What separates those who have the highest potential for building wealth from others? Is it exotic investments or timing the market? In many cases, it’s the basics of financial planning. In our latest white paper, we discuss how Wealth Potential groups differ in terms of their behaviors and self-reported experiences related to financial management. We measured Wealth Potential with Data Points’ proprietary assessment of frugality, confidence, level of responsibility for one’s finances, and focus on …
If clients are to increase their likelihood of becoming wealthy, they have to understand and change how they behave with respect to areas that are, perhaps, a little more personal. Clients that focus intently on what others buy and consistently want the latest and greatest in possessions (such as technology or accessories) are less likely to build wealth over time. Social Indifference predicts net worth regardless of age, income, or how much wealth one …
How will you spend the day after Thanksgiving? Here’s some research that might influence your decision. In our 2015 survey of affluent Americans–a group that represents the top wealth holders in the United States–we asked how many times they participated in in-store Black Friday shopping in the past five years. Only 2% said they had participated each of the past five years, 14% said they had participated once or twice, and 3% said they had …
In the introduction to The Millionaire Next Door, a question is asked in the voice of the reader: How come I am not wealthy? The authors state: Many people ask this question of themselves all the time. Often they are hard-working, well-educated, high-income people. Why, then, are so few affluent? As I am rereading The Millionaire Next Door, as many of you are, I’m reminded of the reason the work of defining wealth in …
A recent study from Wells Fargo and Gallup found that approximately 21% of 401(k) participants take out loans or early withdrawals from these plans. Many employees are not quite familiar with the tax consequences that go along with such behaviors. The basics of good money management, while not universally taught, can be identified and learned. Financial literacy is a necessary first step in ensuring individuals make sound financial decisions. However, it is only one …