Happy Labor Day!
At Ascentim, we’re coming off of August, when we put the focus on Finances. Labor Day – when we spend time with family and friends – seems like to perfect occasion to transition from talking about the money you work so hard to make to the company you keep – human capital. Both people and culture
That’s right: September is all about Connections!
Connections – One of Our 3 Pillars
Connections are another pillar of our coaching work. All month, we’ll talk about why connections are so important, how they increase our power to influence, and why they are essential to our success.
Even when it comes to your finances, the people you surround yourself with can impact how you spend (or preferably save) your money and the habits you form around things like debt and repayment, living within your means, and creating rainy-day funds. Culture also impacts your finances.
As the month goes on, you can watch this space for more articles about influence as it relates to your career and other personal goals. Today, I want you to think about the people who influence you financially, and about building your financial dream team.
First, consider who might be having a negative influence on your bank account. If you’re spending time with exorbitant spenders who regularly splurge on things they can’t afford, you might want to reconsider those relationships. Especially if you feel like you’re always trying to keep up with their lifestyle and it’s beyond your budget.
Also be on the lookout for people who drain you, the ones who always need you to bail them out, especially if they view you as someone who’s ‘made it’. This is a common occurrence, particularly for those of us who are the first person in a circle of family or friends to be successful.
Connections for your Financial Dream Team
Now that we know who to watch out for, we can start actively filling some roles on our financial dream team. To make sure you have all the knowledge and resources to protect and grow your assets, you’ll want to connect with professionals in the following 6 spaces:
1) Financial Coach: Whether you opt for 1:1 coaching or group support, a financial coach can improve your relationship with money, help you form better management skills, and keep you accountable so you can continue to reach your goals. There’s a lot of information out there, and a good coach will cut through the clutter to teach you the things you really need to know.
2) Financial Advisor: As you amass more assets, you’ll want to hire a licensed professional to manage your portfolio. Unlike a coach, who offers advice but doesn’t make decisions for you, your advisor will be making investments on your behalf. But don’t worry, their job is to understand your risk tolerance levels and overall goals and act accordingly.
3) Insurance Agent: – Safeguard your assets and make plans to transfer wealth to your heirs when the time comes. As your finances grow, you may invest in property, drive a fancier car, or even purchase a boat! Protect things you own with expert advice from a trusted agent. Life insurance is also critical to ensure loved ones have what they need if anything happens to you.
“Create a team of trusted advisors. I want people around me who can advise me on financial, legal, and professional matters.” – Ann marie Houghtailing
4) Tax Accountant: Tax time comes around at the same time every year (or 4 times/year for independent contractors and gig workers). You’ll want to work with a professional who can prepare your taxes, keep you in compliance with Uncle Sam, and offer advice on minimizing your tax liability. You’ll keep more of your hard-earned money and be prepared in the event of an audit.
5) Attorney: Part of the purpose of building wealth is to leave a legacy. The best way to ensure that your wishes are carried out is to consult with an estate attorney. It’s never too early to draft a will, living will, power of attorney, and health care proxy. It’s peace of mind for you and a true gift to your family.
6) Mentor: Who better to learn good money habits from than someone who’s been there, done that, and amassed wealth? Just like someone with poor money habits can be a negative influence, the opposite is true as well. By surrounding yourself with people who have already achieved the things you hope to accomplish, you’ll learn new skills and attract the right attitude for success.
Finances, connections, influence. It’s all tied together. Financial capital (the wealth we own) and human capital (the connections we make) are equally important. With sound money habits, a financial dream team, and good influences around you, you’ll find it far easier to meet your goals and ultimately walk in wealth.
This month, make sure you have the right people walking beside you. And if you’re unsure how to make those connections, let’s talk!