How to build wealth with balance

[UNITED STATES] As a certified financial planner, my mission is to help self-made professionals grow wealth they can enjoy throughout their lives—not just in retirement. A key part of that mission is ensuring that their money lasts as long as they do.

But that’s only part of the equation. Just as important is making sure clients can actually use their money now—while they’re young, healthy, and able to enjoy the experiences life has to offer.

Recent research underscores this balance. A 2023 study from the National Bureau of Economic Research found that individuals who used some of their income on meaningful experiences—like travel or education—reported greater long-term life satisfaction than those who saved exclusively for retirement. The takeaway? A flexible financial plan that supports both current enjoyment and future security is essential.

How to Build a Financial Plan That Works

Here's how we approach long-term planning to ensure our clients build wealth without sacrificing their quality of life today.

Embrace Change as Part of the Plan

Your retirement goals are likely to shift over time. The person you are today won’t be the same person you are in 10, 20, or 30 years—and your financial plan should evolve with you.

Life brings change. Economic trends, rising healthcare costs, or unexpected family responsibilities—like caring for elderly parents—can all impact your financial strategy. That’s why reviewing your plan annually is a smart way to keep it aligned with your current situation.

Good financial planning doesn’t try to predict every twist and turn. Instead, it’s built to adapt.

When you have extra cash flow, resist the temptation to spend it on lifestyle upgrades. Prioritize saving and investing it instead. This builds the kind of wealth that gives you flexibility in the future.

It also helps to plan with conservative assumptions. Personally, I budget for slower income growth and higher living expenses than I expect. That buffer gives me greater financial stability and adaptability.

When making big decisions, favor options with minimal exit costs. That flexibility can help you pivot more easily in response to life changes. Be wary of choices—like homeownership—that can lock you into a course that's tough to reverse.

Find Ways to Earn More

Over time, I’ve shifted from a “retire as soon as possible” mindset to a more balanced approach.

The modern economy offers plenty of opportunities to earn extra income. Remote work, freelance gigs, and creative platforms like Upwork, Etsy, or Fiverr make it easier than ever to turn skills into revenue. For those looking to enhance income without compromising personal values, these tools offer a compelling path.

Personally, I’ve scaled back my savings rate to enjoy more of my income now. But that decision works for me because of two key factors:

1. I saved aggressively—30% to 40% of my income—for nearly a decade.
2. I worked hard to grow my business and increase my earning potential.

If building wealth is the goal, increasing your income can dramatically accelerate progress. Yet it’s a strategy often overlooked in favor of generic saving tips.

Why? Because earning more isn’t easy—and there’s no universal formula. But ignoring it won’t change the math: if you want to grow wealth, you need to create more income. There’s no single “right” path—just one that works for you and that you can commit to.

Frugality Alone Won’t Make You Rich

You’ll need money to support your lifestyle in the future—especially when you’re no longer working, whether by choice or necessity.

It’s a myth that extreme frugality is the fastest route to financial freedom. While cutting waste is wise, overly rigid budgets can lead to burnout and missed opportunities. Strategic spending—on career-building experiences or professional development—can yield returns that far outweigh their costs.

Yes, saving money and investing wisely is non-negotiable. But how you do it matters.

Frugality has its place, but it’s a limited strategy. There’s only so much you can cut. Growing wealth also means creating assets that appreciate over time—not just saving what's left over after expenses.

Invest Smart, Not Just Often

To build wealth beyond a budget, you need to invest—and you need to do it wisely.

The investment landscape has evolved, offering options from ESG funds to crypto and fractional shares. While these can enhance diversification, they also require careful consideration. Aligning investments with your goals, risk tolerance, and time horizon is key. A financial advisor can help navigate the options and avoid getting caught up in hype.

Key elements of a strong investment strategy include:

• Choosing the right vehicles (stocks, ETFs, mutual funds, etc.)
• Allocating assets based on your goals and timeframes
• Evaluating fees and their effect on long-term returns
• Diversifying across asset classes and accounts
• Factoring in taxes and how they impact gains
• Avoiding common pitfalls like speculation or market timing

This just scratches the surface. But if your goal is to build a portfolio that grows over time, here’s what to focus on:

• Long time horizons: The more time your money has to grow, the better.
• Risk-adjusted returns: Take on enough risk to earn returns—but no more than you need.
• Global diversification: Don’t rely solely on U.S. markets. Diversifying globally can reduce risk and increase opportunity.

And perhaps most importantly: stick with your strategy. Wealth-building isn't about chasing the next big thing. It’s about consistency, patience, and a plan that adapts with you.