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If I Could Only Teach Two Financial Lessons

15 Nov
2022-11_If I Could Only Teach Two Financial Lessons

By: Colleen Weber

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By Colleen Weber, CFP®, CPA

As both a Certified Public Accountant and a CERTIFIED FINANCIAL PLANNER™ professional with over 15 years of experience in the industry, I’ve spent my entire professional career learning as much as I can to better serve my clients. Because of this, I often get asked about my top pieces of financial advice. Clients are usually surprised to hear that out of all the fancy investment vehicles, tax-planning strategies, and insurance products out there, my top two financial lessons have less to do with specific products or investments and much more to do with having the right mentality. So, if I could only pass on two pieces of financial advice, I would say: Drown out the noise and take emotions out of your financial plan

Drown Out the Noise

With near-constant stimuli and a 24-hour news cycle, we are bombarded with information all day, every day. Whether you are listening to talking heads who are attempting to predict the next recession, or scrolling through social media feeling pressure to have the latest and greatest house, car, clothes, or vacation, the noise of what you “should” be doing can be deafening. 

This information overload is not only exhausting, but it can also make you doubt your actions and decisions. In today’s day and age, it can be incredibly difficult to drown out the noise and stay the course, but that’s exactly what it takes to be successful over the long term. Don’t feel pressured to buy more and do more just because others do. Instead, focus on your own financial health. 

Identify your “why.” What’s important to you? What do you want your financial future to look like? Once you know that, you can align your money habits with your values and block out those messages that will derail you from your plan. 

Take Emotions Out of Your Financial Plan

Similar to drowning out the noise, my second financial lesson would be to take your emotions out of your financial plan. Have you ever been unable to make a decision because you were paralyzed with worry and anxiety about the future? Have you ever wreaked havoc on your budget for the momentary high of acquiring something you really wanted? These are all examples of how we let our emotions rule our daily decisions. 

And unlike decisions about where to go for dinner, what we do with our money can have long-term consequences. For example, you are tempted by the “next greatest investment” that you can only be a part of if you rush to get on board. Or you panic during a market downturn and sell off stocks only to lose when the market eventually rebounds, throwing off your entire retirement plan. 

Sticking to a long-term plan is a good way to help keep your emotions in check. A plan can ground you during times of stress and remind you of what’s really important when you’re not sure what to do.

Even though a plunging stock market is undoubtedly nerve-wracking, your plan will prevent you from making rash, emotionally based decisions. Don’t sell when markets get rocky, and remember that your long-term plan will last longer than a crisis-driven market.

Get Started Today

Sometimes taking the first step can be the hardest part. If you’re ready to build a financial plan that you can trust amidst the noise and emotion of everyday life, I would love to hear from you! I am passionate about helping clients achieve their long-term goals and plan for the future with confidence. Book a free introductory meeting online or call (952) 470-0750 to get started today.

About Colleen

Colleen Weber is a fee-only financial advisor, CERTIFIED FINANCIAL PLANNER™ professional, and CPA with more than 15 years of financial planning experience. Providing comprehensive financial planning and wealth management, she specializes in serving clients nearing retirement, retirees, busy professionals, and women. She is passionate about developing financial plans that save clients on taxes and investment strategies that help them pursue their goals. Learn more about Colleen by connecting with her on LinkedIn or booking a complimentary phone call meeting.