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Put
aside a set amount regularly in savings or other investments.
The compounding of earnings can be substantial. The longer your
investment period, the greater the beneficial effect of compounding. |
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Invest
in what you know. The better informed you are, the better your
investment decisions will be. If you don't want to learn about investments,
consider hiring a money manager and paying him or her to do your
investing for you. |
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Diversify
your investments. Have some of your money in an investment that
is easily converted to cash in case of emergencies. The old adage
"don't put all your eggs in one basket" is excellent investment
advice. |
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Prepare
an annual balance sheet (a list of all your assets minus all
your debts) to determine your net worth. A comparison of your annual
balance sheets will show you whether you're meeting your financial
goals. |
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Plan
where you want to be financially by retirement age. Over 90%
of Americans must rely on the government or others for assistance
during retirement. With proper planning and diligence, you can be
among those who can retire in comfort. |
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Don't
use credit to purchase consumption items. Wait until you can
pay cash for things which decrease in value. Borrowing money to
purchase a home is usually a sound idea. Using credit to purchase
household furnishings is not. |
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Pay
off your credit card balance every month. Your credit card should
be used for convenience, not as a source of long-term financing.
Credit card interest rates are much too high. |
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Monitor
your investments to maximize your after-tax return. The difference
that a 2% greater return can make in the growth of your investments
is dramatic. |
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Have
your insurance agent do at least an annual review of your insurance
needs to determine that you are neither under- nor over-insured.
Be sure to contact your agent when you buy or sell any property. |
Boynton Beach, FL 33435
