World Financial Planning Day
I had some articles in my phone because I like to browse reading material when I'm bored. You never know when you might come across something useful. As it just so happens, I saved this one Bankrate article: 2 in 5 Americans regret not saving enough for retirement or emergencies.
Money's an interesting situation because I didn't exactly take a financial literacy course to get ready. I signed up to go to a private business school for college and took on debt I couldn't even conceptualize. Now, I don't mean to aggrandize my story. Plenty of people took on debt. Plenty graduated. But I still feel like I could've played it smarter when I reflect. I could've done more homework. Problem is, after slogging through high school, doing more homework, on top of getting away from home for the first time in my life, was far from my mind.
The Wisdom from Bankrate
Many Americans wish they had started saving earlier, particularly for long-term goals like retirement or emergencies. And I'm one of of the folks who know about feeling like you started too late. A lot of things I just started after too much time passed, and I don't want retirement, savings, money of any kind to be an issue like that later on.
It's the pits.
It's like I read from American psychologist, Barry Schwartz. People seldom regret mistakes they made, some survey showed. The real catch was many people often feel strongly about things they didn't do.
I wish I'd paid more intention in school for example. Listened to people less, and followed my own intuition. Stuck with some plans I laid out for myself instead of always chasing my tail, running with others because running just seemed like the thing to do.
What's more, working in crypto, you find a lot of people have these financial regrets. Lane Gillespie says 77% of people have a financial regret, including people who wished they saved for retirement, people who wished they saved for emergencies, and some who regret racking up debt with the plastic card.
Blame the anime for the uplifting and determination, but you can only accept it's not too late to start today. I think about how much I don't have a lot, how much people spotted me just to have me there. And I'm grateful, but think to myself, I do. How much more fun could it have been to have been prepared? It's not like tragedy struck, fortunately. My struggle came from a lack of effort on my part. So if you feel like I'm ever compensating for something in these blog posts, you know where it stems from in part.
I'm done, not giving it my all. One rapper I like put it best, "You get out what you put in. So me, I give it everything."
I encourage my readers to take small steps today. Setting up an emergency fund, no matter how small, is the first step toward more robust financial security. Don't be like one guy I ran into in crypto.
He was without a job, with two kids and a sick wife or something. He was playing at being a community moderator for these different memecoins, too. He certainly posted a lot on Twitter, to his credit. I'm sure people thought they could use his efforts
But you know what he said to me? I introduced him to this platform as a way to add to his pockets, and after making almost $100 on his very first post, he tried to cash it out. I was walking him through the steps to get it to an exchange, and he said, "This isn't enough to take out. I can't use this. I need more than this."
I don't know what you think but ingratitude isn't the way to any type of success. Imagine hearing from a guy who's asking you for money, that the money he made himself while he didn't have a job, all from posting on online, wasn't enough. I digress.
The Wisdom from CNBC
Now the CNBC article on debt management is especially good on a holiday like today's.
I read something that's a bit similar to another piece I read from Forbes. "Rewrite your money story."
The counsel for the indebted couple goes like this: it's about the principle, not the tactic. To control your spending by making different decisions doesn't address the root. For me, my root was pleasure. I have my reasons and feelings, but without a doubt, I am a young hedonist.
The other important piece involves an R-word people don't like: rules. Rules help you form systems which help take the individual decision-making process out. You don't get bogged down by the choices at a restaurant when your rule is to pick your favorite protein and a vegetable option.
You pick chicken first, if they don't have it, then ground beef, and if not that, then shrimp. Along the same lines, are you permitting every purchase? Or do you buy what you need when you need it? One rule I like because it's definitely stopped me from some dangerous spending: 'if you can't buy it twice, don't buy it.'
In all, you need clear rules, not gimmicks. Nothing in life simply sorts itself out. I think it was a firefighter on this platform who was telling me the universe tends towards chaos, decay. Think he said it was entropy.
The latest rule I'm trying to follow is to track my spending, inflows versus outflows. The late Nipsey Hussle always said, "All money in, no money out." Say what you will about his lifestyle and past. We will never see his like again.
It’s the Little Things That Add Up
I sound like a broken record, but mostly because repetition is the path to progression, another one of Nip's adages. Small steps can lead to big changes. I'm echoing a bit of James Clear as well to that end, but surely you've heard this advice in one way or another.
It's worth noting that both articles point out the impact of daily financial decisions. From Bankrate, not saving can lead to regret. From CNBC, wild spending can lead to debt. And from me, you'll retake whatever lessons you forget. The choice is yours.
Financial planning always felt like something you do when you win big, or have a lot. I know a lot of people who act like that, myself included. But it isn't so. The journey of a thousand miles begins with the first step people often say, but overlooked I think is that the whole trip is made of just that: steps.
Make sure the steps you take lead you where you want to go.
Even if it's a small change today, like cutting back on non-essentials, revisiting your budget, or setting up auto-transfers, do what you can. That's all you can do.
I'll wrap up by saying, the first of the month is great for starting goals. Hell, so is the second. But if that's not enough, I think World Financial Planning Day is a great reason to take a look at your pockets and decide if you like how they look. If you don't, remember, you're not alone.
