Regardless of where we are in life we can all learn something about money and how to prepare for our future. Especially when we see that the nation's average is $10,000 in credit debt and that savings and preparedness is dropping. This article can put you back on track to a more fulfilling and financially free life.
1) Automate your investing. Experience has proven that if we have to make a conscious effort every time we need to invest we will begin with very good intentions and then miserably fail a few months later. If you can automate your savings, whether by using your employers 401k, a self-employment plan, or direct deductions from your account, you will finish ahead.
A good rule of thumb would be to set aside 10% of your income. You'll be able to set it aside by investing in the stock market as well. Look into a shell company, shell companies or company mergers.
2) Real estate. If you haven't already, buy a house. Renting will only make your landlord rich. Regardless of what the immediate market does, real estate is among the best long term investments you are able to make. It also has many advantages including deductions for mortgage interest. Real estate will always go up.
3) Medical and life insurance. You need to have them. If you believe you do not just ask anyone that didn't have it when something unexpected happened. If you love your family, they are a must. But, on that note, don't get taken. Buy term life. 20 years will give excellent term coverage and should you follow all of these tips you won't need anything beyond that.
For medical insurance, in most states Blue Cross and Blue Shield offer great plans that are a fraction of Cobra or employer plans. Stick with big names like Blue Cross as they'll be around for years.
4) Do not ever buy new cars. It is a fact that new cars lose 25-30% of their value as soon as you drive it off the lot. Let someone else pay for that depreciation and get a two or three year old car or truck. A two or three year old vehicle with 30,000 miles on it will save you not just in initial price, but also on your insurance, and taxes.
5) Get out of debt. I put the investment tips above this as you need to pay yourself first. If you are overwhelmed with debt, there are numerous non-for-profit agencies that will renegotiate your debt and terms for you.
Figure out a plan to get the high interest debt paid off. Be wiser with your purchases. Cut up all cards but 1 (for emergencies you should have 1 credit card) and no store cards. My grandfather said it best - "If you can't afford it, do not purchase it." The only good loan to have is a mortgage.
6) Never burn bridges. If you happen to leave your current employer, leave on good terms. Find a replacement if time permits. This will put you in good terms with your former management and can lead to a good reference, another job, a callback for more money, etc. Never leave on bad terms.
7) Give back. Once you've made it, it is only fair that you help others much less fortunate than yourself. Regardless of your beliefs, whenever you donate time and money to help others you will inadvertently help yourself.
You will feel great.
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