Don’t overindulge in money matters

Yes, I warmly promote financial education; I am honestly excited about the positive impact of well-crafted investments and financial decisions on individuals and families well-being. I genuinely think we all need to improve our financial acumen and be on top of our financial future.

However, it is common to invest more time planning our holidays than planning our financial future. The financial author JJ Collins honestly reported his daughter’s opinion:

“Dad, I know money is important. I just don’t want to spend my life thinking about it”.

Nothing wrong with that. Indeed, money management should take limited energy and time. However, I trust you have better things to do with your time than spend it dealing with money matters: you might have a profession you like, a family or friends you want to spend more time with, hobbies and sports you love, places you want to visit, books and articles you want to read.

As such,  I share a few underlying assumptions to my approach:

• Money is a means to an end; it is a great servant, but a bad master. Use money to measure finances, to store savings, to build investments, and to have financial security. Nothing more to it.
• It is just a tool that requires some technical and soft skills to be mastered. A few hours a month will do (read a few articles, monitor the portfolio and net worth, adjust it annually, etc.). You can be on top of things as a “weekend Investor”.
• There is always a moment in someone’s life when you feel the need to take full control of your financial future. However, it is much better to do it sooner, out of inspiration, than later, out of desperation. 
• Money matters have a huge impact. Buying a house? Signing loans? Don’t treat defining an investment or retirement plan as a hobby. Mastering the basics will set you free, financially and mentally. If you don’t build up the minimum financial skill-set to manage money, you will end up worrying about money for the rest of your life.
• The more you procrastinate on small money talks, the more you will have to think about big money issues down the line. So it is much better to manage small money issues monthly and annually than dramatic money “dramas” every decade.
• Money is a proxy for opportunities and wider options in life. Your focus is on the adventurous journey through the opportunities you find or create, thanks to your solid financial outlook.
• Money management and investing are not games to be entertained with; it is not an opportunity to challenge yourself by beating the market. It’s best to look elsewhere for excitement. 
• You can drive yourself crazy going down the rabbit hole of potential financial landmines. But after a certain point,  you have to control what you can control and then live your life. Once you have a good handle on your spending, live below your means, secure your investment contributions, diversify your investments and plan for your financial future, that’s about the best you can do.
• I trust you are not like Warren Buffett; you might want to have a life outside Financial Statements and Board of Directors meetings. So, unless it is your full-time profession, cap the time and energy you put into financial matters; build your F.U. money, and align your lifestyle with your financial strategy (and vice versa).

Sweat Your Assets…and enjoy your journey!