Planning is so important in life and business. It's not just for setting goals, but our budgets and daily planning is a very important part of our lives. Each morning I get up, grab my journal and set the course of my day. Financial planning is part of it.
The plan changes because events change. If I look at my budget it is changing because of inflation and economic changes. I have had to make changes to survive. My fees to my clients have had to increase. I don't like raising my fees, but I have had to do it because the economic landscape has changes and continues to change.
I am at the point that I truly feel that the Federal Reserve as no idea what to do. They are not addressing the inflation of the nation issue. The current Whitehouse does not know how to address inflation, instead their policies drive up inflation. So we have a problem. The Wall-Streeter economy is not our personal economy that affects our income levels. You and I live very differently than Wallstreet, we live in the real world.
Each of us are dealing with inflation and we just have to plan for a weaker economy at our level, prepare for an economic hit that can happen anytime. We don't know. but we have to prepare always.
The question is, what is your planning starting to look like? Or are you just ignoring it hoping it will pass? Be honest with that question because it is important.
In my work as a mediator I have couples that come to me for separation and divorce. The biggest dispute is the financial part of their marriage. Thank goodness I am an accountant and can explain where they are at. Debt gets divided, bills get divided. And usually, the debt outweighs the income coming in. Both parties are fighting over their financial issues because that debt should never have happened. But they wanted more and more stuff.
During the big real estate crises that we had a few years ago, the year before the crises my tax clients were out buying homes on stated income home loans. We called them "lie loans". They thought they were buying real estate investment but what they found out they could not afford the monthly payments. The loan was a bad loan to the banks and their home went into foreclosure. Some clients even declared bankruptcy. Real estate fell, clients lost their homes and bankruptcy courts were busy. The very next year my clients came into my office stating they had filed for divorce. The financial pressure got to them, and the marriage was done. They wanted more real estate, they lied about their income, they couldn't afford it, they lost several homes together, and the pressure was too much.
What is the lesson? Your financial life needs daily planning. If you want a healthy marriage and family, you have to plan your financial life. You both have to sit down together and look at your financial situation and begin planning. Divorce happens when your financial side fails. Plan well my friend.
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Michael Lodge is a Nationally Certified Professional Mediator specializing in business disputes, as well as family conflicts. He has written three books and hosts an international podcast on IHeartRadio and other podcast media stations.