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  • Writer's pictureLeyder "Aiden" Murillo, MBA

Master Your Money: Elevating Financial Capability for Creating Lasting Wealth and Success

Updated: Aug 24, 2023


Master Your Money: Elevating Financial Capability for Creating Lasting Wealth and Success

At any moment, you can begin a new era in your financial journey to creating lasting wealth, building upon the foundation laid during Financial Capability Month in April. This tradition has evolved over the last 20 years, initially known as "Financial Literacy Month."


At Wolfpack Wealth Management, we believe that true financial capability goes beyond merely understanding finances. Instead, it's about managing your money, tailoring your financial plan, and making informed decisions aligning with your personal goals and dreams to assist with creating lasting wealth.


As you climb the ladder of success, purchase a home, save, and invest, you're accumulating wealth and developing the skills and knowledge necessary to achieve financial independence. But are you genuinely unlocking your potential?


Financial capability is intrinsically linked to financial freedom, as defined by your unique goals and aspirations. Whether it's retiring early, achieving a work-optional lifestyle, enjoying your wealth today while saving for the future, providing opportunities for your children, or supporting your parents in their golden years, these objectives are within reach. However, realizing them on your terms requires careful planning and strategy.


To elevate your financial capability, consider these essential components: advanced budgeting, maximizing your benefits, investing beyond retirement plans, and implementing strategic tax planning to minimize your lifetime tax burden.


Creating Lasting Wealth with a Forward-Thinking Budget

Budgeting is a fundamental aspect of financial capability, but it should go beyond simply paying bills and contributing to a retirement plan. To prevent lifestyle creep – the tendency to increase spending as income rises – adopt a proactive mindset.


Establish clear, long-term objectives with specific dollar amounts and track your progress. Regularly review and adjust your emergency fund to accommodate salary increases. Shift spending from short-term rewards to long-term benefits, like major purchases or memorable vacations. A budget is the beginning first step to creating lasting wealth.


Maximize Your Benefits for Long-Term Wealth

Saving the maximum amount in a 401(k) each year effectively reduces taxes and builds generational wealth. Additionally, explore Health Savings Accounts (HSAs), disability and life insurance, and Flexible Spending/Transit Accounts to optimize your financial landscape further.


Expand Your Investment Horizon Beyond Retirement Accounts

Investing through a taxable brokerage account enables you to diversify your asset allocation, fine-tune your risk profile, and manage taxable income in retirement. Carefully consider the role of company stock within your portfolio to avoid excessive risk exposure.


Implement a Strategic Tax Plan for Lasting Benefits

Take charge of your taxes to maximize your income retention. Proactively plan for tax-advantaged retirement savings, education savings tax breaks, self-employed tax deductions, and credits, and optimize the timing of asset sales and Roth conversions.


Your Takeaways

In conclusion, use the momentum of Financial Capability Month to propel your financial journey forward, leveraging your financial knowledge to achieve lasting success. Remember, you can choose any day as an opportune time to review and enhance your financial capability, paving the way for a prosperous future on your terms.

 

Ready to take control of your financial future? Schedule your free financial assessment and discover how working with a wealth management advisor is accessible and helpful in reaching your financial goals. Start building the future and wealth you deserve.


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