Why Don’t We Have a Good Grasp of Our Financial Picture?
Let’s have a quick *virtual* discussion to start the week. Do we have a good understanding of our whole financial picture? I bet if a random person walked up to you and asked, you’d likely respond yes. But let’s think about the question for a minute. Let me ask again. Do we really have a good understanding of our whole financial picture? Odds are… we likely don’t. Let’s talk about it.
I was thinking about the question this morning and that motivated me to write this blog. Why don’t people have a deep understanding of their current financial picture? As I thought about this for awhile, I thought of a few possible reasons.
A) People think they have a good grasp of their financial picture. (And maybe they actually do)
B) People don’t feel the need to have a deep understanding of their financial picture.
C) While they know they need to sit down and think about this, it can wait.
D) Thinking about their current financial state gives them anxiety or makes them feel uneasy.
While there are certainly more reasons for why we may not have a good understanding of where we’re at, I think this list is fairly comprehensive. Before you answer the question (if you’d be so kind as to answer the poll below) let’s understand what I mean when I say “whole financial picture.”
I think one reason people would pick option “A” is because they know the following information:
How much money I bring in every week/month
How much money I spend every week/month
How much I have in the bank, invested, in retirement accounts, etc.
Knowing this information is obviously important, and I think most people would have a good idea of all the above info. But that’s not our whole financial picture. In fact it just scratches the surface. What if I asked you how much life insurance coverage you have (and how much you actually need)? How much you’re spending every year in various taxes? How much you’re paying to be invested in your 401(k) or IRA. (I can not stress to you how important this is and how few people know the answer to this). What does your current estate plan look like? Your interest rates? I could go on and on.
You see, all these things make up our current financial picture. And they really are crucial to know. Now let me ask you one more time. Do we have a good understanding of our whole financial picture? If the answer is no, I am very curious as to why not? More than that, I am very serious when I ask you to PLEASE reach out to me. This conversation doesn’t have to be stressful, it doesn’t have to be sales oriented, and it sure as hell doesn’t have to be expensive. Let’s get a good grasp of where we are financially, and from there we can develop a plan going forward, or we can simply leave it at that, no pressure whatsoever. Contact me using the email/number below!
Tanner Millar
Investment Advisor - Core Planning
tanner@yourcoreplan.com
(660)-998-4639