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1.1 Why Planning Your Finances Changes Everything

1.1.1 Money Without a Map

Let me ask you something real:

Have you ever stood in front of a café menu, credit card in hand, doing mental gymnastics just to convince yourself a $6 latte counts as self-care? Or scrolled past someone’s luxury vacation on Instagram and thought, “I work just as hard—so why am I broke by Wednesday?”

Welcome to the chaos of adulting.

Money isn’t just numbers. It’s emotion, status, identity, and survival—all tangled into one bank account. And unless you stop, take a breath, and build a plan, you’re not in control.

That’s why we’re here. Not to shame you. Not to make you a finance bro. But to give you the tools, stories, and structure you need to take your power back.

Let’s begin.

1.1.2 What Is Financial Planning, Really?

Financial planning sounds intimidating. But here’s what it really is:

• • Thinking about what you want from life.
  • Figuring out how much that life costs.
  • Mapping out how to get there without panic attacks or overdraft fees.

It’s not about becoming a millionaire (though hey, go for it). It’s about designing a financial life that reflects who you are and who you’re becoming.

Financial planning gives you freedom. Not just the freedom to spend, but the freedom not to spend. The freedom to say “no” to a toxic job because you have savings. The freedom to take a sabbatical, start a business, or—like I did—walk away from a Silicon Valley director job to go study at Oxford.

1.1.5 Common Myths About Financial Planning

Let’s bust a few myths right now:

• • Myth: You need a high income to start planning.
    Truth: Planning is how you build income, not something you wait to do once you have it.
  • Myth: Financial planning is only for finance majors or the rich.
    Truth: If you’ve ever paid rent, used a credit card, or bought groceries, congratulations—you’re already doing financial planning (just maybe without a plan).
  • Myth: It’s boring.
    Truth: It’s only boring if you let it be. Once you tie your money goals to real life dreams (traveling, starting a business, raising kids, retiring early), it becomes personal, powerful—and even fun.

1.1.6 The Emotional Side of Planning

One thing textbooks often skip is the emotional weight of money.

Planning isn’t just about spreadsheets and bank accounts. It’s about safety, control, even identity. I’ve seen people stay in miserable jobs or relationships because they couldn’t afford to leave. I’ve seen others thrive, not because they earned more, but because they planned better.

Planning gives you power. Not over everything, but over enough.

And let’s be real: sometimes, even with the best plans, life throws curveballs. I’ve had properties lose value. I’ve had investments flop. I’ve had to pivot, adjust, and try again. But because I had a plan—and habits built over time—I didn’t collapse. I adapted.

1.1.7 Start Where You Are

If reading this makes you feel behind—don’t panic. You’re not. You’re exactly where you need to be to start.

Whether you’re living paycheck to paycheck, drowning in student loans, or just trying to figure out how taxes work, the point isn’t perfection—it’s intention.

The fact that you’re even reading this chapter already sets you apart. You’re choosing awareness. You’re choosing agency. That’s powerful.

Here’s your first takeaway:

Financial planning is a form of self-respect.
It says, “My future matters. My peace of mind matters. And I’m willing to put in the work to protect both.”

Final Thought

1.2 The Five Steps to Building a Financial Life That Works

1.2.1 Okay, So You’re Ready to Get Your Money Together…

If you’ve made it this far, give yourself a moment.

You’ve already passed the hardest test in personal finance: caring enough to start. Most people don’t. They ignore it, avoid it, or assume it’s a future problem—until a credit card is declined, rent’s overdue, or a surprise medical bill throws everything into chaos.

But let’s break the stereotype: you don’t need to be rich to plan. You don’t need a financial advisor or a degree. You just need a little structure—and the courage to look honestly at where you are, where you want to go, and what it’ll take to get there.

This section walks you through the Five-Step Financial Planning Process, taken from the BUSI 45 curriculum and Keown’s Turning Money into Wealth. Don’t worry—it’s not a complicated MBA framework. It’s more like a GPS for your life.

1.2.2 Step One: Evaluate Your Financial Health

Let’s be honest. Most of us know when our financial health isn’t great. The signs are familiar:

• • Constant stress about money
  • No idea where your money actually goes
  • Feeling like your income disappears before the month is over

I’ve been there.

In my early twenties, I was earning a decent salary as an engineer in Silicon Valley. But I was also spending like I had something to prove—on cars, clothes, dinners, gadgets. I didn’t budget, didn’t track expenses, and had no clue about my net worth (which, to be fair, was probably negative at the time).

