If you’re looking to build true wealth, claim financial freedom, and create a better, more powerful relationship with money, then Sheila Netti is the perfect woman to learn from. A wealth empowerment strategist, money coach, speaker, trainer, and founder of the Women’s Wealth Empowerment Project, Sheila joined us on the From Broke to Badass Masterclass series, where she talked about the importance of financial literacy and the powerful impact of having a positive mindset when managing money.
To generate more wealth empowerment in their lives, Sheila encourages women to consider the following:
Get Clear on Your Financial Goals
The number one thing is to clearly understand your financial goals. In other words, what do you want your money to do for you? Do you want to retire early? Do you want to have a certain lifestyle? Once you figure out what you want, you should determine an exact dollar amount. If you’re uncertain about how much money you will need to accomplish your goals, there are numerous free retirement calculators available online to help you understand how much money you will need. Let’s say you determine you will need two million dollars, at that point, work with a financial advisor to create a plan that identifies where you are now, where you want to go, and how much you will need to save and invest to help you get there.
When your financial advisor provides suggestions, then it’s your job to do your homework and develop your financial literacy. You do not need to become a financial advisor, but you do need to understand the basics—i.e. the difference between 401k, stocks, and real estate investments—to know what to focus on based on the goals that you’ve set for yourself. You want to know enough to determine whether your investments are the right fit for you and if they align with your values and your goals. If you have a 401k or a similar pre-tax retirement account, look at the funding options available to you and research whether the fees are reasonable. Some fees may be out of your control, but other fees can be reduced by the funding selections you make.
Manage Your Money
Once you determine where and how you will invest, keep an eye on your investments while keeping your emotions in check. You should analyze your money and where you stand strictly from data standpoint and how that data compares to the goals you have set. When it comes to managing your money, you need to remove your emotions and simply evaluate whether your investments will get you to where you want to go financially. Removing your emotions is the holy grail of money management.
For more information on this topic, listen to the Where Money Meets Soul podcast Episode 16: Wealth Empowerment with Sheila Netti.
*Podcast transcription edited for your reading pleasure.*
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