How these married Financial Planners manage their own finances

My wife are I are both financial planners and we love talking money.

To us, money means possibilities.

But before we can dream, we have to know our numbers.

After 5-years of marriage, we have our process pretty dialed in.

But just because we’re pros doesn’t mean our system is complex. We use tools that most people already use.

What may surprise you is that it’s less about the tools, and more about the discussions.

In this piece, I'll share the 3 key, building blocks that my wife & I use to manage our own finances.

• 1. Balance Sheet (Net Worth)

• 2. Cash Flow

• 3. Monthly Finance Meeting

1. Balance Sheet (Net Worth)

This step answers 2 quick things:

• a) How much money do I have? (most people don’t know)

• b) Should I move anything around?

Most common task: too much / too little cash. Either sweep excess cash to Brokerage, or raise some cash from Brokerage.

Most balances don't move that much month-over-month. So once it's built, it’s a pretty quick process.

Here is a sample version of the Balance Sheet we use [built in google sheets]

But then I like to create a ‘pivot table’ to get a better quick overview like this:

From here, you can make some quick observations like ‘we need to raise some cash for our next vacation’ or even ‘we have enough liquid savings to start our own business for X years’.

This template isn’t the prettiest thing I’ve ever built (clients gets prettier versions). But that’s the point. Ugly gets the job done.

If you want this google sheets template, you can just message me.

2. Cash Flow

Even I forget how much money we spend month-over-month.

So this exercise helps remind me of what range we’re in.

2 ways to get this info:

• a) download checking month-end transactions [this only works if all your credit cards/bills are paid from here too, paid in full]

• b) use an automated service like Rocket Money or Tiller.

We used to use Mint, but now are trying out Rocket Money.

Month 1 is a bit of work, as you have to program your expenses. But future months are mostly streamlined.

Once you’re connected, you can expect an output similar to this:

Before trying to change anything, we need data.

We want to get at least 3 months of data in here to see an entire quarter’s worth of spending.

If that numbers feels high, then we look deeper to see what we can cut.

Even with no change, the most valuable piece is the awareness.

3. Monthly Finance Meeting (i.e. talking about it)

Every month (unless we forget) my wife and I review steps A and B together.

The goal is not to jump in and change things.

We simply want to to see where we’re at today.

To have a productive meeting, you should already have A and B updated.

My wife generally updates them for us. It takes her ~10-min to update.

She enjoys it. She’s turned our financial journey into a wealth-building game.

We have the data since we got married, and it is amazing to look back on how far we've come.

But still, the most important piece is the conversation.

How to have the conversation: 

To be frank, most of the time we just make simple observations. Sometimes the markets are down/up, and it moves everything. Sometimes we save a lot, and we share a high-five.

For us, looking at it is therapeutic. 

Most of the time there are no decisions to make at all. It's just nice to be reminded that we still have money.

When it comes to discussing money with clients, the process isn't too different.

Sometimes we use long-term planning software to guide the conversations. But the art & science is the still the same.

Having someone you trust to discuss your finances makes all the difference for financial confidence.

Looking for Next Steps?

• Reply or just say Hi !

• Schedule an intro call