Why do People Build Wealth?

Sometimes, you’ll hear someone say about another person “they have money! I’ve found that interesting as I have never worked with anyone who simply “has” money, whether it’s a million dollars, ten million dollars or any amount for that matter. Most everyone that I work with has earned their money, managed their capital, and intently grew their wealth. Even my clients who’ve been inheritors of assets know and appreciate the origins of their prosperity and work with me because they understand the responsibility and often the complexity, they’ve been given.

So, if wealth is not just had by happenstance, we can appreciate that it is built with intent. So then, why do people do it? Why put forth the effort, make the sacrifices not to spend, and take on the added responsibility to grow and manage wealth? For a few people, it’s simply for the fun things money can eventually buy. Money may not be able to buy happiness but to a degree for all of us, it buys fun. There’s nothing wrong with that. But most often, it’s for far more than the amusement that money can buy.

I’ve had profound conversations and have deep respect for so many people who have built their wealth. I have a family of clients who’ve intently built wealth to “Live well, be charitable and benefit children/family, particularly later in life without ruining anyone” with money. In fact, that’s exactly what the top of each of our appointments’ agendas state so that we may keep their purpose front and center. I have another set of clients who’ve articulated that the most important thing for them, is to have the means to help anyone in their families who may have a financial emergency. They want to be that couple that solves the money part of the problem. I’ve had lengthy conversations with business owners who’ve built multiples of tens of millions of dollars of business value simply because they strive to be the best in their field and believe in their mission. The money is a by-product. A reward. But money is not what has driven them. If it was, they’d have stopped long ago and enjoyed their money rather than continue to work. I’ve had others who want to set an example for their children and grandchildren, to be good financial citizens and responsible stewards of money. Another built wealth because he saved his family’s company from bankruptcy, which rescued far more than the family’s finances.

I believe that the wealth that is built and kept is the wealth that was created with a purpose. That is why people build wealth.

LouAnn Schulfer of Schulfer & Associates, LLC Wealth Management can be reached at (715) 343-9600 or louann.schulfer@lpl.com. SchulferAndAssociates.com

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor.  Member FINRA/SIPC.