It’s a question that is being asked more and more often in recent years.
As the world’s economy has come to grips with the consequences of the financial crisis, many have been asking, “How do I become rich?”
And the answer is, it doesn’t always work out that way.
In the United States, the question is being debated again in the wake of the Great Recession, where many say that a more diversified approach to financial planning could help individuals avoid financial catastrophe.
The New York Times recently reported that “finance is becoming an increasingly complex business, with many managers struggling to find the right mix of skills and capital for their companies and clients.”
And a growing number of experts are urging the federal government to take a more balanced approach to its financial planning.
While some argue that financial planning should be based on personal risk management, others say that the key is to ensure that all aspects of the business are fully integrated, allowing employees to do their best to do the best they can for their customers.
While there is still a lot of debate surrounding the question of “how do I get rich?” and many different answers are being offered, a few key factors are helping many financial managers succeed in their endeavours:1.
Focus on the big pictureIt is often said that the only thing that really matters is the big question, but that is not always the case.
The key to financial success is to focus on the things that are important to your customers and your organization, said Brian B. Johnson, founder and CEO of The Johnson Institute, a global business advisory and consulting firm.
“Financial planners are trying to do a lot more than simply forecast the future,” Johnson said.
“They are trying, first and foremost, to make a strategic decision based on the real world.”2.
Embrace uncertaintyAs the economy continues to recover, the fear of another recession is becoming more and less of an issue.
Many companies have made the move to increase transparency, such as requiring employees to report financial information, and the number of firms that have implemented a tax holiday to make it easier for people to keep their money.
But Johnson warns that not all the issues have been solved, and some have even come to the fore as financial planning professionals try to tackle the bigger picture.
“The question for me is, what are we doing right now that’s helping people to do better?”
Johnson said, noting that people should be able to make the decision they want and invest wisely.
“We need to do something to help people understand that if you’re trying to create wealth, you have to do more than just create an asset class, and that’s not to say that you don’t have to create something else.”3.
Learn from past mistakesFinancial planning can be daunting, but the process of learning from past failures will be invaluable in the future, said Ryan N. Johnson of Johnson & Johnson, a private firm that advises companies on financial planning and technology.
Johnson & Johnson has been working with financial advisers to develop the best financial planning strategy for the financial services industry, focusing on the key lessons learned from past cycles, such the Great Depression, the Global Financial Crisis, and now the financial crash.
“One of the big things we’re trying and really looking at is how do we learn from past experience,” Johnson told Business Insider.
“If we can use the lessons from the past and use them to guide our strategies in the coming years, then we can have a much more successful financial management practice.”4.
Build a strong teamThe importance of a team in financial planning is something many people struggle with.
However, the vast majority of people say that building a team is the most important part of their financial planning efforts.
“You’re not going to be able do anything if you have a lot people, you’re going to need people who are very disciplined, and very focused,” Johnson explained.
“You need to have the people who can make decisions on their own, who are able to have their own resources.”
Johnson also noted that many of the people involved in financial management have to go through a process that can be intimidating.
“Some of these guys are just too busy and too focused on what’s going on around them,” he said.