It wasn’t until I sat down and made a simple spreadsheet—with income, expenses, debts, and assets—that I realized I was living paycheck to paycheck despite earning more than both my parents combined had ever made.

Evaluating your financial health means facing the numbers, even if they’re scary. It means calculating your:

• • Net worth (what you own minus what you owe)
  • Monthly cash flow (money in vs. money out)
  • Debt load (do you owe more than you make?)
  • Emergency fund (do you even have one?)

This step isn’t about shame—it’s about clarity. You can’t build anything strong on a foundation of guesswork.

1.2.3 Step Two: Set Your Financial Goals

Once you know where you are, it’s time to decide where you want to go.

Most people skip this. They jump straight to action: “Should I invest in crypto? Should I open a Roth IRA? Should I buy real estate?” Those are tactics. You need goals first.

Your goals can be:

• • Short-term: Pay off credit cards, build a $1,000 emergency fund, save for a trip
  • Mid-term: Buy a car, go back to school, build a 3–6 month cushion
  • Long-term: Retire early, buy property, start a business, send your kids to college

Real-life moment:
Before I became a father, my goals were career- and travel-focused. I wanted to lead global teams, speak at conferences, and see the world. My financial goals reflected that: save for an MBA, invest in rental properties, build a safety net so I could take risks.

But when my daughter Luana was born, everything shifted. My new goals weren’t about me—they were about her. Stability, education, time. I sold assets I loved. Reallocated investments. Got life insurance. Because my “why” had changed.

That’s the magic of this step: it anchors your money to your meaning.

1.2.4 Step Three: Develop a Plan of Action

Now it’s time to make a plan.

This isn’t about fancy formulas or 20-page Excel sheets. It’s about creating actionable steps based on your goals and current reality.

Example:

• • Goal: Pay off $5,000 in credit card debt
  • Plan:
    • Stop adding new charges
    • Pay $300/month minimum, plus $200 extra toward highest-interest card
    • Cut nonessential spending (subscriptions, dining out) by $150/month
    • Use tax refund or bonus to make lump sum payments

Your plan should include:

• • Specific amounts (not “save more” but “save $200/month”)
  • Clear deadlines (“by December” not “someday”)
  • Trade-offs you’re willing to make (cutting Uber, taking on freelance gigs, selling unused stuff)

Practical Tip: Use free tools like Mint, You Need a Budget (YNAB), or just Google Sheets. I built my first budget on the back of a notebook using four colors of ink. It worked.

1.2.5 Step Four: Put Your Plan into Action

Here’s the hardest part: doing the thing.

Planning is exciting. Acting is where most people quit.

I once helped a friend build a beautiful plan to save for a new apartment. We tracked her spending, adjusted her budget, even prepped automatic transfers. But she never activated it. Weeks passed, then months, and eventually the plan died in a Google Drive folder.

Execution beats perfection. Every time.

When I decided to buy my first property in the Bay Area, I didn’t feel “ready.” The market was insane, my budget was tight, and I was terrified of losing money. But I had a plan. And that plan gave me enough courage to act—even if imperfectly.

That first condo eventually became my first Airbnb, and years later, part of the portfolio that let me walk away from corporate life to raise my children.

Action is where dreams become habits.
No act is too small. Set the automatic transfer. Open the high-yield savings account. Make the call. Decline the invite. Say no to the sale. Say yes to your future.

1.2.6 Step Five: Review and Revise

You’re not carving your financial plan into stone. You’re sketching it in pencil.

Life changes. You get laid off. You fall in love. You get sick. You move. You lose a parent. You discover a passion. Or you simply… change your mind.

That’s okay.

Every few months, or at least once a year, you should check in with your plan:

• • Are your goals still aligned with your life?
  • Have your numbers changed (new job, expenses, debts)?
  • Did you stick to the plan—or fall off track?

If you did fall off—welcome to the club. Perfection isn’t the goal. Persistence is.

Kevin’s moment of realignment:
During the pandemic, several of my short-term rentals lost revenue. Travel froze. Bookings dropped. I had to shift fast: adjust prices, cut discretionary expenses, and even offer long-term leases in markets I never planned to.

Did it derail my goals? No. It delayed them. But my plan had flexibility baked in. That’s what saved me.

1.2.7 Putting It All Together

Let’s recap the five steps:

1. 1. Evaluate your financial health – know where you stand
   2. Set your goals – give your money direction
   3. Make a plan – turn those goals into steps
   4. Take action – do the work
   5. Review and revise – keep adapting

It sounds simple. And it is.
But it’s also powerful. Life-changing, even.

