Believe it or not, the road to building wealth isn’t a secret. Building wealth is a marathon not a sprint and it takes time and consistency. At Bloom Wealth Advisors, we help families build wealth and maximize their wealth to help them pursue their goals. I’m on a mission to help educate and empower more people to take charge of their finances, and these are the 5 key secrets I teach to build wealth.
- Live below your means:
The only way to build wealth is to find balance between spending now and saving for the future. This balance can be hard, because we as human beings often want things NOW. But in order to preserve money for the future, to continue to do the things we love beyond our working years, we must be saving for the future. The only way to save for the future…. spend LESS than you earn. If you haven’t figured this out yet, this is the very first step to building wealth. Get a budget. Set some savings goals. Review all your expenses. - Invest consistently and often
Once you learn to save and live below your means, you must be investing for the long term. Investing is a critical piece of building wealth, whether you’re investing in the stock market, companies, or real estate. Ideally you invest consistently and often, regardless of what is going on in the market. When we invest in down years, we often see long-term higher returns. So even if investing feels scary or intimidating, it is a vital part of building wealth. We at Bloom Wealth Advisors can help with this! - Focus on tax diversification
We are very focused on taxes at Bloom Wealth Advisors, and we believe long term tax diversification is key. As you are building wealth, make sure you are focused on building up different accounts with different tax diversification like Roth money, Pre-tax retirement (401(K)) and taxable money (brokerage account). Tax diversification truly is a retiree’s best friend when you start drawing from you portfolio. - Align your spending with your values
We believe money is powerful and you need to know how to use this power. As you build wealth, spending money isn’t bad. It’s a way to enjoy your life and do things you love. But we want to make sure your spending is aligned with your values and that your spending truly brings you joy. Consider looking at all your spending and analyzing them. What are you spending money on that isn’t a necessity AND isn’t bringing you joy? I bet you’ll be able to find something that you can cut back on without eliminating your joy. - Have a plan in place (and a partner!)
Did you know that you are much more likely to achieve your goals if you have written, clearly defined goals? This is why having a plan in place with clearly defined goals is so important when you are building wealth for the future. It’s hard to save for the future when you have no idea what you are saving for. Did you also know that you are 65% more likely to achieve a goal if you have an accountability partner? That’s why we at Bloom Wealth Advisors develop a comprehensive Wealth Plan for every single one of our clients and we act as your long-term financial partner.
Do you want work to be optional someday? I think we all do! This is exactly why you must find balance between enjoying your life now and saving for the future. Building wealth is not rocket science, but it does take careful discipline and planning. Reach out to us if you want more support and guidance.
Source: https://www.bramework.com/goal-settingstatistics/#:~:text=A%20study%20by%20the%20Journal,in%20the%20next%20three%20 months.
This information is not intended to provide specific legal, tax or other professional advice. For a comprehensive review of your personal situation, always consult with a tax or legal advisor.
