Pricing Your Passions

The stock market softens when the U.S. government goes into shutdown mode. Then it pops when the shutdown resolves itself, only to drop when it appears market interest rates may stay higher than expected. But the market always sways. Only the causes differ.

The good news. Whatever you call “my financial plan” is within your control. How you spend beyond the basics is how you price your passions.

Do you need a financial plan?

Likely.

Does building a financial plan require you to be rich?

• Never. My students built financial plans for individuals mostly under the age of 30.

Does building a financial plan require you to dig up a mountain of data?

• No.

Does building a financial plan require you to be financially literate?

• Nada. You will become more knowledgeable, though, with my help.

A financial plan built with economic methods will help you know how much to save. An economics-based financial plan provides a decision tool for every consequential financial decision.

I’ve changed my mind.

💯 you’d benefit from a plan.

The Alternative

“Conventional financial planning.”

Conventional means copping to the prescription of financial services firms that want high income, high net worth people to buy their products. Their financial planning process is bland, generic, and unscientific. It is mostly about how you should save money with them.

Personal storytime.

We just sold our home in Texas. Proceeds went into our brokerage account while we were waiting to close on our new home. A couple of days ago, I received a call from a financial advisor representing the investment company we use. Noticed a chunk of change had dropped into our account, and he wanted to help. I don’t know Bucky. He must have known I am a self-directed account holder, unaffiliated with a specific financial advisor. Don’t blame him for making his marketing call, but it was about him, not us.

Conventional financial planning is a blurred line.

Finance is a social science. Financial planning should be, too. Both are extensions of economics.

Math is involved.

Principles apply.

There are very important details to help you launch toward a higher living standard.

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Today’s early access for paid subscribers is in this short explanatory video,