If you’re part of the 1% club or working hard to get there, you might want to learn more about the sound financial secrets of wealthy families. The wealthy each have their own idea of what’s made them successful. But, there are many common threads that most would agree are instrumental in helping them to reach their financial goals.

 

Develop a plan and stick to it

Think of it this way. Would you take a long road trip without mapping out your itinerary? Any successful journey involves a great deal of preparation, planning, and commitment. If you take a wrong turn, it could affect the entire journey.

A financial plan is like the navigation system for your journey to wealth. In order to reach your goals, you must map it out.

  • You have to know where you’ve been.
  • You have to know where you want to go.
  • You even have to know how to avoid the places you don’t want to go.

Along the way, you may encounter a few financial barriers, or your circumstances may change. But having a plan in place and monitoring it will help you reach your goals. It’ll also help you overcome the hurdles that come with it.

A sound financial plan:

  • Identifies, prioritizes, and documents your goals.
  • Helps you to make better financial decisions for your family.
  • Looks at both short-term and long-term goals.
  • Encourages you by helping you see results.
  • Grows your money.
  • Strategizes ways for you to build your wealth.
  • Helps to choose the best investment options for your situation.
  • Focuses on minimizing debt while increasing your assets.
  • Secures your family’s financial future.
  • Puts you in the driver’s seat when it comes to your financial future.

As Entrepreneur points out, the sooner you implement your financial plan, the better the results will be for you and your family.
 

 

Investing in your financial future

Warren Buffett is one of the most successful investors of our time, but he didn’t get rich overnight. Buffett built his wealth slowly. He also has a reputation for living frugally and making sacrifices on his road to getting wealthy.

When we talk about investing in your financial future, we’re not merely talking about a monetary investment, although that’s part of the journey to wealth. We’re talking about time and commitment.

Circumstances are bound to disrupt your plan.

  • An investment might turn out to be a bad one.
  • Your goals could change.
  • The economy could falter.
  • Changes in your family or circumstances might occur.

The point is that in order to have a successful financial plan, you have to be in it for the long term. In order for your plan to work, you must remain committed in the case of setbacks. You also need to understand that some of your goals may take time to reach.

Therefore, remain patient as you work diligently to achieve the financial future you desire for yourself and your family.

 

Working with the right team

Making sound financial decisions is an integral part of the financial planning process. While it seems straightforward enough, very few people have the time and knowledge to plan their financial future on their own. This is especially the case for people who are working hard to grow their wealth while making a living.

A comprehensive financial plan often requires expertise in many disciplines, such as investment planning, insurance, taxes, retirement and estate planning, and more.

You’ll want to work with an advisor or team that’s the right financial fit for you. You’ll also want to ensure that your team is comprised of certified financial advisors.

Work with a team that’s committed to you for your entire financial journey. A good financial planner will take the time to assess your financial situation and review many of your financial documents with you.

Here are some other things to take into account:

  • Your advisor will help to identify your goals and develop a financial plan.
  • They’ll explain all of your options and the positive and negative aspects of each.
  • They may refer you to others they feel are instrumental in making your plan become a reality.
  • They’ll review your plan periodically to make sure you stay on track or to upgrade your plan according to your circumstances.

Wealthy families have learned that a reputable and seasoned financial advisor is well worth the investment. An advisor holds the key to helping you reach goals that will maximize your financial standing. Having the right financial planning team could be your secret weapon for building and maintaining your wealth.