Tag: Mindset

Should You Pay Off Your Mortgage or Invest? (What Actually Makes Sense)

Posted on by Brian Colvert

Should You Pay Off Your Mortgage or Invest?

It’s one of the most common financial questions out there:

Should you pay off your mortgage… or invest your money?

On the surface, it feels like there should be a clear, right answer. Pay off debt and be safe. Or invest and grow your wealth.

But that’s not how money actually works.

The truth is, this isn’t really a math problem. It’s a decision shaped by tradeoffs, behavior, timing, and your personal situation. And the reason this question feels so big is because people think they have to get it perfect.

They don’t.

In fact, trying to make the perfect decision is often what keeps people stuck.

Let’s break this down the right way.

Keep reading, or if you prefer to listen or watch…check out the Podcast or full YouTube video.

Why This Decision Feels So Big

For most people, their home is their largest asset.

It’s not just a financial decision. It’s emotional. It’s tied to security, identity, and stability.

So when someone asks, “Should I pay this off?” what they’re really asking is:

  • Am I making a mistake if I don’t?
  • Am I missing out if I do?
  • What if I choose wrong and can’t recover?

That fear tends to get stronger over time.

When you’re younger, mistakes feel fixable. You’re working, you have income, and time is on your side. But as you get closer to retirement, the margin for error feels smaller.

There’s no paycheck coming in to fix things. That’s where the pressure comes from. And ironically, that pressure is what makes people worse with money.

The Problem With Trying to Make the “Perfect” Decision

Most people approach money like there’s a single correct move.

There isn’t.

Money is not a test with one right answer. It’s a series of decisions over time, each with tradeoffs.

When you start believing there’s a perfect choice, a few things happen:

  • You overthink everything
  • You hesitate to act
  • You beat yourself up over small mistakes
  • You lose perspective on what actually matters

You end up stuck in a loop of “what if.”

What if I invest and the market drops?
What if I pay off my mortgage and miss out on gains?
What if I choose wrong?

Here’s the reality:
Most financial decisions are not catastrophic.

They only become catastrophic when:

  • You go all-in on a bad decision
  • You ignore risk
  • Or you let emotion drive the process

This is where a better framework matters.

Money Isn’t About Perfection. It’s About Tradeoffs.

Every financial decision is a tradeoff.

If you put extra money toward your mortgage, you’re:

  • Reducing debt
  • Lowering future expenses
  • Increasing security

But you’re also:

  • Giving up liquidity
  • Potentially missing investment growth
  • Locking money into an illiquid asset

If you invest instead, you’re:

  • Keeping your money working
  • Maintaining flexibility
  • Potentially growing wealth faster

But you’re also:

  • Taking on market risk
  • Keeping your debt longer
  • Living with more uncertainty

There is no version where you win everything.

So the real question isn’t:

“Which is better?”

It’s:

“Which tradeoff makes the most sense for me?”

The Math Behind It

Let’s simplify this. The biggest factor in this decision is your mortgage interest rate.

Scenario 1: Low Interest Rate Mortgage (2–4%)

If you have a mortgage in the 2–4% range, you’re in a unique position.

Even very conservative investments, like:

…can often generate similar or higher returns than your mortgage rate.

That means:

  • You could invest your extra money
  • Earn 4% (for example)
  • While your mortgage only costs you 3%

That difference, even if small, works in your favor.

Your money is doing more by staying invested than by paying off the loan.

And that’s before even considering:

  • Stock market returns
  • Long-term compounding
  • Inflation working against your fixed-rate debt

In this scenario, paying off your mortgage early is usually not the most efficient move from a pure financial standpoint.

Scenario 2: Higher Interest Rate Mortgage (5–7%+)

Now flip it. If your mortgage rate is 5%, 6%, or higher, the math starts to shift.

Why?

Because now:

  • Paying off your mortgage is like earning a guaranteed 5–7% return
  • That return is risk-free
  • And it directly reduces your expenses

To match that return through investing, you’d have to:

  • Take on more risk
  • Deal with volatility
  • Accept uncertainty

So in higher-rate environments, paying down your mortgage becomes much more attractive. Not because it’s always the best move, but because the tradeoff changes.

The One Thing Most People Miss

Here’s where people get this wrong.

They assume this decision is purely about returns.

It’s not. It’s about behavior.

Let’s say someone invests instead of paying off their mortgage.

That only works if:

  • They actually invest the money consistently
  • They don’t panic and sell
  • They don’t spend it instead

On the flip side, paying off a mortgage forces discipline.

