Financial Freedom: Building Wealth to Live the Life You Love - Conway Center for Family Business

Financial Freedom: Building Wealth to Live the Life You Love

Article Provided Courtesy of Michael Beers, Financial Advisor, Senior Vice President, Morgan Stanley

What does financial freedom mean to you? For some, it is synonymous with financial security. But, for others, the definition of financial freedom goes beyond money to include living with purpose, cultivating a healthy mind and spirit or being able to pursue their dreams without fear of the unknown or unexpected.

No matter how you define it, the fundamental steps of mapping a path to the opportunities that financial freedom offer are the same:

  1. Define your goals.

What is your vision of a successful life? Defining your goals as specifically as possible helps you begin to establish priorities and distinguish between needs and wants. Once you have clearly identified your priorities, you can start thinking about what types of financial trade-offs or lifestyle compromises you’re willing to make to achieve your version on success, on your own terms.

  1. Set a budget.

Living on a budget may sound limiting, but in reality, a budget is a valuable tool for helping you do the things you really want by showing you how much money you will need to do them. Start by calculating your income and tracking your current expenses. Then, separate your needs from your wants in the content of your overall goals. Once you set your budget, the most important thing is to stick to it, monitor how you’re doing and then adjust if necessary.

  1. Make a habit of saving.

Saving early, automatically and often is the cornerstone of an effective wealth creation strategy as it allows you to take advantage of the power of compound interest. Prioritize saving over optional expenses and make automatic deposits to your savings, investment or retirement account, if your company enables you to do so. In addition, contributing to a flexible spending account, health savings account, retirement plan or education savings account enables you to take advantage of tax benefits. You can also trim spending by changing your habits-for example, bringing, instead of buying, lunch or unsubscribing from retailer email lists to avoid the temptation to buy things you don’t really need.

  1. Align your investment strategy with your goals.

If you’re thinking about investing, you’ll want to formulate an investment strategy that helps you achieve your goals. Begin by figuring out how much you’ll need (your target), when you’ll need it (your time frame) and how much risk you can live with (your risk tolerance). These inputs help to define your asset allocation-the mix of asset classes (stocks, bonds, cash equivalents and other investments) in your portfolio. Since different asset classes tend to behave differently under different market conditions, the goal is to find the mix of investments that has the highest probability of helping you reach your goals.

  1. Establish good credit.

Don’t estimate the value of a high credit score. Your credit score is how people assess the level of financial risk associated with giving you a loan or conducting any kind of business with you, including renting an apartment or buying a cell phone. To improve your credit score, pay your bills on time, borrow (but don’t over-borrow) and monitor your credit reports from each of the three main credit score suppliers-Equifax, Experian and TransUnion-on a regular basis.

Getting Started

No matter how old you are or where you are in life, the future you envision begins with a comprehensive plan and a Financial Advisor who cares about you and your unique definition of financial freedom.

If you’d like to learn more, please contact:
The Fortis Group at Morgan Stanley
Michael L. Beers
Senior Vice PresidentFinancial Advisor
Corporate Retirement Director

4449 Easton Way, Suite 300
Columbus, OH 43212
(P) 614.269.3401

This article has been prepared for informational purposes only. The information and data in the article has been obtained from sources outside of Morgan Stanley. Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of the information or data from sources outside of Morgan Stanley. It does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this article may not be suitable for all investors. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Asset Allocation does not assure a profit or protect against loss in declining financial markets.

Morgan Stanley Smith Barney LLC is not implying an affiliation, sponsorship, endorsement with/of the third party or that any monitoring is being done by Morgan Stanley Smith Barney LLC (“Morgan Stanley”) of any information contained within the website. Morgan Stanley is not responsible for the information contained on the third party website or the use of or inability to use such site. Nor do we guarantee their accuracy or completeness.

Michael L. Beers may only transact business, follow-up with individualized responses, or render personalized investment advice for compensation, in states where he is registered or excluded or exempted from registration,

©2018 Morgan Stanley Smith Barney LLC. Member SIPC. CRC 2149159  06/2018

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