As we look in the rearview mirror for 2023, we can identify strategies and approaches that have worked well and will continue to work next year. (Getty Images)
In today's complex and ever-changing world, you can only achieve a secure financial future by carefully planning for specific outcomes.
You can't achieve your financial goals by leveraging travel best practices. It's certainly not a good strategy unless you have a winning lottery ticket.
Additionally, personal and professional financial well-being is increasingly dependent on the ability to connect, communicate, and collaborate effectively.
With these things in mind, looking in the rearview mirror for 2023 will help you identify strategies and approaches that have worked well for you. These will continue to work next year.
Here are five lessons we learned in 2023 to improve your financial health as you plan for the future.
Set measurable financial goals
Goals give direction to your financial journey and help you focus on what's important. Set SMART (specific, measurable, achievable, relevant, and time-bound) financial goals. This could be saving a certain amount by the end of the year, investing in a specific asset, or reducing debt.
Review these goals regularly and adjust as necessary. And connect these goals to your “why”? What do these financial goals help you do? What lifestyle and opportunities do you aspire to?
Your financial plan should be tied to your larger goals and aligned with your values. This will give you the motivation to keep building even during difficult times.
Develop a strong advisory team
You are definitely an expert at what you do. However, unless you have formal education and combined expertise as a wealth advisor, estate planning attorney, and certified public accountant, you will need a team of these professionals. These experts use their insights to help you reach your goals, so you can keep doing what you do best.
There are people all around us who think they can get by on their own, but end up financially ruined.
A great example of this is when a business owner has struggled and sacrificed for over 20 years to develop something to leave behind for his children, but he was left with nothing. why? She was a do-it-yourselfer who did her own taxes, finances, and estate planning.
When she passed away, her children realized they had to sell the company to pay taxes etc. Please don't do that.
keep learning
The landscape is constantly evolving. Staying informed and being able to adapt is critical to making healthy decisions, not just financially, but in every other aspect of your life.
Take time each week to keep up with trends and developments in the world that may impact your goals and future. This continuous learning helps you ask better questions of your finance team and recognize new opportunities. Frankly, it also keeps you more relevant, more interesting and mentally young.
Please fix the fence
I've heard many sad stories of families trying (or not) to “someday” repair their relationships.
If your ideal future is filled with stress and loss due to family discord, fix it now. One of my friends has a child who is estranged.
Although this friend seems to have achieved his financial goals and is enjoying a beautiful life with his wife, he is filled with sadness due to the loss of his marital relationship.
Moreover, these days, they are not brave enough to reach out and try to bridge this conflict, so much has changed in the way they make financial decisions about the future.
If it is harmful or destructive, it is important to have a strong fence in place. But for some, having courageous and vulnerable conversations to repair disconnects wherever possible can make their lives more rewarding going forward. If you are desperate for reconciliation but don't know what to do, ask for help.
improve communication skills
Effective communication is key when it comes to contracts and negotiations, including salaries, business deals, and investments.
You recently read a series of articles about how to avoid pitfalls when working with contractors. If you find it difficult to communicate well, invest in a communication workshop or coaching.
Practice active listening, positivity, and clarity in your daily interactions. Before negotiating, prepare thoroughly, know your needs, understand the other party's needs, and work to set clear expectations and a win-win outcome together.
In 2024, the integration of interpersonal skills, communication, relationship building and financial acumen will be more important than ever. By integrating these lessons learned from the past year, you can strengthen your financial health and set yourself on the path to both personal and professional success. Remember that the path to financial well-being is continuous and requires a comprehensive approach that includes both soft skills and financial strategy.
Patti Cotton is a thought partner for CEOs and their teams, helping them manage complexity and change. She can be reached via email at Patti@PattiCotton.com.