-tax income. 

When you withdraw, you won’t have to pay taxes (assuming you follow the rules). But not every employer gives Roth options. 

This is where IRAs come in. 

Traditional IRA

The main difference between a traditional 401k and IRA is that anyone who earns income can open and contribute to an IRA. 

An IRA allows you to invest in various assets like stocks, bonds, ETFs, mutual funds, index funds, etc. The asset menu tends to be more diverse than 401ks. 

Additionally, most traditional IRAs are tax deductible (if you or your spouse has a 401k, you might not be able to deduct contributions to an IRA). So you get the benefit of decreasing your taxable income, and your money grows in the account tax deferred. 

When you withdraw from a traditional IRA, it will be taxed at your ordinary income tax rate.

Roth IRA

Like 401ks, the difference between a traditional and Roth IRA is how they are taxed. 

Roth IRA contributions are not tax deductible in the year you contribute, but you won’t have to pay taxes on investment earnings or withdrawals (again, assuming you follow the rules). 

The contribution limits are the same as a traditional IRA, but there’s another major difference: Roth IRAs have income limits for direct contributions. 

In 2022, single filers must have an AGI of $129,000-$144,000, and those married filing jointly must be between $204,000-$214,000. If you fall outside those thresholds, you can’t contribute to a Roth IRA directly, though there are other options like Roth conversions high earners can consider.

Getting to Know Your Risk Tolerance

Every type of investment involves some amount of risk, and every investor has a unique risk tolerance. 

Risk tolerance is the amount of risk you’re willing to take within your portfolio. Knowing your risk tolerance is important because the amount of risk you’re comfortable with can impact the type of investments you choose. 

For example, if you’re young and have many years to recover from lost funds, you might have a high-risk tolerance, which could lead you to invest more in equities versus fixed income. Equities tend to have more significant gains but can also be more volatile. 

On the contrary, if you’re 60 and only a few years away from retirement, you likely have a more moderate risk tolerance as you’ll need access to your funds sooner. In that case, you might concentrate on building up the cash and fixed-income portion of your portfolio. 

Your risk tolerance today might not be the same as in 10 years. It will likely change and grow with you as your priorities change, and that’s normal. Your financial advisor will help you find the right balance of investments that fit your risk tolerance, time horizon, and unique goals.

Don’t Be Scared of Commitment 

Some people don’t like the idea of saving so much money in an account that they can’t access until they retire. 

But don’t let that stop you from saving! 

It’s all about striking the right balance between present and future needs. 

While you may save a set portion for the long-term, you can also invest in other vehicles like a brokerage account that you can draw from when needed to supplement short to medium-term cash needs. 

We’re Here To Help

If you’re just starting your retirement savings journey or are ready to make withdrawals, AVID planning is here to help you. 

If you have questions on how to get started, what type of account would be best for you, finding your risk tolerance, etc., please set up a time to meet with us today. We’d love to work with you and help you reach your retirement financial savings goals.

When you were younger, do you remember someone asking what you wanted to “be” when you grew up? Your answer was likely something fanciful, like a princess or astronaut. 

But your goals may have changed over the years. Maybe you decided to be an engineer instead of an astronaut or a teacher instead of a princess. 

The moral of this story is that your financial and personal goals will likely change throughout your life, and that’s normal! 

At some point, you may find yourself in a situation where you decide to start a family, go back to school, purchase a second home, save for a wedding, or have unexpected medical costs. 

How do those events change the way you make and reach your financial and personal goals?

Key Takeaways

• Money isn’t necessarily the goal; it’s the tool that helps you achieve your goals. 
• You can change your financial plan while not drifting from your long-term goals.
• When unexpected financial costs or life changes arise, lean on your values to maintain financial alignment.

Not If, But When

Whether you like it or not, life doesn’t usually go how you plan. Because of that, it may be difficult to make long-term plans. The question “where do you see yourself in 5 years?” isn’t easy to answer because what you prioritize now could be completely different in 5, 10, or 20 years.

How can you mentally and financially prepare for these shifts?

Don’t Be Afraid of Change; Welcome It

Humans are creatures of habit and usually don’t like change! 

You know the feeling of driving your usual route to work only to find there’s construction. That slight change can disrupt your morning. Or when your office switches coffee brands. You can taste the difference, right?

If those small changes can impact your life, imagine what larger, more financially focused changes can do, like getting a new job, buying a house, receiving an inheritance, replacing a car engine, etc. 

While you can’t plan for everything, it’s important to expect change when making your long-term financial and personal goals. Go into goal setting with an expectation for evolution. If you have the mindset of “when” and not “if,” you give yourself the grace to change your goals when necessary. Plus, you’ll be more prepared for change when it happens (which is half the battle)!

Your Values Lead The Charge

Your saving and spending goals should align with what matters most. Were you saving for a European vacation only to find that you’re expecting twins? You may value adventure and family, but at this time, family takes precedence. And that’s okay!

But this change doesn’t mean you have to leave your trip of a lifetime in the dust—you may just need to budget for a couple of extra tickets. Your immediate needs and timeline may have changed, but the values that drive them haven’t.

Your core values play a significant role in developing your long-term goals. They are the “why” behind what you do every day and guide your habits and behaviors.

And values play a critical role in your financial journey. Say you hold great value in your community. To spin that value into a financial goal, you decide to save enough money to donate to your church every week.

Values give us the blueprint behind why we do what we do. And when we live our lives in line with them, we feel fulfilled! 

For example, early in your career, you might have placed value on freedom and travel. But, now that you have a family, you place greater importance on being present in their lives, which could translate into finding a job with better pay, benefits, or work/life balance. 

It’s important to remember that your finances are the tools that help you achieve your goals. They’re not the goals themselves. When your plans change, be creative and use your tools differently. 

Take Steps, Not Leaps

It’s easy to let the excitement about the present put blinders toward the future. So try to avoid letting your new or adjusted goals derail your long-term plan. Rather, modify or pivot your short-term goals to better reflect what you need now while maintaining momentum toward long-term financial success.

For example, if you’re saving for a wedding, you might be tempted to push all of your funds in that direction (weddings aren’t cheap). But saving for your big day shouldn’t come at the expense of your debt and retirement savings. 

The other thing you’ll need to consider is what to do with your next dollar after you cross a goal off your list. Say one of your long-term goals was to pay off your student loan debt. 

When that day comes and you send off that final payment, how will you use those funds moving forward? Will you push them toward a Roth IRA? Or, do you start moving towards another long-term goal of purchasing a home and saving those funds for a down payment?

The answer lies in your values, goals, and priorities. And we can help you create a plan that makes sense. 

How To Pivot Your Plan

One of the best ways to start adjusting your goals is by taking a financial inventory. 

Start by determining base contributions in core long-term planning goals, like your retirement savings, debt payments, and emergency fund. From there, use your estimated income to determine where to put any leftover funds. 

This number will be what you could allocate towards your short-term needs, like saving for a wedding or paying off a hospital bill. And you can adjust them as necessary to accommodate any income increases, bonuses, inheritances, etc. 

