1. Spend less than you earn. One problem in America is that many people spend more than they make and live beyond their means. A simple solution to this is to live within your means.
2. Pay yourself first. Each month, remember to pay yourself first. This can be in the form of a savings account, a retirement plan, an investment account, etc. Many Americans pay their bills first and save what is “leftover.” The problem with this is there is little or nothing leftover.
3. Insure big risks. Think about your own unique situation in life and the biggest financial risk that is posed. If you are a single parent, life insurance is the best thing for you to consider. Consult with a financial advisor to measure the risk and pricing options.
4. Know your numbers. Many Americans are disconnected from their finances. It is not uncommon for people to pay their bills and not pay attention to anything beyond that or simply gather data for their CPA’s. It is better to know where you stand, what you make, what you spend, your debts and your net worth and monitor all of these things closely.
5. Understand your money attitude. Your attitude about money determines your behavior with money. Whether you are a spender, saver or an avoider, it is better to know how you act with money. Think about your history with money, this can help you succeed and avoid financial failures.
6. Discuss your musts. Many people choose not to talk about money and their views regarding money. However, it is in your best interest to discuss your life and what is most important to you. You can decide what is a financial MUST for you and the best way to get there.
7. Invest. Most Americans are scared to invest in stocks because the media portrays this as a surefire way of losing all of your money. This is simply not true. Educate yourself on stocks, speak with a financial advisor (whom you trust) and invest in stocks. If you can live without immediate gratification, it will payoff for you big time in the future.
8. Be willing to give up potential return for short-term needs. Short-term money and emergency funds should not be invested in the stock market. While it is good to invest, you should be rational and always have an emergency fund available for the unexpected.
9. Protect yourself from the stupidity of others. Everyone has known of someone who has had a “get rich quick scheme” or at least been victim to one. Do not allow yourself to be fooled into these types of schemes. If it sounds too good to be true, it usually is.
10. Goals are important. Everyone needs to set goals for themselves. Think about your goals both long-term and short-term. Think of where you want to be in five years and ten years. This will enable you to set personal and financial goals for yourself.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.