Final Word from Kevin

1.3 Financial Goals: Your GPS for Adulting

1.3.1 Wait… Do I Even Have Goals?

If someone asked you right now, “What are your top three financial goals?”, could you answer confidently?

Most people can’t.

They might say things like:
“I want to make more money.”
“I guess… buy a house someday?”
“Not be broke?”

Fair enough. But those aren’t goals. Those are vibes.

Real financial goals are specific, measurable, and tied to something that matters to you.

Think of them like a GPS. You can’t get to where you’re going if you don’t know your destination. You can’t even reroute if you don’t know what direction you’re headed. And let me tell you—winging it rarely gets you anywhere worth staying.

1.3.2 Why Goals Matter More Than Money

When I started earning real money for the first time—engineer salary, Silicon Valley perks, bonus checks—I thought I was winning.

I bought designer clothes, upgraded my car, traveled often. I had stuff. But I also had stress, debt, and zero direction. I was chasing achievement without intention. And the emptiness crept in, slowly but surely.

The shift happened when I asked myself one hard question:
What do I want this money to do for me?

Not just what I wanted to buy—but how I wanted to live.

That’s when I stopped buying just to impress and started saving to build. That’s when I traded in “spontaneous fun” for freedom. That’s when I began designing a life—not just spending through one.

Your goals give your money meaning. Without them, your paycheck is just a pitstop. With them, it becomes a compass.

1.3.4 Setting SMART(ER) Goals

Let’s get practical for a second. Good financial goals follow a simple framework called SMART:

• • Specific: What exactly do you want?
  • Measurable: How will you know when you’ve achieved it?
  • Achievable: Is this realistic based on your current situation?
  • Relevant: Does it align with your values and stage of life?
  • Time-bound: By when will you get there?

Let’s make it SMARTER by adding:

• • Emotional: Does it genuinely matter to you?
  • Reviewable: Can you track and revise it over time?

Examples:

• • Wrong: “I want to save more.”
    Right: “I will save $200 per month into a high-yield savings account to build a $2,000 emergency fund by December.”

• • Wrong: “I want to get out of debt.”
    Right: “I will pay $300 monthly toward my student loan to reduce the balance from $7,000 to $3,000 in the next 12 months.”

Infographic Placeholder: “How to Build a SMARTER Financial Goal”
Alt Text: “Chart breaking down each element of the SMARTER goal-setting framework with examples.”

1.3.6 Common Goal-Setting Pitfalls

Let’s be real—setting goals isn’t the hard part. Sticking to them is.

Here are some common mistakes I’ve made (so you don’t have to):

• • Trying to do too much at once
    Focus on 2–3 solid goals, not 10 vague ones.
  • Setting goals that belong to someone else
    Wanting to “buy a house” because everyone else is doing it is a recipe for resentment.
  • Forgetting the emotional side
    If your goal doesn’t light a spark in you, it’s probably not going to survive the hard months.
  • Not tracking progress
    Use apps, journals, or even visual charts. Progress = motivation.

1.3.7 Aligning Goals with Life Stages

Financial goals shift as you evolve. Let me break down how mine changed over time:

• • Early 20s (Survival & Setup):
    • Goal: Build credit, create a budget, avoid overdrafts.
  • Late 20s (Growth & Expansion):
    • Goal: Invest in property, increase income, save for grad school.
  • Early 30s (Transformation):
    • Goal: Pivot career, complete MBA, build passive income.
  • Late 30s (Family & Legacy):
    • Goal: Provide for kids, plan for education, estate planning.

Each phase demanded different focus, habits, and tools. But they were always rooted in what I valued at that moment.

And that’s what you have to ask yourself:

“What do I care about right now? What would feel amazing to accomplish 12 months from today?”

Start there.

1.3.8 Don’t Be Afraid to Dream Big—Then Budget Small

One of the biggest lies about money is that you have to “lower your expectations.”

I disagree.
Dream as big as you want—just break it into steps.

You want to start your own business? Great. What would it cost? How long to save? What skills do you need?

Want to buy a home in five years? Cool. What down payment can you reasonably save by then?

Big dreams require big clarity. But they’re never out of reach if you move toward them on purpose.

And sometimes, dreams surprise you. I never thought I’d own property in Puerto Vallarta. Or raise children as a single gay man. Or host people from around the world in homes I redesigned with my own hands.

But each dream began with a goal. And each goal began with a decision.

1.3.9 The Financial Life Cycle – Where Are You Now?

Here’s something nobody told me when I was younger:
Your financial goals should evolve as you do.

Life has stages. And each one brings its own priorities, pressures, and possibilities. Planning is not about locking into one path—it’s about adjusting with grace.

In your 20s:

• • Build credit
  • Learn to budget
  • Start saving, even if it’s just $10/month
  • Live below your means (yes, really)

In your 30s:

• • Grow your income
  • Pay down debt
  • Invest in your education, career, or business
  • Begin long-term investing
  • Protect yourself (insurance!)

In your 40s and beyond:

• • Diversify your income
  • Plan for children’s needs (if applicable)
  • Focus on retirement, real estate, and legacy
  • Reassess goals—what do you want the second half of life to look like?

Infographic Placeholder: “The Financial Life Cycle”
Alt Text: “Timeline showing financial goals and priorities for your 20s, 30s, 40s, and beyond.”

Planning is about movement, not perfection. The point isn’t to rush to the next stage—it’s to walk into it prepared.

Final Reflection

1.4 Careers and Income: Don’t Just Chase the Paycheck

1.4.1 Money Follows Meaning (Not the Other Way Around)

Let’s talk about work. Or more specifically, why we work.

Most of us start working out of necessity. Rent is due. Groceries don’t buy themselves. And honestly, that first paycheck—no matter how small—feels like a golden ticket. You’re finally earning your own money.

But somewhere along the way, a weird pressure creeps in. Suddenly, it’s not enough to have a job—you need the perfect job. The one that pays six figures, comes with a corner office, and impresses strangers on LinkedIn.

Here’s a truth I had to learn the hard way:

A high salary doesn’t always mean high satisfaction.

And more importantly: your income is only part of your wealth. The rest is made up of time, energy, freedom, values, and peace of mind.

1.4.3 Income Isn’t Just About the Number

When students think about income, they often ask, “What job pays the most?” It’s a valid question—but incomplete.

Here’s a better one:
“What job pays me well and fits the life I want to build?”

Because income isn’t just the dollar amount. It’s:

• • Stability: Will the job survive an economic downturn?
  • Flexibility: Can I work remotely or part-time if needed?
  • Growth potential: Can I gain skills that make me more valuable over time?
  • Benefits: Health insurance, paid time off, retirement plans—those add up.
  • Cost of living: Earning $60K in a low-cost city can feel richer than $120K in San Francisco.

Real tip:
Use online tools like Glassdoor or the U.S. Bureau of Labor Statistics to research average salaries for your field—and compare that to cost of living in your area.

1.4.5 The Role of Career in Financial Planning

Your career is one of the most powerful tools in your financial toolbox. It determines:

• • How much you can save
  • How soon you can invest
  • What lifestyle you can afford
  • How quickly you can hit your goals

But that doesn’t mean you should chase titles just for the resume. I’ve met broke lawyers and rich plumbers. Stressed-out tech executives and joyful schoolteachers.

The difference? Alignment.

When your career matches your energy, your goals, and your values—you don’t burn out. You build.

1.4.6 How to Make Career Decisions That Support Your Financial Goals

When evaluating a job or career path, ask yourself:

• • Does this job give me skills I can monetize later?
  • Is the income enough to meet my basic financial goals?
  • What’s the long-term earning potential, not just the starting salary?
  • Will this job drain my energy—or feed it?

You can also think in phases. Your early 20s might be about gaining experience. Your 30s about earning and saving aggressively. Your 40s about diversifying income. Your 50s about scaling back or shifting toward purpose.

Each phase is valid—as long as it supports the life you’re designing.

Infographic Placeholder: “How Career Choices Shape Financial Trajectories”
Alt Text: “Timeline showing how career decisions impact income, savings, and lifestyle over decades.”

1.4.7 Common Myths About Careers and Money

Let’s debunk a few myths I’ve encountered:

• • “I have to love my job.”
    Nope. You have to like it enough to show up—and have a plan for what comes next.
  • “More degrees = more income.”
    Not always. Some certifications or experience pay more than a master’s degree.
  • “If I make more, I’ll be rich.”
    Only if you spend less than you earn. Income means nothing if your expenses grow with it.
  • “I’m stuck in this career.”
    Never. I pivoted from engineering to product to hospitality. The only thing fixed is your mindset.

Final Reflection

1.5 Lessons from Economic Chaos – What Crisis Taught Me About Money

1.5.1 The Myth of Stability

When I was in my twenties, I believed in something I now know is a myth: financial stability is permanent.

I thought that once I earned a certain salary, got promoted enough times, and had a good savings account, I’d be “safe.” That belief lasted until the 2008 financial crisis, when markets collapsed, companies froze hiring, and people I admired—people smarter and more experienced than me—were losing everything.

