1. We are only powerless over the financial markets and the economy if we ignore them.
2. Believe it: People who are financially successful share certain traits.
<p> "Prosperity is a way of living and thinking, and not just money." ~Eric Butterworth
<p> "Poverty is a way of living and thinking, and not just a lack of money." ~Will Hepburn
3. Make a decision to be disciplined in your financial matters.
Financial Discipline Be frugal. Always spend a little less than you have coming in. Pay yourself first with the difference and put it into savings, every month! Write down your savings plan. You’ll be more likely to stick to it.<p> Company retirement plans: Max out the contributions, especially employer matching contributions. Never take this money out until you retire. <p>
IRAs – Individual Retirement Accounts. Can be done in addition to or in place of company retirement plans. Never take this money out until you retire.<p>
Bank savings accounts. They may not pay much interest, but it is a positive amount. <p>Mark Twain once said he “was more interested in the return of his money than the return on his money.” He was a wise man.<p>
Investment accounts through a financial adviser like Hepburn Capital. See our website at www.HepburnCapital.com for more information.
Be frugal. Always spend a little less than you have coming in. Pay yourself first with the difference and put it into savings, every month! Write down your savings plan. You’ll be more likely to stick to it.<p>
Company retirement plans: Max out the contributions, especially employer matching contributions. Never take this money out until you retire. <p>
4. Do a personal financial inventory.
Personal Financial Inventory
5. Decide what you want financially.
Focus on the feelings your wish list items will bring you rather than a specific object.
For instance, imagine the feeling of that new car, the pride of climbing into it, the smell of the interior, the thrill of hitting the gas.
Every thought becomes a prayer, and your Higher Power will work to fulfill those feelings of desire in ways you may not now be able to foresee.
Visualizing a specific object may be limiting. Your Higher Power may find greater things that will fulfill your feelings of desire.
6. Prioritize the most important items on your wish list.
7. Never spend your interest or earnings until retirement.
Power your Savings
8. Avoid Debt.
Avoid paying interest because compounding works in reverse, too. Bankers have a saying "Those who understand interest earn it; those who don't, pay it." Elizabeth Warren said "The credit card companies have put the loan sharks out of business." I say ditto for mortgage refinance deals.<p>Learn the dirty little secret of credit cards and mortgages:<p>
Paying only the minimum on your $5,000 credit card bill can mean 30 years of payments and over $100,000 to finally pay it off. That is $95,000 of interest on a $5,000 bill. (Assumes a $50 payment on a $5,000 balance at 18.9% interest, per Bankrate.com calculator) Use credit cards for convenience, not financing. Pay them off every month, that way the store pays the cost, not you.
Don’t refinance your mortgage.
You may save a few bucks per month now because of lower interest rates, but<p>
You add several more years of payments at the end. What is the total of, say, 3 years of payments? 5 years? Is it worth it? Probably not.<p>
Mortgages cost thousands to refinance. These costs can be seen in payments added to the end of your mortgage.
9. Learn about Investing.
10. Consider running your own business.
Someone once said: “Owning your own business is great. You can work half days, and with luck you can even choose which 12 hours it will be.”
11. Plan for retirement, don’t ignore it.
12. Estate Planning – The end game.