Must of us are impatient and want results quickly, which means we sometimes skip important steps in our hurry to achieve our goals.
Have I also been guilty in the past of jumping right in and getting caught up in investment strategies, tax hacks, and income growth opportunities? Unfortunately, yes.
But I've learned that surprisingly, slowing down actually speeds up your wealth building because you're more focused on what truly matters, you make more of the right choices, and avoid costly mistakes that could lead to wasted resources or starting over.
To avoid costly mistakes and to accelerate your wealth-building, don't skip these two critical steps.
Step 1: Clarify & Align—Define Why Building Wealth Is Important to You
Before diving into numbers, you need clarity. This is an easy step to skip because we want to feel productive by taking action, instead of 'wasting time' reflecting on what's important to us.
Why is building wealth important to you? Is it early retirement? Work flexibility? Security for your family? Funding passion projects?
How to Clarify & Align Your Finances:
Define Your Core Values: What matters most to you—freedom, stability, adventure, legacy?
Identify Your Top Financial Priorities: Do you want to retire early? Build generational wealth? Travel more?
Align Your Spending & Investing: If freedom is your goal, are your financial decisions giving you more or less of it?
📌 Action Step: Write down your top 3 financial priorities and assess if your current financial decisions reflect them. If not, what needs to change?
Step 2: Financial Big Picture—Understand Where You Are Now and the Gap You Need to Close
Once you know where you want to go, it’s time to assess where you are now. Without a clear understanding of your current financial state, you can’t create a strategic plan to close the gap between where you are and where you want to be. Most importantly, you need to identify your obstacles and limiting beliefs at this stage!
It's like setting out on a road trip without knowing what resources you are starting with, what obstacles to expect, or your final designation. It might make for a fun, adventurous road trip, but you might not get where you want to go in a timely manner (if you get there at all!)
What to Review in Your Financial Big Picture:
✅ Income & Cash Flow: What’s coming in and where is it going?
✅ Savings & Investments: Are they aligned with your goals?
✅ Debt & Liabilities: Are they strategic or holding you back?
✅ Net Worth: The true measure of financial progress.
✅ Obstacles and Limiting Beliefs: Avoid repeating the same mistakes you've made and identify a different approach.
Many people avoid this step because it feels overwhelming, but knowledge is power. Seeing the numbers clearly, understanding your obstacles and limiting beliefs, gives you the ability to make smarter, more confident financial decisions.
📌 Action Step: Use a simple tool (or The S.T.A.R. Treatment's Financial Big Picture template) to map out your assets, liabilities, and cash flow. Identify any gaps that need attention.
Conclusion: Accelerating Your Wealth-Building by Starting With the 2 Foundational Steps Is A Smart Strategy
Don't build wealth just by jumping into action, working harder, or earning more. You run the risk of making mistakes, taking the wrong steps, and exhausting yourself.
Instead, build wealth smarter and faster by first getting crystal clear clarity and alignment with what's truly important to you, so that you don't have to go backwards to fix mistakes or rechart your course.