The wealth strategies that won't slide into your DM's
Hey, I’m just as impressed with a candlestick chart as the next guy, but there’s so much more to growing your wealth than what may pop into your Instagram feed.
Here’s four things to consider to help put your focus on long term growth of your wealth:
- Get clear on your cash flow
- This starts with uncovering your budget. I get it. It’s not fun to dive through credit card statements to digest the delivery fees associated with last week’s Uber Eats™ Pad Thai, but the first step to learning your cash flow is to understand where the money is going. This doesn’t mean you have to discount the tip to your bartender the next time you grab happy hour drinks (Please don’t for their sake! 😎) but you’ll need to be cognizant of your spending patterns. The goal here: spend more on what you care about and less on what you don’t.
- Start with your goals
- Take some time and write down a few things that you would like to achieve with your money over the short, intermediate and long term. Make this fun, and don’t be afraid to make them oddly specific. In fact, the more oddly specific, the better!
- How about: “Eliminating $5,000 of credit card debt this year and funding a vacation account to take the kids on a 7-day trip to Disney World in 2025”. Not sure about you, but I find that easier to visualize than “trying to pay down debt and save for a vacation”.
- Take some time and write down a few things that you would like to achieve with your money over the short, intermediate and long term. Make this fun, and don’t be afraid to make them oddly specific. In fact, the more oddly specific, the better!
- Incremental savings!
- I don’t want to make assumptions, but I’m guessing you’ve heard more brags from your friends on “finding the hot stock” as opposed to the person who increased their 401(k) contribution from 4% to 5%. It’s not the sexy stuff, but what you’re able to put away today is one of the largest contributing factors toward long term financial success.
- Technology is your friend! Utilize auto contributions to put savings on autopilot. For most of us that have to think twice about what we had for breakfast yesterday, automated strategies can be a great way to take the task of making the contributions off your plate.
- Focus on the long term
- Rome wasn’t built in a day, and your retirement savings likely will also come by “laying bricks every hour[1]”. Keep that patient, consistent and diversified approach to investing.
- As Albert Einstein once said, “compound interest is the eighth wonder of the world. “He who understands it, earns it…he who doesn’t… pays it”. Let your money work for you over time, and don’t let short term blips get in the way of your long-term success.
For many, a great first step in growing your wealth is creating a financial plan. A plan for what you want your money to do for you. Whether that’s purchase your dream home, send your kids to college or take that “oddly specific 7-day family vacation” to check out Space Mountain with the kids! Working with a CERTIFIED FINANCIAL PLANNER™ can help you evaluate your goals, strategize to pay down debt and grow assets. And hey, it may not come from sliding into your DM’s, but it may help you to realign yourself with your money and what matters most.
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All the best,
Andrew Holmes, CFP®, CCPS™, CSLP®
Andrew@PlanWithFPS.com
860-878-7032
Financial Planning Solutions, LLC (FPS) is a Registered Investment Advisor. Financial Planning Solutions, LLC (FPS) provides this blog for informational and educational purposes only. Nothing in this blog should be considered investment, tax, or legal advice. FPS only renders personalized advice to each client. Information herein includes opinions and source information that is believed to be reliable. However, such information may not be independently verified by FPS. Please see important disclosures link at the bottom of this page.