What Financial Planning Means to Me

Welcome to my first blog post for Bmore Financially Fit! Going forward my posts will typically be focused on a single topic or question, but this one will be a bit different. I want to explain what financial planning means to me and in doing so, I hope you get an understanding of my “Why” and why I am starting my own financial planning company.

1.       Obtaining a basic financial understanding

A common question people like to ask me is ‘What was the smartest (and dumbest) financial decision you’ve made?’. I’ve got a couple specific answers to both of those (like buying a car I didn’t need), but my main response isn’t what people expected: I paid attention to what my parents said, and did, about their finances. They condemned credit card debt and bank fees, they talked to us about the power of investing money, and they were smart on where they spent their money. We rarely dined out and I’m pretty sure I wore nothing but Old Navy clothes for an entire decade. I was very fortunate to grow up with parents who set a financially fit example and a goal of mine is to pass that onto as many people as possible.

2.       Forming a ‘Team’ with your Partner

When people date, they often talk about getting along with the other person. Do we like the same shows, do the same things, and do you like to travel? Do we feel the same way about kids or pets or politics? And those are all really good things to figure out, but one of the largest causes of divorce are financial reasons. I’m not saying you both need to share the same exact money views, but you both need to be on the same page. Sometimes it’s easier to talk about these topics with a neutral third party. If your partnership could use some help talking, schedule a call and interview me to find out if I’m the right third party you both want to talk to.

3.       Getting your money to the things that matter

If you ask my friends, they miiiight mention that I am “cheap” with my money and while I generally laugh and agree with them in person, behind closed doors that I’m not cheap, I’m frugal, and there’s a huge difference. Being frugal means understanding what you’re willing to spend on something and sticking to it. Figuring out what you care about the most is imperative. Then tracking your spending, setting up a budget, and working on your budget for the next year is crucial. If you’ve had difficulties setting up or sticking to a budget, maybe it’s time you contacted a professional like me.

4.       Control what you can

Ultimately, no amount of planning will produce guaranteed results and successes, but understanding what you can and cannot control is important. Plan for what you can and understand what you can’t. As a small example, this is the reason I highly recommend Roth IRAs, HYSAs, and HSAs (where applicable). We can’t control markets but we can put plans in place for good and bad times. You can’t control how expensive groceries are, but you can control what, when, and how often you buy things.

If you enjoyed my first blog, please visit my website www.bmorefinanciallyfit.com and subscribe to our mailing list. On the website you can book a free 30 minute consultation to talk more about financial planning and the services I offer. And if there’s any specific topics you’d like to see featured on my next blog post, please reach out to me at tom@bmorefinanciallyfit.com