BY: Matt Dodson, AAMS™.
Client Advisor & Business Development Officer
Originally published on SB Magazine April 2025
The Importance of Setting Goals
This is not just one of the most important financial decisions a person will make—it is the most important. Having a clear goal, whether short-term and long-term, is one of the key factors in determining financial success.
No matter what your “money personality” is, having a clearly defined goal makes it much easier to achieve. For example, if you are a “Saver,” achieving financial goals might come naturally. If you are a “Spender,” you may see a financial goal as a hindrance to enjoying your money now. If you are an “Investor,” you might view a goal as a challenge to conquer. If you are a “Giver,” you may feel selfish about saving money for a future goal.
Regardless of your “money personality,” the sooner you recognize it, the more likely you are to use it to your advantage.
How Much Should You Save Each Pay Cycle?
I believe it was Warren Buffett who said, “Don’t save what is left after spending, but spend what is left after saving.” People who understand this may find it much easier to achieve their financial goals.
However, if someone is looking for a specific answer to how much they should save each pay cycle, the answer is: “It depends.” In this part of the country, many people believe in giving away 10% of their income—whether to their church, nonprofit organizations, or simply helping friends and family. Sometimes, it is easier to apply a similar principle to saving.
If a person learns to save 10% of their income and give away 10%, the mindset then becomes: I need to learn to live on the remaining 80% of my income. However, it must be noted that the more you save, the easier it becomes to reach your financial goals.
Reading the Stock Market
DON’T DO IT! Understanding the stock market can be a rather complicated topic. I’ve always said, “Stick with what you know and hire people who do the same.” History has shown us time and time again that people are very reactionary. Understanding or trying to gauge the stock market can often lead to irrational decisions based on fear or misunderstanding.
Ultimately, making an emotional or rash decision based on information you may not completely understand can lead to devastating financial consequences.
The Key to Balancing Your Financial Strengths and Weaknesses
Understanding your financial strengths and weaknesses is an important step toward becoming financially successful. The sooner a person realizes what they are good at, the more balanced their financial viewpoint can become.
Another way to balance your financial strengths and weaknesses is to invite someone else into the conversation—whether a spouse, trusted friend, or professional financial advisor.
