Know anyone with a shopping addiction? You know, they just love getting their daily package. Now with being at home every day you find you’re on a first name basis with the FedEx driver. Or is this just me? Look, it's easy to lose track of what we spend money on, and being out of a routine and spending more time online just “supports the habit.” The article on “How to manage your finances.” isn’t anything new or revolutionary. However, from time to time its good to revisit the basics. Building wealth is much less about your investing habits (asset allocation) and much more about your savings habits (capital allocation). You can move money around and try and pick all the right stocks in your e-trade account but if you aren’t saving enough money it wont matter. Building wealth is about doing the basics right day in and day out. A professional basketball player probably didn’t need to shoot free throws every single day, but they did. A professional hockey player probably doesn’t need to skate every single day, but they do. The little things matter and make a big difference over a long period of time.
I posted the article for its very last sentence. Your personal finances should indeed reflect your values. That’s just one more reason why you can’t get advice from a magazine or a TV program. How you spend your money does reflect your values and I would argue how you invest should be in line with your personality. Having a plan can help put you in a place where you can spend with confidence knowing you are saving appropriately. And having a customized portfolio and help build greater confidence in your investment strategy. Giving you the added confidence you may need during bad times in the market.
Beside practicing the basics, professional athletes have something else in common. They all have a coach.