Save, Spend, Review… Repeat

More and more lately, perhaps as a result of the post-pandemic world, I am being asked for basic financial advice – from both young people AND those in the over-55 crowd. By the way, the over-55 crowd who ask this question are typically wealthy with comfortable lifestyles. The basic financial advice they seek includes the question, “Are we OK financially?”

A handful of smart people ask for further definition of “OK” and then ask the same question, “Well then, are we OK financially?” The answer comes down to super-basic elements, and thus today’s short edition of TGIF 2 Minutes.

Being “OK” financially – or on course for “OK” financially – involves a rather simple set of actions. One or more of the actions are beyond human control but the vast majority of these actions are almost entirely within human control.

Within human control:

  • Saving (amounts can vary but saving is controllable)
  • HOW MUCH can be controllable; HOW needs advice
  • Spending
  • Reviewing (make time for this one with a professional)
  • How hard an individual or team works in the work place

NOT within human control: (there is a “BUT” here)

  • Investment growth

Investment growth is unpredictable given markets, interest rates, the economy, luck, timing, government and fiscal policy, supply, demand, etc.

The BUT alongside “investment growth” equates to a certain combination of asset allocation, portfolio design and (just plain) time that make investment growth more likely over the long-term, with history as a guide. Investment growth is truly not within human control, BUT factors leading to investment growth can be within human control.

Thus, leading to the mantra: Save, Spend, Grow, Invest, Review. Repeat.

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