By Marc C. Shaffer
I was talking with a friend recently who has lost quite a bit of weight. We were talking about the process and how it differed from their past experiences. They had spent many years fighting the ups and downs of fad diets and lose-weight-quick gimmicks. It wasn’t until they embraced a steady process that required small habit changes that made a huge difference over time that they were able to find success that was lasting.
This concept can also be applied to building wealth. It would be great to have a get-rich-quick shot, but it doesn’t exist (unless you know something I don’t!) House prices seem outrageous, grocery bills keep rising and the extras cost more and more. What is there to do? If the current economic landscape makes you feel like you’ll never get ahead, keep reading.
Instant gratification is engrained in us by our fast -paced society. We want a solution, fast. It takes discipline to allow the slow and steady habits to help you build wealth over time. Here are some ideas to get in the mindset of building wealth:
Building wealth is not an overnight process. Try focusing on your goals and setting attainable steps to reach them in your given time period.
Important actions include developing a financial plan, setting and sticking to a budget, and living within your means. If you are conservative with your spending and diligent with your saving, you should find yourself on a path to success. There may still be bumps along the way, but financial discipline can also help you get back on track when needed.
Confidence and a Growth Mentality:
If you believe you will never grow financially, that’s probably exactly what will happen. Have confidence that the actions you’re taking will help you grow and be open to changes in your financial plan and new opportunities.
Invest For Your Future:
As the price of living increases, money we earn that isn’t working for us (for example, sitting in a savings account instead of being used for earning potential) continues to lose its purchasing power. Investing in a diversified portfolio could help your savings grow over time.
Improve Your Financial Literacy:
If you don’t understand financial concepts, get help. Read books and articles, listen to podcasts and financial news, and consult with a professional. You don’t have to know everything about finance, but it’s best to understand the basics and understand any investment you’re getting into. A professional can help when you lack time and/or knowledge to become an expert and do everything on your own.
Along with a financial professional, other professional guidance might include an accountant, insurance agent, estate planning attorney, and even a life coach. Some will help you get your affairs in order and some will help with life’s “best practices” in their area of expertise. Growth in any of these categories could be beneficial for getting ahead.
Expand Your Network:
Staying connected to people and community can expand your world. You might give back to others and gain opportunities and growth for yourself at the same time. You never know what could come by staying connected.
The good news is that you don’t have to start wealthy to become wealthy. The mindset can work at many income levels. You don’t have to be fast, just start slow and stay steady, and be prepared for growth over time.
Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this content, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for you or your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from Searcy Financial Services, Inc.
The content of this letter does not constitute a tax or legal opinion. Always consult with a competent professional service provider for advice on tax or legal matters specific to your situation. To the extent that a reader has any questions regarding the applicability of any specific issue discussed in this content, he/she is encouraged to consult with the professional advisor of his/her choosing.
Published for the blog on July 30, 2023 by Searcy Financial Services, your Overland Park, Kansas Fee-Only Financial Planner and Investment Manager.