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financial well-being

The Four Challenges to Building Wealth: Financial Organization and Coordination

You’ve made it to our final segment of our series concerning the four challenges to building wealth. We’ve explored hurdles like financial institutions and ways to adopt their strategies, lost opportunity cost, and the velocity of money. Your biggest challenge to building wealth though?

It’s you.

No matter how savvy and dedicated you may be to growing your wealth, it won’t work if you are not approaching it in an organized and coordinated way.

You Can’t Grow What You Don’t Know

The biggest reason financial organization and coordination matters is because if you can’t track your financial life you can’t determine its performance. So many people let their accounts, bills, mortgage, and more stay separate and unassociated in their minds that it’s a miracle they can pay their taxes every year, let alone handle their bills every month. Without a centralized hub for your finances that makes it simple to check your financial health, it can be almost impossible to grow your wealth effectively.

Determine What Works for You

There are plenty of ways to build that hub. Some people opt for spreadsheets that track net worth and monthly bills. These can be powerful, since they’re self-driven and require you to interact with your money in an active manner. Other people opt for web-based applications that aggregate your financial data in one place. Some utilize desktop-based software to great effect. The secret is in determining what system best meets your needs and helps you along your path to financial wellness.

Consistency is Key

Once you’ve figured out your system of financial tracking, you have to build that into your life. Set calendar reminders. Create appointments with yourself. If your tracking and managing does not remain consistent, your progress will suffer for it. Being able to observe trends such as ballooning restaurant spending or growing interest on credit card debts can help alert you to issues before they get out of hand. You should do whatever it takes to make your financial health check part of your regular routine.

Coordinate Your Financial Goals and Strategies

Once you’ve found a method that works for you and made it part of your routine, you need to use it to track your net worth as well as your additional financial goals. By tracking goals such as paying off student loans, building home equity, or eliminating high interest debts, you can begin to coordinate your finances to support those goals.

If your equity growth isn’t outpacing growing interest, you should shift your focus and capital to eliminate those debts. Need to grow an emergency fund more quickly? Consider shifting funds away from your investment accounts and toward liquid savings funds.

By putting your financial health in one accessible, trackable space and tying overall performance to your goal progress, you put yourself firmly in the driver’s seat. It can be eye-opening, intimidating, and uncomfortable, but growth comes from discomfort. The difficulties you experience now can either teach you important lessons for your future well-being or you can ignore them, as so many people choose to.

Ready to tackle those financial goals and build a future to be excited about? Contact us to get started.