Building wealth can be a multifaceted, lifelong endeavor influenced by several factors, as financial expert Codie Sanchez outlined in a recent Instagram post. According to Sanchez, four primary elements play crucial roles in determining your financial success.
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Keep reading for a deeper look at the four main factors that determine your wealth.
Where You Live
Your location is a central influence on several important aspects of your financial success. Things like job opportunities, living costs, tax rates and overall quality of life largely depend on where you live.
High-income areas tend to offer more opportunities and better networks, leading to higher earnings and greater wealth over a lifetime. Real estate values also vary greatly by location, and though they may reflect the local cost of living, they can significantly affect your net worth.
Choosing a place with a thriving job market, reasonable living costs and the potential for property appreciation can be a strategic move for wealth accumulation.
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Your Friends
It’s good to know who your friends are, but it’s better still to be able to identify allies. Sanchez’s take on friendship stresses the differences between these two groups. Friends might encourage you to take it easy and spend time socializing, but your allies are more likely to push you. These are the people you can count on to inspire and motivate you toward greater ambitions.
Surrounding yourself with high-achieving peers can elevate not only your performance but also your aspirations. Sanchez said it’s best to cultivate relationships with people who challenge you and push you toward success rather than offering only comfort or distraction, which can keep you from reaching your goals.
Your Spouse
It makes sense that choosing a life partner can be, as Sanchez stated, the most critical factor in determining your financial trajectory. You want to make sure you and your partner are on the same page, particularly when it comes to financial decisions. Sanchez said the idea that marriage is supposed to be hard is a myth. A supportive spouse who shares your goals and aspirations can be your best ally and an integral part of a powerful partnership.
As reported by the Institute for Family Studies, married people tend to accumulate more wealth than their single counterparts — typically twice as much — partly due to their shared financial responsibilities and goals. Marrying someone who’s aligned with your vision for the future can bring a more prosperous and more harmonious life.
What You Spend Your Time Doing
How you spend your time can have a significant effect on your ability to build wealth, but maybe not in the way that you think. Sanchez emphasized the importance of minimizing the delay between planning and execution. The quicker you move from idea to action, the sooner you can capitalize on opportunities.
Choose Wisely
According to Sanchez, where you live, your choice of friends, your choice of spouse and how you spend your time are all central parts of whether you’ll be able to accumulate wealth. While you may not have total control over your financial trajectory, you can make intentional decisions in these areas to increase your chances of success.
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This article originally appeared on GOBankingRates.com: The 4 Main Things That Determine Your Wealth, According to Codie Sanchez
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