This method allows you to continue progressing toward your long-term goals while accommodating your short-term needs. 

If you’re unsure where to prioritize your funds, a financial advisor could be a great resource.

We’re Here To Help

At AVID Planning, we focus on aligning your spending and goals with your values. We call it a Purpose-Driven Money System. We focus on what you value, taking smart steps to reach your goals and adapting when needed. 

When unexpected things happen, it’s easy to get overwhelmed. Don’t be afraid to reach out for help. A network of support is one of the best ways to help yourself succeed.

If you’re in a time of change and need help refocusing your goals, please reach out to us. We’re looking forward to working with you!

When interviewing for a job, what are you more curious about, the salary or the benefits package? 

While your mind may instantly favor the sticker price, benefits can be a job’s make or break factor. 

Whether you’re seeking a new job, moving up in the ranks with your current employer, or re-evaluating your benefit selections, this blog contains information that could benefit you. For example, with open enrollment starting soon (fall), now is the time to look at your benefits and make changes to your health coverage, savings opportunities, time off, and more.

We’re going to compare and contrast the differences between the financial and life benefits you can receive from both a higher salary and/or comprehensive benefits. 

And spoiler alert, it’s probably more than you think.

Key Takeaways

• A high salary or a great benefits package aren’t mutually exclusive. Strive for the balance that aligns with your life and values!
• Your total compensation (salary + benefits) has a purpose and impact above and beyond what’s on the surface.

Financial Highlights of Securing Higher Pay

It’s likely no surprise that there are clear financial benefits to earning a higher paycheck. But, a larger salary shouldn’t mean extra cash to burn; let’s take a look at the core highlights of receiving higher pay. 

Saving (and Spending) Power

While you might want to purchase a fancy electric car with your raise, there are more advantageous ways to put your money to work. 

With more money coming in, you have the freedom to save for your future by maxing out your retirement savings, increasing brokerage account contributions, paying off debt, etc. All of these things put you in a stronger financial position.

After you’ve done those things, you may also be able to spend or save for areas that make your life a little better, like a vacation, designated date nights, meal services, kitchen renovation, etc.

Living within your means, staying away from debt that doesn’t serve you, and being purposeful about where your money goes are all ways to use your extra funds wisely. These things will serve you longer and much more than the sports car you’ve been eyeing but don’t really need!

Pad Your Emergency Fund

Life throws unexpected events at us all. Whether a broken-down vehicle, medical bill from surgery, or a contractor bill from the new roof you needed, these types of expenses are bound to happen. 

A benefit of having extra cash at your disposal is your ability to navigate these unexpected expenses relatively unscathed. 

For some, a large, unexpected expense can quickly put them into debt. In fact, 57% of Americans can’t afford an unexpected $500 expense. 

Living with the fear of spending all your savings on one bill, putting the entire cost on a credit card, or turning to loved ones for help can be incredibly stressful. Having a cushion of expendable funds can save a great deal of strain on your wallet and mental health. 

If you’re looking to increase your salary, know the market, understand your skills, and have a record of your wins. And don’t forget to negotiate! With salary transparency on the rise, job seekers have more power than ever.

Financial Highlights of Securing Comprehensive Benefits

When you think of a benefits package, health insurance, 401k, paid time off, etc., likely comes to mind. But, beyond the physical and wellness aspects, do those things actually offer any financial benefits? 

Health Insurance

If there’s one thing we know in the US, it’s that healthcare is expensive. Because of how our healthcare system is set up, having health insurance is essential for everything from ongoing preventative care, medications, exams, etc.

But, even health insurance on its own is expensive. Some plans have steep premiums with equally high deductibles. So, you could have a high monthly payment, and you still might end up with a large medical bill from a procedure. 

Because of this, finding a job with a good healthcare package is vital. 

If we look at health insurance from your employer’s standpoint, they’re likely saving you a great deal of money. In 2021, the average annual premium for single coverage was $7,739 and $22,221 for a family. 

While you still have some ongoing expenses, your employer covers most of the bill. 

When looking for a health insurance plan, keep an eye out for options like Health Savings Account (HSA), Flexible Spending Account (FSA), Dependent care, etc. Depending on your needs, these perks can add value to your plan.

Retirement Savings Account

Besides insurance, a 401k is likely the next benefit on your list, and rightfully so.

Saving for retirement is critical, and the earlier you start, the better position you put yourself in to reach your goals. So, if your employer offers a retirement savings plan, that’s great!

What’s even better is if your employer also contributes to your retirement plan. Take advantage of what is essentially “free money” to boost your retirement savings, and challenge yourself to contribute the maximum amount each paycheck to get the most out of your employer’s match. 

Ways Higher Pay Can Impact Your Life

A Forbes article puts the idea of wealth into a different context—rich is how your money functions and wealth is what you do with it.

Because, in reality, a number in your bank account can’t bring the joy that the impact of using your wealth for good can. 

Giving Back

Paying it forward is arguably one of the best ways to use your money. 

If charitable giving is important to you, look for an employer that matches donations and encourages days off for volunteering.

Giving back is good for your mental and physical health. A sense of purpose motivates you to achieve your goals, like living healthier, managing your stress better, etc. 

Freedom From Worry

77% of Americans are anxious about their financial situation. 

Carrying the weight of worry can cause insomnia, irritability, muscle tension, and inhibit your ability to concentrate, which can cause trouble in your everyday life, work, and relationships. 

Now, we’re not saying that money buys happiness. But, if having some extra funds in your savings account gives you the peace of mind to get a good night’s rest, you should embrace it.

Ways Comprehensive Benefits Can Impact Your Life

Your benefits can impact much more than your finances.

In addition to improving morale, benefits can positively impact your life and well-being.

Wellness & Paid Time Off

One of the best forms of self-care is taking personal time. It’s crucial for your mental and physical health to take time to rest. 

• Mental Health Benefits: “Hustle culture” has glorified the idea of being busy. Through that lens, if you’re not busy, you’re not doing enough. And that’s simply not true. 
• Physical Health Benefits: You likely spend much of your day stationary. Because of that, it’s important to take advantage of your employer’s wellness program to take care of your physical health. 
• Personal Relationship Benefits: By taking time off and caring for your mental and physical health, you’ll improve your relationships. Not only with your co-workers, but also with your family and friends!

Additional Opportunities

It has become more popular for employers to provide things like tuition assistance, stock options, adoption assistance, monetary assistance for fertility treatments, and so much more. 

These types of benefits are above and beyond the typical package. If you’ve been considering finishing your bachelor’s degree, investing in company stock, or would like to start a family, take advantage of these unique benefits.

If you have questions or are unsure about your benefits package, reach out to your employer’s Human Resources Department. 

How Do You Decide Which to Prioritize?

Compensation for your employment is so much more than your paycheck. So, how do you decide which to prioritize? 

It’s a trick question because you don’t have to choose! Strive for a full compensation package that provides you with a good salary and a benefits package that improves your work and life. 

Ask yourself these questions:

• What stage of life are you in?
• Are you starting a family and need better medical coverage? 
• Are you underpaid and need to find a role that pays what you’re worth? 
• Do you need more work/life balance?

