3 financial resolutions to build more wealth
So, we’re well into the new year, the Holiday Hangover is getting tolerable and everybody seems to be getting into new health & wellness routines that aren’t sustainable. In the spirit of giving you resolutions that might actually work, here are three simple financial resolutions that can make you wealthier.
The first rule in reaching any goal is paying attention. It doesn’t matter if you’re trying to lose weight, build a business, or build wealth, you need to be paying attention to details and ask the right questions. You need to be engaged. All 3 recommendations I am about to make are rooted in knowledge and assessment. They’re not complicated, but they require some level of commitment to knowing what’s going on. The first recommendation is to login to your online banking almost everyday to get a better understanding of your regular cash flow. It’s the core of any financial economic engine and understanding your Cash Flow - what comes in, what goes out, when, where & why - will help you assess any problems and opportunities you may not have recognized before. It can help you plan for expenses and identify changes which could help increase your savings. Checking your banking regularly is the easiest way to get a grip on your cash flow. The next recommendation is to evaluate your personal net worth – all the assets you own minus all the debts you owe - on an annual basis. Your personal net worth is extremely important as it serves as a snapshot of your current financial situation and can be used to measure your financial progress. For most people, a large positive net worth will be necessary to support their lifestyle into retirement. Tracking your progress relative to how much you willneed to accumulate before retirementis essential toreaching your goals. Growing a net worth large enough to support their expenses is how people become wealthy. The last recommendation is to continuously assess the value you are getting from the various financial services you are paying for. You owe it to yourself to know and understand what you’re paying for and how it benefits you in the long run. Paying for advice and services you’re not using or that aren’t being delivered is a major drag on your efforts to build wealth. It makes sense to pay someone to manage your investment portfolio if you don’t have the knowledge, interest or time to do it yourself. On the other hand, it makes no sense to pay additional fees for advice or services you are not receiving. As your wealth grows, so does the amount of fees you can pay. Paying attention and looking for the best value for your situation and preferences can have a huge impact on your results. None of these recommendations are incredibly complicated or require a lot of time & effort on your part but when properly exercised, these new habits could help give you the boost you need to create the wealth you deserve.
This writing is for general information purposes only and is not intended to provide legal, accounting, tax or personalized financial advice. If you are not sure how to proceed with a request for further information, seek help from a professional. Any opinions expressed are my own and may not necessarily reflect those of Louisbourg Investments.
Marcel LeBlanc, BBA, CFP is a Financial Planner with Louisbourg Investments. Comments or questions may be submitted to Marcel at email@example.com, or he may be reached at (506) 383-5204.