Financial Planning
*Steps To Becoming Financially Stable *
1. Eliminate all high interest debt
2. Keep one months living expenses in an interest bearing checking account.
*Begin a savings plan
*Have a pouch for tithes
*Have a pouch for savings (10% when available)
*Have a pouch for special giving (approx. 10% when available)
*Have a pouch for taxes from additional outside income
3. Keep three to six months of living expenses in a money market fund or savings account.
*Open a mutual fund account in the amount of $100.00, it is a great way to begin building wealth.
Emergency Money For:
*Car repairs. Consider your past cost compared to the cost of making monthly car payments for a new car. Consider which is more cost effective.
*Home repairs. Consider for example, is the furnace in slightly worse shape than the roof?
*Short term disability. It is best to insure against possible issues with an insurance policy. If the disability policy has a waiting period, it would be wise to save a little extra money to fill the gaps.
*Job loss. Look at #2 and 3.
*Life Insurance. This is in the event of the death of the wage earner.
4. Save for major purchases in a bank CD (keep in mind the percentage rate is low), or a government security mutual fund.
a. Saving for a car. Put money in high grade fixed income investments that would mature at the point when you want to make the purchase.
b. Buying a house. It is best to have no less than 3% to 5% of the purchase price in cash to handle a down payment and closing costs.
The money comes from money saved and invested, plus the additional savings set aside each month.
If you have a 401k, it is best to diversify.
5. Invest to meet long term needs.
a. Paying for college. The best time to start saving for college is when the kids are small. It allows compound interest to work and make saving easier.
b. More freedom and options. It is best to save as diligently as possible.
c. Retirement. Draw up an estimated retirement budget. Look at today's budget and imagine how life will change when you're no longer working. Will the house be paid off? If so, deduct the mortgage, but not the cost of repairs. Retirement is the spending phase of life. Buy some health insurance to leave a little cushion. Retirement income is likely to come from three sources:
1. Savings
2. Company pension ( if one is available)
3. Social Security
Here are some things to consider:
-Learn how to invest, then start investing
-Pay off mortgage
-Most wealth comes from investments of less than $1,000
-Buy low, sell high
-Don't measure your success against the Dow or Standard and Poors 500
6. High risk investments (only in a solid financial state)
7. Take bag lunches
-Eat at home, if possible. Eat what is there before purchasing more.
-Buy generic items.
-Don't get Cable TV or Satellite TV services.
-Determine if it is a "need" or "want".
-Always be a comparative shopper.
-Consider that the wealthy devote less than 3 hours a month to their personal finances.
-Wealth is based on what you determine it to be.
8. Secrets to investments
-Read the book "Ordinary People, Extraordinary Wealth" authored by Rick Heddleman
-It would be good to have a dollar a day for everyday you have worked.
-It is what you do with what you earn, not the amount you earn.
-It's not your bills, it's your attitude, that determines your personal self worth.
-It's not about making money, it's about building a lifestyle and achieving goals.
-Money is a tool to be put to work.
-The value of money is what the money can do for you, not how much you receive.
-Money management is a family affair.
-The wealthy have been known to say, "don't pay attention to the media".
-Going to seminars and the like is not to help you grow wealth, but to draw attention. The wealthy tune that out.
1. Eliminate all high interest debt
2. Keep one months living expenses in an interest bearing checking account.
*Begin a savings plan
*Have a pouch for tithes
*Have a pouch for savings (10% when available)
*Have a pouch for special giving (approx. 10% when available)
*Have a pouch for taxes from additional outside income
3. Keep three to six months of living expenses in a money market fund or savings account.
*Open a mutual fund account in the amount of $100.00, it is a great way to begin building wealth.
Emergency Money For:
*Car repairs. Consider your past cost compared to the cost of making monthly car payments for a new car. Consider which is more cost effective.
*Home repairs. Consider for example, is the furnace in slightly worse shape than the roof?
*Short term disability. It is best to insure against possible issues with an insurance policy. If the disability policy has a waiting period, it would be wise to save a little extra money to fill the gaps.
*Job loss. Look at #2 and 3.
*Life Insurance. This is in the event of the death of the wage earner.
4. Save for major purchases in a bank CD (keep in mind the percentage rate is low), or a government security mutual fund.
a. Saving for a car. Put money in high grade fixed income investments that would mature at the point when you want to make the purchase.
b. Buying a house. It is best to have no less than 3% to 5% of the purchase price in cash to handle a down payment and closing costs.
The money comes from money saved and invested, plus the additional savings set aside each month.
If you have a 401k, it is best to diversify.
5. Invest to meet long term needs.
a. Paying for college. The best time to start saving for college is when the kids are small. It allows compound interest to work and make saving easier.
b. More freedom and options. It is best to save as diligently as possible.
c. Retirement. Draw up an estimated retirement budget. Look at today's budget and imagine how life will change when you're no longer working. Will the house be paid off? If so, deduct the mortgage, but not the cost of repairs. Retirement is the spending phase of life. Buy some health insurance to leave a little cushion. Retirement income is likely to come from three sources:
1. Savings
2. Company pension ( if one is available)
3. Social Security
Here are some things to consider:
-Learn how to invest, then start investing
-Pay off mortgage
-Most wealth comes from investments of less than $1,000
-Buy low, sell high
-Don't measure your success against the Dow or Standard and Poors 500
6. High risk investments (only in a solid financial state)
7. Take bag lunches
-Eat at home, if possible. Eat what is there before purchasing more.
-Buy generic items.
-Don't get Cable TV or Satellite TV services.
-Determine if it is a "need" or "want".
-Always be a comparative shopper.
-Consider that the wealthy devote less than 3 hours a month to their personal finances.
-Wealth is based on what you determine it to be.
8. Secrets to investments
-Read the book "Ordinary People, Extraordinary Wealth" authored by Rick Heddleman
-It would be good to have a dollar a day for everyday you have worked.
-It is what you do with what you earn, not the amount you earn.
-It's not your bills, it's your attitude, that determines your personal self worth.
-It's not about making money, it's about building a lifestyle and achieving goals.
-Money is a tool to be put to work.
-The value of money is what the money can do for you, not how much you receive.
-Money management is a family affair.
-The wealthy have been known to say, "don't pay attention to the media".
-Going to seminars and the like is not to help you grow wealth, but to draw attention. The wealthy tune that out.
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