Financial Expert Shares 7 Non-Negotiables Of Your Finances

Money is a tool, and at the end of the day, depending on how you use it, it will dictate whether it is helpful or not in your life.

In today’s episode, I had the fantastic opportunity to interview Shari Greco Reiches. She is co-founder, principal, and chief visionary officer of Rappaport Reiches Capital Management, an SEC-registered investment advisor. The firm was founded in 2005 to help clients with financial planning and investment management. In addition, she’s a frequent financial speaker and wrote a book called “Maximize Your Return on Life: Invest Your Time and Money in What You Value Most.”

Today, she shares about values, how they should take part in your financial planning, and seven things you cannot negotiate when it comes to your finances.

Why do people forget to consider their values before making their financial plans?

There is a lot of information in the investment industry, and we, the experts, are very well-prepared. Although we can share many useful statistics and data with clients, something that gets overlooked is the client’s values. That’s why I make it a point to bring it up with clients, as it is something they usually haven’t thought about either when it comes to their finances.

How to start the values conversation with the most important people in your life

I’ll usually start with a list of values and show it to my clients. I will ask a few questions, one being, “What brings you joy?” I’ll also show them a list of 100 words that represent values and ask them to circle the first 25 they are drawn to immediately. Then I’ll ask them to take a breath and eliminate 10. Then another breath, and ask them to think about their legacy and what they want to pass down through their generations. I’ll ultimately have them eliminate words until they reach 5. Values are important because these are your guides – essentially your road map.”

Tip: It’s good to have your list of values insight. Ex) a list in your wallet.

Understanding values may change and probably will

People should also understand that their values may change over time, especially when a life-changing event occurs, and therefore, should revisit and revise their list then. Ex) Having a child, getting married, death in the family, etc.

*To put it in perspective, your values are at the top of the funnel and your goals at the end.

Seven Non-Negotiables

1. Make sure you get to all your doctors.
   1. Health care is rising, so you should get what you need to get done at the doctor’s office sooner than later.
   2. Preventative care – Take care of your body. Exercise. Eat right. 
      1. Bonus if you can try something new and enjoy ex)Triathlon, swimming, etc.
2. Legalities 
   1. Updated healthcare power of attorney – If you’re 18 or over, you want to make sure you know who is going to make those decisions for you and that they will fulfill YOUR wishes. 
   2. Will, estate plan, 401k, IRA’s
      1. Make sure the correct people are under the beneficiaries. Revisit when you have a life-changing event like marriage
3. Know all your insurance
   1. Make sure you understand your plan. 
      1. Make sure your medical conditions can be treated within the plan.
   2. Know what your copay is
      1. What is in your network and what is not
      2. What is your out-of-pocket?
      3. Do you have a Health Savings Account?
   3. Know what is covered under COBRA (if you leave your job) and compare it to what you can get in the exchange
   4. Understand disability insurance 
   5. Do you have life insurance?
      1. Is it portable? (Meaning, can you keep your life insurance if you get something like diabetes, for ex.
4. Having a budget
   1. 50/30/20 
      1. 50% Living expenses: should go to rent, insurance, groceries, medications 
      2. 30% Discretionary expenses (fun expenses): travel, shopping, coffee, hobbies
      3. 20% Savings/debt elimination
   2. Live within your means. 
      1. Spending less than what you have coming in
   3. Reflect on what you’re spending on and see if it matches up to your values
5. Saving
   1. It doesn’t matter how much, but rather getting into the habit of saving.
   2. If you start saving in your 20’s rather than your 40’s, you’re looking at potentially hundreds of thousands of dollars difference. 
   3. I encourage the 401k
      1. You get a tax benefit – you don’t have to pay the income tax, nor do you pay ongoing taxes on it (tax-differed) until you’re 72
      2. Company match – free money
      3. Get the right investment plan – pick the target fund.
      4. Roth 401k is a good option, too, since it is tax-free (although it is not tax-deductible)
   4. Save up for a car – through cash or bonds.
   5. Start building an emergency fund.
      1. Six-month emergency fund – save up enough to survive six months. 
6. Know your assets and liabilities 
   1. In January, I’ll make two lists: one for my assets and another for liabilities. Then, I’ll subtract my liabilities from my assets and obtain my net worth. Once I have that, I compare it to other years and see how the trend is doing. 
   2. Then, I dive deeper into the asset analysis. I don’t like to be fully invested or concentrated on one asset; I believe in index funds – low-cost diversifying. 
   3. In the liability analysis, check what you can do to lower it. 
7. Don’t let emotions take over.
   1. Don’t let other people dictate what you do.
      1. Forget keeping up with the Joneses.

If you would like to listen to the podcast episode, click below.

In Conclusion

Money can be helpful or detrimental, depending on how you use it.

Shari Greco Reiches is a finance expert, and she shared her wisdom on how you can better set yourself up for success. First, you must know your values and plan to align your financial goals accordingly. Then, you can follow the seven non-negotiables you should have in your finances: go to all your doctor appointments (sooner than later), take care of all legal paperwork that has to do with your finances (will, estate plan, beneficiaries listed, etc.), understand your insurance plan, have a budget, save, know your assets and liabilities, and don’t let emotions dictate your money moves.

If you consider all of the non-negotiables and make sure your money decisions align with your values, you too can be aligned for financial success.

Let me know what stood out to you! You can reach me via IG or email. Until next time.