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MAKE BETTER
FINANCIAL DECISIONS

Making Money Having Money

 

It's commonly understood that income and net worth are not always directly correlated. This connection can be easy to miss in the early stages of life when we're rapidly moving through challenges, focusing on family, career, and navigating the crises that come our way. We often tell ourselves, "We'll get past this hurdle, and then we'll start making changes..." This mindset reveals why making money does not necessarily equate to having money.

One primary reason for this divergence is the different financial decisions made by individuals with wealth compared to those simply earning a high income. This book aims to delve into these differences.

Planassist financial roadmap planner in winter garden florida

WHAT YOU WILL LEARN IN THIS BOOK

Planassist financial roadmap planner in winter garden florida

1. It Starts with a Plan

The essence of having a plan is captured in the 'Here-There Strategy.' This process begins by assessing your current financial position—'Here.' It involves evaluating your income, assets, liabilities, and identifying any potential risks and opportunities. The next step is to envision where you want to be—'There.

2. The Importance of Diversification

Diversification is not a new concept; its roots stretch back thousands of years, and it remains a vital component of financial decision-making. King Solomon, regarded by many as the wealthiest man in human history, offered this timeless advice in Ecclesiastes 11:2: "Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land."

3. Significance of Obtaining Counsel 

Both informal and formal advice play crucial roles, albeit in distinct ways. Acknowledging and understanding these differences is key. We will explore the distinctions between the two and explain why each is extremely valuable, yet distinct.

LEARN ABOUT THE AUTHOR TIMOTHY CLIFFORD

Timothy Clifford CFP® Founder of planassist financial roadmap planner winter garden florida

My career began on the Chicago Mercantile Exchange floor in the 1980s, starting as a runner and then a trader, which gave me foundational knowledge of financial markets. In the 1990s, I joined Charles Schwab & Co., where interacting with financially successful clients helped me distinguish between high earners and substantial wealth accumulators. This understanding shifted my focus from trading to wealth management.

By the 2000s, I advanced into leadership, furthering my resolve to aid others in wealth building. In 2012, after becoming a Certified Financial Planner®, I founded Core Wealth Consultants LLC in Central Florida. This experience led to the creation of PlanAssist®, a milestone in my career, aiming to simplify wealth-building for those needing help with prioritization and organization.

HAVE A LOOK AT THE CHAPTER'S

Discover the critical difference between having a high income and accumulating wealth, and how making informed financial decisions can bridge this gap.

Learn about the foundational strategies of PlanAssist® that simplify decision-making and promote long-term financial stability. We know that making money doesn't mean having money; ensuring we belong to the latter group, the foundation is crucial.

As life becomes more complicated and we are asked to make more financial decisions, it becomes important to integrate strategic planning with practical steps to effectively manage personal finances.

Understanding why it starts with having a structured financial plan is essential for building and preserving wealth over time. This does not necessarily mean a 30-page PDF; it could simply be a basic outline of 'Here, where you are now; There, where you want to be.

Dive into the principles of diversification across various asset classes and how they protect and grow your investments. We will also explain the importance of diversifying tax liabilities and income streams in retirement.

This simply means getting input, which includes both formal, paid advice and informal advice from friends and family. Find out why seeking advice from a circle of trusted advisors is crucial for avoiding common financial pitfalls and making informed decisions.

See how to integrate the core principles of having a plan, being diversified, and seeking counsel into everyday financial decision-making.

Avoiding financial mistakes can be as important as making good financial decisions. Identify and learn strategies to avoid common financial mistakes that can derail your financial future.

Summarize the key strategies used by financially successful people and the actionable steps you can take to ensure financial stability and growth.

References

Access a curated list of resources and references that provide further reading and support the methodologies presented in the book.

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