Gaby Delisme founded Facing Finances to share strategies that are designed to help individuals increase their net worth, increase the value of their estate, and ultimately build generational wealth. Equip yourself with the information you need to make the best decision for you and your family; those present and to come.
Inflation reached a 40-year high in the United States in 2022 and we are still feeling the effects in October 2023. The year-to-date inflation rate in the United States was 5.9% through August 2023. That's almost double what inflation averages historically.
Managing your money is an ongoing journey with various stages throughout your life. By empowering yourself with knowledge, you've taken a crucial step. Now, take action and prioritize your financial well-being.
The beginning of the year is that time where we tend to feel refreshed and I take time to looking at my goals through this eager lens as a means for me to stay focused and continue to move forward. In addition to reviewing my already established goals, I take some time to write down anything that is not on my list. Studies show that we are 42% more likely to achieve our goals if we write them down. In addition to that, one of my favorite passages in the Bible is Habakkuk 2:2-3.
Some will say that making money mistakes when you are young is acceptable because you are learning. I say if we learn the principles of wealth management and teach the generations that are to come, they can avoid the pitfalls that caused us to stumble.
I’ve done it all right and done it all wrong. Although I have an undergraduate degree in Finance (from the amazing Florida State University), I did not have one personal finance class throughout my academic career. I graduated with 20+ credit cards. Do you remember the organizers with the slots for cards, I was the person who filled them all up with different credit cards and I was crazy enough to carry them with me. Can we say prime target for identity theft?
Many people world wide are facing reduced hours or have been laid off from their jobs completely. Shelter and food are a basic necessities. What do you do if you can’t pay your mortgage or rent?
It is best to address things as soon as you are aware that there may be an issue. This gives you more time and potentially more options. Find out what resources are available to you before your rent or mortgage payments are actually behind.
I know it’s tempting to shop your heart out online while we’re quarantined, but pump your breaks and maintain a social distance from online shopping.
Take a moment and identify what you do not have in your closet or home that you truly need. My guess is that list is very short. Do yourself a favor and use what you already own.
Let’s talk about what you can do today, right now, to help offset any disruptions you may see in your income.
How much discretionary income do you have? Your discretionary income is any money you have left over after you pay your necessities (ex: taxes, shelter, groceries, costs associated with transportation, medication, etc.). So, how much “extra money” do you have that can be set aside in case you need to tap into it?
If you’re asking what how this correlates to you as an individual, we’re turning that corner right now. When I think of the Sears story, I think of how critical evolution and prudent decision making are to success. Sears lost their way. They became less and less relevant and sometimes we as individuals go through the same thing. Sears thought the answer was to keep pouring money into the company without changing the strategy. Throwing good money into a bad or outdated strategy is no different than using cash to feed a bonfire. Let’s identify the areas in our lives where we need to course correct, put a plan in place, and take action to achieve our goals.
Within a matter of weeks, the item that was marked down to $40 jumped to $135. The original price of the blazer was $180. They are great quality and last for years, but that price point is more than I am willing to pay for a garment of clothing. When I notice they are having a sale, I proceeded quickly to identify what I wanted and ended up buying 5 blazers that day. If you’re asking yourself how does this relate to the stock market, I’m getting there.
On October 10, 2018, at 3:45PM EST, I looked at my account and all I saw was red. All I could ask myself was “what the heck is going on today”. I didn’t know if what was happening was related to the political climate in the U.S. or if something had taken place internationally. I flipped on CNN and Bloomberg and saw, “BREAKING NEWS - STOCK MARKET DOWN 800 POINTS”.
Everyone is panicking and selling out of their positions.
In order for this strategy to work, we have to increase the financial literacy within our families and communities. We must be aware and also make the next generation aware of the tools that can be in their toolbox. Take a few minutes to share this article with someone who will benefit from what you just learned.
We aim to share strategies that are designed to help individuals increase their net worth, increase the value of their estate, and ultimately build generational wealth. Achieving any goal starts with a plan and tackling it strategically. Our financial goals are no different. Tax planning is one aspect of personal finance that we need to keep in mind on the way to hitting our targets.
