10 Financial Planning Questions Answered
How much should I really be saving? Can I just let my debt sit? Or should I just wait to work on finances until I think about purchasing real estate ? Krista Neeley, the Regional Vice President of Appreciation Financial, answers questions you may have wondered about personal finances.
P: Why is financial planning important?
KN: Our financial health and strength is just as important as our mental, emotional, and physical health and strength. Taking time to better understand and empower yourself financially can be the backbone to creating the freedom, flexibility, and peace of mind you desire for your future. Having a strong, stable foundation for your finances is the easiest way to create a bright future in all other arenas of your life.
P: What are the basics of components of a solid financial plan?
KN: 10,10,10,70 Principle. It may sound complicated at first, however, it's a simple break down of what to do with every dollar. 10 % to invest in your future 10% to save for yourself (first principle of wealth building!) 10% to give to charity. A simple principle of finance, if you want to have more money, give more money. What you give always comes back to you! 70% is yours to spend!
P: What's a common misconception about financial planning? Why is it wrong?
KN: A common misconception is that finances are complicated and/or expensive. Finances will only grow if you start saving and stay committed. If you select a savings habit, program, or solution the best thing to do is stay committed long term, if you have time on your side savings does not have to break the bank or be difficult!
P: How diverse should a portfolio be?
KN: The biggest diversity I can suggest is being diverse in your tax codes. You do not want to have all of your savings or retirement income wrapped up in future commitments to the IRS. Save diversely in your tax codes first, then look at different investment strategies for each code. You should also have at least one savings vehicle that is stable, guaranteed, and protected from loss that is intended for RETIREMENT, the money intended for retirement should be secured if you want a secure financial future.
P: What is more important: a portfolio's longevity or its diversity?
KN: Both, you want diversity in your tax codes and investment strategies, however no account will be valuable unless it has the time to grow effectively.
P: If you want to manage your own finances, what are pitfalls you need to avoid?
KN: Avoid any fees that have no long-term benefit. High fees can eat up your account value and are the quickest way to unnecessarily deplete your savings. Fees can be beneficial if they are for something specific (i.e.: riders, benefit, guaranteed returns) however simple management fees can be destructive over extended periods of time.
P: Someone is starting from scratch, what questions does a person need to ask?
KN: Asking what the fees are, company ratings, historical returns, income options, benefit options, and my favorite, ask the adviser offering the product why this strategy would best meet your financial goals.
P: How do you balance paying off debt and saving?
KN: Savings should be a long-term solution and habit (initiated at a young age is best), and debt should be a short-term situation. Promising to pay yourself (saving) 10% of your income is vital, you cannot expect to feel or gain wealth when you blow every dime that comes to your pocket. Debt can be eliminated in chunks and should be done consistently regardless of immediate desires (like a Starbucks drink) or instant gratification (like eating out or impulsive spending).
P: How much should a person be saving?
KN: Savings should be a minimum of 10% of your income for yourself, 10% of your income for your future. If that feels like to far of a stretch start with 2%, 5%, 7% and build your way up to 10% in BOTH categories!
P: Why hire a financial advisor?
KN: Having a trusted financial mentor is helpful when navigating a steady and exciting financial future. There are ways to get support in your finances without it costing you a penny out of pocket, so seek agencies like Appreciation Financial or others who can offer you assistance without a direct cost.
Every time payday rolls around, I’m on top of the world. Jeff Bezos-level rich - even though I’m anything but. And then somehow the very next day, rent is due.
The cycle continues. The next payday, bills for my apartment. I find myself without a surplus of savings since I just moved and newly-furnished my apartment completely.
Even more terrifying is the looming presence of the holiday season. Halloween’s officially over and before we know it, hello Thanksgiving…and then there’s Hanukkah, Christmas, New Year’s. It’s insane.
I’ve been feeling very British lately. Not in a Union-Jack-obsessed, “Keep Calm and Carry-On” way. I went through that phase in 2012 with everyone else… no thank you. And it’s not even a surge of patriotism catalyzed by the Queen dying — I’m firmly team Diana and team Meghan.
Now that fall is officially here, the holidays will sweep in and I’ll have to contend with the fact that I won’t be spending them with my family in the UK. I went home to London earlier this year, so there’s not much left in my travel budget for another trip across the pond. A few domestic jaunts might be in my future, but the closest I’ll get to England this winter is watching Love Island and Love, Actually.
So in that spirit, I’ve been filling my days with content from my favorite Brits. I’m listening to all the old British rock bands I grew up listening to, patiently awaiting the new Arctic Monkeys album, and rewatching anything with Michaela Coel in it. I even shipped myself an order of British Baked Beans, so you know it’s dire.
