#55 - Financial Planning in One Word
There is one word that I focus on more than any other when I think of financial planning. That word is intentionality. In fact, the tagline on my website is “Intentional Planning for Intentional Living.”
Intentionality in personal finance can take several different forms. From engaging in strategies that improve your financial position to aligning your finances with your priorities and values. Below are just a few practical examples:
Starting now. Saving and investing early to allow compound growth to work for you.
Tracking cash flow. This will help you identify lifestyle creep early and give you the insight to know if you are spending money on what you actually value.
Reviewing investment expenses. From transaction charges to operating expenses, what are you spending on investment expenses?
Taking inventory. It is not uncommon for new clients to come in and not be aware of what financial resources they own.
Tax planning. What moves can be made to improve your current and/or future tax situation?
Why does intentionality matter?
Making an impact. Are your finances aligned with your values?
Pursuing goals/dreams. Are the financial decisions you are making taking steps toward or away from a goal?
Improving your financial position.
Stronger families. Money is often cited as playing a role in divorce. I really do believe that being intentional with personal finance will create stronger families.
Being intentional with your finances does require effort, but I believe there are immense benefits. Take the time to be intentional.
Interesting Article(s) or Video(s)
Current Publishing - Fishers tops list for stable housing markets
I promise I am not gloating.
The Wall Street Journal - Warren Buffett and the $300,000 Haircut
This is an excellent article on understanding compounding. Both understanding compounding and defining what is enough are essential.
Thank you for reading! What are examples of being intentional with finances?