Action Steps for Wealth Management System

Keyword term – wealth management system – for families

You can help your family achieve long term wealth – it’s not impossible.  Ok, so I may not be talking Oprah style riches here, but the fact of the matter is that just about anyone can achieve a sound financial base – and from that build up to wealth – and by that I mean you can be secure financially – knowing that you have low or minimal debt, your house is yours, you have retirements savings, and that you have other funds you can use – for or emergencies.   That, really, is the kind of money most families aspire to.

So is there some secret wealth management system out there?  Nope – becoming wealthy requires a solid plan and follow through.  It also helps to have a goal, be organized and motivated.   It’s those who don’t have plan or a realistic goal (just what does wealth mean to you?) who are going to fall behind.

Work these action steps to create your own personal wealth management system:.

1.Set a Goal. It doesn’t matter how organized or motivated you are, if you don’t know what you want you’ll never achieve wealth. Just wanting to be wealthy is not enough – you need to have a specific number – and this number should be guided by what you need to say pay off your house, put your kids through college, pay off debt, live each year, save for retirement and go on vacation.  You might find that you need far less than you thought – or way more.  But get to a number.  By the way – I like a million. Today a million isn’t what it once was, but it’s still pretty good.  And if you’re combined household income is $50,000 or more, in about 20 years, you will have generated a million bucks or more income – so getting to a million actually shouldn’t be too hard.  For must of us, a million would pay off the house, save for retirement, handle college…etc.  Besides, everyone says the first mil is the hardest 🙂

2. Skip the lotto or get rich – Focus on your job – and upgrading or getting new skills so you keep getting better ones or raises.  If you want to go it alone, start with a business on the side – try freelancing, consulting, or an opportunity in a small, controlled way that won’t cost you a lot of money.

3. Invest – You build real wealth by having money that works while you sleep – that is money in the bank, investments or even a business that is making money (gaining interest, making sales) while you’re not working.  Start saving money so it can earn interest over the long haul.

4. Create a Plan  – Once you have a number in mind, you need to work on a plan – a plan that will help you manage your expenses and your income  – this is more commonly known as a budget, and it really is the cornerstone of any wealth management system.  You must live below your means and put that extra money to work for you if you want to build wealth.

5. Stay Motivated – Building wealth is really a marathon not a sprint for most families – and that’s ok – it’s much like raising kids or keeping a marriage going.  You must find time to work your wealth management system while you’re living your life  – it must be integrated into the fabric of being a family.

If you need more tips, strategies or tools on how to build your family’s budget, then check out the RichMama’s Guide to Building a Budget…