Does Your Balance Sheet Need Styling?

My first lengthy conversation with a new client is typically a deep dive into what the individual owns and owes. In addition to numbers, we discuss how they feel about each line item. Often, the patchwork-quilt balance sheet held is the result of years of decisions made on the fly. I’d say that rarely (although I’ve collected no official stats on this theory) does an individual holding an executive level position, or a business owner, have a comprehensive view of their personal assets and liabilities, an understanding of their income and how it is taxed, and whether or not the assets are additive or draining overall - both financially and energetically.?

However, if I ask about their business financials, a detail is rarely missed. Although I have a collection of theories around my observation of the knowledge gap between business and personal financials, the top theory for business owners and executives is that their personal balance sheet isn’t created with the same intention or overall vision as their company balance sheet, profit and loss statement, or budget. The personal financials end up being put together kind of like getting dressed in the dark. You may walk out into the world with everything covered, but how you feel about it all once the lights turn on... that’s a different story.?

In fact, if I could wave a magic wand and rebrand what I do, I think I would call myself a “Balance Sheet Stylist.”?

The process of using a wardrobe stylist for my own closet for the past two years has been a game-changer. I have a clothing budget. I’m using a professional with expertise to source and coordinate items. She helps me “be real” with myself on whether I really like the item and its fit. And most importantly, she does the legwork that I consider soul-wrenchingly painful.?

I'm one of those get-in-and-get-out shoppers. I loathe store-hopping through the mall. I do not enjoy following clothing trends. When left up to my own habits, I order everything in tan, white, navy blue, or black, and, if possible, all items that the brand makes every year. Then I simply reorder the same items every year. Easy. Efficient. It’s Doug Funnie’s closet from the 1990’s Nickelodeon show, Doug.

A problem with my very efficient approach is that I also love creativity and color. My closet as a little girl was filled with dresses and shiny shoes, and the game of dress-up was my absolute favorite. It’s also rare these days for a brand to keep producing the same item season after season. Additionally, my needs run the gamut in business situations. I attend a wide variety of events that could have me needing glam for a black-tie gala on Tuesday night, a business suit when sitting on stage at a panel event on Wednesday, and shoes to hike up a mountain at sunrise on Thursday.?

What I realized two years ago is that my Doug Funnie closet simply did not fit my life. As luck would have it, soon after, I met Caitlin Costello from Style Affiner. She explained her background, education, and passion and how she pours all of that into creating wardrobes for her clients that fit their lives. Why not use an expert with a process to select items for my closet? Sold! I’ve been working with her since. And not only do I have a more defined budget for clothing, I have a closet of clothes that I actually wear and love wearing. Gone are the days of buyer’s remorse, clothes with tags still on, and a pile of items I hope to someday find the time to return.?

I find the same “mismatch” theme in conversations with my own clients. Especially around active investments like real estate, which can require much more time and energy when making a direct investment, and often include pretty unpredictable capital investments as well (think roof damage or leaky pipes). Or, for business owners, a feeling of shame around avoiding investing in public stocks because they feel an overwhelming loss of control when comparing it to investing in their own private business or businesses like it.?

There are countless ways to invest and build a balance sheet. Why work so hard to save for investments, only to feel confused, embarrassed, or burdened by the balance sheet you build along the way??The next time you revisit your financials, I encourage you to look at them as if you are observing the clothes on your body when you look in the mirror. Do they simply cover you, or do they truly reflect the person you are and who you want to be?