My Sacrilegious Personal Finance Beliefs

​Personal finance was my first love in the money world. I was a saver before I ever knew what investing even was. Yet my relationship with personal finance has evolved as I’ve aged and I've changed my habits as my views expanded.

Many of the personal finance rules written in stone will always apply and none of these should surprise you; live below your means, pay yourself first, stay out of credit card debt, save for emergencies.

However, after more than a decade as a Certified Financial Planner there are other personal finance commandments I don’t completely agree with anymore and I wonder if some of these might raise eyebrows:

Belief #1: Early Retirement Isn't for Everyone
While the idea of retiring in your 40s or 50s sounds appealing, it's not a one-size-fits-all solution. Early retirement requires extreme savings and frugality, often at the cost of enjoying your prime years. For many, the sacrifices needed to retire early might outweigh the benefits.

Instead of fixating on early retirement, consider aiming for financial flexibility. Build a career you enjoy, which allows you to work on your own terms. Embrace lifelong learning and adaptability. By focusing on financial freedom rather than an arbitrary retirement age, you can create a more fulfilling and less stressful life.

Belief #2: Debt Can Be a Useful Tool
The conventional wisdom is to avoid debt at all costs. While high-interest debt like credit cards can be detrimental, not all debt is bad. Leveraging debt can be a strategic move in building wealth. For example, taking on a mortgage to buy property can be a sound investment, if the value of the property makes sense with current interest rates. Similarly, using student loans to invest in your education can lead to higher earning potential.

The key is to differentiate between good and bad debt. Good debt, used wisely, can open doors to opportunities and financial growth. Bad debt, on the other hand, should be minimized and managed carefully. Understanding this distinction is crucial for making informed financial decisions.

Belief #3: It's Okay to Spend on What You Love
Frugality is often preached as a cornerstone of good financial health. I subscribe to living below your means. How else are you going to build wealth if you don’t spend less than you earn and save the difference? But most personal finance experts take this to the extreme. Life is meant to be enjoyed, and sometimes that means spending money on things that bring you joy. It's important to strike a balance between saving for the future and living in the present.

Don’t get me wrong — I’m still not a fan of wasting money. There are certain things I refuse to spend a lot of money on — the newest tech gadgets, luxury clothing, high-end furniture, etc. These things don't bring me joy. But there is stuff I enjoy spending money on. If you know me, you know experiences always offer a bigger bang for my buck. Brittany and I love to travel and this is a key part of OUR Rich Life. We cut back in other areas to spend focus our spending here, and that is okay, especially for this stage in our life together. 

By all means, save diligently and invest wisely. But don't deprive yourself of experiences or possessions that enrich your life. The key is mindful spending—prioritize what truly matters to you and cut back on expenses that don't. This approach can lead to a more satisfying and balanced life without the guilt of spending.

Belief #4: Personal Finance Is Personal
The most sacrilegious belief of all is that personal finance is, indeed, personal. What works for one person might not work for another. Your financial strategy should align with your values, goals, and circumstances. Giving clients peace of mind to enjoy their version of a Rich Life is always my goal. Don't be afraid to deviate from conventional wisdom if it doesn't suit your unique situation. After seeing clients pass away with millions of dollars in their accounts, I think about all the experiences they didn’t get to spend with their families at the expense of saving money. 

Seek advice, but ultimately, trust your judgment and tailor your financial plan to your life. Flexibility and adaptability are key to managing your finances effectively.

Belief #5: Moving the goalpost isn't always the goal.
The Wall Street Journal recently shared research on how much money people need to make to be happy: In the survey, most people said it would take a pretty significant pay bump to deliver contentment. The respondents, who had a median salary of $65,000 a year, said a median of $95,000 would make them happy and less stressed. The highest earners, with a median income of $250,000, gave a median response of $350,000.

Does this mean contentment is basically impossible to find? Regardless of how much you make, will you always want more? The goalposts just keep moving if we're not living in the present and and focusing on our values and circumstances. Spending on what brings us joy NOW and remembering that personal finance is PERSONAL are both antidotes to the discontent that can come from following the norm and checking the boxes we've been told to check.

Challenging conventional wisdom in personal finance isn't about dismissing sound advice—it's about recognizing that financial strategies should be as diverse as the people who use them. By questioning standard advice and embracing a more personalized approach, you can create a financial plan that truly works for you.

Remember, the goal is not just to save for retirement but to build a life that's financially secure and fulfilling at every stage, otherwise known as a Rich Life.