Bryan’s Five Rules for Financial Success
June 11, 2025 - I am sometimes asked questions about what families can do to be financially successful. Financial success can mean different things to different people. Based on my experience helping families navigate the complexities of money and life, I have come up with five principles that, in my opinion, apply to everyone. From young people just starting out to families with significant wealth, these principles are not grounded in a particular strategy or product and may lead to better decisions.
First, what is not included in our list is what stock to pick, how to time markets, whether or not I should buy an annuity, or whether or not I should own real estate. These principles are more timeless, and less tactical.
Here they are:
1. Have a Purpose
Money without purpose tends to drift. Families who are clear about what they want to accomplish with their lives tend to be clear about what they want to achieve with their money. You have heard the saying attributed to Zig Ziglar “If you aim at nothing, you will hit it every time.” At times, when our sense of purpose isn’t clearly defined, our financial decisions can become scattered—and we may find ourselves following a loosely assembled plan, or even lacking one altogether, instead of having a plan that truly supports our goals. Money should serve our purposes.
In my experience, the clearer and more intentional a family is with their life purpose, values, and goals, the easier it is to create a financial and investment plan that will serve those needs. In this regard, financial success is not about the amount of money, but the purposes the money serves.
Ask yourself: What do I want to achieve with my money? What do I want to achieve with my life? What do I want to teach the next generation? A clear purpose leads to better decisions, saying no to distractions, and staying motivated.
2. Track Your Net Worth
Net worth—the difference between what you own and what you owe—is a simple measure, but may be the most important number at the top of mind. Tracking it over time helps reveal whether you’re making progress, standing still, or losing ground. In general, net worth should always be increasing, unless it is decreasing on purpose. Much of the financial chatter we hear is focused on income (such as how much money one makes), expenses (monthly payments), or the return of a particular investment, which are important things to keep an eye on. But, a hyper-focus on net worth as the primary financial metric can lead to better decision making and may keep us grounded when finances change. This isn’t about keeping score for the sake of it—it’s about knowing where we are at all times to help serve our chosen purpose.
How should net worth be tracked? There are many ways to do this, and the answer may depend on your personality type. For some, especially with complex financial situations, net worth should be tracked with a formal double-entry accounting system that will generate financial statements as if the family is a small business. On the other end of the spectrum, one might list assets and liabilities on a cocktail napkin once a year and compare it to how things are going a year later. Most families who track net worth are somewhere in between—perhaps on a spreadsheet, updating monthly, quarterly, or annually.
Like many of the life maintenance habits we have (changing oil, going to the dentist, stepping on the scale), building the habit of tracking net worth can help with making smarter decisions about money to better support our chosen purpose.
3. Manage Your Cash Effectively
For many of us, managing cash flow can be a shell game, and before we know it, we have lost track of where it all went. At Timberchase Financial, we teach a cash flow model that allows families a way for their cash to flow in a straight line so that a family knows where it is, what to do with the next dollar, and how to avoid over or under spending. Notice that we have not used the word “budget” here. Our process seeks to create freedom instead of the feeling of restriction that comes with line-item budgeting.
Managing cash effectively is, in my opinion, the greatest predictor of success in retirement. New retirees often report a lack of confidence in knowing how much to spend, what to do with too much cash from retirement accounts (pensions, annuities, required distributions), knowing how much to allocate for future expenses, and deciding to make gifts to heirs now instead of after death.
If you are curious about our cash flow model, give us a call and we can explain how it works.
4. Live Within Your Means
Whether you are Warren Buffet or Oliver Twist, if you spend more than you make, your net worth will decrease and you may eventually run out of money. Rich and poor alike are subject to this universal law. To spend less than you make over time, you must manage your cash effectively (see #3). It means that a financial plan anticipates regular expenses and unanticipated expenses. It also means preparing for unforeseen opportunities.
5. Embrace Accountability
We have found that families who insert some level of accountability into their process may have a better outcome. Having an impartial, trusted source who can see a family’s entire financial picture can result in a safety net to avoid mistakes, and it can help keep things in a straight line, especially in times of financial stress or uncertainty.
When I was younger, I made several significant financial mistakes that could have been prevented if I had the benefit of an outside, level headed, trusted relationship to nudge me that I might want to reconsider something foolish.
Many people are used to handling their financial lives independently, but over time, complexity tends to increase—more accounts, more responsibility, more consequences. A second set of eyes can help keep things aligned, and occasionally point out what’s hard to see from the inside.
Who should this person be? Sometimes a financial planner (read “Do I Need a Financial Planner” here), but not always. A friend, relative, accountant, or other professional may work, as long as it is someone who has your best interest in mind and has the freedom to tell you the truth. Especially in trying times, it can be better not to go it alone.
In Summary
These habits can build stability, flexibility, and freedom over time. They don’t promise instant results, but they tend to hold up during times of financial stress or when things get complicated.
Financial planning doesn’t have to be dramatic. In fact, the most successful families we’ve seen are often the ones who keep things quiet, thoughtful, and steady. If you’re looking for a place to start—or a place to reset—these five rules can help. If you are looking for an outside view, let us know if we can help. We have experience helping families navigate these topics while holding to a fiduciary standard, advising in a way that is best for you, always.