Shawn Anderson: Building and sustaining wealth requires having a clear direction and taking action throughout the year. As we approach the end of 2017 it's a good time to reflect on where you are financially and what you could do better next year.
Hillary Howard: As we approach the end of 2017 of course that's what Shawn is talking about let's learn more with Nina Mitchell, co-founder of Her Wealth and partner at The Colony Group in Bethesda. How are you doing Nina?
Nina Mitchell: Great, nice to be here.
Hillary Howard: It's good to see you. You say that to build and sustain wealth we really should practice what you call, intentional wealth. What do you mean by that?
Nina Mitchell: Well at its core, practicing intentional wealth means having a defined purpose with clear directions for your wealth. So, quite simply your long term financial success isn't just going to happen by accident or on its own. It requires intentional planning, taking definitive action and making appropriate changes along the way and I know this sounds like common sense, but you have to commit to your financial wellness because there's lots of distractions that can take you off course, kind of like your workout plan. So, to simplify this process we break it down in four steps.
Shawn Anderson: What are the four steps? If you don't mind telling us.
Nina Mitchell: Well, sure. First, determine what's getting in your way. Many times, we hear I'm too busy or I have no extra cash, so why bother or my favorite is, I'll get to it tomorrow and that kind of leads me to my second step, identify what to tackle first. It's important to write down and prioritize your goals, your top three goals actually and the more specific the goal the more likely it is that you'll achieve it and then next quantify your goals. You need to set realistic dollar targets that you can automatically fund each month, bring your dreams into your reality and then lastly create an action plan for 2018. Focus on goals, focus and goals don't mean much without a targeted action plan and that's the point of being intentional about building your wealth.
Hillary Howard: What steps or goals are typically very hard to follow?
Nina Mitchell: Well two challenging areas are knowing where to start first and then second taking action on quantifiable goals. So, most people just don't know all the components that go into a comprehensive financial plan and there's both monetary and non-monetary goals, so a good place to start is with our financial fitness checkup that you can find in today's article on WTOP.com and it's twelve quick financial questions that will let you know which areas you're good in and which areas need your attention. So, after you take the quiz make an action plan and establish your goals with amounts and timeline, you know or consult with an advisor. You know it's one thing to say that you want to have a one-million-dollar nest egg at retirement but it's much more impactful if you say you're going to save eighteen thousand a year or break it down fifteen hundred a month in your 401K for the next twenty-five years and you're going to earn six percent a year. That's how you're going to ensure your one-million-dollar nest egg. Whatever your target savings goals are stick to it each month and I love this quote, planning is bring the future into the present, so you can do something about it now.
Shawn Anderson: Don't wait until tomorrow and write it down, good advice. Thank you, Nina!
Nina Mitchell: Thanks.
Shawn Anderson: Nina Mitchell of The Colony Group in Bethesda. You can read more as she mentioned on the WTOP.com, search Her Wealth.
Consider this your training manual to get and stay financially fit for life!