I gave some thought to my experiences over the years, and was abIe to formalize my system and purpose into something I call The Three Pillars of Financial Management(TM) as you see in the graphic. Think of it as a three-legged stool. If one pillar is weak, financial stability is at risk.
The Three Pillars of Financial Management
Your money mindset is the foundation of all of your lifetime financial decisions. Sometimes our money mindset is what keeps us from living our best life, at any given stage. Being needlessly frugal or spending like there is no tomorrow can be equally detrimental to our financial and emotional well-being.
UNDERSTANDING
The first pillar is the meat of your financial stability. If your eyes glaze over when someone talks to you about financial topics that we have to negotiate, then it may be that your financial education has some gaps. Not everyone is good at this stuff, and you probably did not learn these skills in school! Not only that, but the rules change over time and if you don’t enjoy dealing with financial matters it can be hard to make yourself stay abreast of the changes.
SYSTEMS
The second pillar is the system you use to manage all the information that overloads our mailboxes and inboxes every day. Without good systems for handling mail and email, passwords and banking, you can quickly find yourself behind the 8-ball. This leads to stress, and potentially financial loss or missed opportunities to either save money or earn more.
EXECUTION
You can have a great understanding and systems in place for managing your affairs, but if something happens that blocks your ability to get things done, your financial stability is put at risk. Execution is the physical, cognitive & motivational means to maintain a stable financial life. Even procrastination can seriously hamper you from meeting goals and expectations.
What I have discovered in working with clients is that when just one pillar is out of balance, the whole house can come crashing down.
The crash is sometimes sudden, as in the case of an accident, stroke, or death of a spouse, or more often there is a slow crumble. I see this with diseases that progressively debilitate, with the progression of an aging brain, and with the accumulation of years of poor financial decision-making. My desire is to help clients at whatever stage they find themselves or a loved one:
- Crisis Mode
- Planning ahead
Those who have reached a crisis point are falling behind in their financial tasks, perhaps have been scammed, and they, or their families are overwhelmed, and probably not just with finances. For them, we put the financial fish back in the tank, reduce the stress, and manage things with and for them as long as they need help.
For planners hoping to avoid an eventual financial crisis, we offer Power of Attorney and Executor agent services. We stay in touch at least annually to stay up-to-date on changes and to make sure our services are not yet needed.