This Week's Money Talking Points
1. How are you saving your money?
In today’s episode, I kicked off our lively discussion with Steve Short and Mark Schlipman by diving straight into a question that’s on many people’s minds: “How are you saving your money?” Both Steve and Mark brought a wealth of experience and practical advice to the table, emphasizing that saving isn’t just about stashing away cash in a bank account. Steve, drawing from his background in corporate leadership, highlighted the importance of setting clear financial goals. He suggested automating savings to ensure consistency, treating savings contributions like non-negotiable expenses. This approach not only builds financial discipline but also helps in gradually accumulating wealth without feeling the pinch.
Mark, on the other hand, focused on the power of diversification in savings strategies. He recommended creating a savings hierarchy, starting with an emergency fund that covers three to six months of living expenses. Once this safety net is in place, Mark advised exploring high-yield savings accounts or certificates of deposit (CDs) for short-term goals, as they offer better interest rates than traditional savings accounts. For those looking to save for longer-term objectives, he pointed out the benefits of tax-advantaged accounts like IRAs or 401(k)s, which can provide significant tax savings over time. Both guests agreed that the key to successful saving is aligning your strategies with your personal financial goals and regularly reviewing and adjusting them as needed.
2. Where do you like to invest?
The conversation then naturally shifted to the topic of investing, where Steve and Mark shared their insights on how to make your money work for you. Steve, a proponent of long-term investing, stressed the importance of understanding your risk tolerance and investment horizon before making any decisions. He shared his preference for index funds and exchange-traded funds (ETFs), which offer broad market exposure and low fees, making them ideal for both novice and experienced investors. Steve also emphasized the benefits of dollar-cost averaging, a strategy where you invest a fixed amount of money at regular intervals, regardless of market conditions, to mitigate the impact of volatility.
Mark complemented Steve’s views by discussing the role of alternative investments in a diversified portfolio. He mentioned real estate, commodities, and even cryptocurrencies as potential avenues for growth, but cautioned that these options often come with higher risk and require more due diligence. Mark also highlighted the importance of staying informed about market trends and economic indicators, as they can significantly impact investment performance. Ultimately, both guests agreed that the best investment strategy is one that aligns with your financial goals, risk tolerance, and time frame, and that it’s crucial to remain patient and disciplined, even during market downturns.
3. Have you ever been paycheck-to-paycheck?
Our final money talking point for the episode was a potentially personal one: “Have you ever been paycheck-to-paycheck?” This question resonated with both Steve and Mark, as they each recounted their own experiences with financial challenges and the lessons they learned along the way. He emphasized the importance of financial education and self-awareness in breaking free from the paycheck-to-paycheck cycle, and shared how creating a realistic budget and sticking to it was instrumental in turning his financial situation around.
Mark also shared his story, recalling a period in his life when unexpected expenses put a strain on his finances. He stressed the importance of having an emergency fund and the peace of mind it provides in times of uncertainty. Mark advised listeners to prioritize debt repayment, especially high-interest debt, as it can be a major obstacle to financial stability. He also encouraged seeking advice from financial professionals when needed, as they can provide valuable guidance and help you develop a tailored plan to achieve your financial goals. Both Steve and Mark left us with a sense of hope and encouragement, reminding us that it’s never too late to take control of our finances and build a brighter future.
This week's Money Buddy
Steve is a retired corporate executive who spent nearly 30 years in the travel industry, leading multi-billion-dollar divisions and building high-performing teams. Today, he’s focused on a passion project: helping the next generation build real wealth through simple, practical financial guidance. He’s the co-author of The Simple Road Toward Financial Freedom, a #1 Amazon bestseller.
Mark is a seasoned financial advisor and the founder of Schlipman Wealth Advisors, a strategic partner of Carson Group. With decades of experience guiding clients through all stages of life, he specializes in simplifying complex financial decisions and creating actionable plans. Mark co-authored The Simple Road Toward Financial Freedom to help young adults gain the confidence and tools they need to build long-term wealth.
Enjoy your week and get out there and have a money talk!
