Four Phases of Your Financial Journey – Which one are you in?

Planning for the future doesn’t have to cause fear or anxiety. 

But how much money should you save now to live comfortably in the future?  

In this episode, I dive into my tried-and-true framework called the “Four Phases of Your Financial Journey” to help you understand what financial decisions you can make now to better prepare for tomorrow. 

I’ve used this framework successfully for years with my clients and I think it’ll work great for you, too. Also, I’m sharing the best savings advice I received ages ago from my own mother that still holds firm decades later and could be beneficial if put into practice today. 

As you listen and review each phase of the Financial Journey Framework, notice which phase best applies to you: 

Phase 1-Savvy Savers: Main areas of focus are generally building up your 401(k), college savings accounts if you have children, purchasing a new home, or upgrading if you’ve outgrown your current home, investing in term life insurance, or prepping to help aging parents. You are more aware of how you’re spending your time and money and saving is a priority. 

Phase 2-Ready to Retire: Focus shifts to transitioning from being a saver to spending the money you’ve saved, while also considering if you have enough money saved to spend at all. Most people in this phase have a date of retirement in mind, are tired of the corporate life, have hobbies and interests they want to explore and places they want to travel. 

This group, commonly known as the sandwich generation, also faces more uncertainty since they’re trying to include both their own family and the needs of their older parents in financial planning. 

Phase 3-Loving Legacy: The magical time when you get to plan how your wealth will support the people you love and the organizations you believe in. Retirement becomes your lifestyle, the money you have coming in exceeds the money you have going out, and you’re able to enjoy spending your time and money doing what you want to do. 

You also make end-of-life plans, determine your trusts and beneficiaries, and perhaps name a successor trustee who can handle the responsibility of making sure your financial plans are followed. 

Phase 4-Life Quake: This unpredictable phase can happen at any time in your life. Life Quakes occur suddenly and can last for an unknown amount of time, but usually don’t last forever. It’s important to remember to treat yourself with compassion if you’re in this phase, and take your time before making any major financial decisions.

My goal is to support you on your financial journey no matter what phase you’re in and hope you find this framework helpful. 

In this episode, you’ll also hear:

• What it means to be in the sandwich generation 
• Advice for working with a financial planner 
• Why compassion is important in times of uncertainty

Must-listen moments: 

[00:13:05] My mom said we could spend half and we had to save half.  So when our piggy banks reached a certain level, say $10, we could go to the toy store…then I could spend $5 and she would put $5 in a passbook savings account. 

[00:18:40] I recommend saving somewhere between 10 & 15% of your take home pay. If you’re not there yet, then just make a goal of spending a little bit less each month, and saving a little bit more each month.

[00:20:17]  The main characteristic of this time of your life is the uncertainty it brings up…this is the time where you begin to ask yourself, have I saved enough?  Can I retire and enjoy the same lifestyle that I have now? 

Thank you for listening! Please share this episode with 2 friends you think need to hear it!

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https://www.linkedin.com/in/danette-lowe-cfp%C2%AE-9b7bb716/

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Contact Danette Lowe:

Email: [email protected]

Phone Number: 775-364-0010