You can withstand the upcoming tsunami?
It is not how much you make; it is what you do with what is left that counts. It all starts by being a saver. Financial illiteracy keeps the poor enslaved by their own ignorance. The wealthy know the money game and they are fit to play in any economic environment. How does one get the EDGE to create wealth in any economy? Read the following and start with step one all the way to step seven. You will then be in a position to withstand the financial tsunami that is coming after this election, no matter who gets in the fancy offices in Washington.
1. Financial Fitness. Be financially fit. Get out of debt and stay out of debt. Learn to have fun with your finances by playing the getting out of debt game. Invest more to feed your brain than you spend to feed your stomach. Understand the financial matrix, the monetary system, and how it impacts you. Financial education has never been so critical as it is now.
2. Long Term Thinking. Be wise with your money. Financial education is the only permanent solution for all the temporary financial problems. Define clear long term financial goals and stay true to them. Always ask the question – will my decisions prove to be good decisions 10 years from now?
3. Delayed Gratification. If you don’t have the cash to buy you have not earned it yet. Think of debt like you think about cancer; it works against you everyday 24 hour a day. If love instant gratification, you will end up in debt and with many crappy things.
4. The Power of Compounding. Make sure the power of compounding is working in your favor and not against you. Compare apples to apples. Always look at the total cost of anything, not just the monthly payment.
5. Taxation. Failing to understand and to take advantage of the tax laws is failing to build wealth. Credible advice in this area it is not only prudent; it is a must if you are to build wealth. Never panic, become a better planner.
6. Investments. Follow the right investment hierarchy. Build a sizable emergency fund then build a savings fund before considering any sort of investment. Invest in assets and not in liabilities. Invest more and spend less, at least until your assets are outpacing your liabilities by a long shot. Time in is more important than timing markets. Resist the temptation to buy and sell at the wrong times; apply dollar cost averaging.
7. Diversification. The old advice of not putting all the eggs in one basket is still good today. Diversify your sources of income. Invest in your self-education and in the right business. What used to be secure in the past, a good job with benefits, it is no longer as secure as you think. The best asset to own is an asset that produces income in any economy, and that is a highly self-educated you!
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Be blessed and be a blessing to others
Author of the book Priceless, Co-author of the book Follow to Lead
"The future belongs to those who can see and pursue opportunities before they are obvious."
"Those that take swift action will always leave those that don't breathing the dust."