Tuesday, August 6, 2013

40 Financial Planning Life Lessons

40 Financial Planning Life Lessons

by stevencrevar

  1. Spend less than you make.
  2. Save at least 50% of your income.
  3. Don’t buy brand new products if you don’t have to.  Buy brand new products only if the cost per use outweighs its low-cost alternative.
  4. Always concern your immediate family first.  When you’re young, concern first your parents and siblings and when you’re older, concern first your spouse and children.
  5. Don’t live up to the “Joneses”.
  6. Money is not the root of all evil, the power it supposedly wields is.  Learn how to control this power.
  7. Never feel entitled to a windfall or your parents/guardians wealth.
  8. Never feel superior to someone who makes/has less money than you.
  9. Money can buy happiness up to a point.  Once security is reached, happiness comes from within.
  10. Don’t overwork yourself for money because then all the money will be spent on healing yourself.
  11. Marriage is half romance and half finance.  Make sure you take care of both.  An empty bank account and an empty vase will not prosper.
  12. The art is not in making money but keeping it.
  13. Go over your whole financial picture at least four times per year.
  14. Create and practice an heirloom life.
  15. It’s never too early in life to learn about the value of a dollar and the value of saving.
  16. Making wealth is different than preserving wealth.
  17. Acting wealthy leads to becoming poor and acting poor leads to becoming wealthy.
  18. Financial planning is mostly behavioral.
  19. If you don’t understand what you’re buying or investing in then don’t buy or invest in it.
  20. One’s goal should be to have their money work for them and not vice versa.
  21. There’s nothing greater than going to sleep with a clear mind and conscious.
  22. Never attach or define yourself via your income for it’s a small piece in your overall financial plan.
  23. Always wait at least 24 hours in making a big financial decision.
  24. Never enter into contract while inebriated.
  25. Provide first security to your family.
  26. Know your way around a budget and balance sheet.
  27. Your financial standing should not be of knowledge to anyone but yourself and your spouse.
  28. Don’t chase high returns.
  29. If you must go into debt, go into debt for education.  It’s the one thing that can never be taken from you.
  30. Education is an investment that provides for some of the highest returns.
  31. Wealth like Rome, is not built in a day.
  32. Your financial health should be treated like your bodily and mental health.  Be proactive in keeping it healthy.
  33. Treat your employees like you would treat your customers and treat your family like you would treat yourself.
  34. Your four closest friends should be your doctor, tax preparer, legal counsel and financial planner.
  35. When you’re young, start a business so that you can experience failure.  Success will come as a result.
  36. Only wealthy people can act crazily.
  37. Never spend money that you don’t have.
  38. To truly know a man is to know him when he’s poor.
  39. Investing doesn’t need daily surveillance.  It will only lead to a dismal end.
  40. Being wasteful with your money is being wasteful with your future and others.

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