Seasons of Money

We often discuss how weather and seasons change, affecting not just our outdoor activities but also how we spend our money. Let’s dive into how different financial seasons shape our lives, similar to the changing seasons of the year. Each phase presents unique challenges and opportunities, influencing how we manage money and plan for the future. Just as we adjust our wardrobe for the weather, it's crucial to adapt our financial plans to fit the season of life we're in. Even if you haven't experienced every financial season yet, it's important to consider what may lie ahead and prepare accordingly.  

During the accumulation season (roughly from age 20 to 55), one should focus on setting clear savings and investment goals to build wealth and financial security. This is a time to focus on the foundation.

Transitioning into the preservation season (typically between ages 55 and 65), the priority shifts to safeguarding assets you’ve spent so much time working for to be able to retire and navigate market changes.

In the distribution season (starting around retirement age), managing retirement accounts and tax implications become crucial for financial success in retirement.

As life progresses, our financial plans extend beyond our day-to-day needs. The succession season encourages us to plan for our legacy through effective estate planning.

Throughout the year, you’ll encounter different cycles of spending, saving, and planning:

• During spending seasons like summer vacations or holidays, I make sure to budget for extra expenses, including fun treats like ice cream or a quick road trip. I balance enjoying myself with being financially responsible to make the most of these special times without overspending.
• Saving seasons empower me, especially when unexpected bonuses or tax refunds boost my savings and reinforce good financial habits. I set goals to repay myself when I borrow from my savings.
• Hibernation seasons give me a break from active financial management, allowing me to focus on other aspects of life and recharge.
• Action seasons motivate me to make budgets, pay off debts, and work towards financial goals, enjoying the positive outcomes of financial progress.

Understanding these financial seasons helps you stay grounded and intentional in your finances, ensuring that you don't lose sight of your long-term goals. It empowers you to make informed decisions and handle life's changes while staying on track towards your financial success.

Challenge yourself to embrace each financial season with intention as a chance to grow and become more financially stable. Set a goal for the current season—like saving a certain amount, paying off a debt, or creating a budget—and take steps to achieve it. Celebrate your progress along the way and use each season as an opportunity to thrive in managing your personal finances. You've got this!

Tune in for the Stacked Intent podcast for more on this topic.