You’re:

  • Building equity
  • Reducing debt
  • Locking in a guaranteed outcome

So the better option depends on what you will actually do, not what looks best on paper.

The “Vegas Rule” for Investing

A simple way to think about risk is this: Only take risks you can afford to lose.

Think about going to Vegas.

The people who walk away happy are the ones who:

  • Set a limit
  • Stick to it
  • Treat it like entertainment

The ones who get into trouble:

  • Chase losses
  • Double down
  • Ignore the plan

Investing works the same way.

If you’re going to take risk:

  • Keep it within a reasonable portion of your net worth
  • Don’t bet everything on one outcome
  • Don’t let one decision derail your entire plan

This is especially important as you get older.

You don’t need to hit home runs. You just need to avoid strikeouts.

Why Paying Off Your Mortgage Feels So Good

There’s a reason people love the idea of being debt-free.

It’s not just financial. It’s psychological.

  • No monthly payment
  • Lower fixed expenses
  • Greater sense of control
  • Less stress

In retirement, this matters even more.

Without a mortgage:

  • Your lifestyle becomes easier to maintain
  • Your required income drops
  • Your financial plan becomes simpler

But there’s a catch.

The Hidden Limitation of Home Equity

Your home may be your biggest asset.

But it’s not very useful for cash flow.

You can’t:

  • Use it at the grocery store
  • Easily tap it without selling or borrowing
  • Rely on it for day-to-day expenses

So while paying off your mortgage increases your net worth…

…it doesn’t necessarily increase your ability to fund your lifestyle.

That’s why a balanced approach matters.

The Real Risk: Living Beyond Your Means

If there’s one thing that consistently causes problems, it’s not this decision. It’s lifestyle creep.

Spending beyond your means, over time, will break any plan.

  • It doesn’t matter if you invest
  • It doesn’t matter if you pay off your house
  • It doesn’t matter how much you earn

If your lifestyle keeps expanding faster than your resources, you’ll eventually run into trouble.

The goal isn’t to maximize every dollar.

It’s to build a lifestyle that:

  • You can sustain
  • You actually enjoy
  • And doesn’t depend on perfect outcomes

How to Think About This in Real Life

Let’s simplify this into something practical.

Step 1: Eliminate Bad Debt

Before anything else:

  • Pay off credit cards
  • Avoid high-interest consumer debt

If you’re paying 15–25% interest, that’s the priority.

No investment reliably beats that.

Step 2: Build an Emergency Fund

You need liquidity.

A solid emergency fund:

  • Covers 3–6 months of expenses
  • Protects you from unexpected events
  • Keeps you from making bad decisions under pressure

And most importantly, if you use it, you replenish it.

Step 3: Automate Your Future

If you’re working:

  • Max out retirement accounts where possible
  • Make investing automatic
  • Remove decision fatigue

Once your future is handled and automated, everything else becomes easier.

Step 4: Decide Based on Your Situation

Now you can ask the real question:

  • What’s my mortgage rate?
  • What’s my risk tolerance?
  • What would help me sleep better at night?
  • What will I actually follow through on?

For some people:

  • Investing will make more sense

For others:

  • Paying off the mortgage will be the better move

Both can be right.

The Lifestyle Factor No One Talks About

There’s another layer to this.

As your life evolves, your expectations change.

You don’t want to go backward.

Think about how your lifestyle has grown over time:

  • First apartment
  • Better apartment
  • First house
  • Bigger house
  • Family, travel, experiences

Each step up becomes your new normal. And once you reach a certain level, you don’t want to give it up.

That’s what people are really afraid of.

Not running out of money completely…

…but having to scale back their lifestyle.

That’s why this decision matters.

The Bottom Line

So, should you pay off your mortgage or invest?

It depends.

Not in a vague way, but in a real, practical way:

  • Your interest rate
  • Your behavior
  • Your goals
  • Your tolerance for risk
  • Your stage of life

There is no perfect answer.

And that’s the point.

The goal isn’t to get every decision right.

It’s to:

  • Make thoughtful choices
  • Avoid big mistakes
  • Stay consistent over time

Because wealth isn’t built on one decision.

It’s built on hundreds of small ones, made well.

If You Want to Do This Right

Most people don’t need more information.

They need a clear plan.

One that:

  • Connects investments, taxes, insurance, and estate planning
  • Aligns with their actual life
  • Helps them make decisions with confidence

That’s the difference between guessing…

…and having a strategy.

If you want help putting that together, that’s exactly what we do through the Bonfire Method. A coordinated plan so every decision works together, not against each other.

