- Earn as much money as you can. Your job, no matter what you do for a living produces a commodity—your products or services are used by others. The more money you make, the less inflation hurts you. To illustrate this, let’s take a $200 grocery bill. That $200 is a much bigger deal to a person on an income of $2000 per month that someone making $10,000 per month. Do anything you can to make what you do more valuable to someone else.
- Get debt-free. Pay off all of the credit cards, personal loans and home mortgages and stay out of debt. No matter what the lending institutions tell you, you cannot spend more than you earn. Those who do not understand this will be the first ones down the chute when the rise of basic living expenses makes the debt payments unpayable.
- Save a portion of every dollar you earn. As the cost of living continues to rise, the need for emergency funds for future expenses will also rise. This will not happen if no money is set aside in the first place.
The First 3 Steps in Financial Planning (Title) When I tell people that I’m a financial advisor, I usually get the question, “What should I invest in?” or “What are you recommending to clients these days?” A prudent advisor would not answer these questions off the cuff. Financial Planning is not just about investing in the stock marketing – it is about investing in yourself and your future. Proper steps must be taken in the financial planning process prior to any investment recommendations. Have you taken the initial financial planning steps? The first 3 steps in financial planning are as follows:Ask Me How You Should Invest Your Money