I think it’s safe to say we all wish money grew on trees! That way we wouldn’t have to worry about where are income came from… (we can all keep dreaming). As money doesn’t just appear out of no where and start growing , we can tend to our wealth that we do have and nurture it so it will grow to become the max potential we wish it to be… Below are pieces of advice from a man who has spent the last 16 years advising some of the wealthiest families in the United States…
Think like an entrepreneur
The enterprising family exhibits entrepreneurial creativity in many aspects of their life. They often break from tradition, accept new approaches, and take measured risks.
Entrepreneurs know that rules are constantly changing — and the same is true when it comes to building wealth. To do well, be a self-learner, hire the right expertise, and acquire creative, goal-oriented financial advice. Be a financial entrepreneur.
Ask smart questions and insist on answers
Don’t be afraid to ask yourself and your advisers the tough questions.
Ask yourself: Do I have enough to support my lifestyle? Do I know what will happen to my family if something happens to me? Is my wealth having the impact that I desire? Am I missing anything?
Ask your adviser: Can you get me answers to my questions (see above)? How do you get paid?
When these questions are answered, you will be better informed and gain greater confidence in yourself, your adviser, and your approach.
Define success, then achieve it
Take time for you (and your spouse) to clearly define, set, prioritize, and agree upon and document specific goals that you want to achieve, such as a specific lifestyle or charitable grant.
This may sound trite or even cliché, but our clients who set goals move to action quicker, make better decisions, and get better results relative to their peers. Taking a goals-based approach defines benchmarks that are relevant and meaningful for you and your family.
Have a plan
This one might seem obvious. After all, most experts advocate having a plan if you want any chance of meeting your financial goals.
But it is important to understand that “set it and forget it” is not a plan.
Enterprising families build plans that are smart, focused, dynamic, and useful. Wealthy Americans spend an average of 15 hours per week thinking about their planning relative to their goals compared to the nine hours spent by the broader US population.
If being financially successful is important, then this will be time well spent.
In my experience, individuals often underestimate their spending on average by 25% and sometimes as much as 50%.
Further, they save less than they think they do or less than they should to meet future goals.
Most alarming, their cash reserves are dangerously low and therefore, they may be ill prepared for an emergency or call on capital.
It is critical to prioritize liquidity and automate bill payment and savings. Additionally, adopt cash flow reporting to get the insight you need to adjust your plan and make better cash choices.