5 Wealth-Building Lessons Financial Advisors Wish Everyone Learned Earlier
Written by
Laura Bogart
Edited by
Kristen Mae
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There’s no wrong time to start building wealth, though the earlier you start, the better. Many financial advisors wish their clients came to them with a bit more financial knowledge and preparedness. If pressed, they might say they wish everyone learned a few key lessons about building wealth much earlier in life.
GOBankingRates can’t give these financial advisors a magic wand to sprinkle the fairy dust of financial acumen on everyone at once. However, we can share the wealth-building lessons they say they wish people learned sooner.
1. Sustainable Habits Matter More Than Extreme Frugality
If Julia Bartak, CFP, a financial advisor with Edward Jones, had her way, more people would learn they don’t need to torture themselves with extreme frugality to grow their wealth. Simply put, total deprivation isn’t sustainable long term.
You’re also more likely to boomerang back into overspending if you don’t allow yourself any flexibility. Instead, Bartak would rather you focus on building a balanced budget and long-term strategy that you can realistically stick with.
“The key is creating sustainable saving habits that you can maintain consistently over time, because long-term consistency matters more than short bursts of extreme budgeting,” she said.
2. There’s No Perfect Moment To Start Investing
When working with clients earlier in their careers, Bartak encounters a common roadblock: Many people wait for the “perfect” financial moment to start saving or investing.
She reminds them that even small contributions early on can build momentum, allowing investors to benefit from time and compounding — two of the most powerful wealth-building tools available.
“I often tell clients that progress beats perfection, and once people see progress, they’re more likely to engage in broader financial planning,” she said.
3. Start Tracking Where Your Money Goes
When you think of building wealth, you might imagine savvy stock trades or a major promotion. Ironically, one of the smartest ways to build wealth is also one of the simplest: tracking where your money goes.
Yet Lori Gross, a financial and investment advisor at Outlook Financial Center, says many people start this step later in life than they should. Instead of staying aware of their spending, they succumb to lifestyle inflation and feel pressure to look wealthy — even when it leads to overspending.
“Remember, attempting to keep up with others — often referred to as ‘keeping up with the Joneses’ — may provide a temporary sense of satisfaction, but it can be detrimental to your long-term financial health,” she said.
Getting started doesn’t have to be complicated. Begin by identifying your essential baseline expenses, such as housing, food and utilities. From there, list your nonessential monthly spending.
“For accuracy, it can be helpful to break this down weekly, as people often underestimate their discretionary spending,” she said. “One practical tip is to review your banking app or statements line by line. This exercise can reveal spending habits and highlight areas for improvement.”
4. Make Financial Literacy a Family Value
Most financial advisors are happy to teach adults how to grow wealth responsibly. Still, many wish clients had learned strong money habits much earlier. Turning financial literacy into a shared family value — something discussed openly and often — is one of the best ways to start.
Parents in the digital age can use apps designed to help kids build confidence with money. Popular tools, like Cash App’s Families feature, allow teens to manage money with parental oversight, including setting savings goals, receiving direct deposits and using a prepaid Visa debit card.
These kinds of tools can open the door to ongoing conversations about smart money decisions. As teens develop money management skills early, they’re likely to thank their parents — and their future financial advisors — later on.
5. Don’t Overcomplicate Your Finances
Another misconception that often lingers too long? That complicated investments are the key to building wealth. Derrick Schuler, CFP, a wealth planner at Schuler Wealth Planning, LLC, wants people to let go of this idea sooner rather than later.
“We have new clients all the time with an assorted mix of stocks, mutual funds, ETFs, bonds, crypto, annuities and other investments,” he said. “Overwhelmingly, our most successful clients have consistently contributed to the same boring, broadly diversified investments for years. They have outperformed those always chasing the newest trend or trying to beat the market.”
The Bottom Line
While it’s never too late to learn how to grow your wealth, developing smart money habits earlier in life can lead to more durable financial success. Just ask a financial advisor.
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