The best time to begin your wealth management strategy is the first time you have money of your own – but most people are too young to realize this. Fortunately, it is never too late to begin setting up and fulfilling your wealth management goals. Commit to saving a large portion of your income, such as 20 percent or more, and you will soon begin to see your wealth plans come to fruition. The following strategies can help you steer the course.
Tip #1: Set the Framework
The best way to successfully build wealth is to have a plan for every cent that comes in. Begin by designing the framework for your plan. Determine your five-year, ten-year, twenty-year, retirement, and generational goals. For example, are you only concerned with building enough wealth in your 20s and 30s to fund a lavish retirement in your 50s and beyond, or do you envision setting up trust for your grandchildren or providing an endowment to your alma mater? Set down your goals and then determine what percentage of your savings will be directed into each goal. This way you are funding the framework from the very beginning, so nothing gets pushed aside.
Tip #2: Combine Resources
Whether it's with your spouse, a sibling, or another family member, creating a family culture around wealth building can help everyone reach their goals more quickly. For example, having your spouse on board with your goals ensures that you are both working together instead of against each other. This may mean some modification of your initial framework so it reflects both of your desires. Then, as your children reach adulthood, you can bring them into the family wealth strategy. When properly managed, this can lead to generational wealth that is passed down through your family.
Tip #3: Get Professional Help
Although it's a good idea to have a thorough working knowledge of the different investment vehicles and wealth earning systems that are powering your framework, managing them is a full time job. Trying to build wealth while also earning it through a business or full time employment is extremely difficult. This is where it is helpful to hire a wealth management firms. Many firms take on clients at various stages of their financial growth. Choose a firm with an investment philosophy similar to your own. You can then work closely with your fund managers to make sure your framework plan is being properly carried out.