Get as much education as possible – meaningful education leads to higher salary. Manage your career like an asset to maximize your income. Maximize and protect your career - which is your biggest asset. ? … [Read more...] about Step 16: Maximize Income from all sources
Archives for September 2023
Step 15: Create Multiple Sources of Income
The biggest risk one can make is having a singly source of income. If something happens to that "job" you have no income at all. Diversifying is not just for investing. It's also for income generation. … [Read more...] about Step 15: Create Multiple Sources of Income
Step 13: Invest savings aggressively in appreciating assets
An asset should provide low risk, positive cash flow. The best assets (most passive) do this with little to no work from you. 1. Stocks & bonds. 2. Real estate / rental property. 3. Small business. Start here, and branch out judiciously. … [Read more...] about Step 13: Invest savings aggressively in appreciating assets
Step 12: Save
Regular saving is the key to a successful retirement. Even more generally, regular saving is the key to building wealth. Period. Full stop. Do it early and often, and it can be relatively painless. Wait until the last minute, and you will be in trouble. … [Read more...] about Step 12: Save
Step 11: Building an Emergency Fund
The common advice on emergency funds, in my humble opinion, is completely wrong. You need to customize your emergency fund to your very specific needs, that are almost as unique as your fingerprint. Here's how I think we go about figuring out how big out safety net needs to be. … [Read more...] about Step 11: Building an Emergency Fund
Step 10: Eliminate Debt (Minimize Liabilities)
Debt is a tricky subject. It's a tool. And like all tools, it can be incredibly useful, or incredibly dangerous. for almost all situations, and for almost all individuals, the best options is to limit or eliminate borrowing of any kind. Get and stay out of debt. Eliminate credit card debt:Practice responsible credit card use. You need only one or two credit cards. Credit … [Read more...] about Step 10: Eliminate Debt (Minimize Liabilities)
Step 09: Compare Purchases to True Hourly Wage
Determine your True Hourly Wage – Tax and Location Adjusted. This is a basic business metric every business tracks – and you should too. … [Read more...] about Step 09: Compare Purchases to True Hourly Wage
Step 08: Reduce Spending (Minimize Expenses)
If you had to choose only one step/action out of all the steps to do, and eliminate all the others, the action you need to keep is to reduce your spending. This one thing will almost always have a bigger impact on your personal finances than any other. … [Read more...] about Step 08: Reduce Spending (Minimize Expenses)
Step 07: Develop a written Financial Plan
A financial plan is a written set of goals, followed by steps, strategies, timelines and habits for accomplishing these goals. It provides direction, gives you a benchmark from which to evaluate your progress, and helps you prioritize the most efficient use of your financial resources. … [Read more...] about Step 07: Develop a written Financial Plan
Step 06: Track Key Financial Ratios
Some folks feel budgets don’t work. I feel that the process of building and organizing the budget is even more important than having one. Categorizing where your money should and does go is critical. Apply the same financial discipline we do in business. Remember. You are a business. So do what businesses do! … [Read more...] about Step 06: Track Key Financial Ratios
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