Twelve Rules For Managing Your Financial Future

  1. Be true to yourself, IDENTIFY YOUR GOALS and CREATE A LONG TERM PLAN to achieve them.
  2. It is best to start early, but it is NEVER TOO LATE, so begin planning, saving and investing, NOW!
  3. THINK LONG TERM – Many financial decisions are about balancing today’s wants versus tomorrow’s needs.
  4. BEWARE OF DEBT – as there is good debt (as in a mortgage), bad debt (as in credit card) and the right amount of debt
  5. Harness the MAGIC OF COMPOUNDING… Make it work for you not against you (i.e. saving interest versus interest on debt).
  6. RETURN REFLECTS RISK, if its too good to be true, it is.   Always be a little skeptical.
  7. DIVERSIFICATION  minimizes risk so diversify across stocks, bonds and markets
  8. Investment EXPENSES AND TAXES ARE MAJOR DRAGS on return.  Use index funds and tax qualified accounts like IRA’s to minimize costs.
  9. Use insurance to PROTECT AGAINST THE UNEXPECTED catastrophic risks, and create an emergency fund to manage the others.
  10. SIMPLE IS BETTER, if you cannot understand it how can you evaluate it.
  11. FOCUS ON WHAT YOU CAN CONTROL, like savings, spending and costs – stop worrying about the market
  12. Set a goal to SAVE 10% of each and every paycheck, and you will be well on your way to a more secure financial future.