How to Deal with Life’s Changes with Your Money - 10

Action Item: Open a note or document on your phone and write down three upcoming life changes in the next 2-5 years. For each one, write down one specific way you can adjust your budget or savings if it happens sooner than expected.SummaryIn this episode, I share the big news that my wife and I are adopting and how this completely changed our financial plan. I walk through how we had to temporarily pause maxing out our IRAs to save for adoption costs (which can run $30,000-$80,000), and why that's completely okay. I cover the research on building flexibility into your financial plan, including how to handle major life events like marriage, job promotions, and children. The key takeaway is that no financial plan is perfect because life always changes, and the best thing you can do is write down your plan with clear guardrails so you can adapt without the stress. I wrap up with Maya's case study, showing how she and her fiancé Liam saved for a wedding in just 10 months by temporarily reducing her 401(k) contributions and getting strategic with their savings.Resources & Links MentionedLong and short-term financial planning for life's major events | Citizens: https://www.citizensbank.com/learning/planning-for-life-events.aspxHow to Reevaluate and Adjust Your Financial Plan as Your Life Changes – Bautis Financial: https://bautisfinancial.com/how-to-reevaluate-and-adjust-your-financial-plan-as-your-life-changes/Flexibility in Financial Planning: 10 Strategies to Build a Future That Can Bend Without Breaking: https://www.boldin.com/retirement/flexibility-in-financial-planning-10-strategies-to-build-a-future-that-can-bend-without-breaking/I'm a Financial Planner: This Is Why Commitment, Not Perfection, Drives Financial Success: https://www.kiplinger.com/personal-finance/why-commitment-not-perfection-drives-financial-successMonarch Money (budgeting app with Fixed/Non-monthly/Flex expense categories): https://www.monarchmoney.com/referral/cys5ela3oz?r_source=shareTimestamps[01:48] My adoption story: How we realized we'd have to stop maxing our IRAs[03:29] Why it's okay to feel stressed about financial changes[09:17] Major life events that require financial planning adjustments[11:45] How to reflect on your current situation and revisit your goals[15:50] The home run quote: "A static number can give false comfort or create unnecessary stress"[16:27] The 10 strategies for building flexibility into your plan[19:46] Why commitment matters more than perfection in financial planning[23:04] Maya's case study begins: A 26-year-old facing a sudden wedding[26:22] Maya's plan adjustment: Temporarily reducing 401(k) and student loan payments[28:33] The importance of weekly budget check-ins with your partner[29:27] Why you need a "return to normal" plan to avoid lifestyle creep[30:26] Handling the emotional complexity of accepting money from parents[34:00] Today's action item: Write down three upcoming changes and how you'll adjustEmail me at [email protected] may earn affiliate commissions