Your answers can help determine where your salary or benefits may be lacking.

Purpose Driven Money

At AVID Planning, we focus on creating a Purpose Driven Money System that provides a holistic view of how your money can benefit your life and help you reach your financial and personal goals. 

If you’re looking for guidance before open enrollment on what changes you should make to your benefits, or if you just got a raise that you’re unsure how to handle, we’re here to help!

If you’re ready to get started, please reach out to us today. We can’t wait to work with you. 

Do you cringe at the thought of someone else taking control of your finances? Like how to spend your money, where to save/invest, etc.?

Arguably, one of the biggest reasons people are hesitant to work with a financial advisor is they don’t want to “give up” control of their finances. 

Well, what if we told you that doesn’t have to happen? 

As financial advisors, we not only help you visualize your ideal future but also help you work through the steps to get there. And, we do this by not “taking control” of your finances. Instead, we help you leverage the tools at your disposal to put you in control of your financial future. 

But that future doesn’t come fast or easy. 

Unfortunately, there isn’t a quick fix to level up your money. Some people want a “get-rich-quick” scheme or to become overnight millionaires, but the likelihood of this happening is low and subject to chance. That’s not the way we do financial planning. 

The truth is that it takes work, discipline, and time to build wealth, and there aren’t “cheat codes” to get your money to the next level. 

But you’re in luck! We’ve devised 4 ways to help you get tangible results and elevate your wealth-building journey (no cheat codes required). 

Let’s jump in. 

Key Takeaways

• Taking your money to the next level relies on viewing your finances holistically
• Your personal values and goals should be at the forefront of all of your financial decisions
• Not every financial strategy is going to work for you, so it’s key to find and zero in on the ones that do
• Not having a clear, comprehensive financial plan can lead to financial burnout

#1 Stop Trying To Do “Everything.”

With the rise in popularity of investing apps, and interest in cryptocurrency (and investing in general), we’re seeing more and more people talk about their finances and share their techniques at the dinner table, water cooler, Twitter feeds, etc. 

While accessible financial information and discussions can be excellent, the potential problem lies in the age-old question: “how much is too much”?

• Did you hear about a stock or performance metric that works well for your friend? Should you also invest? 
• Are you filled with envy looking at your friend’s trips abroad on social media? Is it time for you to buy your ticket? 
• Are all of your co-workers spending thousands of dollars on NFTs? Maybe this will help you get rich?

You might be struggling to keep your head above water with all these financial ideas, but how do you know which ones are right for you?

Know Thyself (And To It, Stay True) 

Socrates said it best, “to know thyself is the beginning of wisdom.” And in Shakespeare’s Hamlet, he famously writes, “to thine own self be true.”

Understanding your goals, values, and vision for the future is a great way to cut through all the noise you experience talking to friends, watching the news, or reading trending stories. 

Remember, not every financial strategy will be appropriate for you and your goals. So, it’s important to self-reflect on your values and find the right method(s) to achieve them.

For example, your friend may have been able to pay off their credit card debt by not going out for food and drinks for a few months. This logic might not work for you if you have more or less debt than them or can redirect cash flow rather than cutting things out.

Or, your co-worker invested in a risky stock (like Bed Bath and Beyond) and sold their shares for a juicy profit. But the market isn’t about “winning big,” and crossing the line to timing the market could expose you to greater risk and losses long-term.

Trying “everything” will likely stall your progress and make you less likely to continue on the right path for you. Why? Because it can be taxing and frustrating when you don’t wake up with a hefty account balance after embracing a top trend.

By heading down the road of fads and trends, you risk wasting money, time, and future progress. 

#2 Have A Clear, Comprehensive Financial Plan

This likely comes as no surprise, but there isn’t a “one size fits all” approach to financial planning. 

Your financial goals and priorities are unique to you, and your plan must also be custom. 

In tandem with avoiding trying “everything,” it’s also important to not rely on piecemeal financial strategies. 

You might be using a piecemeal approach if you are addressing issues as they arise rather than being proactive and looking at the bigger picture. 

Another way you can slip into this approach is by “copying and pasting” best practices you’ve found through your own research, tips from family and friends, etc. 

The reality is that this type of financial strategy isn’t sustainable long-term. The best anecdote? Having a clear, comprehensive financial plan. 

Avoiding Burnout

As adults, there’s a lot we have to manage, and that’s an understatement!

Burnout results from excessive and prolonged mental and physical stress, affecting your mental and physical health, so you want to avoid it. 

How does this relate to your finances? Since you already have a full plate without managing your finances, you might not have the mental capacity or time to manage your money in the comprehensive way you need to. 

The Recipe For A Sustainable Financial Plan

While this isn’t a definitive plan to fit everyone’s needs and goals, working through these steps is a great start. 

1. Set financial goals aligned with your values
2. Create an intentional spending plan that helps you get results
3. Build an emergency fund
4. Start planning and saving for retirement early
5. Consider investing beyond your 401k
6. Create an estate plan
7. Monitor your plan and make changes based on shifting priorities, life transitions, and new goals.

Why is it so important to start with setting goals? The idea behind it is thinking toward the future while also considering your immediate needs. 

#3  Put Your Goals First

If you think about it, a lot of the financial advice you may see or hear is backward. Let’s elaborate. 

If you start with the idea that you have to make or save a certain amount of money before you create savings goals, it’s likely not the best way to use your efforts. Rather, start with your goals and “reverse engineer” a saving, investing, and spending plan that matches your needs.

This idea applies to short and long-term goals. Here are some examples of each.  

Short-Term Goals

These goals are a great way to lay a foundation, like little habits that add up to significant results. Setting long-term goals may feel intimidating, especially if you don’t know where to start. 

Let’s take a look at some examples of short-term goals. 

• “I will set aside $150 each paycheck to contribute towards my emergency fund. My goal is to have my emergency fund equivalent to 3 months of my salary and living expenses within 2 years”.
• “I’ll prioritize paying off my credit card debt from the highest to lowest interest rates. My goal is to have my debt paid off within the next year”.
• “I’m going to meet with my employer’s human resource department to ensure I’m maximizing my employee benefits. I will schedule this meeting before open enrollment to make necessary changes”. 
• “I plan to set aside $200 each paycheck to put a down payment on a house in 3 years”.

Long-Term Goals

Long-term goals may seem intimidating, but they don’t have to be.  Remember, the earlier you start working towards your goals, the longer you have to achieve them. And these types of goals take time!

Here are some examples of long-term goals:

1. “I want to set aside $250 per month into a 529 savings plan for my child’s college education”. 
2. “I’ll max out  my employer-sponsored retirement account, so I have the best chance of earning long-term dividends.” 
3. “I’m going to refinance my mortgage to pay off my home within 15 years”. 

You’ll notice that all the examples we’ve given you have some things in common: they’re “SMART.” To dive deeper into setting SMART goals for yourself, check out this blog.

After you set your goals, it’s time to work towards reaching them. One of the best ways to do this is to remember the greater purpose behind your money.

