By Bill Taber
Making decisions now as a young professional in your 20s or 30s could have multimillion-dollar implications for your future self. In my experience working with clients from all generations—including young adults—I’ve learned that one of the more important steps to building wealth is developing a wealth mindset. That’s because it’s critical to develop habits that make accumulating wealth a consistent, natural part of your thought process.
Some habits of a wealth mindset include a disciplined approach to cash flow and lifestyle expenses, clear communication between spouses, a long-term view of financial goals, and an emphasis on continual professional growth.
Let’s dive deeper into what developing these habits entails.
Maintain Cash Flow Control
Financial obligations like car payments, credit card debt, and student loans can consume your resources and limit your cash flow, which is why it is so important to manage debts effectively. The less flexibility your monthly budget allows, the fewer options you have for pursuing your financial goals. Remember to limit your debt liabilities so you can maintain control over your cash flow.
Be Aware of Lifestyle Creep
Early in your career, you might notice friends and coworkers acquiring larger homes, better cars, and more expensive hobbies. Before you know it, you too are browsing the internet for a better car or apartment.
This is called lifestyle creep. It’s a sneaky trap that can quickly throw off your financial goals. The trick is to recognize it and address it as soon as possible by being aware of your spending patterns, making clear financial goals, and placing a significant priority on saving.
Get Comfortable Talking About Money With Your Spouse
Money is a very sensitive topic, but it's essential to avoid misunderstandings and financial stress. By having regular conversations about your income, expenses, debts, and savings goals, you can create a shared financial vision and work together to accomplish your financial objectives, instead of turning every discussion into a “blame fest.”
It’s wise to proceed cautiously when communicating about money, particularly when discussing finances as a new-ish couple. While your conversations might be awkward and stressful at first, you can eventually reach an elevated level of openness and communication. Remember, the goal is to develop a wealth mindset together.
Build a Long-Term Plan
A well-crafted long-term financial plan keeps you motivated and accountable while pursuing your financial goals. By outlining your income, expenses, savings, and investment strategies, you can develop a clear, long-term strategy that’s aligned with your goals and values. Additionally, a lasting plan allows you to adjust to shifting life circumstances and make wise decisions that support your long-term financial goals.
Remember to stay focused on the long term and remain systematic in your wealth-building methods. Try to prioritize the progress you’ve made so far. Building wealth can take years or even decades, but the path to financial independence ultimately lies in consistent, methodical work. Stay patient, focused on your objectives, and avoid distractions.
Enhance Your Professional Skills and Network
Professional development is a lifelong journey. Work diligently and consistently to increase your proficiency and knowledge so you become increasingly valuable in the marketplace. This should eventually result in a bigger salary.
If you’re thinking about continuing your education (returning to school for a master’s degree, for example), carefully consider the costs, the worth of the degree in terms of your predicted future wages, and the amount of debt you can realistically assume following graduation.
Reach Out for Help
Developing a wealth mindset is just the first step in pursuing financial independence. The next step is consulting an experienced financial professional.
TABER Asset Management has built a well-deserved reputation of superior customer service while helping clients meet, or exceed, their financial goals. We accomplish this by taking the time to invest in our clients, getting to know them personally, understanding their interests, personal and financial goals, as well as their risk tolerance.
Ready to get started? Reach out today by scheduling a 15-minute intro phone call online or reaching out to us at 515-557-1860 or invest@taberasset.com.
About Bill
Bill Taber is President and Founder of TABER Asset Management, an independent, fiduciary wealth management firm, in Des Moines, Iowa, that strives to do one thing well: manage their clients’ money by creating wealth, building wealth, growing income, and preserving capital so they can experience financial freedom. With more than four decades of experience, Bill is dedicated to building relationships with his clients and their families and walking alongside them as they navigate financial decisions. His favorite days are the ones when he gets to witness the joy and relief on his clients’ faces when they realize they can pursue their dreams and live their ideal lifestyles. Bill is known for going the extra mile, getting things done with integrity, and working with a stewardship mentality.
Bill graduated from the University of Iowa with a bachelor’s degree in business administration and fell in love with the profession when he got to help one of his first clients—his father—turn his lifetime of hard work into a dream retirement. He got his start in the industry as a corporate services representative for Bankers Trust Company and spent decades working as Assistant Vice President of E.F. Hutton & Co. and First Vice President of Principal Financial Securities. He is also a graduate of the E-Myth Worldwide Mastery Business Development Program and is Series 65 registered.
In his spare time, Bill enjoys giving back to his community and spending time with his family. His hobbies include traveling, gardening, reading, and practicing yoga, Pilates, and meditation. He also loves the simple joys of listening to music, going for walks or bike rides, and being in nature. To learn more about Bill, connect with him on LinkedIn.