Because at the end of the day, it’s not about choosing between paying off your mortgage or investing.

It’s about building a financial life that actually works.

Common Investing Mistakes (And How to Fix Them)

Posted on by Brian Colvert

Common Investing Mistakes (And How to Fix Them)

Most people think investing is about picking the right stock or timing the market, but that’s not what actually builds lasting wealth.

In reality, some of the biggest investing mistakes aren’t made by beginners. They’re made by high earners who are doing a lot of things right, but still feel like something is off.

They’re saving, they’re investing. They have a 401(k). On paper, everything looks solid.

And yet, there’s still uncertainty. Still hesitation. Still the question: am I actually doing this the right way?

After years of working with clients on financial planning, retirement strategy, and long-term investing, the patterns become clear. The issue usually isn’t effort. It’s structure. It’s mindset. And it’s a handful of common investing mistakes that quietly compound over time.

If you want to build real wealth and actually feel confident in your financial life, these are the mistakes worth paying attention to.

Keep reading, or if you prefer to listen or watch…check out the Podcast or full YouTube video.

Mistake #1: Thinking Investing Is About Picking Winners

One of the most common investing mistakes is believing that success comes from finding the next big stock.

High earners are often smart, analytical, and used to solving problems. So naturally, they approach investing the same way. They try to outthink it. They look for the edge. The opportunity others are missing.

But investing doesn’t reward that behavior consistently.

Real wealth is not built on a few big wins. It’s built on consistency over time. It’s built on a system that works regardless of headlines, trends, or market noise.

The sooner you shift from trying to pick winners to focusing on a repeatable strategy, the sooner things start to click.

Mistake #2: Relying Too Heavily on a 401(k)

A 401(k) is a great tool, but it’s not a complete strategy.

This is one of the most common investing mistakes high earners make. They do exactly what they were told,  contribute consistently, and they take the match. And over time, they build a meaningful balance.

But then they realize most of their wealth is locked away.

That creates a lack of flexibility. If you want to retire early, invest in something outside the market, or simply have access to capital before traditional retirement age, your options become limited.

The solution isn’t to avoid a 401(k). It’s to avoid relying on it exclusively. Building wealth the right way means having multiple buckets, each serving a different purpose.

Mistake #3: Letting Too Much Cash Sit Idle

Another common investing mistake is holding excessive cash.

This often comes from a good place. It feels safe. It feels responsible. Especially for high earners who have worked hard to build what they have.

But over time, idle cash quietly loses value mostly due to inflation. It doesn’t grow. It doesn’t compound. And it doesn’t contribute to long-term wealth in any meaningful way.

The goal isn’t to eliminate cash completely. It’s to be intentional about how much you keep liquid and how much you put to work.

Mistake #4: Waiting Until Everything Feels “Perfect”

A lot of high earners delay making decisions because they want to get it right.

They want the right strategy, the right timing, the right plan.

The problem is that waiting is its own decision, and it usually costs more than getting started imperfectly.

Compounding only works if you give it time. The longer you wait, the more you give up.

You don’t need a perfect plan to start building wealth. You need a solid foundation and the willingness to move forward.

Mistake #5: Confusing Income With Financial Security

Making more money does not automatically lead to feeling secure.

This is one of the most overlooked investing mistakes. High earners often assume that as income increases, everything else will fall into place.

But without structure, higher income can actually create more complexity.

More accounts, more decisions, and more variables.

Financial confidence doesn’t come from income. It comes from clarity. It comes from knowing how everything fits together and why you’re doing what you’re doing.

Mistake #6: Ignoring the Role of Mindset

Many investing mistakes aren’t technical. They’re behavioral.

If someone grows up with a scarcity mindset, that doesn’t disappear when their income increases. It often carries forward into how they save, spend, and invest.

That can lead to hesitation, second-guessing, or an inability to enjoy what they’ve built.

On the flip side, overconfidence can lead to unnecessary risk and poor decisions.

Building wealth isn’t just about numbers. It’s about how you think about money and how that thinking shows up in your actions.

Mistake #7: Overcomplicating the Strategy

High earners are used to complexity in their professional lives, so they often assume investing needs to be complex as well.

It doesn’t.

In fact, complexity is often one of the biggest barriers to success.

The fundamentals are simple. Have a solid foundation. Invest consistently. Use the right mix of accounts. Stay disciplined over time.

It’s not flashy. But it works.

What Actually Builds Wealth Over Time

If these are the most common investing mistakes, what does the right approach look like?

