Strategies for Accumulating Wealth by Managing Three Savings Accounts
Money significantly impacts family relationships and divorce rates, often acting as a major source of conflict and stress. Financial disagreements frequently contribute to marital breakdowns, with money problems being among the most common causes of divorce.
In the world of personal finance, there are multiple stages in a person's life: survival, stability, success, and significance. Success is the time in life when one can pursue wants over needs, but it is not the final stage. The transition from success to significance can be made by stepping outside of the dollars and cents and asking oneself, "What is this all for?"
Strategies to transition from success (focused on wealth accumulation) to significance (focused on meaningful impact and legacy) when managing wealth include:
- Prioritize open, honest communication about money within the family to prevent misunderstandings and financial conflicts that can erode relationships.
- Engage in intentional financial planning that accounts for life changes such as divorce or widowhood, ensuring that wealth management adapts to evolving personal circumstances.
- Shift focus from just accumulating wealth to aligning financial goals with personal values and contributions to others, fostering fulfillment beyond monetary success.
- Seek professional guidance to navigate complex financial and legal situations, especially when family wealth or divorce is involved, protecting both financial health and relationships.
- Build a legacy mindset that includes philanthropic and purposeful uses of wealth, which can create broader significance beyond individual success.
The way we manage and use money is a physical manifestation of our values. It is important to define what one values, as those values will become a guiding post for how one lives their life and manages their money. Taking the time to write out one's values can help in finding uses for money that provide fulfillment.
The author, who grew up in a household of South African immigrants, learned strong values of stewardship and responsibility regarding money. The author's parents didn't give allowances, instead offering opportunities to earn money in exchange for work. They also taught the importance of saving, giving, and spending, using a three-tiered piggy bank as a teaching tool.
Most people's perception of money begins at a young age, influenced by their parents. The author's children were required to contribute to tithes and offerings at church using their giving money. Money passed without values and wisdom can be a curse, but money passed along with wisdom and values can have a lasting impact.
Neglecting to recognize the power of money can lead to devastation in a family. Money can lead to both positive and negative impacts on relationships. To become intentional with money, one should understand its purpose and role in their life, creating a plan that aligns with their values, mission, and vision.
The pursuit of wealth can be a never-ending, never-fulfilling pursuit of emptiness due to the constant comparison with others. Success can feel like a mirage that never checks the fulfillment box within us, leading to more longing. A legacy worth leaving involves using money to make a difference in the lives of people around you and becoming a generational example for your family. The plan should encompass money for "me" (individual or couple), "we" (family), and "thee" (community).
The Kiplinger Building Wealth program features financial advisers and business owners who share retirement, estate planning, and tax strategies to preserve and grow wealth. These experts have certifications including CFP®, ChFC®, IAR, AIF®, CDFA®, and more, and their records can be checked through the SEC or FINRA. Working with a financial adviser can help unlock answers about one's values, mission, and vision.
This holistic approach helps individuals manage wealth in ways that maintain healthy family relationships while moving beyond just financial success toward meaningful, value-driven impact. The significance stage is reached when one shifts their focus from "me" to "we". The author's article was written by a contributing adviser and presents their views, not those of the Kiplinger editorial staff. Advisor records can be checked with the SEC or FINRA.
[1] "Gray Divorce and Its Financial Consequences: A Review of the Literature." Journal of Financial Planning, 2017. [2] "The Impact of Money on Relationships." Psychology Today, 2019. [3] "Divorce and Wealth: Navigating the Financial Complexities." Forbes, 2018. [4] "Women and Divorce: The Long-Term Financial Impact." The Balance, 2020.
