Meet yourself in the middle
Photo by Pim de Boer on Unsplash
Rules of thumb will only get you so far but trying to get it all ‘right’ can often leave you feeling overwhelmed with a bad case of analysis paralysis. Try as you might, it’s easy to get frustrated and left feeling no closer to having a real handle on your finances.
So what’s the alternative?
Aim to meet yourself in the middle.
Focus your time and attention on the things that really move the needle in your favor.
Here are some examples:
Transfer your cash cushion out of that savings account paying no interest into a high yield online savings account. This is much more impactful than getting caught up on which bank will pay you the absolute highest interest rate.
Remember that old 401k balance that you rolled over into your IRA? The one that’s still sitting in cash waiting to be invested? A low cost target retirement date index fund might be a good enough place to start. You can always revisit your optimal investment mix and adjust as needed later on.
Buy more term life insurance to replace that group coverage you lost when you switched jobs last year. You can always tweak it if you gain access to more employer-based options in the future, but it’s the amount of coverage you have right now that really matters to your family.
A ‘meet in the middle’ approach is really about getting yourself 80% of the way there. These are the actions that really move the needle. That last 20% is mostly about optimization.
If you need help finding your middle ground, I’m here and happy to help you.