It starts with a foundation.

An emergency fund that covers three to six months of expenses. No high-interest consumer debt. Stability before growth.

From there, it’s about using the tools available to you.

Taking advantage of employer matches. Building additional investment accounts that provide flexibility. Creating a structure that supports both long-term growth and short-term access.

And then, most importantly, staying consistent.

Investing month after month. Letting compounding do its job. Avoiding the temptation to constantly adjust based on what’s happening in the moment.

Why Consistency Beats Timing

Trying to time the market is one of the most common investing mistakes, even among experienced investors.

The problem is that it requires being right twice. When to get in and when to get out.

Consistency removes that pressure.

When you invest regularly over time, you smooth out the highs and lows. You participate in growth without needing to predict it.

And over the long run, that approach tends to outperform most attempts at timing.

The Difference Between Looking Wealthy and Being Wealthy

There’s a difference between looking successful and actually being financially secure.

Looking wealthy is often tied to visible things. Cars, homes, lifestyle.

Building wealth happens behind the scenes. It’s in the structure. The discipline. The decisions no one sees.

Many people who appear wealthy are financially fragile. And many people who are truly wealthy don’t feel the need to prove it.

Understanding that difference changes how you approach money.

What a Rich Life Actually Means

At some point, the definition of wealth shifts.

It moves away from accumulation and toward freedom.

The ability to make decisions without financial pressure. To spend time how you want. To create experiences with people you care about.

That’s what money is supposed to support.

Not just a number, but a life that you actually enjoy living.

Final Thoughts

Most investing mistakes don’t feel like mistakes in the moment.

They feel reasonable, they feel safe, and they feel like the right thing to do.

But over time, they add up.

The good news is that the solution isn’t complicated.

It’s about focusing on the fundamentals. Building the right structure. And staying consistent long enough for it to work.

If you can avoid the common investing mistakes high earners make and shift your approach toward clarity and simplicity, you put yourself in a completely different position.

Not just to build wealth, but to actually enjoy it.

Next Steps

Reading about investing mistakes is one thing. Fixing them in your own situation is another.

The Bonfire Method is designed to give you a clear plan across every part of your financial life, not just your investments. In 30 days, you’ll know exactly where you stand and what to do next.

If you’re ready to get out of the guesswork and into a real strategy, you can apply here.

Retiring Soon? It’s Time to Revisit Your Portfolio

Posted on by Brian Colvert

What Retiring Soon Means for Your Investment Strategy

If you are retiring soon, you are standing at the threshold of one of life’s biggest transitions. Retirement changes more than just your daily routine. It transforms how you view your investments, how you handle risk, and how you plan for the years ahead.

For decades, your portfolio likely sat quietly in the background. You contributed to it regularly. You watched it grow. And when markets dipped, you trusted time and future income to smooth things out.

But retirement marks a shift. When your portfolio becomes your income, the stakes feel different. Market swings become more personal. Risk feels more real. And decisions that once felt theoretical suddenly feel permanent.

That is why the year you retire, or the year before, is one of the most important times to step back and reassess how your portfolio is structured.

Today, we’ll cover why retiring soon requires a different way of thinking about risk, how portfolios should evolve as income stops, and what to review before you officially retire. Read to the end to understand how a few thoughtful adjustments can help protect both your finances and your peace of mind as you enter this next phase.

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Retirement Is a Financial Shift and a Psychological One

One of the most common misunderstandings about retirement is when it actually begins.

For most people, retirement does not start on their last day of work. It starts on the first day that their paycheck no longer arrives and their portfolio takes over that role.

That transition is both financial and psychological.

When you are working, market volatility tends to feel distant. If the market drops 15 or 20 percent, it may not feel good, but it does not usually change how you live your life. Your income continues. Bills get paid. Time is on your side.

When you are retiring soon, that relationship changes.

Suddenly, the value of your portfolio is no longer just a long-term number. It represents years of future spending, travel, healthcare, and lifestyle. A market decline that once felt like a temporary setback can now feel like a direct threat to your plans.

This psychological shift is often underestimated, and it is one of the biggest reasons portfolios need to be revisited before retirement rather than after.

When Your Portfolio Becomes Your Paycheck

During your working years, your portfolio’s job is relatively simple. It is there to grow.

You add to it regularly. You tolerate volatility because you have time to recover. You may even welcome downturns as buying opportunities.

But when you are retiring soon, your portfolio takes on a new role. It becomes your paycheck.

