???? Exciting announcement: I’ve been interviewed by Tyler Gallagher of Authority Magazine for their series on Women Leading the Finance Industry!
(You can read the interview here, and it’ll also be on Thrive Global soon too! ????)
In the interview, we talked about how I started working in finance, my passion for working with young people in our On Your Way to Wealth program, and how women can better-establish themselves in the financial world.
We also got into some more extensive conversation around financial literacy. Tyler asked me how we can improve financial literacy as a nation, and specific things individuals can do this year to make themselves more financially literate.
I was so glad he asked these questions, because here’s the thing:
Being “financially literate” doesn’t just mean spouting off impressive vocabulary words that put your party guests to sleep.
At its core, it’s the ability to look at your money intelligently and make decisions that will lead to long-term, sustainable wealth growth. ???? ????
In the interview, I suggest five non-intuitive things you can do ASAP to easily start improving your financial literacy:
1. Read ‘Why Smart People Do Stupid Things With Money’ by Bert Whitehead.
This book outlines how most people tend to do things with their money, and why those tendencies aren’t always the best decision.
2. Hire a fee-only financial planner.
Ideally, you’ll hire a fee-only financial planner with your first job, but if you haven’t done so yet, now is the time. Wealth planning isn’t just for people who already have a lot of money; it’s also for people who want to have a lot of money in the future. If you don’t plan for it, it’ll be a lot harder to make it happen.
3. Have a professional file your taxes.
Saving money on tax preparation is tempting, but when taxes are done correctly, you’ll almost always save more money than the fee to hire someone. Plus, walking through your yearly money habits with an accountant will give them the opportunity to show you ways you can improve to either reduce your taxes, increase your investment gains, or both.
4. Keep your mortgage.
Most of the time, the goal of wanting to have your mortgage fully paid off is an emotional decision.
The truth is, mortgage money is very inexpensive, and if you pay it off, you basically just have a cash asset that doesn’t do much to grow your wealth.
Instead, you can shovel any extra mortgage payment money towards investments that will grow your wealth more substantially, and make you wealthier over time. (Work with a financial planner to do this.)
5. Get very honest about needs vs. wants.
This sounds like common advice, but it’s counter-intuitive to the way humans behave. We hardly ever wait to make a purchase.
In the interview, I even talk about how I helped one of my first clients afford her first house by doing this. She wanted to hang out with a certain group of friends every weekend, but after realizing they were taking her budget, she realized she didn’t need to… and that she’d be better off just finding different friends.
When you can get honest about wants vs needs, you can save a lot of cash to funnel towards more important financial goals.
Check Out the Full Feature
This interview was a great way for me to reflect on why I love financial planning so much: it’s not just for people who already have a bunch of money to invest, but for people who’d like to get there some day. I’m passionate about helping young people make better financial decisions so they can get to that point faster, and I loved talking about it.
Read the full interview here, or book a call with us today if you’d like to see how we can personalize your own financial planning and wealth-growth plan.