The Secrets of Managing Your Money

• Money is only a tool to enrich your life - nothing more…
  1. Once you understand your relationship to money, the rest is just habits and math
• Spend less than you Earn - Any other way leads to bankruptcy
  1. Accept what you make, understand your expenses.
  2. Pay your credit cards off monthly or cut them up
  3. Defer your purchases
  4. Eliminate your debt
• Keep your credit clean - Bad credit costs you money
  1. NEVER bounce a check, get overdraft protection
  2. Pay your bills on time - always
  3. Use automatic payments when ever possible
  4. Don't co-sign for anyone
• Have some cash - this equals freedom
  1. Have a line of credit or cash equal to 3-6 months of expenses
  2. Cash gives you freedom from your employer
  3. Cash gives you freedom from worry/emergencies
  4. Cash gives you freedom to pursue opportunities - travel, education
• Save 10% of your income - Always
  1. Pay yourself first (who else is more important?)
  2. Save tax deferred
  3. Don't let debt stand in the way of saving for the future
  4. Understand the "magic" of compounding and time
• Drive the Car that is paid for - People spend more on buying cars than on buying homes
  1. Cars are NOT investments
  2. Pay your car loan off as soon as possible
  3. Delay buying a new car
  4. Pay cash the next time
• Eliminate your Debt - You will have more money for fun
  1. Work on eliminating all debt over time
  2. Pay cash for all purchases or don't buy it
  3. Save for major purchases in advance
• Tax-deferred Saving has double the punch
  1. Tax deferred/tax free savings and "matches" are "FREE MONEY"
  2. Do save in your company plan and IRA/Roth
  3. Tomorrow will come sooner then you think
• Bad Investments are Better than No Investments
  1. People that have a bad investment plan will always have more money than people that have no investment plan.
  2. Don't delay
• Think about what your goals is and what you will do once you reach your financial goal - financial independence
  1. If you don't plan for financial independence you won't know what it looks like when you get there.
  2. Learn to get comfortable with "spending" your savings
  3. Enrich your life with the "things you want to do", now
• Get a Plan, Read the Plan, Follow the Plan
  1. A Financial plan is your road map to where you are and where you are going. It will help you manage your money and put you at ease with your finances to free you up for the fun things in life…
  2. Don't delay, life is not a dress rehearsal
• Share your good fortune - No matter how poor we feel, there is always someone we can help.
  1. By reaching out to others you will enrich your life beyond your monetary net worth.
  2. Share your time, skills and money.
  3. Good things happen to good people
  

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