Voices: Jim Marren | How wealthy are you?

How do you define wealth? For some, it is solely a measure of their personal balance sheet. For others, it is defined spiritually, not financially.

We encourage our clients to define their wealth “why” at least annually. Why do you work? Is it just to pay the bills or is there a deeper purpose to your labor? It is easy to get caught up in the day-to-day monotony of everyday life without taking time to smell the proverbial roses.

How wealthy are you financially? We have advised millionaires who live paycheck to paycheck. Are they wealthy? We would argue no. We define financially wealthy as being able to do whatever you want to do without having to worry. Do you worry about money? If not, congratulations! You are on your way to being financially wealthy if you aren’t there already. If you do worry about money, there are things you can do to solve that problem.

The first step is to determine how much money is coming in versus how much money is going out on a monthly basis. I’ve found that most online bank accounts can provide that information with a couple of clicks of a mouse. I recommend going back 90 days to capture quarterly bills. You can then use the information collected to construct a 90-day budget.

We believe everyone, regardless of means, should have a budget. This budget will allow you to determine if you are spending too much. If you are spending too much it is time to make adjustments. Start with discretionary categories first such as eating out and entertainment. It is also wise to review your fixed expenses annually to ensure that you are not paying more than you should.

It is remarkable how much easier it is today to keep a budget versus in the past due to technological advances. I remember keeping our first budget with pencil and paper. Our current expenditures are uploaded from our bank account monthly into an Excel worksheet. These enhancements have reduced the time it takes to manage our budget significantly. A certified financial planner can help you create a budget if you need help. You can locate one at www.cfp.net.

How wealthy are you spiritually? Does your money define who you are or is it a tool you use to make a difference in other’s lives? We do not believe that money is the root of all evil as some may believe. We have found that some of the clients we consult inherited values from their parents that subconsciously make them believe that there is no inherent good that comes from money. We could not disagree more.

It is true that greed sometimes overwhelms a person’s judgement. This lapse can lead to unethical consequences. Although this sometimes does happen, we believe it is the exception, not the rule.

Have you thought about how you could use your wealth to make a difference? This difference could be in your life or the life of others. My wife and I use our wealth to support the charities and causes we love and believe in.

We also use our wealth to enrich our children’s lives. Our initial goal was to travel with our two children, ages 6 and 9, to all 50 of the United States before they leave for college. We coupled the goal with Major League ballparks and national parks. We figured that the majority of the 50 states either have a MLB ballpark or a national park domiciled within them. We thought this would be a fun way to plan our adventures.

We started this journey in the year 2014. We have currently seen a MLB game played in 13 of the 30 ballparks. Our goal is to finish the ballparks by 2019. We will then plan to visit the national parks for the remainder of the summers.

Both of our kids have kept journals along the way. They love to collect ticket stubs and commemorative pins from the places we visit. It has been fun to watch their writing skills improve every year. We believe they are creating a treasured keepsake to share with their children and grandchildren in the future.

Being wealthy can take different forms. We believe that it is just as important to be spiritually wealthy as it is to be financially wealthy. Take a moment to define what wealth means to you. It might help you live the life you would like to live.

Jim Marren, CFP, is a branch manager and financial advisor with Reno Wealth Advisors- Raymond James Financial Services, Inc.-Member FINRA/SIPC, located at 401 Flint Street in Reno. Jim can be contacted at 775-321-6200.