The Best Financial Decision I Ever Made

It cost $400.

And no, it wasn’t a professional grade blender (although those are completely worth it, too!). It was a meeting with a financial advisor. Little did I know how critical it would prove to be.

Quick “Why” Backstory:

In a leap of faith, I quit my corporate job with all the bells and whistles to work for a non-profit. I was passionate about the work. I thought it was worth the risk and the sacrifice for the experience.

At the time I was transitioning, I had to roll over my 401(k) and had no clue where to start.

A mentor suggested I meet with this guy who just started his own financial firm. So, on his recommendation, I met with Brad to discuss my finances.

First Blush

Brad and I clicked right away. We had the same thoughts and ideas around money, and it was enough for me to trust him to help. He explained how I would roll over my investments to a platform he used.

Along with that, he recommended I meet with him for a one-time financial planning meeting to go over:

• my spending,
• set up a budget, and
• establish some long-term and short-term savings goals.

Normally, I would shy away from this sort of thing and say I was fine – that I didn’t need the help.

But something made me think what the heck. What could it hurt?

Budgeting and So Much More…

Brad and I went over 3 months of my spending over Starbucks. He coded my purchases and put them in a budget measured against benchmarks.

I learned I was spending the appropriate amount on housing and transportation and overspending on clothes and personal (aka beauty products). 

What came next, though, was worth the $400 and more.

Brad suggested a safety net now because they non-profits could lose funding and it would be a good idea to have several months of living expenses set aside in the event I lost my job.

I had never considered a financial “safety net” before.

Honestly, I never thought I would need one. I agreed with him though; it seemed like a good idea.

So for three years, I slowly put money away into a short-term fund I could easily access in the event I needed to.

And then one day I needed to.

I lost my job.

I basically lived off my safety net funds for a year during a time of underemployment.

That first meeting with a financial advisor turned out to be the best financial decision I’ve ever made.

Why You Need a Safety Net

“But Angela,” you might say, “my job is secure. We have plenty of funding.”

OK, so why else would someone need a safety net besides job loss? And what qualifies as an emergency?

Personally, I love what the character Rebecca Bloomwood in the Confessions of a Shopaholic book series qualifies as a “financial emergency” -a sale, obviously.