Don’t Buy Stuff You Cannot Afford
You may have noticed that each month on the first of the month, I like to re-post the podcast episode 13 “Track Your Expenses and Net Worth!” It is a highly recommended, simple activity, which can be completed in 30-60 minutes each month. It helps you become more intimate with your finances.
I love this SNL sketch (from 2006) with Steve Martin and Amy Poehler because it illustrates how some people spend more than they make, resulting in credit card balances. Clearly Steve Martin and Amy Poehler are struggling with the basics of Financial Planning 101 - understanding your own cash flow. I see this with people of all levels of income and wealth regardless of age. Folks who are young with less income may feel like they have no choice but to go into debt when large expenses show up unexpectedly. Others who are in the mass affluent may still be living paycheck to paycheck because they've made excessive structural commitments such as a large mortgage, car payment, and living lavishly.
Nick Hopwood, CFP is founder and president of Peak Wealth Management in Plymouth Michigan. As a CERTIFIED FINANCIAL PLANNER, we believe by providing education we can inspire success. To schedule a meeting with your trusted Financial Advisor and Fiduciary, click the button below.