# 4  Bring Purpose Back To Your Money

At AVID Planning, we focus on creating a holistic view of your finances. How do you do this? By creating a Purpose-Driven Money System. 

This system helps you answer, “how can I make my money work for me”? The key is to focus on the bigger picture and give purpose to your financial goals by spending time and money in the areas that give your life meaning.  

Diving deep into your values, daydreaming about what your “10” looks like (aka your ideal life), knowing the importance of being consistent, and realizing that adapting is okay and necessary.

Because, at the end of the day, your money needs to work for you. You work hard and deserve to live a life that brings you joy and fulfillment.  

If all of this seems overwhelming to you, don’t stress. A financial advisor can help you navigate this process and create a Purpose-Driven Money System that pushes you towards achieving your financial goals and living a fulfilling life. Good things take time, and your finances are no exception.

If you’re ready to take your money to the next level, please schedule a time to meet with us, or stop by our office in St. Petersburg, Florida. We’d love the opportunity to work with you.

You’ve probably heard something like this: “Insurance is one of those things you hope you never need to use. But, when you do, you’ll be glad you have it.”

Life insurance offers financial protection for your family and dependents should something happen to you. There are so many situations where retaining life insurance makes sense: you have a decent amount of debt, you are in the wealth accumulation stage, you have young kids who you need to support financially, you own a business, etc. 

But is there ever a point when you don’t need it?

September is national life insurance awareness month, so we want to highlight this critical tool—when you need it and when you don’t.

Key Takeaways:

• Life insurance can help provide for your loved ones.
• There are two types of life insurance, term and permanent.
• You benefit from life insurance if you have dependents, have outstanding debt, or will need funds to cover funeral costs.
• You might no longer need life insurance if you have self-sufficient adult children and accumulated enough assets to cover debts, taxes, funeral expenses, etc.

What Is Life Insurance?

Life insurance works the same way as most other types of insurance. But, instead of covering the cost of damages or lost materials, it provides your loved ones with financial support if you pass away. 

Think of life insurance as a contract between you and an insurance company. As long as you make regular payments (insurance premiums), the insurance company will “payout” a sum of money after you pass away. 

This money goes directly to your selected beneficiaries like your spouse, children, or other close family members.   

Life insurance is a “cushion” to help those you leave behind who depend on your income. Beneficiaries can use the benefit for your funeral expenses, repaying debt, replacing your income, and more. 

Generally, life insurance comes in two packages: term and permanent. Let’s dive into each. 

Term Life Insurance

As the name implies, term life insurance covers you for a limited period (typically 10-30 years). You can choose the term that best matches your needs, and if you pass away within that window, your beneficiaries will receive the payout. 

Term life insurance policies are typically the most affordable, but your premium will depend on gender, age, current health, underlying medical conditions, behaviors (smoking), occupation, and more. You can shop around for policies that best fit your budget and coverage needs.

If you’re looking to save money on premiums and extend your coverage period, the “ladder strategy” may be beneficial. It entails purchasing multiple life insurance policies that expire at different times. 

As time passes, your children grow up, you pay off your debts, etc., your life insurance needs change. By laddering policies, you are only paying for the protection you need in that particular season of life.

Permanent Life Insurance

Permanent life insurance covers your entire life, not just a set number of years.

A unique element associated with permanent life insurance policies is a “cash value.” Part of your premiums funnel into an investment account that you can access or leave to your beneficiaries as part of an inheritance. 

As you can imagine, the premiums are typically more expensive. 

But permanent life insurance policies can be complicated. With convoluted terms and benefits, you must clearly understand the policy specs before signing on the dotted line. For example, say you buy a permanent policy and accidentally miss a few payments decades later. At that point, the insurance company may cancel the policy. You’d lose out on the benefits you’ve accrued, and purchasing a new policy would likely be far more expensive.

The longevity of permanent life insurance can also be a disadvantage. Let’s say you purchase a policy early in life and later determine you don’t need that extensive coverage. At this point, if you were to cancel your plan, you would essentially lose all of the money you’ve already paid into the policy because permanent life insurance plans are typically not adjustable.

Generally, many people benefit from term policies rather than permanent life insurance, though what’s best for you depends on your unique situation.

What Life Insurance Can Do For You And Your Family

We know first-hand the effect life insurance can have on your loved ones. In addition to financial benefits, it can relieve some stress during a difficult and emotional time. 

For example, say you are a single parent to a teenage child. Life insurance provides an avenue to leave money for education, relocating to a new home, healthcare, etc., if you pass away.

Money doesn’t bring people back, but it can relieve some financial burdens. As we mentioned earlier, beneficiaries can use life insurance funds in several ways, including:

• Replace lost income
• Cover medical bills
• Pay your funeral expenses
• Pay off any debt
• Serve as an emergency fund
• Help provide for your dependents’ future needs (for example, education expenses)

Having life insurance can give you and your loved one’s peace of mind. Losing a loved one comes with many unknowns, especially when dealing with emotions and finances. A life insurance plan not only covers those financial needs but also emotional needs like counseling, relocating to a new home, or anything else your loved ones may need during the grieving process. 

Your life insurance policy may also be a way to leave a legacy. You can name a charity as a co-beneficiary on your policy, funneling some of the money to a cause in your honor. If you have a passion for education, arts programs, sports, or anything else, your life insurance dollars can help you leave that legacy. 

When Don’t I Need Life Insurance?

Life insurance is a bit different than other forms of insurance. For example, if you own and drive a car, you have to have car insurance. If you own a home, you need homeowners insurance. 

But you aren’t required to have life insurance! In most cases, it’s probably best that you elect life insurance coverage. But, there are situations where you might not need it.

To help determine your life insurance needs, ask yourself the following questions:

• Do you have dependents, and are they financially independent? 
• Do you own a business? If so, what’s the plan for how the company would operate without you?
• How much debt do you have? Could your family continue to make those full payments easily without your income? 
• Are there enough funds to cover funeral and other end-of-life expenses? 

Life insurance might be the right move for you if you have people who rely on your income. A life insurance policy can help replace your financial contributions, so your family can continue their lifestyle. 

For example, if you leave behind a spouse and kids, there may be additional expenses like childcare, your spouse going back to work, moving to a more affordable space, college funds, retirement, etc., that they’ll need support for.  

If you own a business, life insurance can give your beneficiaries cash to sell or continue the business. 

Your estate pays your debts when you die, and any loans you co-signed (like your mortgage or car payment) will become the co-signer’s responsibility. If you have significant debt, life insurance can help pay it off. That way, your co-signers, and heirs won’t have to worry about paying those outstanding bills. 

Funeral expenses are one of the most common uses for life insurance funds. In 2022, the average funeral cost is between $7,000 and $12,000. If you don’t have sufficient assets to cover that expense, life insurance can help.

If any of those questions don’t apply, you might not need life insurance! If you or you and your spouse have accumulated sufficient assets to independently care for yourselves, your children are financially independent, you aren’t caring for an aging parent, and all your debts are covered, you may not need to spend the money on monthly premiums. Instead, you could redirect that money to other areas of your financial plan.  

