Introduction: Welcome to another intriguing episode of The Amber Stitt Show! In today's episode, we delve into a thought-provoking topic that will challenge the traditional notions of financial planning. Join me as we explore the merits of principles-based planning over the conventional approach and discover the secrets to achieving true financial freedom.
Navigating through Uncertainty: Imagine a world where even the most meticulously calculated predictions, be it in aviation or shipping, prove to be inaccurate. Would you trust an airplane or ship that solely relied on unreliable forecasts? Just like a ship at sea, financial planning needs to be adaptable, continuously adjusting to the unpredictability of life. Our guest today, Kyle Christensen, emphasizes that planning is not about predicting the future but about preparing for it.
Evolutionary Planning: In our conversation, Kyle stresses the need for continuous planning and evolution. The world is ever-changing, and relying on a single plan for a lifetime might lead to financial stagnation. It's crucial to learn from history, successful individuals, and embody their mindset while remaining open to the future's inherent uncertainties.
The Power of Small Changes: To understand the dynamics of principles-based planning, we draw inspiration from the book "Atomic Habits." Just as small changes in habits can lead to remarkable success, fine-tuning our financial decisions can have compounding effects. By evaluating our spending and investment habits, we can unlock the power of principled financial planning.
Unveiling the Pitfalls of Traditional Planning: Traditional financial planning often requires individuals to surrender control of their hard-earned money to financial institutions for extended periods. This model works under the assumption that our money will grow through accumulation and compounding interest. However, this approach leaves individuals at the mercy of external factors and forces them to wait for decades before accessing their funds.
Understanding Financial Freedom: Contrary to popular belief, achieving financial freedom goes beyond mere retirement savings. It involves generating income from assets that support our desired lifestyle, without being dependent on our ability to work. Delaying the possibility of financial freedom by surrendering control and use of money can limit our options.
Embracing a Common-Sense Approach: In an industry filled with jargon and complexity, Kyle advocates for a common-sense approach to financial planning. By treating personal lives and investments like a business, we gain control over our lives and make strategic decisions that align with our goals. Feeling empowered and smart is crucial to taking action and achieving financial success.
Planning, Timelines, and Duration: During our conversation, Kyle shares insights into building an application that helps individuals understand the timeline and duration of their financial goals. By leveraging credit scores, debt, and banking products, we can make informed decisions and optimize our financial position. Understanding the compounding nature of our financial decisions allows us to allocate our dollars more effectively.
Building Passive Income & Maintaining Liquidity: Our discussion further highlights the importance of building passive income strategies and maintaining liquidity. It's crucial to have more control over our finances and avoid being locked away from our funds for extended periods. By understanding our rights to our money and exploring opportunities for passive income, we can achieve true financial freedom.
Conclusion: In this eye-opening episode of The Amber Stitt Show, we've explored the power of principles-based planning versus traditional financial planning. By embracing adaptability, making small changes, and taking control over our financial lives, we can break free from the limitations of conventional thinking. Remember, financial planning is not about predicting the future; it's about preparing for it. Tune in next time as we continue our journey towards living a happy, successful, and fulfilling life. Stay tuned!
[00:01:10] Commonsense-based financial planning, traditional vs. new. [00:04:00] Traditional planning: work, save, retire comfortably. [00:09:04] Planes grounded, post-pandemic logistics issues, changing habits, preparing for obstacles. [00:13:17] Discuss compounding, cost control, and passive income. [00:14:22] Financial freedom means having sufficient income without control.
You can learn more about Kyle and his team here:
For anyone: https://uniqueadvantage.biz/
For Advisors: https://fiveth.co/
How to find Kyle? Kyle's book on Amazon: