This story features a young, high-earning couple, Luka (33) and Lacy (32). Luka’s in supply chain sales and Lacy’s a successful nutritionist, together they make a great living, earning almost $500,000 annually.
From the outside looking in, everything seemed to be gold.
They purchased a home a few years ago for $600K and neighboring comps are now selling for $1.2m
Luka’s got a side hustle that also generates a few extra dollars as he has a knack for “flipping:” Sports cards, cars, watches, antiques, etc.…
However, we uncovered a big flashing 🚨 warning light: These two spend way too much money and have no liquid assets to show for their high income.
These two have been living the life, so to speak: Frequent travel, fancy dinners, concerts, shopping splurges, etc.…
As Lacy explained, one day she just panicked and decided enough was enough. She wasn’t raised like this, to be frivolously and recklessly spending money, not properly saving, and told us that she felt embarrassed of how they squandered so much of their income.
The good news, outside of their mortgage they weren’t carrying any retail debt.
How they got to this place? They explained a sense of entitlement took over after they both graduated college and they began their careers: “We were working hard and as the income continued to increase we were just rolling with it having fun.”
Following Lacy’s revelation, her and Luka collectively decided it was time to financially mature.
Luka reached out to a close friend of theirs Barry, whom they both considered successful and “good with money” for a potential recommendation on next steps. Barry happens to be a Know My Plan client and he shared our information with Luka and Lacy.
Minutes into our first meeting (remote on Zoom), you could feel their anxiety and embarrassment through the screen.
As we do, we allowed them to simply share their story, their feelings, and what they were hoping to get out of this.
We then walked them through our financial planning process and I made sure to explain that we’re not the “no fun police.” Rather, our goal is to find the balance between living a wonderful life today and living a wonderful life in the future by working on a written, goals-based financial plan.
The great news is that Luka and Lacy are young and taking advantage of these years will allow them to set up a strong financial future.
Following our first meeting they quickly sprang into action and it didn’t take long for them to start building strong habits.
Slowly progress was being made and slow progress began to compound. I’m proud to report that they are no longer embarrassed by their financial situation but rather have confidence in their financial plan and pride in the progress that they’ve made.
Also, their “fun life” hasn’t come to a screeching halt either, as they still have future vacation plans, concerts on the calendar, nice things, and dinner out.
If you or someone you’re close to is a high-achieving professional that could use help aligning their finances and establishing a financial plan, please reach out to us, we’re accepting new clients and eager to help.
Cheers, Nic
