July 5th,  2024  [3 min. read]

By Drew W. Boyer, CFP®

As I was packing for my family vacation, I had my luggage out and my backpack side-by-side. Pondering for a moment, these questions came to me to ask of you:

Do you plan out your vacations? Of course! You need to get plane tickets, rental cars, event tickets, and definitely a hotel or Airbnb.

Do you get up early to make your flight? 5am flight to Florida, no problem! Monday to Friday 5am wake-up for fitness, I’ll pass…

Do you pack your worries in your luggage? No way! Vacation is to temporarily forget my problems.

Actionable takeaways:

If you can plan for a vacation, you can certainly make a financial plan for your life.

If you can wake up early for vacation, you can certainly wake up early for real life.

If you don’t pack your worries for vacation, then you can unpack them for daily life.

We all carry weight. It can be past trauma, disappointments, bad decisions, and/or indecisions. No matter what you carry around on your back, it’s always best to lay them down. It’s in the past and the path forward isn’t back. Easier said than done, I know.

What to do about bad money decisions? It’s as simple as making good money decisions.

Better put by the Will Rogers:

“If you find yourself in a hole, stop digging.”

First off, let’s acknowledge you are the direct result of the lack of financial literacy being taught at home and school. It’s not your fault your parents didn’t teach you - they probably weren’t taught either at school. It’s a negative feedback loop. The US system is inherently set up for you to stay financially illiterate and working.

Here’s the evidence:

Q: When is the only time mandated by law that a US citizen has to pass a financial literacy test?

A: Before you are allowed to file Chapter 7 bankruptcy.

Strange and painfully true. Our current system requires you to fail first, so you learn how not to fail again financially? Huh?! Why not make basic financial education an education requirement?

Luckily there are many states starting to require just this - a mandatory financial education in high school so everyone can prepare ahead of time answer these basic questions:

Life caught you without an emergency savings account? Cut out a want and replace it with this need.

Paying only the minimum payments on your credit card? Earn points, but do not pay interest.

Didn’t make a payment in time? Schedule a reminder.

Government didn’t cancel your student loans? Neither did they for me - I paid mine off over years. A debt must be repaid.

Think housing costs too much? I waited till I could afford the payment on my own home and was still terrified of a commitment as long as I had been alive for (30 years).

There are manageable ways to counter each and every one of your bad money habits or excuses. None of which are to keep doing what’s not working. Try and learn the language of money by reading, studying, or watching videos - there are countless free resources, like this blog. Worst case, get expert help from a fee-only financial planner whose job it is to put your financial life in order for you with step-by-step instructions.

The clock is ticking.

Drop those bricks and move forward with better life decisions.

Some people choose not to.

The story stops here for them.

But you - I have high hopes for you and your future success!