Is your cash currently withering away under inflation? The age-old advice of stashing your money under the mattress does not hold any weight in today’s financial world. Those with piles of cash easily become paralyzed by the risks and opportunities presented to them—meaning their money is left untouched. If you find yourself in this position, Scott Frank, founder of Stone Steps Financial, and Meg Bartelt, founder of Flow Financial Planning, LLC, share strategies that break out of the hoarding mindset and into a path where you can succeed.
Taking the first step to utilizing your cash can seem daunting. But Scott and Meg share the “Have-To’s,” “What-To’s,” and “Need-To’s” of personal finance, giving listeners a roadmap for the next steps. Everyone must pay taxes, so ensuring enough money is set aside to cover your bill provides a layer of security. Another option is paying down significant debt, especially if you can pay down interest. Taking the “Have-To’s” off your list can give you more freedom in your daily life.
Having a robust emergency fund falls into the “Need-To” category. It provides a security blanket to protect you against the unexpected. As your personal circumstances change, you should tailor the money you put away to reflect that. The right amount for an emergency fund is subjective but should provide a comfortable buffer against unexpected expenses. Meg and Scott also tackle the often-overlooked aspect of retirement savings. Working with a tax professional allows you to see if your savings are optimized and different avenues for accelerating your investment.
Understanding what to do with your cash becomes clear when you understand what you want to do. When you have an actionable plan for your finances, the fear of choices becomes clear. Do you want to provide your children with a college education? Maybe you want to take a sabbatical from work—either way, the “wants” of your money allows you to live the life you want.
Storing your money under your mattress isn’t a viable plan anymore. Working with a tax professional to prioritize your values and investments can get you on the path to a more free, enjoyable future.
Key Takeaways:
Prioritize Financial Must-Dos: Focus on essential tasks like setting aside money for taxes and paying down significant debt, especially high-interest debt. Removing these obligations from your list provides more freedom in your finances.
Build a Strong Emergency Fund: An emergency fund is crucial for financial security. Tailor the amount to your personal situation, ensuring it offers enough buffer to cover unexpected expenses.
Optimize Your Retirement Savings: Collaborating with a tax professional can help you maximize your retirement savings and explore ways to accelerate your investment growth.
Align Finances with Your Goals: Understand your goals and develop an actionable plan for your money. Whether it's funding your children's education or taking a sabbatical, aligning your finances with your desires allows you to live the life you want.
Ready to learn more?
Scott Frank on LinkedIn
Meg Bartelt on LinkedIn
Stone Steps Financial
Money can be confusing—but it doesn’t have to be. When you’re able to understand the complexities, you can make better decisions to improve your daily life. Are you ready to align your money with your ideal life? Connect with us at Stone Steps Financial.
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