This is a fundamental change. Instead of adding money, you are now pulling money out. Instead of letting markets ride, you must consider how withdrawals interact with market performance.

This is where many people encounter what is known as sequence of returns risk. Poor market performance early in retirement, combined with withdrawals, can have an outsized impact on how long your money lasts.

The goal is no longer just growth. The goal becomes sustainability.

If you’re retiring soon, one of the most helpful first steps is understanding how much income your portfolio can realistically support. Using a retirement calculator can help.

Why Risk Feels Different Once Income Stops

Risk is not just a mathematical concept. It is emotional.

While you are working, a 20 percent market decline might show up as a percentage on a statement. In retirement, it shows up as a dollar amount tied directly to your lifestyle.

A portfolio that drops from $1 million to $800,000 feels very different when that portfolio is funding your income. People do not think in percentages at that point. They think in years of spending, missed opportunities, and lost security.

This is why we often say that risk tolerance changes whether you realize it or not when you are retiring soon.

Even people who have considered themselves aggressive investors for decades often find that their comfort level shifts once withdrawals begin. That does not mean they made a mistake earlier. It simply means their life stage has changed.

The Accumulation Phase vs the Distribution Phase

Most people spend far more time thinking about how to save than how to spend from their savings.

Accumulation is relatively straightforward. Spend less than you earn. Invest consistently. Stay disciplined.

Distribution is more complex.

When you are retiring soon, you must decide not only how much to withdraw, but where to withdraw it from, when to do so, and how those withdrawals interact with taxes, market conditions, and long-term sustainability.

This complexity is another reason portfolios often need to evolve at retirement. A structure that worked well for accumulation may not be well-suited for distribution.

There Is No One-Size-Fits-All Retirement Portfolio

Rules of thumb like “100 minus your age” or the classic 60/40 portfolio are often repeated because they are simple. But simplicity does not equal suitability. Truth is, there is no perfect “retirement age.”

When you are retiring soon, your portfolio should reflect your specific situation, not a generic formula.

Key factors include:

  • How much you have saved

  • How much income you need from your portfolio

  • Other income sources like pensions, Social Security, or real estate

  • Your spending flexibility

  • Your emotional comfort with volatility

Two people of the same age can require very different portfolios depending on these variables.

Why Many People Are Too Aggressive Heading Into Retirement

One of the most common issues we see is that people approach retirement with portfolios that are still built for growth rather than income stability.

This is understandable. Growth worked for decades. It is familiar. And markets may have performed well leading up to retirement.

But familiarity can create blind spots.

If you are retiring soon, too much exposure to volatile assets can magnify stress and increase the risk of having to sell investments at unfavorable times to fund living expenses.

This does not mean eliminating growth assets altogether. It means balancing growth with stability in a way that supports consistent withdrawals and emotional comfort.

Timing Matters More Than Market Predictions

It is important to be clear about what this conversation is not about.

Revisiting your portfolio because you are retiring soon is not about predicting market tops or bottoms. It is not about guessing what interest rates will do or which sectors will outperform.

It is about aligning your portfolio with a life change.

The best time to make adjustments is when markets are relatively strong, not after a significant decline. Once a downturn has occurred, changing risk levels often locks in losses rather than preventing them.

This is why planning ahead is so important. Waiting until after retirement, or after a market correction, can severely limit your options.

Liquidity Becomes a Bigger Priority

Another often overlooked factor when retiring soon is liquidity.

During your working years, illiquid investments may not pose much of an issue. You are not relying on them for income. Time is on your side.

In retirement, access matters.

If a portion of your portfolio is tied up in assets with limited liquidity or restricted withdrawal windows, it can complicate income planning. You may be forced to sell other assets at inopportune times to cover expenses.

Reviewing liquidity ahead of retirement allows you to plan cash flow more intentionally and avoid unnecessary stress.

Cash Flow Planning Is More Important Than Ever

When you are retiring soon, portfolio planning shifts from abstract returns to practical cash flow.

Questions become more detailed:

  • Which accounts will fund income first?

  • How do withdrawals interact with taxes?

  • How much cash should be available for short-term needs?

  • How do required distributions fit into the picture?

Answering these questions in advance helps create a smoother transition into retirement and reduces the likelihood of reactive decisions.

Managing Down Years Without Panic

No retirement portfolio avoids down years entirely.

Markets will fluctuate. Corrections will happen. The goal is not to eliminate risk, but to manage it in a way that allows you to stay invested through difficult periods.

When your portfolio is aligned with your retirement reality, down years become manageable rather than frightening. You are less likely to panic, make emotional changes, or abandon a long-term plan.

