Welcome to part 3 of the How Is Personal Finance Like…? series! In this part, we will talk about how personal finance is like a beach.
There is Ebb and flow.
Just as the tide at a beach ebbs and flows, so too will your money. You can think of ebb and flow as:
Something becoming higher or lower
Good times and bad times
Decline and regrowth
Times when you have more or less
However you wish to think of it, you need to accept that your money and personal finances will have ebbs and flows throughout your lifetime. We all love the flow and can be fearful of the ebb. A big part of the fear is the lack of planning for
that ebb,
that decline,
that rough patch
that we will all go through. During the flow, please don’t forget to plan ahead.
A bad storm can change the landscape.
Life happens. If a bad storm hits your personal finances, it could change the landscape –
your money,
your goals,
your priorities.
How will you weather this? Do you have your emergency fund in place? Do you have an established savings account with enough funds in there to make you comfortable? Perhaps there are debts you need to pay down? Do you have your estate documents in order? Unless you want your landscape to change, preparation is key. Storms can come with a feeling of helplessness. Assess your situation and prepare – before the storm hits. You may want to speak with a financial advisor.
Protect yourself or else you will get sunburned.
If you’ve ever had a sunburn, you know they can be nasty! And painful! Don’t feel this pain with your money! How can you protect your personal finances?
Have a well-cushioned savings account with at least 3-6 months of expenses in it.
Make sure the debt you are carrying is easy on the shoulders. This is different for everybody. Some don’t want any debt weight – they are uncomfortable with any weight on their shoulders. Some are okay carrying some. This is all about your comfort level.
Do you have your estate documents in order? This is so important, and unfortunately, many young people overlook this aspect of their life. This entails many things – insurance (life, long-term care, disability, etc), wills, trusts, etc. You may not need all of these, but you should at least know about them and be familiar with them. You may need to speak with an estate planning attorney.
After the sand and grit are gone, we remember the time fondly.
Let me show you a picture of the sand castle I made!
Look at my child’s sand angel!
My family grew closer to each other that day!
We don’t remember – or speak of – the painful exfoliation that sand/grit gave us. In that moment, it’s not that pleasant. But afterward, we only remember the wonderful memories that were created around that moment. During the accumulation phase of our lives, we may have to make some sacrifices in the moment to have those wonderful moments later on in life. But what ends up happening is we remember not the pain, but
Binging Netflix with our significant other
Candlelit dinners at home
Playing gin rummy with my husband (one of my favorites!)
Camping in the backyard and making s’mores
Flashlight tag with the kids
Full transparency is beautiful.
Truly. When you are in crystal clear blue waters and can see to the bottom, what is more beautiful than that? Transparency is equally beautiful with our money. There is a peace and tranquility when we know where our money has gone and is going. There is a peace and tranquility when we can have open, safe, transparent financial conversations with our significant other.
If you would like help with your money being more transparent, contact Ford Financial Management. Click on schedule a consultation for your free initial conversation and see if we are a good fit for working together.
