5 Ways to Take Financial Stress Out of "Adult-ing"

5 Ways to Take Financial Stress Out of "Adult-ing"

You’ve made the commitment to start “adult-ing,” a very important first step. Don’t start to build from the roof down, though: make sure that you’re laying a strong financial foundation.

In our last post we talked about 8 Financial Mistakes to Avoid in Your 20s and 30s. Here are five more money mistakes to watch out for:

1. Going on a Financial Blind Date With Your Significant Other: Not Having the Money Talk First

Talking about money isn’t romantic and can be downright uncomfortable. That’s why many couples go into marriage—a financial partnership—without knowing exactly who they are partnering with. Discussing personal finances, debt, goals, spending patterns and how you make financial decisions with your partner before marriage, or soon thereafter, is critical to your short- and long-term financial health. (For related reading, see: Don’t Let Financial Differences Lead to Divorce.)

2. Living la Vida Loca: Splurging on the Wedding or a Baby

Important milestones like a wedding, a first child or even your first house are exciting and make precious memories that last a lifetime. But be careful not to let them put you in debt or divert you from a financial plan that allows you to make other great memories down the road. Know what you can afford, get creative within your budget, and make sure you’re investing in your partner’s and children’s future as well. The kids won’t mind—or even remember—that you didn’t buy them that top-of-the-line stroller. What they’ll remember is your smile and their favorite red ball. #Priceless

3. Not Buckling Your Seat Belt: Neglecting Insurance

It’s tempting to skimp on insurance once you’ve covered your basic health and homeowner’s policies, but that’s a big mistake many young adults make. Insurance is an uncomfortable topic—and the options can be very confusing—so covering yourself with health, life, car, home, disability and long-term disability insurance often gets put on the back burner. Cover yourself adequately now so that when the unexpected happens, it’s not a financial disaster. (For related reading, see: Introduction to Insurance.)

4. Going for the Gold: Taking a Job for the Pay

While a great offer is always tempting, make sure that any job you take is something that will advance you in the direction you want to go. Don’t take a job just because the money is great, although that’s important too. If you do, you could get stuck in a job you don’t love with nowhere to go. Take a job that is going to move you closer to the job you want—and the even-higher salary you want—in a couple of years.

5. Putting Too Many Eggs in the Wrong Basket: Not Prioritizing Savings

Maxing out your 401(k) or IRA is smart, but don’t forget to save for other major purchases that may be coming up sooner than you think, like buying a new home, having children, or continuing your education. Multiple savings accounts can be a great way to keep your eye on multiple baskets! Be careful, too, not to prioritize your children’s education over saving for your own retirement. Student loans are less expensive than the kind of loans your kids would have to take out to support you if you haven’t set enough savings aside to support your own retirement.

Enjoy this special time, living your life to the fullest. If you make sure you’re also making smart financial choices, you’ll really enjoy your 20s and 30s, knowing that you’re building a solid future.

Brad Sherman
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Brad Sherman is a financial advisor and the founder and president of Sherman Wealth Management, LLC, an independent, fee-only, boutique Registered Investment Advisor that make ... Click for full bio

NBA Player Carl Landry Demonstrates the Value of Persistence in Life and Work

NBA Player Carl Landry Demonstrates the Value of Persistence in Life and Work

Written by: Jon Sabes

When you meet Carl Landry, stand-out college basketball player and nine-year NBA player, you imagine that becoming a professional basketball star was a straight forward run for the 6-foot-nine-inch power forward. 

However, when you go deeper into Carl’s background, becoming a NBA professional was less than certain and little came easily to the 33-year-old from Milwaukee:

  • He was cut from his high school team as a freshman and averaged less than ten points a game when he did play as a senior.
  • He started his college career not at Purdue, but a junior college where it was not clear he would play.
  • When he finally got to Purdue, he tore his ACL in his knee his first year and reinjured it the next year.
  • While his family held a party for him the night of the NBA draft, he slept in the Philadelphia airport after missing a flight following a workout for the 76ers.
  • In the NBA playoffs, Carl had a tooth knocked out, but came back in the same game to make a game-winning blocked shot as the Rockets beat the Utah Jazz 94-92.

Landry, who I interviewed on my podcast, Innovating Life with Jon Sabes (www.jonsabes.com), is a remarkable example of the value of “persistence.” In a time where technology creates the image that anything is possible at the touch of a button, persistence is an under-appreciated trait. When I spoke with Carl, I clearly saw someone for whom success has only come through a force of will that made him a NBA player, but it also made him a better player every year he played. That’s the kind of personality that has produced greatness in business as well as sports.

Carl was, in fact, drafted that night he spent in the airport. The Seattle Supersonics chose him as the 31st overall pick and then traded him to the Houston Rockets where he rode the bench for much of the first half of the season. When All-Star teammate Yao Ming was injured, he stepped in and played a key role in the Rockets astonishing 22-game winning streak (the third longest streak in NBA history). And, that season, after sitting on the bench for 33 of the first 36 games, he was named to the All-Rookie second team.

Carl was the first in his family to go to college. “I told myself that this was my ticket out, so I did everything I possibly could to be the best person in school and also on the court,” he said.

His family life in Milwaukee showed him what he didn’t want to do. “Just being honest with you, seeing some my cousins, peers, they went to work for jobs paying six, seven dollars an hour or they didn’t go to work at all and then living off welfare. I didn’t want that.”

When he was first injured, he had to contemplate the end of a career before it even got started. “When you have an ACL tear, it’s over…no more basketball,” he told me. “I said, God, give me health again and I’ll do everything I can to leave it all out on the line and be a successful individual.”

On my podcast, Carl pointed out another interesting lesson he learned in the NBA: Not doing things just to fit in.

“Fitting in was easy,” he said. “Doing everything that everybody else does was easy. If I stood out in some type of way, I’m going to have different results. I’m going to have stand-out results.”

That’s called the “Law of Contrast” and it produces that exact effect of changing the outcomes that everyone else is experiencing.  Carl is smart, he recognized that differences make a difference, and doing whatever it takes is what is required to make real, meaningful differences.

Every off-season for the last 11 years, he has run a camp for kids in Milwaukee where he tells youth his story of hard work and persistence. “I always tell the kids to apply themselves and always be persistent,” he said. “If you dream, apply yourself and be persistent. With hard work, man, the sky’s the limit.”

When Carl says the sky’s the limit he means it.  He is smart to recognize that it’s important to dream big, because if we don’t – we may be selling ourselves short. “You have to dream bigger than your mind could ever imagine,” he said. “I wanted a nice house. I wanted a nice car. I said, and I got all of that. So, what do I do, do I stop now? Maybe I didn’t dream big enough.” That’s a big statement coming from a kid who grew up to be the first in his family to graduate college and go on to be not only a top NBA basketball start, but a good businessman, father and someone who gives back to the community.

I’m convinced that in whatever he takes on as a basketball player or in his post-hoops career, Carl Landry is not going to stop getting better at whatever he does, and in the process of doing so, make the world a better place.

GWG Holdings, Inc.
Investing in Life
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GWG Holdings, Inc. (Nasdaq:GWGH) the parent company of GWG Life, is a financial services company committed to transforming the life insurance industry through disruptive and i ... Click for full bio