Learning to resist the urge to over-spend can feel like entering the counter-culture. But that might be just the mind-set needed if we want to reach our important financial goals like buying a house, sending kids to college or retiring someday.
Equity compensation comes in multiple forms, each with its own rules, tax implications and strategies for maximizing the upsides and minimizing the downsides. Whether you work for a pre IPO startup or an established public company, a grant of stock compensation requires some careful planning and attention to detail.
Just like making dinner for a hungry family, planning for your financial future requires flexibility and creativity. Begin with where you are and what you have. Map out where you want to go. Design plans A, B and C to help you get there with grace as you find some ingredients missing from time to time. Who knows, those last minute substitutions could be the makings of a wonderful new recipe.
We all know that our kids are watching us and that we are modeling behavior whether we like it or not! Spending time working on our own financial health can provide an excellent opportunity to teach healthy financial behavior to our kids.
At first it may seem complicated, but if you spend time studying the items on your pay statement, you will be better informed about your income, your deductions and your taxes. You can compare your own calculations to the IRS withholding calculator and feel empowered to take charge of your pay stub!
When I meet or talk on the phone with someone who is experiencing a financial crisis, such as the loss of a job or spiraling debt, I try to bring the focus toward immediate next steps that can help bring relief. It is not until after this crisis is addressed that we can move on to bigger picture goals. The first thing to do is to recognize that you are not alone in your experience and that there are steps you can take to make things better day by day.