It’s that time of year when Holiday cheer is spread and New Year’s resolutions are around the corner. In the spirit of the season here are the 12 Personal Finance lessons to get that Holiday “Magic” in your life:
- It’s fun to spend, but put an emphasis on experiences vs. things to be a happier person. Take the trip vs. the nicer car.
- Spend less than you make, and give some to those less fortunate!
- You will make mistakes in life and finance, but learn from them and vow not to make the same mistake twice.
- Be a part of the winner’s game. Successful investing is about owning great companies. Stocks are an easy way to accumulate wealth over long periods of time.
- At home and work treat every single person in your life as you would like to be treated.
- If your employer offers matching on your 401(k) plan, then take all the free money you can grab.
- Be open with your spouse about every dime you make and spend. Financial stress is a major source of divorce in America.
- Life is like a roller coaster, so keep 3 months of income in reserve for the days when it rains on you.
- If people are dependent on you for your income, then make sure you have enough term (not whole life) insurance to protect them in the event of a tragedy.
- Keep at least a rough budget. The best way to be financial independent is to keep a grip on your spending impulses.
- Once you accumulate wealth understand the risk you accept. We have found that going from being “Wealthy” to “Poor” is a very painful process, so find someone like us to help you keep the “car” on the road and out of the ditch.
- Get rid of personal debt as quickly as possible! If you are facing a pile of debt, then follow Dave Ramsey and his debt snowball program to get back on your feet.
We all want to be happy in our life journey. If you can embrace these 12 items, we feel like you will be just fine.