Sculpting your financial plan
Refining your financial plan through subtraction instead of addition
Happy Wednesday,
I’d like to share a simple, but important concept with you.
Financial planning is rife with analogies about roadmaps, blueprints and much, much more.
I’ve subjected y’all to many of these in my writing. And certainly will again…
But today, let’s talk about art.
“Art” has become – or maybe always was – a catchall term that includes music, dance, sculpture, writing, and painting.
In fact, since “art is in the eye of the beholder,” most anything could be considered art by someone.
But when it comes to your financial plan and money decisions, I’d like to focus on sculpting and painting. More specifically, I encourage you to “sculpt” your financial plan instead of “painting” it.
Think about this with me for a second . . .
When you’re painting, you start with a blank canvas and add paint. And more paint. You mix, blend, and layer.
With a sculpture, you start in a similar fashion, but with a rough block of marble instead of a canvas.
The important thing about sculpting in this context is that it’s an art of subtraction. Of removing what doesn’t belong.
Consider this:
Michelangelo was asked by the Pope about the secret of his genius, particularly how he carved the statue of David, largely considered the masterpiece of all masterpieces. His answer was: “It’s simple. I just remove everything that is not David.”
I believe there is a valuable lesson here about your financial plan.
And I’m not talking about a simple “less is more” approach, though I’m a BIG fan of that concept….
Rather, consider whether your financial plan or investment portfolio has become a collection of choices and decisions over the years without a clear connection to your life and what’s important to you.
I encounter this scenario regularly when I ask folks like you “why” they made a decision or “why” they own the investments they do.
And I’m not asking why to point out mistakes or make you feel guilt or shame.
What’s done is done.
Water under the bridge and all…
I ask why in an attempt to better understand the thinking and decision making that led to where you are today.
You may (or may not) be surprised to learn that many people look back on their own collection of financial decisions over the years, but instead of seeing a masterpiece, it seems to more closely resemble a finger painting by a 4-year-old.
There is a better way.
Have a simple plan that removes everything that isn’t aligned with what’s important to you.
This includes elimination of unnecessary complexity, taxes, expenses, and uncertainty, among other things.
While many financial advisors seem to think that you just keep trying and adding new things to your financial life in the hope that some of them will work out, I think there’s a smarter, more simple approach.
Given the time of year, consider some financial Spring cleaning by:
Removing what isn’t necessary.
Removing what isn’t moving you toward your goals.
Removing unnecessary fees, expenses, transactions, taxes.
Removing unnecessary risk and uncertainty.
Removing unnecessary accounts.
Removing unnecessary mutual funds and other investments.
Removing complexity.
If you have anything in your financial life and don’t know why it’s there, put it under the microscope and figure it out.
And I can help if you’re interested.
What you’re left with might not resemble Michelangelo’s David, but you’ll have removed everything that isn’t “you.”
And that’s a worthy pursuit even if it might not qualify as a work of art.
Ready to put down your paintbrush and pick up your chisel and get to work on sculpting your own simple, effective financial plan?
Do you have a collection of investments and other financial decisions you’ve mixed, blended, and layered over the years that looks more like a collage than a cohesive financial plan?
Give me a call. Let’s talk about it.
Any feedback?
I love hearing from readers, and I’m always looking for feedback.
How am I doing with these weekly essays?
What do you like?
What would you like to see me do differently?
Any questions or topics you’d like me to address?
Hit reply and say hello - I’d love to hear from you.
And as always, thanks for reading.
Until next Wednesday,
Russ
A somewhat related thought from the Tao Te Ching...
“To become learned, each day add something. To become enlightened, each day drop something.”
― Lao Tzu