As a financial advisor I thought I would share with you my personal favorite 8 tips I believe all individuals, couples or families should be practicing.
- There are no get rich quick schemes. Embrace this mindset. Once you realize the path to prosperity is through a slow methodical plan of attack the better off you will be.
- Build your emergency fund. You should be thinking along these lines: If a storm damaged your roof, could you comfortably replace it? If your car suddenly dies, could you comfortably replace it?
- Be aware of your costs and expenses. Many of us turn on automatic payments and deductions and may not take the time to reconcile our monthly expenses. It is a smart exercise to look through and review bank and credit card statements, reviewing receipts, and turning off services you are not using.
- Start investing today. The path to retirement begins the moment you start saving for retirement. Remember tip 1: there is no get rich quick scheme. Don’t wait to start planning ahead, the earlier you start the better off you will be.
- Walk away from that purchase. Take 24 hours from that impulse big expenditure. If you still need it or want it 24 hours later, it will most likely still be there. Do you want money or things?
- Protect your loved ones. If something were to happen where you, or your spouse, lost your ability to earn an income you will want disability and/or life insurance to protect against this loss.
- Basic estate planning. At the very least, you should have a legally binding Will in place to determine where and how assets will be distributed. Do not leave this task up to the government to decide.
- Set goals! Setting goals is important for a few reasons. Setting and meeting goals grants us a feeling of achievement, of a job well done. Setting goals also allows us to hold ourselves or our professionals we hire to a high standard. If your goals are unattainable your financial professional can set you straight. If you are investing for yourself and never making your goals it may be time to seek help.
If you would like to learn more about my thoughts related to personal finance and how easy building blocks can begin a lifetime of wealth please email me at [email protected] or find me on Facebook at Paul Hundley, Lighthouse Capital. You can read more of my blogs at the Lighthouse Capital Blog.
Make it a healthy, happy and profitable day!