Table of Contents:

• Blog

• FAQ

• Glossary

• Transcript

Blog

In a world where financial literacy is more critical than ever, understanding how to build and manage your wealth can seem overwhelming. In this episode, we welcome Alissa Maizes from Amplify My Wealth, who shares invaluable insights tailored for the sandwich generation—those who are balancing their own financial responsibilities while caring for both children and aging parents.

Alissa Maizes is the Founder of Amplify My Wealth, a licensed attorney, fee-only fiduciary financial advisor, and winner of the 14th Annual Plutus Awards for Best Financial Advisor Financial Literacy Content Creator, providing financial advice to the clients of her firm, Amplify My Wealth, and pro bono advice to clients of the nonprofit Savvy Ladies.

Alissa emphasizes the importance of recognizing that your charge card is not an emergency fund. Many individuals mistakenly believe that credit can serve as a safety net, but this mindset can lead to financial stress and deeper debt. Instead, she advocates for the establishment of a solid emergency fund, ideally covering three to six months of expenses, to provide a true safety net.

Throughout the episode, Alissa discusses the unique financial challenges faced by the sandwich generation. Despite earning six-figure incomes, many find themselves living paycheck to paycheck, often prioritizing the needs of others over their own financial health. Alissa reminds listeners that you cannot care for others if you do not first take care of yourself. This foundational principle is crucial for sustainable financial management.

Alissa also delves into the significance of aligning financial values with family goals. For parents, this includes planning for college expenses while also preparing for retirement. She suggests that families should first assess their own financial needs before extending support to others. By doing so, they can ensure that they are equipped to handle emergencies and future expenses without jeopardizing their financial stability.

In discussing generational wealth, Alissa highlights that true wealth is not just about passing down money but teaching future generations how to manage it wisely. By instilling good financial habits and encouraging open conversations about money, parents can empower their children to make informed financial decisions.

Listeners will find Alissa's practical tips on budgeting, saving, and investing particularly beneficial. She encourages everyone to take small steps towards financial improvement—whether that means cutting unnecessary expenses or increasing contributions to retirement accounts. Every action, no matter how small, is a step towards building a more secure financial future.

As the episode wraps up, Alissa's passion for financial literacy shines through. She provides resources for those who may not be able to afford a financial advisor, including free materials available on her Instagram page. This commitment to helping others achieve financial independence is truly inspiring.

Join us for this enlightening conversation that not only addresses the challenges of the sandwich generation but also offers actionable advice for anyone looking to improve their financial situation. Tune in and start your journey towards financial empowerment today!

FAQ

Glossary of Key Terms

• Emergency Fund: Liquid savings specifically set aside to cover unexpected expenses such as job loss, medical bills, or home repairs.

• Sandwich Generation: Individuals who are simultaneously supporting their children and aging parents.

• Money Mindset: An individual's beliefs, attitudes, and habits related to money, which can significantly influence their financial behaviors and outcomes.

• Financial Literacy: The ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.

• Generational Wealth: The transfer of assets and financial knowledge from one generation to the next.

• Fiduciary: A financial advisor who is legally obligated to act in their client's best financial interests.

• Fee-Only Financial Advisor: A financial advisor who is compensated solely by fees paid by their clients and does not receive commissions for selling financial products.

• Diversified Portfolio: An investment strategy that involves spreading investments across various asset classes (e.g., stocks, bonds, real estate) to reduce risk.

• Low Expense Mutual Funds/ETFs: Investment funds that pool money from many investors to purchase a diversified set of investments, with low fees associated with managing the fund.

• Tax-Advantaged Accounts: Financial accounts that offer tax benefits, such as retirement accounts (e.g., 401(k), IRA) where contributions or earnings may be tax-deferred or tax-free.

• High-Yield Savings Account (HYSA): A savings account that offers a significantly higher interest rate compared to traditional savings accounts.

• Money Market Account: A type of savings account that typically offers a higher interest rate than a traditional savings account and may have limited check-writing abilities.

• Power of Attorney: A legal document that authorizes one person to act on behalf of another in financial and/or legal matters.

• Pro Bono: Professional work undertaken voluntarily and without charge.

• Analysis Paralysis: A state of over-analyzing a situation so that a decision or action is never taken, in effect paralyzing the outcome.

Transcript