As a Personal Financial Counselor for more than 30 years, I closely observe the lifestyles of individuals and families of all income levels. I witness people with relatively small levels of income build relatively large levels of wealth. I also see individuals with relatively large incomes build relatively low levels of wealth. However, some families build wealth regardless of their income level. They are what I call, “True Wealth-builders”.
While everyone is different, True Wealth-builders have common tendencies and practices when it comes to managing their personal finances. As your Personal Financial Counselor, I focus on helping you incorporate those same wealth-building habits into your life. This discipline can work for anyone if practiced consistently over time. What are the practices of True Wealth-builders?
There are five disciplines that True Wealth-builders tend to practice.
- Smart financial decisions over time. True Wealth-builders have clear, well-thought-out, priorities. Like a GPS system, our priorities point the way to our goals. It is impossible to consistently make smart financial decisions without clear priorities. What are your priorities?
- Spend less; save more. The first step in building wealth is in not spending a portion of your earnings. This requires budgeting skills. True Wealth-builders are expert budgeters. They direct and track their spending. Their budget reflects their priorities. Are you operating from a budget?
- Value-oriented purchasing. Wealth-builders master the art of spending a dollar and getting a dollar-fifty in return. That’s value. To accomplish this, their purchases are generally optimized (cost-priority-urgency) within the context of their overall spending plan or budget. This enables them to do more with less. Are you able to do more with less?
- Assets that increase in value over time. Wealth-builders are investors more than they are consumers. Owning assets that go up in value over time is essential in building wealth. That is the alchemy that turns savings into gold over time. Will your assets increase in value over time?
- Invisibility. You cannot identify Wealth-builders by sight. They have neither the need nor the desire to broadcast wealth. They live an efficient, comfortable, and by extension, sustainable lifestyle that allows them to save and invest for their future. One day they will be able to retire in style and remain retired. What type of lifestyle are you living?
In my practice, I help my clients maximize the effectiveness of their financial resources over time so they, too can be True Wealth-builders. Modern Wealth Concepts wants you to achieve long-term financial security for yourself, your families, and for future generations.
If you are making more money than ever but find it harder than ever to build wealth, then perhaps I can help you, too.
Keith Donnell, CFP® is a Personal Financial Counselor specializing in retirement planning for highly employed individuals living in the greater Philadelphia area.