Many have heard the old adage- what gets measured gets improved. In my opinion, it describes one of the main benefits of financial planning - regularly reviewing and measuring financial progress results in changed behavior.
Occasionally though, we start measuring something that maybe isn’t worth measuring.
From a practical standpoint, think of a business owner that is measuring cash but paying less attention to net income. While cash definitely matters as you need to meet short-term obligations, net income is usually a better predictor of how the business is actually performing.
For as many specific practical examples, there are bigger picture examples. While I subconsciously measure completing a checklist, I may miss opportunities to make a larger impact.
Pause and evaluate what you are measuring. Is that what you want to be improved?
Student Loan Planner - 5 Key Student Loan Repayment and Forgiveness Dates as Payments Resume
Through the end of the year, there will be quite a bit of activity with student loans - payments resume, new (or updated) IDR plan, IDR waiver, etc. I recommend subscribing to the Student Loan Planner weekly Thursday email if you have not already.
A Wealth of Common Sense - The Pros & Cons of Owning a Rental Property
IRA Help - Roth Conversion Confusion - Taxes Withheld When Under 59.5
Something to consider if you are under 59.5 and doing a Roth conversion.
Thank you for reading!
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