By Binney Wietlisbach, President of Haverford Trust

The definition of success lies in the eyes of the beholder. True of every type of success, it’s especially true in wealth management. Financial success looks different and the roads to achieving it are dynamic and unique. Some may say, the path seems impossible. Taking inspiration from our friend, Judge Renée Cardwell Hughes, we believe that impossible is nothing. You can go after your most audacious financial goals with confidence!

Asking yourself what financial success looks like to you can be a loaded question. The answer depends on your motivations, needs and life stage.

Maybe you want to:

  • Reach a certain level of financial security or support a certain quality of life
  • Travel or experience new things
  • Amass enough savings to retire early
  • Give back to your favorite nonprofit causes

Identifying your own path to financial success requires an honest conversation about your goals, priorities, and personal motivations. Your vision for the future will define your meaning of financial success. Financial planning is a critical component to succeed in this journey. Thinking about your motivating factors will help you face down thoughts of the impossible and stick to a wealth strategy that’s aligned to your audacious financial goals. The more your plan is tailored to you, the greater the likelihood of sticking to it.

STEP 1: FIND YOUR STARTING POINT
To develop a path you must first know where you stand today. These questions will help you establish a baseline against which you measure progress.

  • What is your current net worth?
  • What are your monthly inflows versus outflows (cash in and cash out)?
  • How much cash do you have in your bank accounts?
  • How much do you have saved in your retirement accounts?
  • What is your credit score?

STEP 2: DEFINE YOUR FINANCIAL GOALS
Your goals are the guideposts of your financial plan. Write down a list of what’s most important to you so you can fund your top priorities first.

  • How much money do you need saved up to create a security blanket to help you sleep soundly at night? Conventional wisdom generally advises having at least 3-6 months of cash on hand to handle emergencies.
  • How much money do you want to have available for disposable spending?
  • What upcoming life stages or events may change your financial needs?
  • What is the cash required to fund your retirement lifestyle? Can you increase your contribution to your retirement accounts?

STEP 3: RECOGNIZE YOUR PERSONAL MOTIVATORS
Identifying your own motivators can help you balance short-term happiness with long-term objectives. By analyzing what drives your behavior, you can make more deliberate decisions to create better results. Some of your answers may seem impossible today but answer honestly. Remember, impossible is nothing!

  • If you could wake up tomorrow and do anything you wanted, what would you do?
  • What makes you feel valued and fulfilled?
  • What aspirational spending goals do you have?
  • What lifts you up when you’re feeling down?

Once you’ve determined your goals and motivators, you can evaluate the financial actions you’ve been taking and adjust them to reach your definition of financial success. If you’ve been prioritizing more aspirational spending goals, maybe you need to focus first on being financially secure. If you’ve been emphasizing saving for the future, maybe you need to invest more in yourself and your happiness today.

Whether you are early in your career, just got promoted, or nearing retirement, these three steps can help you make more informed decisions about your path to future goals. The optimal financial plan should balance building financial security and working towards your wealth targets, while taking into consideration what makes you happy and feel personally rewarded.