The Money Smart Wealth Building Checklist

by MSE Staff | Published 03 Jul 2021 (Updated 5 Nov 2021)

In my earlier years, I noticed that there were seldom clear and concise instructions for how to build wealth. There were plenty of self-help books and books on how to budget. However, no one had put all of these things together to paint a complete picture. I did just that when I wrote The Book on Money Management which teaches the three secrets of money management and how to build a foundation for wealth. Today, I want to condense everything down into a wealth building checklist that you can use.

#1 Allocate your after-tax income using the Money Smart Formula.

The Money Smart Formula is part of the Money Smart Allocation system. When you apply the Money Smart Allocation system, you actively contribute 55% of your income to generating wealth. Unfortunately, a typical budget doesn’t set the conditions for building wealth. A budget typically focuses on cash flow each month. Positive cash flow each month is important, but it is not the big picture. The Money Smart Formula ensures that you are focusing your income in the right areas.

#2 Grow your cash flow to maximize the amount of money you keep for investment opportunities.

This may seem like an obvious thing, but many people miss this. Life is good when you have positive cash flow at the end of each month. Life is even better when you have a plan for that positive cash flow that builds wealth. What would you invest in with your positive cash flow? Make a plan to grow your money so that you can enjoy the economic security and freedom of choice that comes with wealth.

#3 Grow your net worth to build a foundation for wealth… Generational wealth!

Building further on checklist items #1 and #2, you should focus on growing your net worth. Consider where you were 10 years ago. How much has your net worth changed since then? Growing your net worth is the milestone for building wealth. Stay focused on growing your net worth and your financial wellbeing will increase along with it.

#4 Invest in assets to grow your net worth. Your assets should grow year over year to produce more income and net worth.

Are your investments growing your net worth at the right pace? It is wise to be selective about what you invest in. This is something that I want everyone to be critical about. While it is important to allocate 55% of your income for investments, your investments should include assets that produce more income and grow your net worth. Selecting the right investments comes with learning, understanding, and practice. Most importantly, selecting the right investments becomes easier when you have a mentor who is willing to guide you.

#5 Build and leverage a team of experts to advise you.

Those who take advantage of financial advisors in their financial planning outperform those who don’t. It’s common sense to consult an expert when making financial decisions. However, many people choose not to consult a financial advisor either because they don’t know any better or they believe they know more than the experts. Regardless of the reason why, the results are predictable. Be Money Smart and leverage the advice of experts.

Get the complete Money Smart Wealth Building Checklist.

So far we’ve covered five of the 10 items on this Money Smart Wealth Building Checklist. Can you feel the difference it makes when you have clarity? Request a FREE copy of the Money Smart Wealth Building Checklist when you attend a virtual coffee with Curtis.