How to Prepare Your Finances Before Quitting Your Job

With preparation, anything is possible.

Confessions of an Overnight Millionaire

You may have heard that IPO (“Initial Public Offering”) mania is nutso (technical term) this year. This honest article about becoming an “overnight millionaire” is very timely. Not everyone involved working for a company that has an IPO becomes a millionaire when their company goes public, but some do.

Working with clients who become wealthier than they ever imagined, there are critical considerations. First, there is a huge adjustment period with new wealth. Normal people build wealth over years and years of savings and investing, but an IPO for an early employee can give someone massive wealth in minutes. It’s truly amazing and an honor to be present the moment someone’s wealth changes like that. Next, there is learning that there is a big difference between getting rich and staying rich. Good problems to have! The rest of us will just keep plugging away. ?

Go Big, Then Stop

When my kids get their first “adult” job after college, this is the advice I will give them. “Compounding money is easier than saving money.”

It reminded me of my husband’s best friend’s parents who were both teachers. I met Mr. and Mrs. B when I was 22 and thought they were the coolest. They were super active, fun, lived on a lake, and seemed like they didn’t have a care in the world. Mr. and Mrs. B were on track to retire at 55 without worrying about money. What was their secret? They said as soon as they got married, they lived on one teacher’s salary and saved the other person’s salary – even while raising 2 kids!! Um, what??

Mr. and Mrs. B used what they could control – their savings rate and their spending rate – to reach their financial goals. Add the magic of compounding and voila, a stress free retirement. The B’s and their adult children said they never felt deprived living so frugally. ??‍♀️ I feel deprived just thinking about it! Every household has to figure out what works best for them.

What advice will you give your kids about money?

Abundance & Scarcity: The Enemies of Appreciation

How too much or too little of anything can lower your sense of well-being.

There’s No Wellness Without Financial Wellness

Sallie Krawcheck talks about the important difference between financial wellness and financial independence. We can all strive for financial independence someday, but we can feel good about our money everyday. Financial wellness is defined as “knowing what you have, knowing where you’re headed, and feeling good about it.”

How Much Money Do You Really Need in Your Emergency Fund

This question gets asked a lot. This article gives some good rules of thumb. My clients and I call an Emergency Fund the “F#$k You Fund” aka FU Fund. You want enough cash in there to have the choice to walk away from a job/bad situation or towards something better if something unexpected happens. The actually dollar amount is different for everyone.

These 2 Emotional Biases Could Kill Your Retirement

Overconfidence and Following the Herd. Not surprising.

2021 Emmy Winners: Complete List

I don’t actually watch the award show ceremonies, but I love seeing the fashion. This year there were beautiful jeweled colors and lots of showing-your-underwear looks. ? I also get ideas for new shows to watch. From this year’s winners, it sounds like I need to add “Mare of Easttown”, “I May Destroy You”, and “Hacks” to my Watch List. Did you watch any of these shows?

Jean Smart won “Best Lead Actress in a Comedy”. I’ve loved Jean Smart since watching her on “Designing Women”. Julia Sugarbaker – the OG badass boss.

Enjoy!

Disclosures:

BW Financial LLC dba BW Financial Planning is an Investment Adviser registered with the State of Colorado.

All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication’s conclusions. This communication is for informational purposes only and should not be construed as legal, accounting and/or tax advice. Should you have any questions and/or issues in these areas, please consult your legal, tax and/or accounting adviser.