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!
Thank
you for reading and reflecting on today’s nuggets. Please share with others.
I would love the
opportunity to share my Nuggets with your audience!
Be blessed and be a
blessing to others
Carlos Fontana
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."
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