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Put
aside a set amount regularly in savings or other investments.
The compounding of earnings can be substantial. The longer
your investment period, the greater the beneficial effect
of compounding. Click
here to calculate how fast your savings can grow. |
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Invest
in what you know. The better informed you are, the better
your investment decisions will be. If you don't want to
learn about investments, consider hiring a money manager
and paying him or her to do your investing for you. |
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Diversify
your investments. Have some of your money in an investment
that is easily converted to cash in case of emergencies.
The old adage "don't put all your eggs in one basket"
is excellent investment advice. |
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Prepare
an annual balance sheet (a list of all your assets minus
all your debts) to determine your net worth. A comparison
of your annual balance sheets will show you whether you're
meeting your financial goals. |
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Plan
where you want to be financially by retirement age.
Over 90% of Americans must rely on the government or others
for assistance during retirement. With proper planning and
diligence, you can be among those who can retire in comfort.
Click
here to calculate how much you need to save for
retirement. |
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Update
your plan regularly. Review your financial plan often
and adjust investment choices when necessary to keep your
plan on track with your financial goals. |
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Don't
use credit to purchase consumption items. Wait until
you can pay cash for things which decrease in value. Borrowing
money to purchase a home is usually a sound idea. Using
credit to purchase household furnishings is not. |
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Pay
off your credit card balance every month. Your credit
card should be used for convenience, not as a source of
long-term financing. Credit card interest rates are much
too high. |
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Monitor
your investments to maximize your after-tax return.
The difference that a 2% greater return can make in the
growth of your investments is dramatic. Click
here to calculate the monthly yield required to reach
your savings goal. |
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Have
your insurance agent do at least an annual review of your
insurance needs to determine that you are neither under-
nor over-insured. Be sure to contact your agent when you
buy or sell any property. |
