- Start with a basic budget, understand where your income comes from and how much you make and where you are spending money. It is hard to build wealth if you spend more money than you make. If you need help getting started, there are many budget templates or guides available for free at sites like nerdwallet, clevergirlfinance, mint, or you can follow the link to the KANA tool below just to name a few.
- Define your goals and figure out how much it will take to fund them. Dedicate specific amounts for savings towards your different financial goals.
- There are basically only two ways for you to make money, your work and efforts to earn an income or your money/assets can work and make money for you.
- Limit your use of debt, while it may only feel like a balance sheet transaction (meaning I owe the money but not all at once and I can afford the payments) using debt in the wrong circumstances and the wrong way can harm your long-term financial health. If you get in the habit of using credit for purchases, then eventually you may wind up having more in debt service payments than you can afford and that can lead to bankruptcy.
- Once you have identified your goals and know how much needs to be saved/invested then you need to determine how to invest those funds based on a number of factors that include timeline and risk tolerance among others.
- Many of my wealthiest clients own their own business and this can be a great way to build wealth. There are many factors that go into the decision to open your own business. While I won’t go into too much detail here today on starting a business that is something that I can help guide you through. Just know that if done the correct way, a business can be a powerful wealth building machine for your family.
- In the process of building wealth one of the most important steps is to consistently monitor and track your progress toward your goals. You should work with a qualified financial professional who can help you develop the plan and track your progress against it. This is a critical step in the process as it helps you make smaller adjustments to your plan as things change (your goals, life circumstances, the markets, etc) versus waiting for years and then trying to figure out how you did.
- Tracking your goals and your progress towards them can help you to make smart money decisions and ultimately build more wealth for your family.
If you have any questions about your personal financial goals and wealth building, please give me a call and remember at KANA Private Wealth Group we put family first!
Disclosures: The S&P 500, NASDAQ and Dow Jones Industrial Indices are unmanaged groups of securities considered to be representative of the stock market in general. You cannot directly invest in these indices. Using asset allocation as part of your investment strategy neither assures nor guarantees better performance and cannot protect against loss of principal due to changing market conditions. Rebalancing assets can have tax consequences. If you sell assets in a taxable account, you may have to pay tax on any gain resulting from the sale. Please consult your tax advisor. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney or tax advisor with regard to your individual situation. Comments concerning the past performance are not intended to be forward looking and should not be viewed as an indication of future results. Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. KANA Private Wealth Group is not affiliated with Kestra IS or Kestra AS. https://bit.ly/KF-Disclosures