That emotional resilience is just as important as the numbers themselves.

Retirement Is a Process, Not a Single Event

One of the most helpful mindset shifts for people retiring soon is to view retirement as a process rather than a single moment.

Your portfolio does not need to be perfect on day one. It needs to be adaptable.

Your spending patterns may evolve. Your priorities may change. Your comfort with risk may continue to shift. A well-structured portfolio allows for those adjustments without requiring drastic changes.

The Value of Having the Conversation Early

Many people delay this conversation because it feels uncomfortable. While you are still working and accumulating, it can feel premature to think about pulling money out.

But this is precisely why the conversation matters before retirement, not after.

When you are retiring soon, having time on your side gives you flexibility. You can adjust gradually. You can plan thoughtfully. You can avoid rushed decisions driven by fear or urgency.

Bringing It All Together

Retirement is one of the few life events that touches every aspect of your financial life at once. Income, taxes, investments, psychology, and lifestyle all converge.

If you are retiring soon, revisiting your portfolio is not about fear or pessimism. It is about preparation.

It is about ensuring that the assets you worked so hard to build are positioned to support the life you want to live next.

If you would like help reviewing your portfolio, understanding how risk changes in retirement, or planning the transition from accumulation to income, we are always happy to have that conversation. Take a moment today to schedule a call with us to start the conversation.

You have earned this phase of life. The right planning helps you enjoy it with confidence.

Navigating the Mental Shift into Retirement

Posted on by Brian Colvert

Shift into Retirement

The shift into retirement is one of the most significant life transitions, yet it’s often overlooked as a time of emotional and mental adjustment. Moving from the routine of full-time work to living off savings and investments involves not just financial shifts but also psychological ones. Understanding and preparing for these changes can ease the transition and allow you to embrace this new phase of life fully.

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The Emotional Shift: Redefining Your Identity

For many, work is more than just a salary; it’s a core part of their identity. Retirement can create a sense of loss as you leave behind not only a job but also the structure, social connections, and sense of purpose it provides. These feelings are common and entirely normal.

To navigate this emotional transition:

  • Find New Purpose: Look for activities that give your days meaning, such as volunteering, hobbies, or learning new skills.
  • Stay Connected: Maintain and build social relationships to replace the daily interactions you had at work.
  • Be Patient with Yourself: Adjusting to a new routine and identity takes time. Give yourself grace as you adapt.

The Financial Shift: From Paychecks to Portfolios

The financial aspect of shifting to retirement can feel like stepping into uncharted territory. During your working years, you rely on a steady income to cover expenses. As you shift into retirement, the focus shifts to drawing from savings, pensions, and investments to sustain your lifestyle.

This shift often brings about anxiety. The fear of running out of money or having to cut back on spending is common. To ease these concerns:

  • Understand Your Income Sources: Know exactly where your retirement income will come from, such as Social Security, pensions, investment accounts, or rental properties.
  • Create a Budget: Establish a clear picture of your living expenses and compare them to your expected income.
  • Plan for Longevity: With people living longer, it’s crucial to ensure your savings last for decades. Work with a CERTIFIED FINANCIAL PLANNER™ to develop a sustainable withdrawal strategy.

Baby-Stepping Into Retirement

One of the best ways to transition smoothly into retirement is to take it step by step. Sudden changes can be overwhelming, but gradually adjusting your mindset and finances can make the process less daunting.

Start by simulating your retirement lifestyle:

  • Test Your Budget: Try living on your projected retirement income for a few months while you’re still working. This will help you identify gaps and adjust your spending.
  • Turn on Income Streams Gradually: Begin drawing from assets in phases to get comfortable with the new flow of money.
  • Track and Adjust: Monitor your expenses and income during the first few months of retirement. Be flexible and make changes as needed.

Common Challenges and How to Overcome Them

While retirement is an exciting chapter, it’s not without its challenges. Recognizing these hurdles can help you prepare and tackle them with confidence.

  • Fear of Overspending or Underspending: Many retirees worry about depleting their savings too quickly, while others underspend out of fear. Regularly reviewing your finances can provide clarity and peace of mind.
  • Unexpected Expenses: Medical costs, home repairs, or family emergencies can strain your budget. Building a contingency fund into your retirement plan can mitigate these surprises.
  • Lack of Routine: Without the structure of a work schedule, some retirees feel lost. Creating a daily routine that balances leisure, personal growth, and social activities can restore a sense of purpose.

