Every client at Up Capital Management should be able to say twelve things about their money. They cover cash needs, income, spending, big decisions, family and legacy. If you can say most of them with confidence, your financial life may be designed on purpose. The ones you cannot say yet show where a plan may help.
The twelve statements
Read each one slowly and notice which ones you could say today without hesitating.
- “If I needed a big chunk of cash soon, I know where it would come from, in what order, and about what it would cost me.”
- “I know what my life costs each year, and I use that number to decide how much risk to take and when I can stop working.”
- “My main source of income is the right fit for this stage of my life, I know what could knock it off track, and I’ve done something about it.”
- “When money is on my mind, I talk openly with someone I trust about what’s working and what isn’t.”
- “My hardest money moment taught me something specific, and I still use that lesson today.”
- “I know what enough looks like for me, and it has changed how I spend my time and money.”
- “I’ve said no to money more than once because it didn’t fit the life I want, and it was an easy call.”
- “If someone looked at what I spent last year, they’d know what I care about.”
- “The money decision I kept going back and forth on is settled.”
- “When I make a big money decision, I think about my family and people I’ll never meet.”
- “If I had to step away tomorrow, there’s a plan, and the people it would affect most know what it is.”
- “My will or trust says what I want, and I give to the causes I care about on purpose.”
How should you use this list?
You do not need to say all twelve to be doing well. Most people can say a few right away, and the gaps are where the useful conversations begin. Some of the statements are about numbers, such as knowing what your life costs each year and when you could stop working, which is the kind of question a retirement income plan is built to answer. Others are about meaning, such as knowing what enough looks like and whether your spending reflects what you care about. A sound financial plan has room for both.
The last two statements are about what happens when you are not there to explain your wishes. A will or trust that says what you want, and a family that knows where to find the plan, are part of estate planning that works the way you intended. Results depend on your individual circumstances, and the statements are a starting point for a conversation, not a test with a passing grade.
Where should you start?
Wondering where to start? Take the Wealth Score and learn the design of your financial life. In just a few minutes, you'll know exactly where you stand and we can immediately get to work on closing the gaps.
Important Disclosures
Common questions
A client should be able to say where cash would come from in a pinch, what their life costs each year, and how their income fits this stage of life. They should also be able to say that their spending reflects their values and that a plan exists for their family and their legacy. This article lists twelve such statements.
That is common, and it is a useful place to begin. Each statement you cannot say points to one area that may deserve attention, such as cash planning, spending, decisions or estate documents. You can work on them one at a time, in the order that matters most to you.
The Wealth Score is a free 12-question assessment from Up Capital Management that turns how much of your financial life is designed on purpose into one number. It looks at how your financial life is structured, how you experience it, what it is anchored to and what it is for. It is for general education and is not individualized advice. We welcome the chance to hear from you.
This article is for general education only and is not individualized tax, legal or investment advice. The statements above are illustrative and do not describe any actual client. The Wealth Score is an educational assessment and does not guarantee any outcome. Up Capital Management, Inc. is a registered investment adviser. Registration does not imply a certain level of skill or training. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss. For more information about our services, fees and business practices, please review our Form ADV Part 2A, available upon request or at adviserinfo.sec.gov.
This material is provided by Up Capital Management for educational purposes only and does not constitute investment, tax, or legal advice. Past performance is not indicative of future results.