Finding The Life Insurance Plan That Works For You

A key component of obtaining life insurance is timing—you don’t want to wait until it’s too late.

No one likes to think about death, but planning ahead is one of the best things you can do for your loved ones. At AVID Planning, we’ve discovered that insurance is one of the most underfunded items for our clients when we begin the financial planning process. 

Work with your financial advisor to analyze your comprehensive financial situation and whether life insurance is right for you. We know how important life insurance can be and want to ensure you get the most out of your policy to maximize its benefits for you and your family.

Please set up a time to meet with us today, or stop by our office in St. Petersburg, FL. We can’t wait to work with you. 

 

Do you ever find yourself thinking things like: 

• I saw the Smiths are building a new house—maybe we should do that, too?
• I really like the new 2022 model of my car, but I’ve only had mine for 3 years—should I trade it in for the new one?
• I know we’re a little over our spending this month, but this item I want is “on sale,” so it makes more sense just to buy it now, right?

It’s easy to get caught up in spending money unintentionally. While each of these things sounds significant on the surface, do they really serve you how you need them to? 

When making financial decisions, even day-to-day ones, it is important to tie them to your personal values. 

If you think about your money as a tool to achieve your goals rather than the goal itself, you’re well on your way to mastering the idea of “purpose-driven money.”

Key Takeaways 

• Having clear values will help you define your purpose
• Habits are how we actively live our values
• Creating good financial habits is key to values-aligned spending
• Values-aligned spending can help save you from lifestyle inflation

What’s Purpose Driven Money?

When we think about accumulating wealth, for some, that is where the goal ends. At AVID Planning, we know that the goal isn’t the wealth itself but rather what your wealth allows you to do.

Approaching your finances from this lens helps you create what we call a “Purpose-Driven Money System.”

This system considers your goals and values first and helps you create a meaningful financial plan around them. 

The deeper you move into purpose-based money principles, the more you realize just how connected everything is, from the big stuff like saving for retirement to the smaller stuff like weekly grocery shopping.

“Purpose Inspires. Values Guide. Habits Define.”

That quote comes from author Adam Fridman who is an expert in the area of being “purpose-driven.” He breaks down how our purpose, values, and habits are visible in everyday life: 

“Purpose is about why we do what we do.

Values are how we achieve purpose.

Habits are what we do every day that reflects our purpose and values.

Habits are purpose and values made visible.” – Fridman.

Now, Fridman knows that we all understand the importance of having a clearly defined purpose and values. But have you ever thought about how your habits play a part? 

We can think about our habits as examples of how we live out our purpose and values. You can “talk the talk” in terms of having a clearly defined purpose and values, but how will you “walk the walk”?

Cultivating Financial Habits That Showcase Your Values

To meet your personal and financial goals, you must maintain good financial habits. Why is this? Picture you’re building a home, and every consistent good financial habit is a brick. Each brick makes the foundation of the house stronger. The good financial habits you make today lay a strong foundation for your growth in the future. 

Habits That Help Move The Needle

Unfortunately, there aren’t universal financial habits that will work for each individual, and that’s simply because our goals are different. But, here are a few examples of “good” financial habits to strive for.

• Build and maintain an emergency fund. This fund acts as a safety net when life happens—job loss, significant expenses, medical needs, etc. Aim to accumulate about 3-6 months of living expenses (this could change based on your needs) in an accessible place, like a high-yield savings or money market account. 
• Pay off debt. Hot take: paying down debt is a method of saving and investing in your future! Getting rid of debt increases your net worth and frees up funds for other ventures. 
• Invest for the future (even if you don’t know what that looks like yet). Invest in the things you’re excited about, like a wedding fund, downpayment on a future home, work sabbatical, etc. 
• Save for retirement. The future is coming, whether you’re ready or not. Investing early gives you flexibility and options when work is no longer your #1 priority. Earmarking funds for retirement help you take advantage of compounding investments while potentially saving a little on your tax bill. 
• Know where to give and take. With money, there will always be tradeoffs. But the good news is that you can set those parameters. If you value spending time with your significant other over a latte at your local coffee shop, that’s something you should prioritize. But, it’s important to consider what you might need to give up, like an extra night of take-out. While the stakes are relatively low for your iced coffee habit, cultivating this practice of understanding your unique tradeoffs will come in handy when a new $80,000 car or other “big” purchase is at play.  
• And, of course, work with a financial advisor! We can bring context to your money and help all the puzzle pieces fit together. 

By maintaining these types of financial habits, you help your money grow. 

And that growth isn’t just to pad your balance sheet. When approached from a values-based lens, money can give you freedom, growth, and the opportunity to achieve your goals.

Habits That Could Stand In Your Way

As you’re accumulating wealth, a particular “bad” habit to watch out for is something called lifestyle inflation. 

Lifestyle inflation refers to spending increases whenever your income goes up, like after a big promotion. But spending more simply because you earn more can make it difficult to get out of debt, save for retirement, and ultimately hold you back from your financial goals. 

How so? 

Because this type of status-spending likely isn’t aligned with your values. 

For example, you could start thinking about what you think a “Director” should drive, where other people in your age group are spending their money, how you want your family to look to others (cue social media), etc.

By being conscious of your spending habits and aligning them with your values, you can help avoid lifestyle inflation. 

Some other habits to watch out for are:

• Not sticking to a cash flow plan
• Making late payments on loans, credit cards, or other forms of debt (compound interest can quickly work against you)
• Not grasping what’s important to you and what you’re looking for out of life. Without these goals in place, your plan may lack direction and focus. 
• Not asking for or getting help from a financial advisor.

We don’t share these things to scare you. We all make sporadic, sometimes unplanned financial mistakes. And that’s okay, as long as we learn from them!

As a busy, working professional, it can be easy to not carve out the time needed to think about your core values and what gives you purpose. So, if this sounds like you, and you want to take time and create a “Purpose-Driven Money System,” we’re here to help.

One of the best ways to avoid a short-term money mindset is to reconnect your spending habits with your core values. 

The Power of Values-Based Spending

Values-based spending at the core is focused on spending your money where it counts.

For example, adding a pool in your backyard may or may not be a meaningful expenditure for your family. For one family, it might be something that goes unused and eventually becomes a nuisance. For another, it will be a source of joy for children, grandchildren, and family that you host for Sunday dinner. 

Think of things that bring you joy! It could be donating to charity, putting educational funds into a 529 plan, or investing your retirement funds to help them grow. 

These things will make you feel good and progress you towards your long-term goals. It’s a win-win! 

In addition, when you know something aligns with your values, it makes you feel confident in doing it. There’s no “do-ers remorse” or “buyers remorse” when doing the things that bring you joy and help you live a fulfilling life.

Mind Your Own Bobber

If you’re unfamiliar, the fishing saying “keeping an eye on your own bobber” means simply not paying attention to what other people are doing. 

Peer pressure, unfortunately, doesn’t go away as you get older. It just manifests itself in different ways! Rather than “double dog daring” your friend to climb the biggest tree in your backyard, you might see your neighbor’s new pool and think you need one too. 

