Is This Enough?

It’s funny how fast we adapt to having more. We think about houses, cars, and “toys” that were perfectly acceptable earlier in our lives and wonder how did we ever live like that. The question is, have these upgrades made us happier? Science and studies say probably not or at least not significantly. That’s because we have an incredible ability to adapt to our new normal.

In social science terms this is call hedonic adaptation or the hedonic treadmill. We strive for something that we think will make us happy like a promotion or better house. We get it and we’re happy for a little while, but before very long we want the next thing.

This isn’t all bad. It’s allowed our society to innovate and progress. It’s just important to know what is most important to you. The goal posts will certainly move over time, but taking time to reflect on this can help it not just be a perpetual chase of the next big thing.

The same is true with money. It’s great to see your net worth and investment accounts continue to grow. But money is a tool, not a scorecard. Beyond a certain amount, more money isn’t going to buy you more freedom, security, or happiness.

OPERATION RETIREMENT READINESS

Summary

In this episode, Mike and Amy address listener questions regarding financial planning for military families, focusing on the balance between retirement savings and education funding. In their answer to the second question, they discuss foundational financial steps, the importance of emergency funds, debt management, and life insurance. The conversation emphasizes the need for strategic planning and trade-offs in achieving financial goals while preparing for retirement.

Takeaways

• Balancing retirement and education savings is a common struggle for families.
• It's important to consider your family's philosophy on supporting kids.
• You can't get loans for retirement, but you can for education.
• Make sure you're contributing enough to get the full match from the government.
• Having an emergency fund is essential for financial stability.
• Pay down high-interest debt to avoid unnecessary costs.
• Life insurance is crucial for families with young children.
• Diversifying across accounts can provide more flexibility.
• You need to start thinking about your post-military life early.
• Living on less than you earn is key to financial success.

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About Mike Hunsberger, ChFC?, CFP?, CCFC, MQFP

Mike Hunsberger is the owner and lead planner at Next Mission Financial Planning. Next Mission Financial Planning provides comprehensive financial planning and investment management for military and veteran clients. Mike started the firm after spending 25 years in the Air Force.

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