It’s safe to say when it comes to money that we all have different emotions with handling it. If that weren’t true, we would all have stress free relationships when it comes to the topic. So, why is there no simple formula that works for everyone? The answer is that we all have different financial blueprints.
I once was told that a budget tells you what you can’t afford but it doesn’t keep you from buying it. Some people might laugh at that statement and others might cry because it holds true for them. The reason being is that we all have a different blueprint when it involves money. A lot of people derive their financial DNA, both good and bad, from their childhood. I’ve seen instances where parents did everything they could to teach their kids about money and saving. They penny pinched and made sure they were resourceful with their funds and did what was needed to provide for the family needs as well as saving for their future. Some kids grew into adults and thrived and others went broke. Why is that? Well, one child sees the value of saving and planning and the other sees that scenario as a financial jail and wants to let the money out. It seems strange but it is very real. It’s like the person who was handed down clothes their entire life growing up and when they start earning their own money has a new piece of clothing every week. This happens because in both instances the kids had different emotions to money.
The same dynamic holds true in regards to investments. Some people are naturally conservative while others are not. Yet time after time, I see people make the fundamental mistake of investing outside of their natural comfort zone with money whether it is too conservative or too aggressive. They usually do this because that’s what they were told to do, they didn’t understand their financial blueprint, or they didn’t truly understand their investments. That’s why there is no one size fits all category with money. We all are shaped differently in regards to money and have different needs and wants. However different we are, there is a solution to every problem if you unlock your blueprint and find the right combination whether it’s with budgeting, saving, investing, or any other thing with money. So, what should you do?
First, embrace the fact that we’re all different. You’ll save yourself a lot of time trying to make sense of it all. Second, start uncovering your blueprint. Go back through some of your most recent purchases or financial decisions and determine why you made them the way you did. This is not meant for you to second guess yourself. You want to uncover what makes you tick and embrace the parts that work and acknowledge the parts that don’t. And lastly, take a second look at your financial plan and see if it truly fits you. Just like every house has its own unique blueprint to the lay of the land, you also have your own unique financial blueprint to yourself. Improve the parts that need improving and embrace the parts that are just right and you will start living within a happy home of your financial self.
Information is provided for informational use only and should not be construed as legal, tax, accounting, or investment advice. You should consult a qualified professional for advice specific to your situation. Any opinions and forecasts expressed are those of the author, and may not actually come to pass. This information is subject to change at any time, based on market and other conditions. Past performance does not guarantee future results.
Kevin MacWilliams is a Financial Advisor at Clearview Financial Group. Securities are offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Kevin MacWilliams, Representative, Clearview Financial Group and the Securities America Companies are unaffiliated. Kevin MacWilliams is licensed to conduct securities business in the states of AL, GA, IN, NC, OH, TN, and TX. Kevin MacWilliams is also licensed to conduct insurance business in OH and TN and advisory business in OH and TN. For more information, please call Kevin at 826-2279 Ext 4, or e-mail and or visit Clearview Financial Group.
