financial advice

Investment Zen / Flickr.com https://tinyurl.com/y7lb7lmq

Is it a good idea to pay off your home mortgage loan early?

I find there is an economic answer to that question and an emotional answer to that question.

 

Which is right? That depends on who YOU are…

Well, I’m glad I could clear that up…

Path to Money Maturity

Jun 27, 2018
Tiz / Flickr.com https://tinyurl.com/y9vsgoof

I could summarize a question (often asked in the form of a complaint) that I get over and over again – how do I instill money maturity in my children?

Based on what I’ve seen so far, the only perfect kids are grandkids. And I’m pretty sure no one has come up with a failsafe plan for how to raise those.

But I do believe if you at least know what you want, you know where to focus your efforts. So here’s my two cents on the path to maturity in life. And the ripple effect of this maturity will not only be felt financially, but also in every other area of life.

Becky McCray / Flickr.com https://tinyurl.com/ybmdhf5w

Last week I suggested that no small business can be really successful until it is ready to be sold.

 

A sale requires a willing buyer with sufficient resources to buy the business. And most of the time, both the buyer and the resources to buy must be developed by the current business owner, or the business won’t get sold at all. The owner will simply close the door and leave lots and lots of potential wealth in the trash heap of items he said he would “get around to doing one day when I have the time.”

Pacific Fishery Management Counci / Flickr.com https://tinyurl.com/y7ch5t85;

There are a lot of ways to judge the success (or lack thereof) of a small business: how much stuff they sell, their profits, number of employees, years in business or any combination of these things. Each of these factors is important (perhaps irreplaceably so).

 

eedwardmorrison / FLICKR.COM https://tinyurl.com/yaye4kq8

In order for priorities to be profitable, they must first be planned and then be practiced.

John Maxwell writes, “There are two things that are most difficult to get people to do: to think and to do things in order of importance.” Maxwell says this is the difference between a pro and an amateur.

So, step one is the thinking part – you’ve got to put together an actionable plan that gets you where you want to go as efficiently as possible. Here are the priority areas (as I see them) for any well-rounded financial plan.

401(K) 2012 / FLICKR.COM https://tinyurl.com/ybloffdx

When it comes to spending, are you in control or out of control?

Well if you tilt towards the out of control camp, you’ve got a lot of company. But the good news is…you can change.

But it won’t be easy. And you likely can’t do it alone.

Some people look at themselves in the mirror and see someone who is out of control, impulsive and just plain messed up when it comes to spending habits.

CANADIAN PACIFIC / FLICKR.COM https://tinyurl.com/y7wctbx8

Whether you are an employer looking for talent, or a student looking for an internship, we all know there are things you can learn in the marketplace that can never be adequately communicated in a classroom or textbook.  

So far, so good.

But we have to go a bit deeper than that. If you simply aim at everything, you will inevitably aim at nothing.

Jeffrey Beall / Flickr.com https://tinyurl.com/ybflthpd

Last week, we began looking at the four most common ways to tap into your retirement funds for a regular income stream.

Let me do a quick recap in case you missed it, then I’ll cover the third and fourth methods.

1. Interest only. This once most-common method involves depositing or investing one’s funds so they will produce interest, which is paid out and used as income. As we said last week, one risk is that interest rates fall so low that one can’t live off the pittance of interest produced. Like today.

frankieleon / Flickr.com https://tinyurl.com/ycktk7nk

With interest rates so low, does it still make sense to keep a pile of cash on hand for emergencies?

Short answer: yes!

You may have a line of credit at your bank or a credit card with high spending limits. Btu not a single one of your credit cards comes with a lifetime guarantee. You could get a letter in the mail any day informing you that your bank no longer wishes to extend you credit (under any circumstances) and your credit cards can be canceled with little notice.

Cash … can’t be canceled.

Here are a few reasons why you need to save money:

Advice for Young Adults

Apr 13, 2018
Michael Newman / Flickr.com https://tinyurl.com/yavegt8n

The only question I get asked more than “which way is the stock market about to go?!” is “Can you give some advice to my young adult children so they don’t end up like me?”

SO…Kids, you heard your mom (or dad). You don’t have to make the same financial mistakes they did. You can do better (and believe me, they want you to!).

Here then is a short list of actions you can take, which if followed reasonably well, will give you the best chance possible for a successful financial life.

Best of all, It’s pretty simple.

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