I’ve also been watching British YouTubers like Grace Beverley — my favorite. Generally, I only go on YouTube to watch Vogue Beauty Secrets and AD Open Door videos. But I’m so glad I stumbled on Grace. Her content is a mix of London lifestyle (what lured me in), relatable entrepreneurship, and mindful productivity. I’m not a hustle-and-grind-girlboss, but as a creative person in a 9-to-5, I need all the help I can get to stay plugged in. So, the video “how to be really really really productive without getting overwhelmed” changed my approach to WFH.
Grace outlines her own productivity method: the to-do table. Instead of making a simple to-do list, she divides her tasks into a table that anyone can follow. As someone who’s survived with to-do lists for years, I recently implemented Grace’s method, and it’s revolutionized my workdays.
how to be really really really productive without getting overwhelmedwww.youtube.com
I follow her routine to a tee. Here’s how it works:
Essentially, she divides her daily responsibilities into four categories: quick ticks, tasks, projects, and non-negotiables.
- Quick Ticks: Actions that take less than 5-minutes
- Tasks: To-do’s that take up to 30-minutes. Probably don’t take too much brain energy.
- Projects: Long-term list items. These help guide your priorities, even if you’re not crossing them off in one day.
- Non-negotiables: Pick 3 things each day that you must get done. This is how you’ll truly measure success.
With everything written down and sorted, next address your schedule. Meetings, deadlines, and time blocks — whatever works best for you. Write it down. Then make a pact with yourself to stick to them.
This way of categorization provides a roadmap for prioritizing your day — making you far more productive. Have you ever spent the entire day on small tasks and then suddenly realized you hadn’t moved the needle on any task? Or do you spend way too much time on tasks that aren’t a priority? No more. With your non-negotiables laid out, you know what to laser-focus on and what to dedicate energy towards.
Also, it pays to know your working style. I’m not a morning person. Yet, I have to be up and at ‘em super early. So, first thing in the morning, I march through my Quick Ticks to warm me up. I set a time limit, so I can knock out some easy wins which is totally inspiring. Then I move on to bigger things without lingering on emails or admin. For others, it might be more helpful to tackle the big things with all that early-in-the-day brain power earlier.
Grace has great tips on avoiding overwhelm and burnout. My favorite is taking more intentional breaks rather than scrolling through social media. I call this scrolling “productive” because I’m “coming up with pitches.” Oh, the lies we tell ourselves. It’s more productive in the long run to giving my brain a break with non-screen related stimuli.
Grace’s solution? Set a timer to read a real, an actual book. I’ve never thought of this. It’s a genius way to check off some books on my TBR and kickstart my creativity. After reading a good book, I’m completely inspired to write. So having books near my desk helps me step away from the computer during my lunch break for an actual reset. (And yes, the current books I’m reading are by British authors: Assembly by Natasha Brown, and Love in Color: Mythical Tales from Around the World, Retold by Bolu Babalolu.)
In my pursuit of switching out my WFH set-up and getting my life together, I’ve engineered my workstation for success. With my new WFH essentials and Grace’s productivity technique, I’m revitalized for work — despite the fall blues and my melancholy about the pending holidays.
Here are the things getting me hyped for work and helping me crush my Grace Beverley-inspired to-do tables — no lists in sight:
Pack your bags — Southwest Airlines is having a major sale! Fares are as low as $59 one-way if you book by October 3rd.
This end-of-summer super sale is a game-changer for your travel plans through the end of the year. Summertime travel gets all the glory. But why not take advantage of your long weekends, holidays, and PTO this fall. You’ll be surprised at how much travel you can fit in. Keep the fall/winter season exciting with domestic trips that give you all the excitement without breaking the bank. All thanks to Southwest.
Here’s the breakdown:
Where can you go?
You’ll find discounted tickets to and from most airports. Sale fares apply to cross country travel, and even Hawaii, Mexico, and the Caribbean! Whether you’re visiting a new city or revisiting your last beach vacation, this sale has fares to make your travel dreams come true.
What do the fares cover?
Southwest Airlines has multiple fare tiers, each with various benefits. Wanna Get Away fares start at $59, while Wanna Get Away Plus fares start at $89. You can also find great deals on Anytime fares, which offer priority boarding and express lanes. Then there’s Business Select tickets for a luxe experience at an affordable price point.
Do you have to be a Southwest Rapid Rewards member?
You may think these sale fares are too good to be true. Is there a catch? Do you have to be a Southwest Rapid Rewards member to access them? You’re in luck — anyone can attain these fares for a limited time.
But, insider tip, you should consider signing up for Southwest Rapid Rewards. With a free sign up, you earn points and miles with each trip you take. And with this sale, each dollar you spend on these discounted tix can stretch super far until you eventually earn free travel. The only thing better than a sale is free stuff.
I’ve been browsing the Southwest Airlines site, checking out flights and dreaming.