Real-Life Example: A Gradual Transition

Consider a couple, Mark and Susan, who recently retired. Initially, they struggled with the idea of no longer receiving regular paychecks. They decided to approach their transition in stages:

  1. Simulated Budgeting: Six months before retiring, they began living solely off their projected retirement income to get a feel for their new lifestyle.
  2. Flexible Withdrawals: During their first year of retirement, they adjusted their monthly withdrawals based on actual spending, ensuring they neither overspent nor unnecessarily restricted themselves.
  3. Finding Purpose: Mark took up woodworking, a hobby he’d always wanted to explore, while Susan joined a book club and started volunteering at a local nonprofit.

By taking gradual steps, they eased their shift into retirement with confidence and now enjoy their newfound freedom without financial or emotional strain.

Tips for Thriving in Retirement

To make the most of your retirement years, focus on both financial stability and personal fulfillment:

  • Plan Ahead: Really start thinking about how to gradually ease into retirement 5-10 years before.
  • Stay Active: Regular exercise and mental stimulation are vital for long-term health and happiness.
  • Keep Learning: Pursue new interests or continue education through courses, books, travel, or hobbies.
  • Work with Experts: Partner with a financial planner to ensure your retirement plan is on track and adaptable to changes.
  • Embrace Flexibility: Life is unpredictable, so build flexibility into your plans to accommodate unexpected twists and turns.

Conclusion: Embrace the Journey

Retirement is a significant transition, but it’s also a chance to craft the life you’ve always wanted and live for today. While the shift from a steady paycheck to living off your assets may seem intimidating, taking a gradual, flexible approach can ease the adjustment. By preparing financially and emotionally, you can fully embrace this new phase and enjoy the freedom and opportunities it brings.

If you’re ready to start planning your shift into retirement or need guidance navigating the transition, contact us at today! Our team is here to help you create a plan that ensures you’ll thrive in retirement.

10 Books for a Better Money Mindset

Posted on by Brian Colvert

10 Books for a Better Money Mindset

The list of personal finance and investing books is pretty extensive. This is not that list. While those books can be helpful, many get very technical, and if your mindset isn’t in the right place to take in that knowledge, what is the point?  Plus, technical knowledge alone won’t lead you towards a wealthy and rich life (financial or otherwise). A lot of what holds people back from success are their thoughts and beliefs about money. 

 

What stories do you tell yourself about money?

For some, and as society has come to reinforce, is that money is the root of all evil, or that rich people are greedy, or some other negative belief along those lines. Living with a negative or scarce mindset will never lead you to a positive or abundant life. In fact, research shows that one of the BEST predictors of success in life is one’s mindset.

Get your mind right, get your life right!

So then, what is this list? This is a list of books for a better money mindset.  Some talk specifically about money, others don’t, but all should spark something in your mind and help you view the world, and your money in a different and more positive way.  Let’s get to it!

1. Mindset by Carol Dweck

This is an obvious first choice because, well, this book is THE book about mindset.  There are decades of research behind this book that gets translated into specific, actionable, and tangible detail. Dweck has a very compelling view of why we should look differently at failure and learning. Further, this book helps you to evaluate if you are approaching your money from a fixed or growth perspective. There is a huge difference, which is why I recommend this book.

You can pick it up here.

Books for a Better Money Mindset

 

2. Start with Why by Simon Sinek

Simon Sinek is a genius when it comes to getting to the heart of why you should do something, not how.  Why do you want more money? Certainly, it’s not to have more pieces of paper with dead Presidents on them laying around. Defining what is truly behind your financial goals will help propel you in the right direction. You will discover that money is never really the WHY.

The book is here (or audiobook). Sinek also has a powerful TED Talk around this concept as well.


Books for a Better Money Mindset

 

 

3. The Power of Broke by Daymond John

Shark Tank investor and entrepreneur Daymond John was broke with a $40 budget when he was starting his clothing brand FUBU, which today is a $6 billion brand. How is that for bootstrapping?! This book is great for putting money into perspective. It shows that it doesn’t always take money to make money (another disempowering colloquialism that society has)- the book has so many perfect examples of this. Use your lack of financial resources to your advantage. We also recommend this book to those well off because it can reignite a hustle you may have lost along the way.

This is a must-read for anyone- get it here or on audiobook.


Books for a Better Money Mindset

 

4. The Talent Code by Daniel Coyle

This book is grounded in science. It doesn’t skip straight to the “here’s how it works, go do that”, instead, it helps you understand what influences the development of your skills and as a result helps you become a better learner in all areas. This book has expanded my mind and it is another great perspective builder. There are practical stories and examples of the concepts. Above all, Coyle shows how all of us can achieve our full potential (and the best money mindset) if we set about training our brains in the right way.

