ORLANDO, Florida. – Good financial advice is often rooted in proven, tax-conservative approaches to building wealth slowly but surely.
Some of these tips ask you to pause to take apart and analyze your overall financial picture, learning what works for you and you alone, especially if you’re struggling to save.
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This week on “Black Men Sundays,” host Corie Murray interviews Simon Dogbe, a Certified Financial Planner under contract with Northwestern Mutual since 2010.
Dogbe said he asks people every day, “What is your most important financial asset?”
“If they own a house, they will tell me. But if we break down your income, I mean your lifetime income is well over seven figures. I mean, multiply your salary by the number of years you have left to work, and that’s far, far, far, far up there, and that’s by far the most important thing to protect” , said Dogbe. “You can afford to lose your house, you can afford to lose all your balance, savings, everything. If you work, you can bounce back and be OK. You can’t afford not to work and expect to be able to keep your home and family and just maintain the lifestyle you started, so protecting your income is the most important part and the first step of , really, financial planning and building this house from the ground up.
Originally from England, Dogbe studied business economics and finance at Loughborough University, where he graduated in 2000. In 2001, Dogbe said he left the UK to play rugby at Aspen, Colorado, where he ended up staying permanently. Dogbe has two daughters – Leila, 8 and Livia, 5 – and says he enjoys snowboarding and skiing with his family in winter.
When it comes to sitting down and getting your finances in order, Dogbe said the first and most important thing to know is your budget.
“I’m not talking about a daily (budget), but you need to know how much, first and foremost, what your take home pay is each month, and then from there figure out what minimum need you need to spend each month. Just to pay the mortgage, or the rent, the groceries, the gas bill, that bare minimum to live on. And then that difference is your disposable income, and that’s key to your rest of your world,” said Dogbe said “Because now you know your disposable income, you know how much you can afford to save for the down payment on the house, save for vacation, save for retirement, save for all those things and how much you can have fun. ”
Disposable income of $500 per month, for example, would require more thoughtful planning to divide and use than a larger amount, and if you find that you simply don’t have enough disposable income for what you want Realize, Dogbe said you might have work ahead of you outside of the financial planning office.
“What do I need to do to get to the next rung on the ladder? Is it a promotion? Is this a new job? Should I go back to school? Do I need to find a second job? said Dogbe. “The first thing to do is figure out what your disposable income is and then try to live below your means. Because if, again, whatever you bring in in a month, you need to know how much you can actually spend to live so you don’t live beyond your means.
When it comes to portfolios, from his perspective as a Certified Financial Planner, Dogbe spoke to Murray about the four main asset classes you should strive for – self-employment income, real estate, stocks and assurances – if stability and organic growth are what you’re after.
“Think of it as a four-legged chair, where the four-legged chair is more stable than any other chair,” Dogbe said. “Now all these four asset classes go up and down at different times, different tax advantages, volatilities, to be as bulletproof as we can make you, each of these four legs then has different types of spiders, they’re going to have several different assets below them, but starting with those four you have all the right pieces of the pie and keep building and building and building.
Even with only $50 of disposable income per month to start building your four-legged fortress, diligence will likely lead to it becoming $100, then $200, $1,000 and so on, as Dogbe said the key is to start where you can start.
Black Men’s Sundays talks about creating generational wealth. Check out each episode in the media player below.
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