Picture waking up on a Tuesday morning, feeling rested and ready to face the day: You’ll choose how you spend your time, whether pursuing a passion project, spending quality time with loved ones, or simply enjoying a quiet moment of reflection. This is the goal of Two Comma living.
Joining the “Two Comma Club” – used to describe individuals with a net worth of over $1 million, isn’t just about luck or a lottery win. It’s a conscious journey built on smart planning, consistent action, and a shift toward an abundance mindset.
In previous blogs and on our “Retirement Readiness” podcast, we’ve explored the fundamentals of this kind of financial literacy. Today, we dive deeper, offering a step-by-step guide to making the Two Comma life a reality – and, more importantly, one filled with purpose and fulfillment.
How to Achieve the Two Comma Life: 5 Steps You Can Take to Get Started
1. Reframe Your Perspective from Scarcity to Abundance
First, it’s key to cultivate a positive and empowering environment to fuel your growth mindset. Though easier said than done, try to surround yourself with individuals who also prioritize financial and personal well-being (both in the “real world” and online).
Here are two practical and purposeful ways to start:
- Make physical and visual reminders: Consider creating a vision board (you can even do so on Pinterest!) filled with images, quotes, and affirmations representing your life and financial aspirations, like the vacation you want to take the family on next year or that hobby you love.
Set aside time to look at it and add to it each week over your morning coffee or before bed. This constant reminder in your routine can serve as a powerful motivator, keeping you focused during any bumps along the way.
- Write down your gratitude: Several studies show that writing down positive experiences, big or small, daily or weekly, can help condition your brain to be more appreciative.
This simple practice not only cultivates a sense of abundance and contentment, but also puts you in the right frame of mind to achieve your financial goals.
2. Set SMARTer Goals
A great long-term goal can be broken down into bite-sized accomplishments that add up – and there’s a proven strategy you can use to make your goals more likely to stick.
SMART is an acronym for Specific, Measurable, Achievable, Relevant, and Time-bound:
- Specific: Instead of a vague desire to “save more,” define a clear target. For example, saving $500 from every paycheck until reaching $25,000 for a downpayment on a house.
- Measurable: Track your progress! Utilize budgeting apps or spreadsheets to monitor how much you’ve saved towards your goal.
- Achievable: Be ambitious but realistic. Research average costs and set milestones that challenge you without discouraging you.
- Relevant: Ensure your savings goals align with your overall financial and lifestyle vision. What are your biggest financial aspirations? Early retirement? Owning a home? Leaving a legacy for your children? Priorities help direct you toward results.
- Time-bound: Set a deadline. This creates a sense of urgency and keeps you motivated.
3. Utilize Financial Resources
Financial planning requires having access to the right tools and resources. We recommend you conduct thorough research from reputable sources, use those retirement calculators, and factor in historical market trends to build a solid financial foundation.
Here are some other resources that can help you to achieve the Two Comma Life:
- Automated Savings: Set up automatic transfers to savings and investment accounts, so you can save without even thinking about it. This “pay yourself first” approach ensures consistency and avoids the temptation to spend by treating it like a fixed bill. There are numerous budgeting apps and online banking tools that allow for automated transfers, making this a seamless process.
- Employer Benefits: If you haven’t already, explore your employer-sponsored retirement plans and other long-term planning benefits to take full advantage of any matching contributions offered.
- A Financial Advisor: Remember that building wealth isn’t a solo journey – you can leverage professional guidance along the way! A qualified advisor can assess your risk tolerance, financial goals, and current situation. They can also recommend investment strategies, help you navigate the complexities of the financial markets, and ensure you’re on track to achieve your long-term objectives.
4. Embrace Growth
Don’t focus solely on the dollars along your Two Comma journey. Instead, think of it like a goldfish outgrowing its bowl: The wider your perspective, the freer you feel about exploring new options.
You can give yourself space for growth by::
- Embracing Continuous Learning: Ask your advisor about any new investment strategies, tax-advantaged accounts, or alternative asset classes and seminars they might recommend. You can also consider adding some financial-focused books to your nighttime reading routine.
- Explore Unconventional Options: Don’t be afraid to consider side hustles or passive income streams to supplement your retirement income. This could involve starting a small business sparked by a passion project, investing in rental properties, or developing an online course to share your expertise.
5. Share Your Abundance
Integrating philanthropy into your financial plan creates a sense of purpose and a lasting legacy – and it’s an important piece of the Two Comma Life. Here are a few ways to contribute to a more just and equitable world for future generations:
- Charitable Giving: What ignites your passion? Identify organizations that resonate with your values and goals. Research impact and finances, and donate strategically.
- Impact Investing: On a larger scale, consider investing in companies that align with your values and contribute to positive social or environmental outcomes.
- Volunteering and Mentorship: “Giving back” doesn’t just have to be monetary! Donating your time as a volunteer can be just as impactful. Not only do you witness that impact first hand, but you can also share your experience and wisdom with others as a mentor.
The Two Comma life doesn’t have to be a dream, but achieving financial freedom isn’t just about reaching a certain number in your bank account. It’s about the freedom and purpose it unlocks. With these five steps to help you get started, you can focus on enjoying the journey and using the financial security you gain to live a more fulfilling life.
Ready to Achieve Your Two Comma Life?
We’re here to help you craft a plan toward your ideal future. Schedule a free consultation with the Prarie View team and get started.
[Disclosures]
PrairieView Wealth Partners, LLC is a registered investment advisor. Information in this message is for the intended recipient[s] only. Please visit our website prairieviewwealthpartners.com for important disclosures.
PrairieView Wealth Partners, LLC often communicates with its clients and prospective clients through email and other electronic means. Your privacy and security are very important to us. PrairieView Wealth Partners, LLC makes every effort to ensure that email communications do not contain sensitive information. If you are not the intended recipient of this communication, please delete and destroy all copies in your possession, notify the sender that you have received this communication in error, and note that any review or dissemination of, or the taking of any action in reliance on, this communication is expressly prohibited. We remind our clients and others not to send PrairieView Wealth Partners, LLC private information over email. If you have sensitive data to deliver, we can provide secure means for such delivery. Please note PrairieView Wealth Partners, LLC does not accept trading or money movement instructions via email. Please visit our website prairieviewwealthpartners.com for important disclosures.
Please remember to contact PrairieView Wealth Partners, LLC if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, or to modify any reasonable restrictions to our investment advisory services. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.
The information provided herein is for informational purposes only and does not constitute financial, or legal advice. Investment advice in an advisory capacity can only be rendered after delivery of PrairieView Wealth Partners, LLC’s disclosure statement (Form ADV Part 2) and execution of an investment advisory agreement between the client and PrairieView Wealth Partners, LLC.