Don’t worry about what your neighbor or friend is doing; instead, focus on things that bring meaning to your life.

We know that this idea of finding your purpose and living it out can be intimidating, especially with all the responsibilities you have on your plate. That’s why we’re here to help you. 

We help our clients create a financial plan that meets their financial and personal goals. Please set up a call, or stop by our office in St. Petersburg, FL, so we can help you make a purposeful plan for your money.

Have you ever gotten into a “who is the best of all time” discussion with a friend? Maybe you’re talking about a movie, music, actor, etc.  You might be a huge fan of Michael Jackson or the movie Titanic, but you can’t assume everyone shares the same sentiments. Because while you may love “Thriller” and Leonardo DiCaprio, your friend might not.

But how is personal taste relevant? Your preferences or tendencies could be connected to personal biases. 

According to Psychology Today, “a bias is a tendency, inclination, or prejudice toward or against something or someone.” Some types of bias are positive, like jamming to your favorite musical icon or watching classic movies because they are the “best.” It could also be staying away from someone or something that knowingly causes harm, like eating fast food every day (yeah, we all do it sometimes). 

But, some biases are rooted in stereotypes rather than actual knowledge of an individual or circumstance. In either scenario, positive or negative, taking these “cognitive shortcuts” can result in premature judgments, leading to a “knee-jerk” decision or potentially discriminatory practices. 

This blog is all about taking a look at how these types of biases can impact your money and overall financial plan. 

Key Takeaways

• Financial biases can greatly impact your money and overall financial plan.
• Financial biases are relatively common, and we can inherit them from our families.
• A commonality with most financial biases is the fear of risk. Becoming comfortable with the right amount of risk helps combat certain biases. 

Let’s take a look at some different types of financial biases, examples of how those biases can manifest, and most importantly, how to overcome them. 

What Do Biases Have To Do With Finance?

So, where does money factor into all of this? You may be surprised to learn that some biases directly relate to finance. In fact, in a behavioral finance study, 98% of respondents exhibited one or more financial biases. That’s a whopping percentage! 

The same study found that a person’s levels of bias (how low [weak] or high [strong] they were) correlated with their overall financial health. For example, respondents with low levels of bias reported were almost three times as likely to spend less of their income and more than seven times more likely to plan ahead for the future. 

On the other hand, those with high levels of certain biases showed lower savings and 401k balances. 

How We Help You Identify Potential Biases

Do you remember the feeling when you received your first paycheck? That first taste of financial freedom can tell us a lot about potential biases you may have carried throughout your life. If your immediate reaction was to spend a majority of it on some new shoes rather than save, that reveals more than you might think.

Like many other things, we can inherit potential biases from our parents/caretakers! Who did or didn’t teach you about money? What do you remember witnessing throughout your childhood in terms of financial matters? 

By looking to the past, we get a glimpse into your potential future financial decisions.

With that in mind, let’s jump into a few different types of financial biases. 

Core Types of Financial Biases

Today, we’ll examine five types of financial biases. You may already be familiar with some of them! 

• Present Bias
• Base-rate Neglect
• Overconfidence/Limited Attention Span
• Loss Aversion
• Confirmation Bias

Each of these biases has its own way of potentially manipulating how you make financial decisions. Let’s dive into each of their nuances and some real-life examples to help you learn how to spot—and avoid— them. 

Present Bias

Have you ever weighed the immediate returns over long-term goals? Do you only look at what’s happening now instead of considering what’s in front of you?  In a nutshell, this bias focuses too much on the present and not the future. 

For example: Overpaying for something now and sacrificing retirement savings. 

Base-Rate Neglect

This is the tendency to judge the probability of something happening based on new, easily accessible information while ignoring original assumptions. 

For Example: Overreacting to new information on stock performance, selling shares of a stock based on bad news, or purchasing excessive shares of a stock based on good news. 

Overconfidence/Limited Attention Span

If you exhibit this bias, you overestimate your abilities to make the right financial decisions or quickly make decisions based on limited knowledge.

For Example: You may think you know a great deal about cryptocurrency, so you might be more likely to buy a new digital coin without adequately understanding the risks.

Loss Aversion

No one likes to lose! This bias manifests as the tendency to be overly fearful of financial losses relative to gains. 

For Example: Hesitating to sell a failing stock because you don’t want to acknowledge the loss. But, it may be in your best interest to sell and re-invest in a more promising stock. 

Confirmation Bias

In addition to not liking to lose, we tend not to want to be wrong. With confirmation bias, those that exhibit its symptoms specifically seek out information that confirms their own personal opinions. 

For Example: You may foresee a stock performing a certain way, so you seek out/gravitate towards information that confirms your forecast.

Overcoming Biases

Okay, so you may have discovered that you relate to one (or more) of the biases. But don’t panic! There are things you can do to alleviate their effects and keep them from clouding your financial success. 

Keep Your Values at the Forefront

First, and most importantly, sticking to your values and investing strategy is crucial. Ask yourself what’s truly important to you and how you can manage your money to help you get there. 

At AVID Planning, we stress the importance of “purpose-driven money.” Further, we mean your wealth has a greater impact on your life than it seems on the surface. By building wealth, you can achieve your financial and personal goals. Let your goals and values be the driving force behind your financial decisions. 

Set Guidelines, and Follow Them

Let’s face it: following the rules can be hard. But it’s beneficial when overcoming financial biases! 

For Example: You see that one of your larger stock investments is declining. Rather than deciding to switch up your investments, first, ask yourself if your long-term goals or investment strategy has changed.

Doing this allows you to consult with your financial advisor and evaluate if the switch is truly a positive adjustment and not an emotionally based decision. 

Be Comfortable With The Right Amount Of Risk

Unfortunately, some risk is unavoidable in the financial world. But, there are things we can do to help make safer financial decisions. 

Always make investment decisions with a margin of safety. Like you’ve heard a million times before, don’t put all your eggs in one basket! By working with your financial advisor, you can create a diversified portfolio that suits your goals, values, season of life, and risk tolerance. 

By deep diving into our financial behaviors and potential biases, we can learn so much about your goals and financial values. That in itself is the main difference between just financial planning and financial life planning. By working with us at AVID Planning, we’ll work with you to help you reach your financial goals so you can live your best life. 

We’d love to work with you. Please set up a time to chat with us today.  

Everyone has their own story—where they come from, what they value, educational and professional journeys, etc.

All of our experiences shape who we are and what we value, and no one said that those things had to stand still. 

So why would saving for retirement remain the same throughout your life?

Here’s a hint: it doesn’t! 

Saving for retirement is a dynamic, long-term process that changes as you move through life. Today, we’ll tackle some core retirement planning questions like,

• How do you know if you are “doing the right things?”
• What “milestones” should you hit throughout your life?
• Are there ways to optimize your retirement savings journey?

No matter where you’re starting, we can help you along the way. Read on for tips on how to start or continue saving for retirement. Let’s dive in!

