Making financial changes can be difficult, but it’s possible with discipline. Finances are often an area that many want to improve as a part of their New Year’s resolutions. If you’re wanting to reach goals you haven’t been able to in the past, it may be a good idea to get with a financial professional who can help you think about money objectively.
Blake King, a financial planner for FinanciaLife Outfitters, says there can be a lot of emotional attachment involved in spending money that dates back to one’s childhood upbringing.
“How was money being discussed from a family standpoint?” says Blake. “Was there even a discussion there? If there was, how did it feel — was it emotional, frustrating, exciting?”
Blake says money is very individualized, which is why working with a professional can be key in making changes.
FinanciaLife Outfitters helps clients create financial roadmaps and walks them through different tools out there to use, such as tax planning tools, investments, and structuring businesses for success.
“We sit beside you on the way and try to nurture a long-term, working relationship to help your future needs,” says Blake. While every person or family’s financial situation will vary, their decisions on how they spend their money drills down to what they find important.
For those wanting a fresh start with finances in 2022, Blake said it can be as simple as looking closely at the goals you want to accomplish and getting a plan in place to pursue them.
One goal could be starting to put money aside for something specific if you haven’t already.
“Really try to create a process to help you reach that goal, whether it is as simple as systematically setting aside $100 a month, $500 a month, and really earmarking those dollars for something specific,” Blake says.
It’s also a good idea to look at how you plan to structure your budget for the year based on how you did the year before.
“Maybe identify some specific expenses that were not expected and whether or not you should put that into your budget for 2022,” says Blake.
For individuals whose income greatly improves from the previous year, either from an employment or sole proprietor standpoint, Blake suggests starting to save for potential upcoming tax bills.
When it comes to tackling debt, Blake says it’s important to understand what your credit score is by either getting your free annual report from a credit rating agency such as Equifax, TransUnion, or FICO. He also recommends creating a Credit Karma account to see if there are any derogatory marks on your credit score.
“As your score improves, your ability to be lent money improves as well,” says Blake.
As for taking measures to get out of debt, Blake says the most difficult but simplest thing to do is put discipline in place.
“The number one piece of financial health is discipline. If you are able to be disciplined in your money management and really be mindful of where your money is being spent, whether you are paying for a lot of subscriptions you aren’t utilizing, just being mindful of where each penny goes,” says Blake.
He says any excess should be set aside for savings or other things you want to accomplish financially. This is where Blake says it’s important to look at money objectively and try to take the emotional feeling out of it.
While reaching financial goals may be difficult on your own, Blake says that’s exactly why it’s nice to have a team of advisers to back you up.
“We are a collective effort, and you’ve got multiple heads and multiple eyes walking you through this process,” says Blake. “It’s not just one individual that you’ll be working with.”
He highly recommends people work with any financial professional who can give them a valuable second opinion.
For Blake, the greatest reward of the job is helping clients pursue their financial goals long-term.
“It may not be extremely fruitful at the beginning of working with a client, but ultimately we get to help people, and people get to see the benefit of working with us,” says Blake. “I use my brain and their resources to help them create the life they’re wanting to create.”
Securities offered through Triad Advisors Member FINRA/SIPC; Advisory Services offered through FinanciaLife Outfitters, LLC. FinanciaLife Outfitters, LLC is not affiliated with Triad Advisors.