I kept my job. But something shifted in me. I realized that the economy doesn’t care how good you are at your job, or how many hours you work. Crises don’t ask for permission.

And yet… you can prepare for them.

That’s what this section is about: the practical and emotional lessons I’ve learned from moments when the world flipped upside down—and how they shaped the way I think about money, security, and resilience.

1.5.3 What Every Crisis Teaches (If You’re Willing to Listen)

Here’s what I’ve learned, not just from 2008 or COVID, but from every economic upheaval I’ve witnessed:

• • Cash is king.
    Having liquid savings—an emergency fund—can mean the difference between inconvenience and disaster. Most experts recommend 3 to 6 months of living expenses. I prefer 9.
  • Lifestyle inflation is dangerous.
    When your income goes up, it’s tempting to upgrade everything. Don’t. I’ve seen people making $200K living paycheck to paycheck. Meanwhile, someone earning $60K with low expenses can weather storms better.
  • Diversify your income.
    Don’t rely on just one paycheck. Side hustles, rental income, freelance work, or investments can serve as financial cushions when one stream dries up.
  • The market always changes.
    Booms don’t last. But neither do crashes. The goal isn’t to time the market—it’s to survive it.

1.5.5 Practical Tools to Crisis-Proof Your Financial Life

Let’s get tactical for a moment. Here are concrete things I do now, based on lessons from past chaos:

I review my financial plan quarterly.
Things change fast. A regular check-in lets me course-correct early.

I keep three bank accounts:

• • One for essentials (bills, rent, groceries)
  • One for short-term goals (travel, gifts, repairs)
  • One for long-term wealth (investments, emergency fund)

I run “worst-case drills.”
Once a year, I ask: What if I lost 80% of my income tomorrow? What would I cut? What would I keep? How would I earn again?

I practice “stealth living.”
Just because I can afford something doesn’t mean I flaunt it. I’d rather be quietly stable than loudly stressed.

Infographic Placeholder: “Crisis-Proofing Your Finances: 5 Smart Habits”
Alt Text: “Checklist with five practical financial habits that prepare you for economic instability.”

1.5.6 Common Myths About Financial Crisis

Let’s clear up some false ideas:

• • “Only poor people struggle during a crisis.”
    • Nope. I’ve seen high earners go broke because their expenses were too high and their plan too thin.
  • “It’s too late to prepare.”
    • Never. Every small step counts. Starting today is always better than starting never.
  • “If I work hard enough, I’ll be protected.”
    • I wish it worked that way. But external forces—pandemics, layoffs, inflation—don’t care how many hours you put in. Planning protects you. Not hustle alone.
  • “Investing during chaos is a bad idea.”
    • Not necessarily. Some of the best opportunities arise when others are panicking. But only if you have a stable base first.

The 10 Principles That Shape Every Smart Financial Life

Reflections from experience, rewritten from Keown’s foundational model

You don’t need to memorize all these at once. But over time, they’ll shape your instincts. They’ve shaped mine.

1. 1. The Best Protection is Knowledge
      You don’t have to be a money expert. But knowing the basics will keep you from signing contracts you don’t understand or making emotional decisions with long-term consequences.
   2. Nothing Happens Without a Plan
      Money disappears when it doesn’t have a job. Every dollar needs a direction—otherwise, it vanishes.
   3. Time is More Valuable Than Money
      Start early. Compound growth is real—and powerful. Even $20/month makes a difference over decades.
   4. Inflation Eats Lazy Money
      If your cash sits in a savings account earning 0.01%, you’re losing money every day. Learn to invest wisely.
   5. Stuff Happens. Be Ready.
      Emergencies aren’t if, they’re when. Cars break. People get sick. Keep a cash cushion—and your peace of mind.
   6. Waste Not, Want Not
      Every peso, dollar, or yuan you waste is a future opportunity delayed. Spending is fine. Thoughtless spending isn’t.
   7. Protect Yourself and Your Loved Ones
      Insurance isn’t sexy, but it’s vital. Health, disability, life—protect the life you’re building.
   8. Risk and Return Go Together
      High returns come with risk. Don’t chase gains without understanding the downside. Fear and greed are expensive teachers.
   9. Your Career is Your Greatest Asset
      Not your house. Not your crypto. Your skills, adaptability, and relationships are what will fund your future.
   10. Mindset Matters Most
       Discipline beats income. Clarity beats hustle. Peace beats status.

Which of these hit home for you? Circle one. Write it down. Let it guide your week.

Final Reflection