I often see articles detailing how we can pinch pennies, tighten the belt and live on less. The intention is to ultimately help us keep more of our own money. The intention is not to make us feel financially secure, let alone wealthy. Advice of that sort comes from a mindset of scarcity.

Living comfortably is a great first step toward changing our perspective. For long term wealth building, it is essential to move away from fear of scarcity and progress toward the concept of abundance.

This is an inside job because it starts at home, with you. Think about fine dining, for example.  Dinner for two at an elite venue could run $150.00. A similar dinner cooked at home would cost a quarter of that amount. Furthermore, when we create an exquisite meal in our own kitchen, we honor ourselves as worth the effort.

Gifting ourselves time, energy and attention can elevate our expectations. In this vein, we give ourselves a comfortable living experience. As in the dinner description above, we are allocating less funds outward and giving more focus inward.  So, get cozy and comfy and treat yourself.

Designing your financial life is to decide what you would love to see, do and experience. From there, we work backward to identify what you need to get there. We conclude the backtrack journey at your current financial state. At that point we will have identified how to navigate forward toward your goals.

There can be apprehension and anxiety around the idea of taking a clear and detailed look at the numbers. On the contrary, this should be an enticing and exhilarating exercise. Having a clear view of your dreams and seeing a clear path to success is available to you. Take the first step. It’s worth the daydream!

3 Principals:
1) Spend less than you earn
2) Pay off debt
3) Invest wisely

That last one trips people up!
So, live within my means, pay back borrowed money, then … become an investment guru? Sure. No problem. We have numbers running across a screen, charts, graphs, highs, lows, interest rates, ratios, percentages, finance show hosts hollering, government reporting, news anchors covering and often fees for buying or selling.

Why YOU are the “wise” choice:
Folks read, “invest wisely”, and think this means to jump into the stock market. What is often overlooked in the “invest wisely” portion of the three principals to building wealth, is the investment in self. I’m talking about YOUR education, YOUR business, YOUR retirement and YOUR sense of security and wellbeing. This is YOUR financial life we are talking about.

YOU are the dividend:
While investing in your education and/or business may take you back to step two to pay off debts, it is a long-term investment. Most career paths will evolve and develop further.  You do not need to be guaranteed that your business will be an immediate success.  A large portion of the investment is the acquisition of knowledge and experience to propel you forward.

YOUR gift to YOU:
Retirement contribution does not need to wait until any other events occur. You may have an option to contribute in an employer 401k or you have the option to initiate your own IRA or many other retirement account types. Setting up your own IRA could be easier than you think. Your bank may offer an IRA account or you could start an account with an institution that does. Fidelity is one example of institution which offers online setup: https://www.fidelity.com/open-account/overview

Create YOUR own sense of security and wellbeing:
There is no need to venture way out of your comfort zone. You can explore your investment opportunities gradually. As you learn what works for you, you can increase your investment contribution in areas that you are comfortable with. If buying stocks interests you, Robinhood is a great place to start.  There is no minimum and there are no fees for trading under $10k. https://robinhood.com/us/en/

YOU get it!
Spending less than you earn and paying debts off are two concepts that are fairly easy to understand. The idea of investing wisely is sometimes portrayed vaguely or alternatively, explained in an overly complex fashion. You have the power to understand your finances and learn how to make them grow.  YOU are worth it!