Buck the trend. Don't rack up debt in the typical consumer fashion. The cost of an education and a primary residence are generally beyond most people's ability to pay for in cash. Beyond that, if you can't pay cash don't make the purchase. As far as education and the home, pay off the education before you buy the home. As for the home, don't stretch your budget. Buy what you can easily afford and pay it off as quickly as possible.
Forget the advice about good debt and bad debt. All debt is bad. There's a long list of financially strapped investors who had supposedly great and fool-proof ideas about going into debt to put the money to work in investments that would earn a greater rate of return than the cost of the interest rate to service the debt.
Build Your Financial Foundation
If you are an entrepreneur, debt may be a necessary tool. Putting your money in to an appreciating asset is different than using debt to fund a new car, vacation or wardrobe. Paying interest on consumer goods is simply a waste of money and undermines your financial foundation. Investing in your business is a way to increase your potential revenue. Find a Like-Minded Partner Getting married can give your life a powerful financial boost, of course more than a few marriages have ended in divorce over the topic of money.
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Shared values are the key to success. While it may not sound romantic, having the same outlook on money will go a long way toward creating both a secure financial future and a happy marriage. There aren't many couples in divorce court complaining about the fact that they are financially secure, debt free and successful.
Approach the financial aspects of marriage as you would a business. Plan together and spend together. The purchase of big ticket items should not be a surprise to either partner. Make decisions regarding debt and credit as a team. If one member of the team is opening up credit cards and the other member is working two jobs to pay for the debts, the team is headed for trouble. Save together. Set a goal of living on one income while using the other to pay down debts. Once you are debt-free, live on the lower income and invest the rest.
Be Patient Bad things happen to good people. Despite the best plans, setbacks happen. Jobs are lost, investments fail, tragedy strikes in ways big and small. Be patient. Don't let the small, temporary setbacks distract you from your long-term goals. The Bottom Line Adopt the mindset and lifestyle outlined in these five points and you will be well on your way to building a secure financial future.
Your Practice. Popular Courses. I want that feeling for the entirety of your financial picture.
Once the word "debt-free" is within reach of your vocabulary, the real fun begins. What's the real fun, you ask? It might sound nerdy We've discussed ways you can save and invest before, but again -- you are never too late for either. The first question I'll ask: Do you have an emergency fund established? This is key to your savings account. It should contain four to six months worth of savings, because life is full of unexpected costs -- car accidents, medical bills, stolen items -- it's important to play it safe. After that's established, then you can save for future costs like a new car, home, and so on.
Investing is another beast I strongly recommend sitting down with us to discuss investment opportunities for you and your family. The small cost of a meeting leads to big gains in the future. Financial wealth begins with a plan and we can help you develop one! And I don't exactly mean spend everything you have.
But this third step is inevitable -- we spend money most every day in some form or fashion. What is the ratio of money you spend on yourself vs. One of the most life-giving components to saving and earning money is so that you can help others in the process.https://leidlinaber.tk
Build Your Financial Foundation by Gloria Copeland
What if someday you could invest in someone's start-up business so that they could pursue their dream? What if you could bless your children and help them with college tuition? There are plenty of ways to spend, but one of the best is on others. But truly, it is your hard-earned money after all. How you spend is entirely up to you.
And it's a good time when you can treat yourself every now and then. You are human after all.