Key Takeaways

• Your retirement savings plan should be custom to you and your goals.
• Investing for retirement will take new shapes throughout your life.
• If you haven’t started saving yet, it’s not too late!
• A financial advisor will be a great ally to help you reach your financial goals and navigate the best ways to save. 

Retirement Saving Tips in Your 20’s

When you’re young and retirement feels like a lifetime away, you’ll always have reasons to put saving on the back burner. How could you possibly start saving for retirement with an entry-level salary, costly rent, student loan debt, expensive trips, etc.? You may also feel like you don’t make “enough” money to start saving yet. 

But you can!

While it might not seem like it now, it might be easier to save at this point in your life rather than later. For example, you may not have dependents, a mortgage, etc., so capitalize on that!

We understand that contributing to a 401k might seem unreasonable or unattainable if you’re struggling to cover rent or make student loan payments. But, the longer you put off saving, the more it’ll set you back in the long run (hello compound interest!). Whatever money you can put away helps (more on that later)!

How can you earmark funds for retirement in your 20s?

Start With Employer-Sponsored Retirement Accounts

If your employer offers a 401k, sign up! The money you contribute to this account goes in before the government can tax it (payroll, Medicare, Social Security, etc.). Since the funds are “pre-tax,” you lower the amount of money the government “counts” toward your tax bill come April. 

Additionally, some employers also offer a contribution match, which is essentially free money. Who doesn’t want that?

The money in your 401k grows tax-free until you withdraw it at retirement. At that point, you’ll be taxed. But, the more money in the account, the faster your funds will grow!

Starting to save early offers a huge advantage in terms of your account growth. By saving a little now, you’ll have big rewards later, thanks to compound interest. Let’s look at an example using a 401(k) calculator. 

Say you’re 22 and just landed your first job out of college. The starting salary is $50,000, and your employer offers a 50% match up to 6%. You decide to start by contributing enough to get the full match, so 6%. 

By the time you retire, you’re looking at nearly $1.4 million!

If you’re contributing to your 401k, what should you actually invest in? While your allocation depends on several factors (goals, risk, time horizon, etc.), generally, you can afford to take on more risk in your 20s. The reason is that you have a longer time horizon before you need the money—over 40 years—so you have plenty of time to recover from market dips and take advantage of significant gain opportunities. 

Save For Emergencies

One last thing, it’s essential to set up an emergency fund during this time in your life. The general target is about 6 months’ worth of your living expenses in a safe, highly liquid account like a high-yield savings account. By stocking up on emergency money, you won’t have to rely on a credit card or, worse, your retirement savings for any unexpected expenses.

Roth’s Rock 

Bonus tip: Prioritize saving in Roth accounts, like a Roth IRA or Roth 401k. You fund these accounts with after-tax dollars, so you don’t get a tax break when you contribute, but the earnings and distributions are tax-free. Investing in these accounts when you’re younger can be great because you’re paying taxes at a lower rate than in the future when you’re earning more money. 

Keep Building Healthy Investment Habits in Your 30’s

Your 30s are an important decade for growth, both personally and professionally. With more professional experience, you’re likely earning more money than you did in your 20s and may have additional financial responsibilities, like a mortgage, car payment, kids, or other debt. 

How can you leverage your retirement savings in your 30s while balancing your other financial responsibilities?

Double Down on Retirement

First, if you haven’t started saving yet, it’s not too late! You still have another 35+ years to accrue interest on your investments prior to reaching retirement age. But it’s important to start now. 

Again, if your employer has a 401k (and, even better, a contribution match), take advantage of it! Since your salary is likely higher than a decade ago, now could be an excellent time to try and max out your retirement accounts. 

In 2022, you can contribute $20,500 in a 401(k). To reach that goal, you’ll likely need to contribute anywhere from 10% to 20% of your salary. While that may seem like a lot, maxing out your retirement accounts is an excellent way to set yourself up for future success. 

Additionally, you may have switched jobs, so it’s possible that you still have a 401(k) sitting with your old employer. A great way to bring more intention to that account is rolling it over either into your new company’s 401k (if it has a good plan, minimal fees, and solid investment selections) or an Individual Retirement Account (IRA). 

Don’t Forget About Debt.

While saving for retirement, you also want to create a solid debt-repayment plan. If you need help paying off your debt to ease your retirement savings efforts, consider refinancing any loans or discuss lowering the interest rate with your lender. 

But how can you do both?

In most cases, you’ll be able to create a plan that has you saving for retirement and paying down debt simultaneously, with one taking priority over the other depending on your circumstances. 

For example, if you’re only making the minimum payments on high-interest debt, like credit cards, and contributing to retirement, you might be “robbing Peter to pay Paul,” so to speak. Essentially, the high compounding interest on your debt likely negates any savings efforts you’re making. 

In a case like this, it might be best to pay off the high-interest debt first, and once that’s all paid off, start contributing to retirement again. 

Remember, you don’t need to be debt-free to save for retirement!

Build Momentum in Your 40’s

In this life season, you’re starting to reach your peak “earning years.” And with that, hopefully well on your way to achieving your savings goals!

However, don’t be discouraged if this doesn’t sound like you. There is STILL time! 

You may be in a situation where you feel like you could be saving more or don’t have a good investment strategy overall. This is where we come in! 

Retirement Savings Milestones

Now’s the time to maintain your retirement-saving momentum. It’s essential to stay the course, even with multiple financial priorities. Here are some ideas to help!

First, consistently max out your retirement savings vehicles. In your 30s, maxing out may have been a goal, but in your 40s, it should develop into a consistent practice. If you have spare funds, you may check if your employer allows after-tax contributions. 

After-tax contributions allow you to contribute over and above the $20,500 annual maximum up to $61,000 in 2022. Keep in mind that number includes your and your employer’s contributions. After-tax contributions open up several planning opportunities like Roth conversions so that you can fill up your tax-free retirement investment bucket. 

In your 40s, you also want to consider investing outside retirement. You have other goals to save for! Here are some ideas:

• Brokerage account (a flexible account you can use for any savings goal)
• HSA (health savings account to help you invest for medical expenses)

Balancing Competing Financial Priorities

This season of life can be tough because you might be nearing some high-cost expenses, like a child going to college, purchasing a vehicle for your young driver, medical expenses, etc. If this is the case, work to get rid of your debt so you can save more. 

Your saving strategy will look different based on your previous years of retirement account contributions. For example, if you’ve been saving since your 20s, you might not have to make much change to reach your savings goals. If not, you might have to push hard to reach your goals. 

It’s not impossible! But, it likely means reducing your spending and potentially making difficult choices. An advisor will be a great ally for you throughout this process. We can work together to find the right investment mix with an appropriate level of risk to get you in the right direction.

Insurance Is Key 

As you’re building wealth, don’t forget to protect it along the way. Your 40s is a good time to review (and potentially add to) your insurance coverage. 

• Do you have enough life insurance? What about your spouse?
• Would you benefit from personal liability (umbrella) coverage? This type of insurance protects you if someone were injured on your property or accidental damage you are legally responsible for on someone else’s property, like if your child got into a car accident and you own the vehicle. 
• What about disability insurance? Pro tip: you might find cost-effective group rates in your benefits package. Be sure to check it out during open enrollment. 

