Post by URBAN FARMING on Jul 27, 2017 10:30:40 GMT -6
When financial decisions are not properly coordinated, the result can be:
"... an array of unrelated products, purchases and investments, resembling a sort of “financial junk drawer”. In this drawer there are a lot of important documents that lack organization, and a lot of financial decisions that are made independent of one another, setting the stage for the perfect financial slippery slope. Like throwing a pebble in a pond, the ripple effects go on and on, and if you do not understand these ripples you may end up with unintended and unwanted consequences.
Consider for example getting into a fender-bender only to find out the car insurance deductible is higher than you thought. With little savings to pay it, money is depleted, and the rest of the monthly surprise expenses go onto a credit card. The credit card now has a higher debt to limit ratio which negatively impacts your credit score, and when you go to buy a new car later, the car loan interest rate is higher causing higher monthly payments. One ripple effect after another, in this case all negative.
How is this prevented? By understanding that money decisions cannot be made in a vacuum, and if there is no consideration for how decisions will impact other areas of your financial world, then money will unknowingly be transferred away to financial institutions, corporations and the government. Consequences that are actually the opposite of what people want. Financial architecture is the process of looking at all your money decisions at one time to identify the possible ripple effects, negative and positive.
When was the last time your insurance agent, tax preparer, banker, human resource contact, investment professional and attorney all sat down together in a room to discuss the best money strategy for you and your family? That way each one would understand the impact of each money decision. Unfortunately this never happens. The foundation is never properly laid before the construction starts. An architect needs to be there to coordinate all the decisions. This meeting is not typically done in person, rather by gathering all the information that is sitting in that financial junk drawer and sitting down with a financial architect."
Quoted from "What is a Financial Architech?" By Asalyn Coachman, in Fresh Lifestyle Mag - to read the entire article and to check out Fresh Life Style Mag, please visit: www.freshlifestylemag.com/what-is-a-financial-architect.html
"... an array of unrelated products, purchases and investments, resembling a sort of “financial junk drawer”. In this drawer there are a lot of important documents that lack organization, and a lot of financial decisions that are made independent of one another, setting the stage for the perfect financial slippery slope. Like throwing a pebble in a pond, the ripple effects go on and on, and if you do not understand these ripples you may end up with unintended and unwanted consequences.
Consider for example getting into a fender-bender only to find out the car insurance deductible is higher than you thought. With little savings to pay it, money is depleted, and the rest of the monthly surprise expenses go onto a credit card. The credit card now has a higher debt to limit ratio which negatively impacts your credit score, and when you go to buy a new car later, the car loan interest rate is higher causing higher monthly payments. One ripple effect after another, in this case all negative.
How is this prevented? By understanding that money decisions cannot be made in a vacuum, and if there is no consideration for how decisions will impact other areas of your financial world, then money will unknowingly be transferred away to financial institutions, corporations and the government. Consequences that are actually the opposite of what people want. Financial architecture is the process of looking at all your money decisions at one time to identify the possible ripple effects, negative and positive.
When was the last time your insurance agent, tax preparer, banker, human resource contact, investment professional and attorney all sat down together in a room to discuss the best money strategy for you and your family? That way each one would understand the impact of each money decision. Unfortunately this never happens. The foundation is never properly laid before the construction starts. An architect needs to be there to coordinate all the decisions. This meeting is not typically done in person, rather by gathering all the information that is sitting in that financial junk drawer and sitting down with a financial architect."
Quoted from "What is a Financial Architech?" By Asalyn Coachman, in Fresh Lifestyle Mag - to read the entire article and to check out Fresh Life Style Mag, please visit: www.freshlifestylemag.com/what-is-a-financial-architect.html