Happy Financial Planning
What is it?
If you are looking to improve your relationship with money in 2022, there is plenty of information out there to help you get started. Here’s a few pointers we have found that we like:
- Improving financial knowledge by reading regularly about the subject.
Here’s 3 financial books to read in 2022:
- ‘Money Magic’ by Laurence Kotlikoff
- ‘How We Can Win’ by Kimberly Jones
- ‘How to Money’ by Jean Chatzky, Kathryn Tuggle, and the HerMoney team
- Better defining goals and creating a plan to achieve them.
Setting goals for yourself is one of the most powerful financial habits. I recommend that you set long-term goals and work your way back to simple steps you can take today to get you there.
- Stop comparing yourself to your neighbors to better appreciate your progress.
Accomplishing financial goals often relies on keeping a cap on our spending habits. Keeping up with the neighbors is often detrimental to our financial plan. Have a long-term view when taking steps to improve your lifestyle. Being able to save money for future plans will give you a better chance to eventually live the life of your dreams.
- Creating a stress-free budgeting process:
“Dan Egan,vice president of behavioral finance and investing at Betterment, recommends what he calls stress-free budgeting. His method eliminates constant monitoring of spending, which can be tedious. Mr. Egan and his wife send their paychecks to a joint bank account from which they automatically pay recurring bills, including their mortgage.
The couple also automate transfers to subaccounts earmarked for items including emergencies, a new car and vacations. Then they divide what is left in half so each can spend the surplus as they see fit. “*
This process sounds a lot like theg Bank Account Structure, don’t you think? We also think that budgeting needs a facelift. Instead of trying to track your expenses, create a structure that doesn’t allow you to overspend.
- Minimize financial conflicts with a spouse by working together towards goals and dedicating an amount of money to be spent independently.
It is much more fun to work on a financial plan as a team. Creating a financial plan based on compromises for each other’s goals, while leaving a little freedom to spend your own money should make it easier to avoid money conflicts.
Why does it matter?
Because you do matter. Using your money more effectively will pay rewards down the road. Make 2022 the year you take a big leap towards financial freedom.
Other articles I found interesting this week:
U.S. goods trade deficit hits a record in November
Reading Resolutions: 12 Books to Start a Smart New Year
Tech That Will Change Your Life in 2022
Current 401(k) portfolio
Our last portfolio reallocation: 10/11/2021.
Want more information?
The weekly market update provides a window into the process we use in our investment management process. At Breakaway, we believe markets are always changing and require a nimble yet data-oriented approach.
Our process attempts to identify trends and momentum in the financial markets. With that information, we align our clients’ portfolio accordingly in the hope to help our clients accomplish their life goals while attempting to lower the risk of a large drop in their portfolio.
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Sources:
*Anne Tergesen. “How to Make Your Financial Life Happier in 2022”. 12/27/2021. The Wall Street Journal. https://www.wsj.com/articles/how-to-make-your-financial-life-happier-in-2022-11640399712
