We all know the hype around “get rich quick” schemes and the flood of advice on how to achieve financial success. But if you’ve already established a solid foundation, the next step is refining and elevating your wealth management strategy.
Even with significant assets, cultivating smart financial habits is key to sustaining and growing your wealth. Here are five strategies to help you enhance your financial position and preserve everything you’ve worked so hard to build.
Set Goals, Not Wishes
Eleanor Roosevelt once said, “It takes as much energy to wish as it does to plan.” Financially successful people live by this concept, taking time to set goals and plan ahead, rather than relying on hope or wishes to make things happen. In fact, while only 3% of Americans actively write down their goals, nearly 67% of wealthy individuals do so, and over 80% create a daily to-do list. Clearly, there is a method to the madness. Goal-setting, especially written goals accompanied by a specific plan, is a great financial habit to build and incorporate into your daily life.
Diversify Your Income
Income diversification is a tried-and-true method for financial success. The truth is, no matter what your net worth, your income will always be your greatest wealth-building tool. That’s why a solid income stream is great, but multiple streams of income are even better.
Diversified income streams act in much the same way that diversified investments do. They allow for less demand and stress on any one income source, so that if an unforeseen event were to occur, the remaining income streams can pick up the slack. There are many ways to diversify your income, including dividend-paying stocks, purchasing rental property, investing in real estate, or starting a business.
Read Every Day
If you’ve ever heard the saying “Leaders are readers,” then you know that reading is a habit worth building. But how does it apply to financial success? Reading can greatly improve your knowledge about your business, your career, and your finances. Not only that, but it can also be used to improve your interpersonal skills by providing insight into the experiences and viewpoints of others, which will ultimately make you more valuable to customers, colleagues, and clients.
Warren Buffet himself has credited his investment success to reading 500 pages a day, saying that knowledge, like compound interest, is something that should be built every day. Similarly, wealthy entrepreneurs like Elon Musk, Bill Gates, and Mark Zuckerberg have all discussed the benefits of reading when it comes to their financial success. While 500 pages a day might be a bit much for most people, reading just 30 minutes a day is an effective habit for those looking to maximize their wealth.
Volunteer & Network Regularly
Volunteering and networking are also common habits of financially successful people. Not only is volunteering a great way to give back to your community, but it can also be useful in connecting with future clients and contacts. What better way to connect with your peers than to bond over shared values and charitable causes?
Similar to volunteering, networking also gives you the chance to build meaningful relationships with people who can help you in your financial journey. Considering 83% of new business opportunities come through referrals and 92% of people trust referrals from people they know, volunteering and networking are crucial habits to cultivate if you want to expand your circles of influence and find financial success.
Find a Mentor
Whether it’s a money mentor, a business mentor, or a mentor for personal growth, finding a person who has been in your shoes and can guide you through your journey is a research-backed way to be successful in your endeavors. In fact, those with mentors generally have improved career outcomes, including increased earning potential and access to more opportunities.
Mentors can come in many forms, including colleagues, peers, and family members. No matter whom you turn to, a strong mentor relationship can help create a supportive environment where financial success can thrive.
Partner With a Professional to Enjoy Financial Success
Ready to elevate your financial strategy and take meaningful steps toward long-term success? Anderson Financial Strategies is here to guide you with personalized wealth planning to sophisticated investment strategies to help you shield, grow, and optimize your assets.
If you would like to explore our services for your family or business, call us at 855-237-4545 to schedule an executive briefing to discuss your goals.
About Shon
Shon Anderson is president and chief wealth strategist at Anderson Financial Strategies, LLC with over 20 years of experience. As a fiduciary, Shon’s mission is to provide his clients with quality financial expertise along with rapidly responsive service through an honest relationship. He specializes in providing family office-style services to help his clients organize and focus their financial life. Shon graduated from Wright State University with a bachelor’s degree in financial services and an MBA in finance. He is a CERTIFIED FINANCIAL PLANNER® practitioner and holds the Chartered Financial Analyst® (CFA®) certification. His insights have been quoted in leading financial news publications such as CNBC, Yahoo Finance, Fox Business, Consumer Reports, Forbes, Bankrate.com, Investment News, and Kiplinger. Shon serves as president of the CFA Society Dayton as well as on the boards of the Miami Valley Hospital Foundation and Wright State’s planned giving council and was appointed as a Trustee for Central State University. Shon and his wife, Jessica, reside in Sugarcreek Township, Ohio, and are blessed with triplet daughters, Elizabeth, Bridgette, and Alexandra, along with their son, Jacob, and dogs, Biscuit and Ella. To learn more about Shon, connect with him on LinkedIn.