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I'm a financial planner for high-earning tech workers, and there are 3 pieces of money advice they never want to hear

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The author, CFP Chloe A. Moore. Chloe A. Moore

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  • I work with high-earning tech employees, and there are three money tips they hate to hear.
  • I always recommend watching your expenses. Earning more should mean saving more.
  • I advise a simple investing strategy over a trendy one, and getting rich over time — not overnight.
  • Read more stories from Personal Finance Insider.

After spending over a decade working with retirees who have accumulated more money than they'll need during their lifetimes, I transitioned to working with young professionals. Helping clients forge their way to financial independence when they're starting from scratch comes with challenges, but it's extremely rewarding. 

I often tell clients that one of my jobs is to advocate for their current and future selves. Part of that job is telling them things they may not want to hear. Loathe them or love them, here are my top three nuggets of advice that receive the most pushback. If you're serious about a path to financial independence, keep them in mind!

1. Watch your expenses

My clients are high-earning tech employees who receive generous cash bonuses and equity compensation in addition to their base salary. They're often the first person in their family to earn this much money, so they have to use their income to build wealth. 

One of the first exercises I complete with clients is to review their cash flow. We analyze their expenses in detail so they can see where their money goes. We also calculate what percentage of their income they're saving and determine how much they need to save to reach their financial goals. Yes, this part gets personal (and possibly uncomfortable). While I receive a lot of resistance with this exercise, I feel like it's the most important step in the financial-planning process. 

It's critical to find a balance between enjoying your life today and saving for your future self. There's a direct correlation between how much of your income you save and how soon you can retire. The most effective way to bridge this gap is to watch your expenses. 

Being mindful of your expenses does not require you to give up everything you love. Take some time to think about what is truly important to you and see if your spending aligns with your values. Pay off debt to reduce your fixed expenses. Plan ahead for non-recurring or unexpected expenses so they don't wreck your budget. Get accustomed to living on your base salary and use bonuses or equity compensation to accelerate progress towards your long-term goals.  

2. Get rich slowly

You may have heard the phrase "building wealth is a marathon, not a sprint." Contrary to popular belief, an overwhelming majority of millionaires are self-made. You don't need multiple six-figure incomes to become a millionaire. 

Absent an inheritance or lucky lottery win, the key to successfully building wealth boils down to a single word: discipline. Even if you're fortunate enough to receive a life-changing windfall, a lack of discipline will quickly lead you down the path to being broke. 

Financial discipline, like any other type of discipline, requires consistent habits and behaviors over time. Setting goals and having a plan to achieve those goals is essential. Prioritize paying yourself first and save at least 20% of your income. Start saving early to take advantage of compound interest. Think about what small changes you can make over time to close the gap between where you are now and where you want to be. Finally, understand that there's no quick fix when it comes to investing.

My high school band teacher would always say, "There are no shortcuts to success." This phrase is true about many aspects of life, including your investments. One seemingly good investment decision in the short term will not make up for lack of discipline in the long term, which leads me to my last piece of advice.

3. Keep it simple

I've had countless clients ask me about out-of-the-box investment strategies in hopes of making quick and easy returns. Many times, clients do not fully understand what they're getting themselves into. They're thinking these investment strategies will out-earn the stock market or make up for the fact that they're not saving enough. 

The idea that building or maintaining wealth requires investments in alternative or exotic investments is a myth. Ben Carlson, Warren Buffett, and other investing experts have compared the performance of simple or "lazy" portfolios to some of the most complicated, expensive investment strategies and found that complex strategies failed to beat low-cost mutual funds or exchange-traded funds over multiple periods. A simple, diversified portfolio can be just as (if not more) effective in the long term when it comes to investing. 

The keep-it-simple philosophy also applies to bank accounts, investment accounts, and credit cards. I've worked with couples who have (and frequently use) dozens of bank accounts and credit cards. As the accounts add up, it becomes increasingly difficult to track their spending and saving patterns. It's also easy to overdraft a checking account or forget a credit card payment. 

Some clients have investment accounts with multiple custodians. All of these accounts add unnecessary complexity to your life and make managing your finances that much harder. While there is no one-size-fits-all solution to managing accounts, I recommend reviewing your accounts to see how you can consolidate and simplify your life. In addition, think twice before opening a new account.

Initially, many of my clients don't like to hear my top three pieces of advice. However, after following my advice and seeing the results over time, they become believers. The path to financial independence is not rocket science. Watching your expenses, getting rich slowly, and keeping it simple can help you realize that path sooner than you think.

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