Life Planning Coaching Financial Planning

How to Build the Wealth You Want

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It takes planning and consistent action to build wealth, but if you can figure out how you got to your current financial state and your destination, changing your behaviors can put you on a path to financial independence.

Step 1: Define What Financial Success will Look Like for YOU

“What is financial success?” is a question each person should ask themself. Success is achievable if we are intentional about aligning our idea of success with our financial purpose and vision.

Step 2: Assess Where You Are

To start assessing your current state, ask yourself these questions:

When you have clear answers, consider what you will do about your situation. This will take careful thought and planning.

Step 3: Recognize Past Conditioning

We all have conditioning from our family and society about how to handle money. Your family might have pinched pennies or spent impulsively. Those ways of dealing with money have been hard-wired into your own attitudes and behaviors. 

To overcome conditioning, first identify it. This can be challenging. 

Look at your spending over the last few months. What percentage of your money did you spend on NEEDS, and what percent on WANTS? Did you save up for something important like home improvement projects or a special trip, or go into debt to make it happen?

Step 4: Live on Purpose

Asking “Why am I here?” can be life-changing in terms of managing your money. Finding your WHY means getting clear on what you do with your hard-earned cash, as well as what your financial legacy will be.

The challenge then becomes how to live that purpose out—starting today. 

Here are some questions that can help you define your “why”:

  • What are my gifts?
  • What am I passionate about?
  • What are some of the needs I have identified in the world?
  • What contributions would I like to make to the world during my time here?

Becoming clear on your purpose can help you determine where to spend, save and give.

Step 5: Clarify Essential Life Priorities

We are constantly forced to make decisions regarding our priorities. These can be

  • spiritual and ethical
  • family and home
  • health and fitness
  • mental and educational
  • social and cultural
  • career and business and/or
  • finance and money.

 All of these take investing time and money. Honing in on your priorities can help you spend appropriately. For example, if family and home are your top priorities, ask yourself where spending on this category will have the most meaning and value.

  • Will taking your family on a cruise have more meaning than redoing the kitchen? 
  • Will going to a state park have the same bonding effect as the much-more expensive cruise, allowing you to put some money in the kitchen fund? 

Steps 6: Set and Act on Meaningful Financial Goals

The essential steps in goal-setting are

  • Establish SMART financial goals aligned with your purpose and life priorities.
  • Develop action steps for each goal, and consider the benefits to be gained from moving forward, as well as losses to be avoided.
  • Add deadlines and determine who will hold you accountable for meeting them. 

Step 7: Celebrate Success

Taking time to celebrate the achievement of a goal is key to the process. 

It doesn’t have to be expensive (especially if your goal was to spend less on eating out and other entertainment). Meeting a sibling for coffee, leaving work a few hours early or catching up with an old friend can all work.

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This content is developed from sources believed to share accurate information, and provided by Kelly Financial Planning. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and materials provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.