57. Big Money, Big Choices: How to Navigate High Income Wisely feat. Cait Howerton

Are you ready to navigate the challenges of transitioning from a low earner to a high earner? Discover the secrets of managing your newfound wealth, overcoming family money scripts, and avoiding lifestyle inflation. But just when you think you've got it all figured out, a shocking revelation threatens to unravel everything. Stay tuned for a jaw-dropping twist that will leave you questioning your financial choices.

I just like to work with people who aren't afraid to be a little different than everyone else. - Cait Howerton

In this episode, you will be able to:

• Discover the essential steps to transition from being a low earner to becoming a high earner, unlocking a world of financial success and fulfillment.

• Uncover the hidden challenges of lifestyle inflation and learn how to overcome them, ensuring that you can make the most of your increasing income.

• Understand the importance of finding a fiduciary financial planner who will prioritize your best interests, guiding you towards smart financial decisions and empowering you to build lasting wealth.

• Learn valuable strategies for navigating partnerships with income imbalances, fostering open communication and mutual understanding to maintain harmony in your relationships.

• Explore effective ways to maintain financial wellness within your relationships, ensuring that you and your partner can achieve shared goals while respecting individual financial journeys.

My special guest is Cait Howerton

Cait is a Certified Financial Planner who helps high-achieving professionals make smart, intentional, and strategic choices with their money. She specializes in serving out-of-the-box households, including high-earning families navigating newfound wealth, LGBTQ+ individuals and couples, intentionally single, divorced, widowed, blended families, and more. She has a background in trauma-informed financial practices and deep expertise in student loans, family planning, and values-aligned goal setting.

Her #1 goal for you–and all the clients she works with–is for you to achieve and enjoy your journey to wealth. Cait believes the path to financial success isn’t always paved with gold–it’s paved with intentional-decision making, a sustainable financial plan, and a dash of encouragement and hope along the way.

Welcome, a leading voice in diversity, inclusion, LGBTQ+ financial issues, values-aligned goal setting, and student loan debt to the show, Cait Howerton. If you're a high-achieving professional who is seeking to make smart, intentional, and strategic choices with your money, but you don't always know what to do next, contact Cait for a free, no strings attached consultation to see if she can help you achieve your life and financial goals.

"Good behavioral financial planning is a lot like therapy, coaching, and talking to your best friend. It's getting those numbers on paper and putting a plan in place that reflects your values and goals." - Cait Howerton

The key moments in this episode are:

00:00:00 - Introduction
00:02:57 - Challenges of Transition
00:05:26 - The "Enough" Number
00:07:12 - The Importance of Values
00:10:21 - Reordering Priorities
00:14:20 - Choosing the Right Financial Professional
00:16:50 - The Future of Financial Planning
00:18:28 - Shifting Mindsets
00:20:33 - Understanding Financial Roles
00:27:55 - Maintaining Friendships and Boundaries
00:29:12 - Navigating Financial Imbalance in Relationships
00:30:31 - Considering Financial Values in Partner Selection
00:32:33 - Open and Honest Conversations
00:34:30 - Where to Find More Information

Key Resources Mentioned In The Episode

Schedule a consultation with Cait Howerton to receive personalized financial advice and guidance tailored to your specific needs and goals. https://archerim.com/why-archer/#who-we-are

"Financial success is not just about the numbers, it's about finding balance and living life in accordance with your values and goals." - Cait Howerton

Episode Breakdown

Reflect on your money beliefs: This step involves understanding your inherent beliefs and attitudes towards money, which may have been influenced by your family of origin or previous experiences.

First, let's delve deep into the concept of reflecting on money beliefs and how they shape your overall financial behaviour. This is the process of re-evaluating your inherent attitudes towards money that have been shaped over the years, perhaps by your family background or past experiences. This reflection offers more than just a superficial understanding of your spending and saving patterns. It’s about grasping the root cause of those patterns. It's about gaining insight into why you behave a certain way with your money and how it aligns with your core values and financial goals. This step acts as a sort of financial introspection that sheds light on your subconscious financial decisions and encourages healthier fiscal habits.

Cait emphasizes the importance of this reflective step–she mentions how often low earners who transition into being high earners tend to carry their old fears and beliefs related to money. Their past experiences of scarcity might make it difficult for them to adapt to a mindset of abundance. This could lead to unwise spending habits or an inability to enjoy their financial success. With her clients, Cait consciously addresses these ingrained money scripts. She stresses the necessity of evolving these beliefs to achieve a balanced financial life that not only realizes the dreams of the present but also safeguards the future.

Decide what enough means for you: Here, you decide on an 'enough number', the point at which you would feel content with your financial achievements. This includes setting financial goals that align with your personal values and aspirations.

Determining what 'enough' means for you is a critical step in financial planning. This involves settling on an 'enough number' - a financial milestone that signifies a point of contentment and fulfillment with one's financial achievements. It's a notion that is personal and highly specific to each individual. Establishing these numeric goals, however, should not be measured solely in terms of monetary worth, but equally valued based on how well they align with your own values, aspirations, and intended lifestyle. The process of defining 'enough' compels introspection and evaluation of one's life beyond the financial facet. It fosters a deeper understanding of how your finances serve your life, not the other way around.

Cait emphasized that determining an 'enough number' is more than crunching numbers; it's understanding what these numbers mean to you and how they contribute to the overall quality of your life. Howerton illustrated the emphasis on juxtaposing your financial aspirations against your values and personal goals. For some, 'enough' might mean saving for a dream vacation, while for others, it could mean having saved for their kid's education. It's about setting realistic financial boundaries that not only cater to your material needs but also enrich your life in the ways that matter the most to you.

The holistic approach to financial planning therefore isn't just about achieving financial wealth but attaining a balance that results in overall life satisfaction and purpose. Understanding what 'enough' means to you is crucial because it serves as a guiding principle in financial planning. It assesses the capacity of your financial resources to facilitate your life's wants and needs, and ultimately, it fortifies your understanding of the kind of life you aim to lead. Knowing what 'enough' is could deter unnecessary spending and impulsive financial decisions. It urges you to reflect more intentionally on the alignment of financial decisions with personal values, and it promotes healthy discourse between you and your financial planner about your goals. In broader terms, knowing your 'enough' helps to cultivate a life that gives priority to fulfillment and satisfaction over material wealth. It serves as an effective strategy to curb the risks associated with lifestyle inflation and fosters a more balanced and fulfilled life.

Moving from a lower income bracket to a higher one is a significant accomplishment and can open doors to many new possibilities. But it can also bring its own set of unique challenges. It's more than just earning more; it's about managing your finances in a way that brings you lasting satisfaction and aligns with your personal values. This requires you to understand your inherent beliefs about money and decide what 'enough' means for you. It's about avoiding the enticement of lifestyle inflation, and understanding the importance of long-term financial planning. By following these steps, you can navigate this transition smoothly and make your newfound wealth truly work for you. So, take a moment to reflect on your financial goals, make intentional decisions, and get ready to experience a life of financial fulfillment.

Want expert help to implement these steps? Contact Cait Howerton to learn more.

Connect with Cait here: https://archerim.com/why-archer/#who-we-are

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