Here we are, facing a situation that we’ve never faced before. Most of us have been sheltering in place for close to two months and are anxiously awaiting the green flag, or is it yellow, to give us the go ahead to proceed cautiously out into the world again.
Last month, I wrote a blog about helping young people get started on their investing journey. If you boiled the advice down to one sentence, it would be —take responsibility for your financial future because if you don’t, who will?!
I’ve been thinking about that a lot lately and realized this is good advice in many areas of life. Everyone needs to take responsibility for their LIFE. If you think about it, you need to take responsibility for your health, your job/career, your role in the family, your finances, your relationships, your happiness, you should even be responsible for the end of your life, whether that be spiritually or just making sure that you don’t leave a mess for your loved ones to clean up after you’re gone. So, if this is what we’re supposed to do– take responsibility, then why don’t we? What keeps us from taking responsibility?
Take a closer look at Financial Responsibility
Let’s examine financial responsibility first. Here are some of the things I hear from people: I hate dealing with money, my parents didn’t teach me what to do with my money, I don’t make enough money, I’ve never been good with money, the stock market scares me, I don’t want to have to think about money. The worst for me is hearing these comments from women. Statistically, the women will outlive the men. Most women will be solely responsible for their own finances at some point in their lives.[i] And statistically if that’s the case, I’d like to see them participating and understanding their financial situation now, rather than learning about it when they’re older and/or grief stricken. Women bring a different angle and point of view to the family plan and their ideas need to be included.
What is Financial Responsibility?
You may have a different definition for financial responsibility. For me, it is managing your money in an intentional way that reflects your values today and prepares you for the future so that someday you can be financially independent.
What is your Definition of Financial Responsibility?
Some people think being financially responsible is leaving a legacy for their family, others want to donate everything to a worthy charitable cause when they are gone. Everyone’s definition will be a little different which illustrates that we’re all unique but we all should be striving toward something in the future.
Reflection—what do you want your Financial Future to look like?
While our pace is still a little slower, before life heads back into full tilt, I encourage you to reflect on what you want your financial future to look like. What makes you feel financially responsible?
If you want or need a sounding board on this topic or any others, reach out to Impact Wealth Advisory, we are happy to help you with life’s hard questions.
Until next time, stay safe and healthy!