How would you describe your relationship with money?
Personal Finance is more personal than it is finance: you have to make the decisions that are right for you- but also correct for your family. Whatever personal choices you make, make them thoughtfully and with a plan on how to get from here to there.
Part1: Make Money
Getting paid is an indication that others value what you do, how you think, and who you are.
- Your job is your most import asset
- Knowledge is power. The more you learn the more value you can add to someone else.
- Know how much you are worth. Time/happiness.
- Get more. Ask "Can you do better?"
- Allow others knows how much you are worth. (Your work ethic)
- Understand that more money will not make you happier.
Part2: Saving Money
Saving money is not the easiest thing to do. It requires you to prioritize your needs and wants of tomorrow ahead of you r needs and wants of today.
- Save 6-10% of your earnings. 6-10% of every paycheck goes into a savings
- Know your net worth your wealth, how much money you have saved is how much you are worth.
- The only way to find financial security is draw yourself a map.
- Carry cash its harder to spend. Breaking change is a no. Carry big bills.
Part 3: Avoid (most) Debit
Debt is a financial resource that you need to learn how to use WISLEY
- Use credit cards for emergencies. That way you can continue to put money into your savings.
- Have two credit cards. Keep the balance low and always in good standing. Thus increasing your credit score.
- Your financial security is more important than you or your kids current wants. When the time come they financially need something you will be ready to financial help them without stress.
----Side Note same goes for your health. Your 1st concern is YOUR HEALTH: With it, nothing can
stop you. Without it, YOU ARE NO GOOD TO ANY ONE!
- Who cares about the Jones. Money is not a competition. Your life, your comfort (Security)
Part 4: Spend Wisely
- Sleep on it.
- Just because you have a coupon or it is on sale doesn't mean you need to buy it.
- Understand what you are paying for. Ask is it going to be worth it? Money, time or both.
- Pay bills 1st, as soon as they come in.
- Always get three bids. Do your research.
- Shop with cheapskates.
- Shop with a list
- Work on one project at a time. If the project needs more funds it will not be spent on a second project. Possibility that both projects can be put to a halt to due not enough funds
- Gas is not that cheap
Part 5: Invest for tomorrow
Make the money work for you.
- If you can't explain it don’t buy it.
- If you can't figure out how much your investment or financial advisor is costing you. You are paying too much.
- Ask yourself and find out the answer to "What's the worst that could happen?"
- "Be fearful when others are greedy and be greedy when others are fearful. ~Warren Buffett~
- Be disciplined.
Part 6: Cover your assets
Once you begin to amass savings, investments, real estate, and other possessions, you need a plan in place to protect those assets.
- Protect your health. Buy health care. If you're not healthy you are not working, you're not making money.
- Spend more time building a legacy than an inheritance. What is more valuable? Leaving $20,000 to your kids or instilling a work ethic that lets them earn an extra $20,000 a year?
Part 7: DO
- Help friends and family with information not money, at first. Seeing what they do with the information is a good indicator of how they will treat the money you loan them.
- Don’t hire them if you can't look them in the eye.
- Give back.
Notes from the book,
The simple path to lifelomg security
BY: Jean Chatzky