These qualities can lead to more financial success, KC area planner says
What separates those who excel financially from those who struggle?
After over 20 years of advising families, listening to and learning from their experiences, I’ve noticed clear patterns in both those who consistently make forward progress as well as those who tend to get stuck in a rut.
It is interesting to see how these trends hold up regardless of someone’s career, background, educational level, or financial acumen.
A lot can be learned from observing these traits that tend to lead to successful outcomes. The good news is that these traits can be learned. Here are a few that consistently make the biggest difference.
Attitude
Successful clients tend to maintain a positive outlook. They know setbacks are inevitable — and temporary. Those who maintain their long-term focus and keep short-term hardships in perspective tend to demonstrate lower stress and are less likely to deviate from their long-term plan.
Preparation
Prediction is what Wall Street sells, but it’s preparation that’s actually helpful. We know the future is uncertain. Those who prepare for setbacks before they occur can reduce stress and stay on track better. Examples include maintaining an adequate cash reserve, spending less than you earn, maintaining proper insurance coverage and having an estate plan.
Habits
High performers often use this preparation to make the successful path also the path of least resistance. They save first, spend second. They budget simply. They set guardrails to avoid overspending. They prioritize resources toward things that bring joy to their life and say no to impulse spending.
Focus on what matters
One of the most impactful traits I see in successful individuals is their ability to focus their attention on productive areas. Imagine two circles — one labeled “What Matters” the other, “What You Control.” The overlap is where financial progress lives.
They don’t agonize over stock market fluctuations, politics, tax rates, or other items that matter but are out of their control. They instead focus on savings rates, aligning investment allocations to goal time frames, managing risk exposure, controlling expenses, and maximizing tax efficient vehicles (i.e., 401(k)s, IRAs, Health Savings Accounts (HSAs), etc.), all of which are completely under their control.
Using the perspectives above can allow someone to find opportunity in the midst of adversity. For example, a dip in the stock market value may create a better entry point for new savings or provide a prime opportunity for a Roth IRA conversion (moving money into a tax-free account for future growth). A struggling economy may also bring lower interest rates which may create an opportunity to refinance liabilities and lock in lower borrowing costs, freeing up cash for other goals.
Financial progress isn’t about predicting the future. It’s about preparing for it, building good habits, and focusing on what truly matters. Anyone can adopt these traits, and with time, they make all the difference.
Mark Albright, CFP CRPC, is a founding partner of Caliber Wealth Management, LLC and serves as Caliber’s CEO as well as a financial advisor. Caliber Wealth Management is a Fee-Only RIA based in Overland Park, KS. More info/disclosures may be found at their website, www.caliberkc.com.
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