Look Ahead,Know What’s Coming
The danger with a hectic,multi-tasking lifestyle is that one week just blends into the next,and suddenly,before you know it,half of the year is gone. Many people tell me this is their reality. What’s worse,when you ‘re immersed from week to week you can’t see the bigger picture. As far as your money is concerned,you need to look down the road to see what’s coming inorder to avoid suprises. Ask yourself,what major purchases or payments will be required in the next two years: a new car,home,renovation,college tuition,family wedding,medical expenses,unique vacation to celebrate a special anniversary or maybe a significant contribution you want to make to a church or charity.
Have you put a plan in place for what it will cost? Or is it a finger-crossed,hope-you-make it plan that might create another deep final hole from which it could take years to recover? Consider the type of lifestyle you want to have in the years ahead. Is it realistic,based on your current financial situation? Can it be simplified?
Dump Your Bad Money Habits
We spend money constantly, which means we develop spending patterns. When we continually make bad choices about money,we end up with all sorts of negative circumstances. For example,if we are always late filling our income tax and paying our credit cards or anything that creates interest penalities,it’s like taking a roll of twenty dollars bills out of your purse and setting them on fire. That’s crazy,you say. Why would anyone do that? Exactly!Write down all your bad habits that revolves around money. You may have been doing some of these for years.You must write them down to see the truth unmistakably laid out in front of your eyes. Then select the one that’s hurting you most. Make a commitment right there and then to stop this behavior. No more late payments,frivolous spending,impulse buying or paying too high a price.From now.on,it’s simply not acceptable.
Create A Better Plan
For some people,it’s not a matter of having a better plan. It’s having any plan at all.Every financial adviser emphasizes that planning is where you must start if you are serious about improving your financial health.A good plan always starts with the end result in mind. What’s your top priority? Getting out of debt,creating enough investment income that you can stop working in the next five years or ten years? What type of lifestyle do you want?Maybe you just want to get the credit cards under control. Do you have a grander vision that includes lots of travel and a stimulating social life? Is there a part of you that longs to do something creative or artistic but lacks the money that ‘ll free you up to pursue it?
As far as investment goes,diversification is key. Having all your eggs in one basket like the stock market can be risky depending on when you need to pull your money out. Cover yourself by spreading the risk. Consider real estate,bonds and money market accounts to balance your portfolio.
Depending on how complex your financial situation is,consider cultivating excellent relationships with an experienced accountant,tax specialists,broker, and banker.Having a personal mentor is also a great idea(someone who is vast experience,in a position of financial strength and willing to coach you.
Make that move today!