Our Blog

Build flexibility in your plan

by Kevin Janiec, CFP®

Doesn’t it seem like every time your financial plan starts working for you something unexpected pops up?  My wife and I have been continuing to save for a future home renovation, but it feels like whenever we begin to make meaningful progress on our future goals, we find ourselves reacting to an unexpected expense in our current reality.

For example, we just had to replace the compressor in our HVAC system and repair the damaged drain pump on our washer machine.  Shortly after those repairs, we learned that the biggest Ash tree on our property was subject to one of those “tree diseases” and likely needs to be cut down.  This is all while the monthly costs as a young, social family are significantly inflated.  So much for those new white kitchen cabinets and modern countertops that we were envisioning.   

Fortunately, we’ve built sufficient flexibility in our plan, so the frustration of these inconvenient expenses will not throw our top priorities off track.  For us, financial flexibility at this stage of our lives primarily comes down to these 4 steps:

  1. Build a cash cushion
  2. Systematically invest after-tax money into a brokerage account (in addition to retirement savings)
  3. Have access to timely potential financing
  4. Routinely discuss and adapt our priorities

We’ll break down each of these steps with greater detail in future posts.  In the meantime, what steps have you taken to build flexibility into your financial plan?  Oh- and did anybody else know about this Ash tree disease?

Investment Advice offered through FC Advisory LLC, a registered investment adviser doing business as “New Wealth Project” and as “Financial Coach”.  This content is provided for informational purposes only.  Views and opinions expressed are those of the authors and do not necessarily reflect those of FC Advisory, LLC.  Information provided is not and should not be interpreted as investment, tax, legal, or other professional advice or recommendation by FC Advisory, LLC or the members of our firm.  Always consult the appropriate professional regarding your specific situation before implementing any options presented or inferred.  FC Advisory LLC, All rights reserved.

Share:
Share on email
Email
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on facebook
Facebook