The Seven Factors in Wealth Wellness

Last week, we unveiled The Wealth Continuum ™ and the importance of knowing where you stand on your quest for wealth wellness. [1] copy

There are Seven Factors that determine where you stand on The Wealth Continuum ™:

  1. Age-matching times of high income with high savings is crucial.
  2. Health-health and wealth are related and one without the other is of limited value.
  3. Financial Situation-existing resources and career capital.
  4. Family- core goals and commitments (college, weddings, etc.).
  5. Risk-your imputed or desired level of risk.
  6. Financial DNA-your financial make-up, mostly innate but also experiential.
  7. Previous Decisions- constraints-taxes, investments, business obligations.

Re-imagining the Role of Wealth

Wealth wellness starts with a re-imagining of the proper role of wealth within the realm of your life’s big picture. Wealth should not be viewed as an end destination. It is, rather, a tool for accomplishing family life objectives. Wealth is where life and money intersect.

Wealth modesty is also a crucial element in the wealth wellness formula. Modesty in this context refers to understanding what elements of your financial life are controllable and then recognizing that some aspects are beyond your direct control. For example, it is impossible for any of us as individual investors to “control” or “influence” stock prices. Millions of market participants set the prices each day. None of our smartness or savvy changes this fundamental fact.

A Path Apart

Combining a proper mindset with  wealth modesty sets you on a path apart from others. The financial sector thrives on tempting individuals to think and act short term…to make emotional choices. Instead, recognize why you are accumulating wealth and retain a measure of modesty about your “control” over this wealth. This places you on a course for positive results.

Mindset and modesty serve as a catalyst for the action steps that you need.  Wealth is not about optimizing or maximizing investment returns but is about action and decisions that propel you along. In other words, don’t chase wealth; make the right decisions so that wealth comes to you.

The Wealth Continuum ™ is depicted as a horizontal line but we know that life in general, and financial life in particular, are not linear. It is likely that there will be periods of time where you are moving steadily towards the “set” segment of The Wealth Continuum ™ and all of a sudden, something throws all of this up in the air. Perhaps a job circumstance or a family obligation occurs where you actually move backwards for a while.

Periods of setback are often highly charged emotional times and can leave you vulnerable to missteps. The context of a wealth wellness mindset should allow you to look beyond the present and keep you from unraveling your financial future. Ready for a real conversation?

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