Tuesday, June 25, 2019

Financial Do’s & Don’ts

March 1, 2019

5 Financial Do’s

  1. Do treat investing as a vital, non-negotiable budget item. If you make it a priority, it becomes one.
  2. Do aim to save at least 10% of your gross income across all your accounts. If you can do more than 10%, that’s even better.
  3. Do get rid of bad debt (credit cards), which can trap you in a vicious cycle.
  4. If it’s a choice between saving for retirement or college, do save for your retirement first. Loans and scholarships can always help Finance College. You can’t borrow to pay for your retirement.
  5. Do make sure you have wills, and adequate life insurance for both you and your spouse.

5 Financial Don’ts

  1. Don’t wait until you think you have a “stash” of money to invest. Invest to create a stash.
  2. Don’t waste money on lottery tickets. Your chances of being hit by a bus are greater than winning. Take that money and put it into savings (emergency fund) or invest it.
  3. Don’t listen to what everyone else is doing. Focus on your goals and your situation. Most people aren’t honest about their situation anyway, so don’t apply their strategies to your situation.
  4. Don’t forget that if you are financially irresponsible, your children will feel the effects – today and tomorrow. Do you really want your children to have to kick in to pay your bills when you’re retired, at the expense of their families?
  5. Don’t buy an investment that you do not understand how it works, and how the person who sold it to you is compensated.

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