Getting Educated is Just the Start

We’ve all heard that “personal finance isn’t taught in school.” By and large, it’s not. (Although that’s starting to change.) The truth is, however, that if you’re interested in learning key personal finance concepts, there’s no shortage of books and articles from a variety of reputable sources.

But if it’s so easy to get good personal finance content, why do so many people lack the confidence to make good financial decisions? And why do so many make financial mistakes that experts routinely describe how to avoid?

Certainly, there are a litany of reasons. One’s own psychology, to consuming misinformation online, to never getting any information in the first place, can all contribute.

But even for the diligent individual who reads the articles and personal finance books, a lack of timely follow through is not uncommon.

My Mistakes

I know this because I made avoidable financial mistakes when I was younger. And even as I became more financially educated, I sometimes delayed taking important financial steps in a timely fashion.

For example, one year, I got spooked by some macro economic news. I sold a bunch of investments without any real concept of how hard it is to “time the market.” Additionally, as a 20-something, I had decades to ride out market ups and downs and shouldn’t have been so easily spooked. As it turns out, my investments – had I not sold them – would have gone up substantially. But by the time I bought back into the market, everything was more expensive.

In another instance, early in my career I failed to optimize my 401k contribution percentage. In this case, I actually knew what to do. But I procrastinated and stayed underinvested. My money sat in my checking account at a time when interest rates were practically nothing.

In both examples, I almost certainly lost thousands of dollars. 

The Trouble with Personal Finance Books

Here’s the thing: These days, I’m kind of a personal finance geek. I actually love personal finance books and have read more than I care to admit. But if personal finance books were supposed to prevent my younger self from making the mistakes mentioned above, they failed me.

In the first instance, as a 20-something I wasn’t interested in reading a 200+ page books on personal finance (although I will admit to listening to one) and I didn’t learn key investment lessons. In the second instance, I was more educated, but I still lacked a system of accountability to ensure I followed through. 

So, if money books didn’t help, what could have? 

A Money Action Plan

A money action plan is a basic roadmap for life’s financial moments. It could be specific and short term (e.g. what to do with your money when you get a new job), or broad and long-term (e.g. how to move from financial foundations to financial abundance). Whatever the case, a good money action plan should have the following features:

• Digestible in Bite-sized Chunks: Having easily accessible content in a series of short articles is a lot easier to get started with than a hefty personal finance book. 
• Broad but Customizable: Everyone should have a broad understanding of key personal finance concepts and action steps. But not every topic applies to every person. A money action plan should allow for some topics to be added or removed.
• Repeatable Topics: Some financial actions, like building an emergency fund for example, happen over a series of milestones. A money action plan should break those into separate tasks.
• Add Your Personal Notes: When you add your unique notes directly alongside an article, it reminds you of how the content applies to you and makes follow-through easier.
• Ability to Track Progress: Who doesn’t like to see a progress bar getting closer to 100%? Whether you’re working on a short or long-term money action plan, seeing a progress bar can remind you of how far you’ve come and motivate you to continue.

Here’s some not-so-shocking news: The MoneySwell Financial Priorities action plan does all of these things. In fact, we built it to solve our money planning pain points. If you want to try it out, click here to get started!

And don’t worry, for those of you who are still interested in finding some good personal finance books, we’ll have a list of our favorites soon!

Overcoming Roadblocks to Financial Success

Have you ever found yourself thinking…

• I don’t have a financial plan or the personal finance literacy to create one.
• There’s a lot of information out there but I still don’t know if I’m doing the right things with my money.
• I’m not ready to work with a financial planner but I need to do something.

If so, you’re not alone. We’ve interviewed and surveyed hundreds of people and the statements above highlight the most common challenges people face as they try to improve their financial health.

But by completing the Financial Priorities survey and creating your customized financial action plan, you’ve forged ahead. You’ve demonstrated a commitment to improving your financial health. And now you have an organized plan to make the financial progress you want.

Understand The Plan

This plan is a tailored set of educational content and action steps. As you read the content and complete the tasks, your financial literacy will improve along with your financial health.

This plan isn’t a get rich quick scheme. In fact, similar content can be found from hundreds of reputable and widely read sources. However, MoneySwell has organized this content into a customized checklist just for you. Following through on your plan can amount to significant financial gain over the long-haul.

We won’t pretend that completing each step in your plan will be easy. Some tasks will be quick and others will take time. But by consistently moving in the right direction, you will soon find you are well on your way to financial health, and financial wealth.

Why This Plan Works

Your plan is based on the research of thousands of personal finance articles, dozens of personal finance books, seminars, webinars, online courses, countless hours of personal finance podcasts, and many conversations with Certified Financial Planners and Money Coaches. After all that, we can confidently say:

1. The recommended approach to tackling basic financial priorities is nearly universal among financial experts.
2. To make meaningful financial progress, you have to be patient, disciplined, and take it one step at a time.
3. Many people miss out on opportunities to improve their financial health by failing to take some basic steps.

Your Financial Priorities Action Plan helps with all three. It follows the advice of the best in the business, helps you frame your financial goals for the long-term, and helps you take consistent, meaningful action.

How to Use Your Plan

The process is simple.

• Step One: From your plan Overview page, click the links to content in “Next Steps.”
• Step Two: Read the content. Use your MoneySwell tools to complete the step, or, follow through on the content’s action item based on the decision that’s right for you.
  
• Step Three: Check the item off your list and track your progress in the app.

Here are a few other tips.

• Follow By Tier – Roughly follow your plan by tier. Start with Foundations and check off most or all of those items. Then progress through Security, Growth, Independence, and Abundance.
  
  

  Your plan follows a logical progression of financial wellness. Each tier builds on the one that came before.

• Use the Notes Field – Above every task is a notes section that can be expanded from the top of the page. Here you can jot down anything that’s pertinent to your situation. Since your tasks are organized by category, you’ll be able to easily find your notes in the future.
• Further Customize Your Plan – Your plan was customized for you when you completed your initial survey. However, by clicking the “View All” links, you can see additional tasks. If you find some tasks aren’t applicable to you, remove them and they won’t be counted against your progress.
  

  Enter notes about next steps or items to remember from the article. Notes are saved automatically.

Take Action

Look at that! You just completed your first task. If you’re logged in, click the “Mark Complete” button at the top of this page to check it off your list. (If you don’t have a MoneySwell account, start by creating your customized plan with a quick survey.) You’re on your way!