The Art of Personal Finance Planning
In order to be impactful, personal financial planning needs to blend art and science. Balancing foundational principles of planning with what’s right for your situation is what can make the planning process transformational.
The Element of Art
Art usually involves a process of refinement and adjustment. Painters and sculptors are continuously making changes to their pieces along the way. Art usually isn’t completed in a single sitting.
The tools and techniques of financial planning provide structure, but your specific circumstances add context and judgement. A financial plan should reflect the art of tweaking here and adjusting there. Effective financial plans aren’t static.
The Element of Science
The science of financial markets can be very helpful in crafting your investment choices, but your aspirations and risk profile may conflict at times with this science. That’s where the application of art comes in.
When you color your financial life picture with concrete goals and timelines, it makes you more agile. Financial science buffered by the art of your goals helps you make changes as needed when circumstances change. Real life doesn’t always unfold exactly as you expect and making changes when appropriate is important.
Blending the Two Together
Financial decisions are heavily laden with emotions, beliefs, and behaviors that mix science and art. Seeing and applying what is needed, when it’s needed for your situation is an example of art. Avoiding popular financial strategies or investments that might not be well suited for you is also art.
Once you see the value of art in your decision making process, you can loosen up on the notion that there are totally “right” and totally “wrong” choices.
Your financial life and thus your planning efforts are a work in process. Art helps you understand that financial aspirations evolve and the components of your financial plan should reflect this reality.
Understanding the Impact of Your Financial Decisions
Ultimately, most money outcomes are influenced by more than a single isolated decision. Usually a chain of choices either well coordinated or not determines your financial outcomes. In reality, how your financial decisions work together shape your long-term outcomes.
It’s normal and expected that your plans, constraints, and most important goals will change over time. Career shifts, family issues, and changing income all create the need to revisit and amend previous plans. How you meld the old plans with the new is a form of art.
In addition to internal personal changes, sometimes external issues prompt you to reexamine your financial priorities. The upheaval surrounding COVID-19 is a good example. In that period, discipline and judgement were needed to reset your long-term plans. This perspective blended market science and the application of art specific to your circumstances.
Your financial life usually doesn’t progress in a linear fashion. Life isn’t just a math or science equation. It’s full of emotions, triumphs, disappointments, and experiences. Looking at your financial plan as a yet unfinished piece of art can help you create the masterpiece you desire. Start there. Ready for a real conversation?
Disclosure
Apollon Wealth Management, LLC dba J.E. Wilson (Apollon) is an investment advisor registered with the SEC. This document is intended for the exclusive use of clients or prospective clients of Apollon. Any dissemination or distribution is strictly prohibited. Information provided in this document is for informational and/or educational purposes only and is not, in any way, to be considered investment advice nor a recommendation of any investment product or service. Investing involves risk, and while remaining invested can support long-term goals, it does not guarantee a profit or protect against losses. Advice may only be provided after entering into an engagement agreement and providing Apollon with all requested background and account information. Please visit our website https://apollonwealthmanagement.com for other important disclosures.