We can work together to evaluate if you have enough coverage to protect yourself. 

Define Your Retirement Savings Strategy

Remember, saving for retirement is personal because your vision for retirement is personal. Where you want to live, what you want to do, who you want to do it with, and more are all significant parts of your unique savings strategy.

How so?

Someone who aims to retire early will require a different emotional and strategic approach than someone who plans on working, even part-time, for as long as possible. 

At AVID, we work with you to create a Purpose-Driven Money System that can help you understand what’s most important to you and give you the tools to bring your vision to life. 

We’d love the opportunity to hear where your goals and learn how we can help you reach them. Please set up a time to meet with us today. 

At AVID Planning, we recognize that accumulating money is not the ultimate goal but rather a tool to achieve your goals. Making financial decisions impacts more than your wallet or balance sheet. 

We like to focus on the idea of creating a “Purpose-Driven Money System.” 

This system asks, how can you make your money work for you? 

We’ve come up with 4 simple steps to creating a better system for your finances. By focusing on the bigger picture, you can concentrate on reaching your financial goals and spend (both money and time) in areas that give your life meaning. 

Key Takeaways

• Your money has a greater purpose behind it.
• Your values are the driver of both your personal and financial decisions. 
• Defining your “10” will provide clarity for creating meaningful goals. 
• Your values and goals will likely change over time, and that’s okay!
• Your ideal lifestyle is completely within your reach. 

1. Start With Your Values

Whether we’re aware of them or not, we all have core values that drive how we live our lives. 

Similar to a corporate entity’s “mission,” your values hover in the background, driving what you do and the decisions you make. These “themes of life” come from many different areas, like people you admire, shaping experiences, or dream-worthy aspirations. Living within those values or missions makes you feel more fulfilled. 

If you aren’t sure what your values are, you aren’t alone! Finding a single word to define what you’re passionate about can be tough. Consider using this tool to help give you some inspiration, and ask yourself, 

• What’s most important to you?
• Is there something in life you can’t live without?
• Who do you most admire, and which of their qualities stand out to you?
• What shaping experiences taught you the most important life lessons?

These questions are just a springboard to get you thinking about what’s most important to you. When you know the answer, you can better align your money with your values and derive more purpose and fulfillment from it. 

When you work with AVID Planning, we help you keep your values at the forefront of your financial decisions. For example, you may value the following:

• Community
• Health
• Family

Now, think of your values in terms of your financial journey. By keeping your values at the front and center, you could come to the following finance-related decisions:

• I want to be able to save enough money to make a monetary donation to my local food bank monthly. (Community)
• During retirement, I will commit to participating in a cycling class twice a week. (Health)
• Throughout my adult life, I will contribute to a college savings fund for my grandchildren. (Family)

Your life is a purposeful and deliberate journey. And your finances are the tool to help you achieve your goals. Without setting expectations, goals, etc., that align with your values, you won’t know which direction to go. 

Let your values be your roadmap. 

2. Define Your “10.”

What comes to mind when you think of the “perfect” day? Is it a sunny morning walk around your local park? Spending an evening cooking a new style of cuisine? Time in your favorite comfortable lounge chair reading a novel? Sounds pretty great, doesn’t it?

The next step in our process is what we call defining your “10,” aka, creating a Vision of Your Ideal Life (a specific exercise we use with clients)! Of course, this looks different for everyone. Ask yourself the following questions:

• What does “10” mean for you personally, professionally, etc.?
• How will you feel when you reach “10”?
• What lifestyle or mindset changes do you need to make to get to your “10”?
• How is your “10” aligned with your values? 

Your answers will further help you establish your goals. You might be thinking, “these goals are wonderful, but how can I actually achieve them?” 

This is where the acronym SMART comes in. 

3. Take “SMART” Focused Steps to Get There

Most people in the business sector have likely heard the term SMART. In case you need a refresher, or for those who don’t know, SMART is a comprehensive checklist for making goals. It asks you to consider your goals more deeply and actually create a plan to bring them to life.

By having SMART goals, you set yourself up to achieve them. While you may have seen this acronym before, we gave it a little AVID twist to make it even more applicable to your financial journey. 

• S – Significant
• M – Meaningful
• A – Attractive
• R – Rewarding
• T – Timely

Looks different, huh?

It’s certainly not how you’ve read it in business blogs or career classes. This new version of SMART goals forces you to think about your goals from a more personal and emotional place. Let’s take a closer look at how to apply these ideas. 

Significant

First, it’s important to point out that the word “significant” is a relative term. What’s significant to you may not be significant to someone else—and that’s the point! You want to set goals that resonate with what’s most important to you. 

By keeping that significance at the forefront of your process, you’ll remain motivated and more joyful as you reach certain milestones. 

Meaningful

With so much “free” advice out there, it’s really easy to get stuck in a “should” mentality. For example, I should save more for retirement. Or I should put more money toward debt repayment. 

All of the “should’s” you tell yourself don’t necessarily translate nicely into your daily life. So instead of setting goals based on what others view as important, connect your goals with your values and priorities. When you align your goals with your values, they will be full of meaning.

Attracting

When you create goals that are significant and meaningful, you’re more drawn toward the habits and behaviors that help you experience and achieve them. It helps you think about your goals like positive images you want to work for, not something where pure grit and determination need to take over. This clear vision of what you want in your life will focus your intention and guide your daily decisions.

Rewarding

Like any decision, your goals come with specific tradeoffs. Sometimes it’s challenging to make progress toward goals because we’re weighing the costs and benefits that come along with the commitment. 

For example, suppose your goal is to make work optional. In that case, you may need to focus on building up your emergency savings or doubling down on your investments before pulling back to properly support your lifestyle. 

Keep in mind that it’s far more advantageous to work toward goals that bring a clear sense of reward both throughout the journey and once you reach the destination.

Timely

Timing is a significant factor when setting meaningful goals. As you consider your objectives, ask yourself,

• Does this goal have a specific time commitment?
• What are your expectations for the time commitment to reach the goal?
• Is this the right time in your life to embark on this journey?

Remember, some goals should have specific target dates, and others might not.

4. Consistency is Key, but Adapt When Needed

Goal setting that aligns with your personal values isn’t a one-and-done, set-it-and-forget style project. It’s an ever-evolving process that can change depending on where you’re at in your life. 

While your core values, like community or family, may stay the same, applying them in your life will be different. You might not live in the same community forever, so you’ll have to find new ways to be a present force wherever you live. Your financial (and personal) role in your children’s lives won’t stand still—yes, there’s an end in sight for college saving!

Knowing that your goals and priorities may shift is an important part of the process. But as long as your values are your anchor, you’ll always have the tools to make the most intentional and meaningful decisions. 

So don’t be afraid to adapt!

We look forward to the opportunity to define what a “Purpose-Driven Money System” means to you and how we can help you get there. Please set up a meeting with us today to get started.