07/29/2025
This is a really good quick read from a conversation between Douglas A. Boneparth, CFP® and Nick Maggiulli, author of The Wealth Ladder.
https://open.substack.com/pub/thejointaccount/p/wealth-ladder?r=sx9m&utm_campaign=post&utm_medium=email
It also echos a few important principles that I often talk about with our professional clients who are trying to do the same for their families. Here are the 5 I think are most important to keep top of mind:
(1) Start with the end in mind: I work with a lot of couples in their 60s who are in the process of retiring, and you'd be surprised how few of them have a really clear picture of what they want out of their next chapter. For a lot of us, life is so hectic, it's tough so slow down long enough to really think and reflect about what you want life to look like in the future. So you just put your head down, go to work, and look up a couple decades down the road to try and figure out where you ended up. The sooner and more confidently you can define where you want to go, and why it matters to you, the more clearly you can make decisions that align with those outcomes.
(2) Understand the mechanics: We have 3 levers that we can pull when we're trying to build wealth. Our income, our expenses, and what we do with whatever's left over. The #1 thing that will help you build wealth faster isn't trying to pinpoint an extra couple hundred dollars you can cut from your budget. It's increasing your earning capacity, and building a system to increase the difference between what you bring in and what you spend. Once that system is in place, you can focus more on what to do with it.
(3) Automate where you can: Convenience can work for us or against us, so you want to be conscious of the ways it may be costing you - think subscriptions you aren't using, spending on things that don't align with your value system, and other leaks like inefficient tax structure. And more "unconscious" around the habits that help put building wealth on autopilot. This can include strategies like automatically "paying yourself first", autoinvesting, and incorporating a plan to diversify your tax structure.
(4) Communicate with your spouse: For a long time, finances have been a leading cause of divorce and other stress related health factors. The most effective financial couples are on the same page about what's important to them as a family, and they're accountable to each other to ensure they're consistently pulling the same direction.
(5) Your investment strategy is only a piece of the bigger financial picture. A lot of the focus in the world of professional finance is on where you should put your money. This is important, but the best teams are great at offense and defense. If there are outside risks that could threaten your opportunity to earn and mataintain your lifestyle, you want to make sure you understand the potential cost that exposure presents, and build appropriate safety nets wherever it could potentially be most costly to you or your family.
This week’s newsletter is an exciting one!
