{"id":45,"date":"2021-09-22T16:18:28","date_gmt":"2021-09-22T16:18:28","guid":{"rendered":"https:\/\/bwfinancialplanning.com\/2021\/11\/04\/what-ive-been-reading-september-22-2021\/"},"modified":"2023-02-17T23:55:07","modified_gmt":"2023-02-17T23:55:07","slug":"what-ive-been-reading-11","status":"publish","type":"post","link":"https:\/\/bwfinancialplanning.com\/?p=45","title":{"rendered":"What Would You Do If You Were a Millionaire?"},"content":{"rendered":"

How to Prepare Your Finances Before Quitting Your Job<\/strong><\/a><\/h3>\n

With preparation, anything is possible.<\/p>\n

Confessions of an Overnight Millionaire<\/strong><\/a><\/h3>\n

You may have heard that IPO (\u201cInitial Public Offering<\/a>\u201d) mania is nutso (technical term) this year. This honest article about becoming an \u201covernight millionaire\u201d 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.<\/p>\n

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\u00a0in minutes<\/em>. It\u2019s truly amazing and an honor to be present the moment someone\u2019s 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. ?<\/p>\n

Go Big, Then Stop<\/strong><\/a><\/h3>\n

When my kids get their first \u201cadult\u201d job after college, this is the advice I will give them.\u00a0\u201cCompounding money is easier than saving money.\u201d<\/em><\/p>\n

It reminded me of my husband\u2019s best friend\u2019s 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\u2019t 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\u2019s salary and saved the other person\u2019s salary – even while raising 2 kids!! Um, what??<\/p>\n

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\u2019s and their adult children said they never felt deprived living so frugally. ??\u200d\u2640\ufe0f I feel deprived just thinking about it! Every household has to figure out what works best for them.<\/p>\n

What advice will you give your kids about money?<\/p>\n

Abundance & Scarcity: The Enemies of Appreciation<\/strong><\/a><\/h3>\n

How too much or too little of anything can lower your sense of well-being.<\/p>\n

There\u2019s No Wellness Without Financial Wellness<\/strong><\/a><\/h3>\n

Sallie Krawcheck talks about the important difference between financial\u00a0wellness\u00a0<\/em>and financial\u00a0independence<\/em>. We can all strive for financial independence someday, but we can feel good about our money everyday. Financial wellness is defined as\u00a0\u201cknowing what you have, knowing where you\u2019re headed, and feeling good about it.\u201d<\/em><\/strong><\/p>\n

How Much Money Do You\u00a0Really<\/em>\u00a0Need in Your Emergency Fund<\/strong><\/a><\/h3>\n

This question gets asked a lot. This article gives some good rules of thumb. My clients and I call an Emergency Fund the \u201cF#$k You Fund\u201d 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.<\/p>\n

These 2 Emotional Biases Could Kill Your Retirement<\/strong><\/a><\/h3>\n

Overconfidence and Following the Herd. Not surprising.<\/p>\n

2021 Emmy Winners: Complete List<\/strong><\/a><\/h3>\n

I don\u2019t 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\u2019s winners, it sounds like I need to add \u201cMare of Easttown\u201d, \u201cI May Destroy You\u201d, and \u201cHacks\u201d to my Watch List. Did you watch any of these shows?<\/p>\n

Jean Smart won \u201cBest Lead Actress in a Comedy\u201d. I\u2019ve loved Jean Smart since watching her on \u201cDesigning Women\u201d. Julia Sugarbaker – the OG badass boss.<\/p>\n