7 Components For A Solid Financial Foundation

Photo by jonathanpercy

Photo by jonathanpercy

Big Buildings Require Massive Foundations

One World Trade Center, the primary building that is replacing the twin towers that were destroyed in the attacks on 9/11, has been under construction since 2004. The architectural planning started well before that.

This new 104-story super-tall skyscraper is now the tallest building in the United States and Western Hemisphere as well as the fourth-tallest skyscraper in the world by pinnacle height. Its spire reaches a symbolic height of 1,776 feet as tribute to the year of the United States Declaration of Independence. This is one massive skyscraper.

Get this, though. The foundation for this huge building took several years to complete.

The foundation for One World Trade Center is some 70 feet below street level and required dynamite blasting down into solid bedrock.

The symbolic cornerstone of One World Trade Center was laid down in a ceremony on July 4, 2004, but further construction of the tower was stalled until 2006. Then, on November 18, 2006, 400 cubic yards of concrete were poured onto the foundation of the One World Trade Center, carried by as many as 40 trucks. The first steel beam was welded on to the building’s base on December 19, 2006.

On January 9, 2007, a second set of beams was welded to the top of the first set. Later in that year, the construction company completed a row of steel columns at the perimeter of the construction site. Two tower crane bases were erected, and by the end of 2007, the tower’s footings and foundations were nearly complete [Source: Wikipedia].

Before the beautiful steel and glass structure could rise high in the New York City skyline, a solid foundation for this large of building had to be created to support it. It took a lot of time, energy, resources, and money to build it. This was a carefully executed piece of the building plan. In no way did it happen on accident.

The foundation is the most critical component for building anything of importance, including a financial plan for your family. Get this part right, and a magnificent financial legacy can be created to give financial life to your family for generations into the future.

7 Components For A Solid Financial Foundation

  1. Commit to a plan that you will build something amazing! When the City and State of New York, the developer, and the architect decided to build a new skyscraper, they just didn’t start digging a hole in the ground, lay some concrete and steel beams, and put a building up. No, they spent years creating various architectural designs, drawings, and models. They created the plan, first, before anything else took place. Then, they committed the time, energy, and resources necessary to execute an amazing plan. The same is true for a financial plan. You and your family need to spend time and energy creating a vision of what you ultimately desire before anything else takes place.
  2. Resolve that you will do rich people stuff. Assuming you desire to create an awesome financial legacy that will last several years into the future, then you need to plan the way wealthy people do. You need to do rich people stuff. Rich people make several wise financial decisions. They have cash reserves on hand for emergencies. They avoid debt. They do monthly budget planning. They ask questions like “how much?” not “how much per month?” and so on.
  3. Put your estate planning in place. None of us know when we will pass away, and it would be foolish to set this piece of planning off to the side until we have the rest of our financial plan is in place. This layer of the foundation is critical and needs to be one of the first parts completed. For the sake of your family, please, please, please, don’t delay doing this part. Hire an attorney and get a state specific will completed, signed, and notarized as soon as possible.
  4. Give strategically. Giving is a part of any healthy financial plan. As a Christian, I believe that God should automatically receive my first 10% that goes to my local church. After you have laid a solid foundation for your financial plan, then you and your family can discuss giving beyond the tithe and where that additional giving should go.
  5. Build up an emergency cash reserve. An emergency fund of 3-6 months of expense cash is your “insurance policy” of sorts that will help you through life’s financial up and downs, such as illness, accidents, unanticipated large repairs, and job layoffs.
  6. Pay off your debt ASAP. The majority of wealthy people do not do debt, especially revolving lines of credit. Commit to getting out of debt as soon as possible in order to give your family an amazing financial legacy.
  7. Invest in your retirement savings. The sooner you can begin investing in your 401(k) and Roth IRA’s, the longer these accounts will have to grow through the magic of compound interest. Get moving!

Questions: How’s you financial foundation? Are you being strategic in laying a great one? Have you even given it that much thought? Is your current foundation strong enough to create and support an amazing financial structure in the near future?

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