CCM INSIGHTS
A Newsletter by Compass Capital Management
HELLO FEBRUARY!
Hello February! As we step into a new month, it’s a great time to pause, reset, and check in on the progress you’re making toward your financial goals. January often brings fresh motivation and big plans February is where those plans start turning into habits.
This month is a reminder that financial success isn’t built in one big moment. It’s built through steady decisions: saving consistently, staying disciplined, and keeping your long-term goals in focus even when life feels busy.
A few February financial reminders
1. Keep your goals visible. If you set financial goals for the year, now is the perfect time to review them and make sure they still reflect what matters most to you.
2. Stay focused on the long-term. Markets and headlines will always fluctuate. A solid financial plan is designed to keep you grounded and moving forward through every season.
A LOOK INSIDE THIS ISSUE:
1.Hello February
2.ACT LIKE A CFO FOR YOUR FAMILY’S FUTURE
3.Upcoming Closures
3. Start thinking about tax season. Tax time will be here before we know it. Gathering documents early and staying organized can make the process smoother and may reveal planning opportunities. We’re here for you
Whether you’re planning for retirement, saving for a major milestone, managing investments, or simply wanting clarity and confidence in your financial decisions we’re here to help.
ACT LIKE A CFO FOR YOUR FAMILY’S FUTURE
BY: JIMMY J WILLIAMS, CPA/PFS, CFP , CRPC ® ™
Most successful companies do not make financial decisions randomly They rely on a Chief Financial Officer (CFO) to manage cash flow, evaluate investments, reduce risk, and plan for the future Families can benefit by taking the same kind of approach to managing their finances and asset acquisitions
A “Family CFO” mindset brings structure, discipline, and long-term thinking to everyday financial decisions. Instead of reacting to bills, purchases, or market headlines, families operate with a clear plan and shared purpose.
A CFO oversees the financial health of an organization In a family setting, this role focuses on four key areas: Cash Flow Management – Understanding income, expenses, and savings; Asset Decisions – Making smart choices about homes, vehicles, investments, and debt; Risk Management – Protecting the family from unexpected events; and Long-Term Planning –Aligning today’s decisions with future goals. Coincidentally, a Family CFO does not need to be a financial expert. The role is about organization, consistency, and accountability.
Basic steps of becoming an initiative-taking planner for your family’s benefit are:
Step 1: Create a Family Balance Sheet
A CFO always knows what the company owns and what it owes Families should do the same List all assets, such as cash and savings; investment accounts; retirement plans; and home and other property These assets should be listed at fair market value However, your assets may have debts, or liabilities, attached to them. List out your liabilities such as your mortgage; auto loans; credit cards and student loans. Subtract liabilities from assets to find net worth. This number becomes a financial “scoreboard” for the family. Updating it once or twice a year helps track progress over time
Step 2: Manage Cash Flow Like a Business
Cash flow is the lifeblood of any organization Families should track monthly income and expenses with the same care I suggest that you implement the following strategies for your family: assigning every dollar a purpose; automating savings and bill payments; reviewing expenses monthly instead of annually; and identifying “leaks” such as unused subscriptions or impulse spending. Intentionality is the key to success in managing cash flow.
Step 3: Establish Rules for Asset Acquisitions
Businesses do not buy equipment or property without careful review Families should apply the same discipline to large purchases If you intend on buying an asset, ask yourself these questions: 1) Does this align with our long-term goals? 2) Will this asset grow, hold, or drain value? 3) How will it affect monthly cash flow? and 4) What opportunity are we giving up by buying this? A Family CFO avoids emotional purchases that feel good today but create pressure tomorrow.
Step 4: Plan for Risk and Protection
CFOs protect companies from financial shocks. Families should do the same. Implement or consider the impact of these key risk mitigation strategies for your family: maintaining an emergency fund of 3–6 months of expenses; carrying appropriate insurance (health, life, disability, property, etc ); keeping beneficiaries updated on accounts and/or creating or updating basic estate documents One cannot plan for every contingency; however, you should plan for the most common disruptions of life with prudent protection for your family’s continued functions without stress
Step 5: Set Long-Term Goals and Review Them Annually
A CFO operates with a strategic plan Families should define clear goals such as retirement timing and lifestyle; education funding; major purchases; also, legacy and charitable priorities. An annual “State of the Family Meeting” is helpful to review your progress, update or change in goals as well as adjust your strategies for changes in life I have found these meetings are quite helpful in reducing stress within the family and assisting every family member to understand the bigger picture.
Step 6: Use Advisors Wisely
Even the best CFOs rely on outside experts Families should do the same Choose your advisors carefully and select those that are competent and capable of supporting your family over a long period of time You may need a financial planner, tax advisor, attorney, and insurance specialist, for example, to cover the important areas of life. The Family CFO role is not about doing everything alone It is about coordinating decisions and ensuring all parts of the plan work together
Final Thoughts
Taking a Family CFO approach transforms finances from a source of stress into a system of control and confidence. By managing cash flow, evaluating assets carefully, planning for risk, and staying focused on long-term goals, families can make smarter decisions and build lasting financial security
Like any business, success comes from clarity, discipline, and consistency. When families think like CFOs, their money begins working with purpose not by accident. As a CPA and CERTIFIED FINANCIAL PLANNER™, we serve our clients as the trusted advisors that bring independence of mindset and commitment to your family’s goals and objectives in life Seek out an independent, fee-based CERTIFIED FINANCIAL PLANNER™ professional and take control of your family’s future today.
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UPCOMING CLOSURES
FEBRUARY 10 T H
FEBRUARY 16 T H
Closed for team training
Closed for Presidents’ Day