By Mike Gibbons, RICP®
As a financial advisor with a focus on retirement planning in the pharmaceutical industry, I’ve had the honor of helping countless individuals navigate challenging financial situations. In my experience, two key principles have consistently shown themselves to be invaluable. The first one is ignoring the noise of external influences (like the media), and the second one is being intentional with your money.
Let’s dig into the logic behind these two crucial financial lessons.
1. Drown Out the Noise
In today’s digital age, we’re constantly inundated with news, opinions, and unsolicited recommendations. While keeping current is important, it’s also important to distinguish between irrelevant information and valuable insight. Whether it comes from well-meaning neighbors or the news media, the constant chatter can be exhausting and cause you to question your choices and actions.
In order to make wise financial decisions, it’s essential to tune out distractions and concentrate on your unique financial circumstances and long-term objectives. This means ignoring market trends, ignoring random advice, and resisting the temptation to compare your progress to others. To obtain accurate information, it’s key to rely on dependable sources like financial professionals and reputable financial institutions.
By drowning out the noise, you’re much more likely to realize your long-term financial goals. Be vigilant about following your gut and choosing options that are consistent with your own goals and values.
2. Be Intentional With Your Money
The second financial lesson I want to discuss is the importance of being intentional with your money. Spend your money with intention and you’ll be on your way to financial freedom.
These are the strategies I’ve found to be the most useful:
Cut back on unnecessary expenses: Analyze your spending patterns and pinpoint places where you might cut expenses. Whether it’s cutting back on eating out, terminating unwanted subscriptions, or finding less expensive substitutes for commonplace goods, these minor savings can build up over time.
Save a percentage of raises and bonuses: Channeling a sizable portion of any bonuses or raises straight into your savings account is another crucial step. This disciplined strategy verifies that your increased income supports your long-term financial goals and helps you avoid lifestyle creep.
Automate your savings: To help you save even more quickly, set up a system to automatically increase your savings contributions by a small amount, like 1%, every few months. This gradual strategy makes it simpler to save more without feeling overwhelmed. Put your money in a personal IRA or a tax-incentivized retirement account, such as a 401(k) or 403(b) plan, to invest your additional savings.
Taking these deliberate steps paves the way for you to pursue your long-term objectives with confidence, building a solid financial future. Keep in mind that small steps—like being mindful of your spending habits, saving wisely, and automating your savings—can lead to significant changes.
The Bottom Line
You can take control of your financial future by integrating two fundamental principles into your routine: drowning out the noise and being intentional with your money. Remember, your financial journey is specific to your situation—there’s no one-size-fits-all approach.
By being focused, making wise choices, and seeking professional advice when necessary, you can pursue your financial goals and live a fulfilling life.
We’re Here to Help
In addition to disregarding distractions and managing your money purposefully, it’s wise to create a customized financial plan that aligns with your situation. To keep it current with your evolving needs, your plan should be reviewed frequently and modified as necessary.
Our team at Gibbons Financial Group is dedicated to helping you organize and focus your financial life so you can free up your time and mind for the things you care about most. To schedule a complimentary consultation, call 224-419-5550 or email me at Mike@gibbonsfinancialgroup.com. And be sure to join our free webinar, Retiring Early From Pharma.
About Mike
Michael J. Gibbons is founder and president of Gibbons Financial Group, an independent advisory firm providing custom-tailored financial planning and investment management services to pharmaceutical and healthcare professionals and their families. Mike has over 25 years of experience and spends a significant portion of his day working with pre-retirees and retirees, focusing on asset management, Social Security and pension planning, as well as retirement income preparation.
Mike has degrees in both business and psychology from Lake Forest College and currently holds his Retirement Income Certified Professional (RICP®) designation from the American College. Mike was named a Five Star Wealth Manager for 2016 and 2018* Mike is heavily involved in his community, having served on the Village of Gurnee Police Pension Board as a Community Volunteer and the St. Patrick’s Parish Financial Board. When he’s not working or volunteering, Mike loves playing golf and spending his time with his wife and children. To learn more about Mike and how he can help you, connect with him on LinkedIn, visit his website, and register for his free webinar, Retiring Early From Pharma, created specifically for professionals retiring from the pharmaceutical, biotechnology, and healthcare industries.
*Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience, and assets under management among other factors. Wealth managers do not pay a fee to be considered or placed on the final list of 2016/2018 Five Star Wealth Managers.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.