Secure Your Financial Future|Get Financially Fit
If you want to be financially independent some day you need to become financially fit; you do this by developing good financial habits.
Financial Tip #1 – Take A Long-term Approach
Without a long-term approach to financial planning you run the risk of not saving enough money to last throughout your retirement years. If you approach your investing from a long term approach, you can invest a little at a time knowing that time is on your side. You will not accumulate wealth over night, it takes time.
Financial Tip #2 – Avoid Debt, Avoid Debt, Avoid Debt.
Debt is bad, bad, bad; do whatever you possibly can to avoid building up your debt. The most practical way to avoid debt is to spend less money than you make; you will save money on credit card fees and interest. Once you are in the habit of charging all of your purchases to your credit cards, it’s hard to turn that off.
Financial Tip #3 – Avoid The Water Cooler Chatter
By the time you hear about the hot tip at the water cooler, that tip has usually gone cold. When you are ready to invest in a stock or mutual fund, do your own research, it’s safer that way. Don’t rely on hot financial tips, they won’t get you anywhere.
Financial Tip #4 – Fund Your Emergency Fund
To avoid going into debt when an emergency arises, you want money available on the spot. For this money to be immediately available, you will need to have an account already established and funded before you need the money. When you have an emergency you do not want to run up your credit cards or dip into your retirement plan; you want to dip into your emergency fund.
Financial Tip #5 – Max Out
Throughout your working years, remember one thing, the only amount of money that will be there at your retirement is the amount that you sent ahead. You only have your working years to save for your retirement years so save as much as you possibly can; after you retire, you won’t have the income.
Financial Tip #6 – Start Early
Start investing for your retirement at the earliest age you possibly can. When you start receiving a W2 form is the best time to start investing in your retirement. The younger you are when you start investing, the longer your money is in the market. When you start young your money has a longer time period in which to take advantage of the magic of compound interest.