Check it out here, or again on audiobook.


Books for a Better Money Mindset

 

5. Think and Grow Rich by Napoleon Hill

This is a classic and one of those books I revisit at least once a year. It is that good. If you haven’t read it, stop what you are doing and read it already.  In fact, I believe this should be required reading for high school students. In the book, Napoleon Hill recounts his research of more than 500 self-made millionaires (keep in mind the book was originally published in 1937) and then he boils down the “secret” to building wealth into 13 principles and reveals “major causes of failure” that hold many of us back from getting rich. This should really be on every list of books for a better money mindset, or self-improvement book list in general.

If you haven’t read it, do yourself a favor and pick up a copy today. Get one for yourself and two more as gifts for a recent grad.


Books for a Better Money Mindset

 

6. The Inner Game of Tennis by W. Timothy Gallwey 

I had to convince my wife to read this because she isn’t a huge Tennis fan, she read it and loved it. So, if you are not a  big Tennis Fan either, simply ignore the title and read on.  This book is about how to master your inner dialog. The inner game of tennis theory states that two opposing mindsets are always battling. The first, the “teller” mind which is filled with self-judgments and criticism. This mindset wants to over-control your performance.  The second “doer” mindset is the best mindset for peak performance and happens when you are free and react with your game. You must master both.  Again, master your mind- master your money.

Definitely worth a read. You can pick it up here.


Books for a Better Money Mindset

7. The Millionaire Next Door by Thomas J. Stanley Ph.D.

This book examines the lives of unlikely, unexpected millionaires. It goes into the habits, careers, and relationships that shape these people. Some of the material is dated to the 90’s but the concept is still applicable today- especially the principle that wealth is more common than you would think, actually it that might be even more relevant today. There is lots of practical advice in this classic book and one worth checking out.

Available in paperback or audiobook.

Books for a Better Money Mindset

 

8. The Other 90% by Robert K. Cooper

I believe there are two main problems with the majority of self-help and leadership books. First, the vast majority of self-improvement books don’t seem to challenge conventional thinking in any meaningful way, nor do they bring about fresh insights. Second, they tend to offer oversimplified platitudes about success. The other 90% goes in the opposite direction.  Dr. Robert Cooper, a neuroscience pioneer, urges us to take a radically different view of human capacity. We are mostly unused potential, he says, employing less than 10 percent of our brilliance or hidden talents. This book provides action steps to develop your full potential in all areas of your life.


Books for a Better Money Mindset

 

9. Unfu*k Yourself by Gary John Bishop

I love this book because it offers a no-BS, tough-love approach to help you move past self-imposed limitations. It is a great alternative to cozy, everything is rainbows, self-help books. Beyond the catchy title, it offers practical insights on fostering the will for change, changing your language to serve you, and overcoming analysis paralysis. It drives home the point, quite bluntly, that you currently have the life (and the money mindset) that you are willing to put up with. It is certainly a refreshing read and why it made our list of books for a better money mindset.

Pick up the paperback or audiobook here.

 

10. The Power of Habit by Charles Duhigg

Habits around money can either be the most empowering or the most detrimental. This book walks you through everything you need to know about breaking and forming habits that will transform your life, and of course your money mindset. This book is a fascinating account of recent research into habits and worth the time to read it. What cues some of your current money habits? What rewards do you have in place for your good habits? Do you have a plan in place to create better habits around money? This book dives into it all. Change might not be fast and it isn’t always easy. But with time and effort, almost any habit can be reshaped.

The paperback or the audiobook is great!


The Power of Habit - Books for a Better Money Mindset

 

There you have it! Our top Ten Books for a Better Money Mindset. Have you read any of these already? Are there others you would add to the list? We hope you find value in these and that at least one resonates with you in a way that makes you want to intentionally improve your mindset,  because if you improve your mindset- you improve your life!

 

What’s next? 

Reading all these books is a great starting place to helping to develop a better money mindset, however, that’s not where it should end. We want to be by your side in your journey. Let’s talk! We offer free 30-minute consultation calls that can help get your questions answered and you pointed in the right direction towards your goals. Reach out to us to set up a call and use the link below for the time that works best for you!

Money Mindset Coach

 

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Books for a Better Money Mindset

Please note this post includes affiliate ad links -As an Amazon Associate, we earn from qualifying purchases.

 

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