I want to make uniform and routine payments over 36 months to pay off my student debt and have saved enough for a 20% down payment on a $400,000 condo in the Chicago neighborhood of Lincoln Park in ten years. <\/em><\/li>\n<\/ol>\n\n\n\nAva\u2019s two goals are to have paid off her student loans and to one day own a home. The habit of goal setting, or \u201cbeginning with the end in mind\u201d famously said by Dr. Stephen Covey, clearly delineates what it is we\u2019re trying to achieve and how we plan to achieve it. Economic stability comes from knowing Ava\u2019s vision of the future in the clearest terms possible, so that she and her Wealth Advisor can allocate the resources available to bring her vision to life. Visualizing what she wants to achieve, the idea of starting with the end in mind will reinforce the behaviors necessary to take control of her financial destiny.<\/p>\n\n\n\n
How does our behavior impact the decisions we make when it comes to money? It is natural and common to let our emotions get the best of us at times, we are human after all. The progression of becoming a financially healthy individual is to not let our emotions dictate how we allocate resources towards their intended goal. Does market volatility cause you to move everything into cash or chase sky high returns, despite this course of action being against your risk tolerance? Does seeing your credit card statement cause unbearable anxiety, to the point where you are avoiding the balance all together? Our emotions are powerful things and can dictate the actions we take, sometimes against our own best wishes. Taking control of your financial destiny requires you to stay calm.<\/p>\n\n\n\n
Taking control of your financial destiny requires you to stay calm in volatile times, so you can make pragmatic strategic decisions with guidance from your Wealth Advisor. <\/em><\/strong><\/p>\n\n\n\nBack to our example with Ava:<\/strong><\/p>\n\n\n\nAva wants to pay off her student loans in three years, making equal payments over 36 months and is investing to have $80,000 ten years from now to purchase a condo in Chicago. There\u2019s been a lot of volatility in the markets lately impacting Ava\u2019s investment portfolio. She can approach this goal through one of two ways:<\/p>\n\n\n\n
\n- All this volatility in the market is making me anxious. Should I liquidate my portfolio? Am I cut out for being an investor? <\/em><\/li>\n\n\n\n
- I recognize that my goal has a long-time horizon, I have an adequate emergency fund, and I\u2019ve taken a dollar cost averaging approach to my goals. I am comfortable with the present volatility and my risk profile. <\/em><\/li>\n<\/ol>\n\n\n\n
The uneasiness of the market conjures up a feeling of doubt for Ava, to the point where she considers abandoning her long-term strategy all together as highlighted in the first approach. However, the second approach shows a maturity and pragmatism in Ava\u2019s decision making. Working with her Wealth Advisor and adhering to sage advice provided\u2026. where part of the role of an advisor is to help Ava remove emotions from her decision making. Her Wealth Advisor has coached her to take a disciplined, unemotional, and repeatable process when it comes to how she manages her money. Together they\u2019ve implemented a strategy that dictates the frequency of when she invests in a portfolio that is aligned with her risk tolerance. They\u2019ve also established an emergency fund that affords her the ability to invest for the long-term. A disciplined financial plan can put our emotions at rest in times of uncertainty.<\/p>\n\n\n\n
Stress can be a powerful tool, when managed correctly. Stress is what allows us to grow and develop new muscles or skills. If we approach our finances in the same way, we can grow to lead more fulfilling and happier lives without the unnecessary stress. Next time you\u2019re faced with a difficult money decision, use it as an opportunity to strengthen your financial health. Leading a financially healthy life gives you the tools to put the power back in your hands and ultimately live a more confident life with more peace of mind.<\/p>\n\n\n\n
\n\n\n\nSources\nhttps:\/\/www.apa.org\/research\/action\/speaking-of-psychology\/financial-stress<\/a>\nhttps:\/\/sageadvicegroup.com\/2021\/03\/26\/wellness-essential-or-cliche\/<\/a>\nhttp:\/\/mscomm.morningstar.com\/moreless\/?adid=SOC_ADV_WP_RR\n<\/a>https:\/\/www.franklincovey.com\/habit-2\/<\/a><\/pre>\n","protected":false},"excerpt":{"rendered":"By SAGE Private Wealth Group How do you relieve stress? Is it the combination of a cozy sweater, devouring a good book and sipping a hot tea? What about taking a long walk outside, soaking up the sun? Or is it through meditation and breathing exercises? Everyone has their own way of relieving anxiety and […]<\/p>\n","protected":false},"author":10,"featured_media":4232,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[49],"tags":[52,46,47,51,48,50,55,45],"acf":[],"_links":{"self":[{"href":"https:\/\/www.sageprivatewealth.com\/wp-json\/wp\/v2\/posts\/3816"}],"collection":[{"href":"https:\/\/www.sageprivatewealth.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sageprivatewealth.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sageprivatewealth.com\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sageprivatewealth.com\/wp-json\/wp\/v2\/comments?post=3816"}],"version-history":[{"count":8,"href":"https:\/\/www.sageprivatewealth.com\/wp-json\/wp\/v2\/posts\/3816\/revisions"}],"predecessor-version":[{"id":4217,"href":"https:\/\/www.sageprivatewealth.com\/wp-json\/wp\/v2\/posts\/3816\/revisions\/4217"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sageprivatewealth.com\/wp-json\/wp\/v2\/media\/4232"}],"wp:attachment":[{"href":"https:\/\/www.sageprivatewealth.com\/wp-json\/wp\/v2\/media?parent=3816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sageprivatewealth.com\/wp-json\/wp\/v2\/categories?post=3816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sageprivatewealth.com\/wp-json\/wp\/v2\/tags?post=3816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}