Why We Do the Simple Things: Bringing Ease and Satisfaction to Your Financial Life

I’m not alone in that I love a good story with an elegant and simple solution. In what feels like an increasingly complex world, we humans are attracted to those quick fixes: the life hack that makes a four-hour workweek possible, the one trick to eliminate those extra pounds forever, and the shortcut for those six pack abs (that nobody ever had, even in their early 20s – but that’s for another day).

What’s interesting to me, however, is that we set aside a desire for simplicity when it comes to our own financial lives. Maybe it’s due to a combination of factors: the perception that there is a lot of math involved, a lack of education on financial topics, and the wide range of opinions swirling around this rapidly changing world.

It also doesn’t help promote simplicity when your friendly financial planner asks you to collect a whole lot of information – more than you need when applying for your first mortgage! (We need it, though – trust me on this one.)

It’s been my experience that the advice I give to clients falls into one of three categories, in order of frequency: 1) The thing you’ve been worrying about is a valid concern, and here are ways you can address it. 2) Pay attention to this item over here, which is more important to address right now. 3) You’re doing the right things, so keep it up.

Of these three, which do you think is the hardest to do? In my humble opinion, the last one…always. Curiously enough, it’s also the good habits of this group that makes them think there is a single, right path that cannot be modified without causing long-term issues.

So, while I can’t speak to which group you’re in (although it would be a good idea if you knew), I do know this: there is some flexibility available if you’re already doing the right things, and this is probably your time to take advantage of it.

The extra two months of expenses in cash because you’re concerned about your job? Keep it in the bank.

Not making additional principal payments on your mortgage because you might want to relocate closer to your family? Interest rates are low, so make the minimum payment for now.

Setting aside funds for future travels with your loved ones? Be sure your passport is up to date.

Part of the reason we do the simple things year in and year out – saving and investing, living below our means, appropriate risk management – is to provide the flexibility when we need it. I don’t know about you, but nearly every client I’ve talked with has been changed in some way by living through the last 18 months, and they’re asking themselves, “What next?”

Sometimes, the answer to that question is the simplest: keep doing what you’ve been doing and give yourself a little flexibility in the process. And if your goals have changed, it would be a good time to revisit where you are, and if there are any additional steps needed to get there.

~ Presented by Danica Goshert