10 Wealthy Rules to Live By

Key Takeaways

  • Don’t underestimate the importance of planning, keeping your cash from being tied up and seeking the tax advantages of every money matter you run into.
  • Just try to accomplish three things every day and when you’re trying something new, don’t expect perfection the first time.
  • If nothing else, remember to have fun as you go through life.

Is It Safe?

Key Takeaways

  • Fear or running out of money can drive us to make poor long-term decisions.
  • When it comes to investing, the notion of safety can be deceptive.
  • Make sure you always have 6 to 12 months of emergency cash on hand, plus the right asset structure and plenty of diversification.

Financial Planning Week

Our Top 10 list of things to help you be smarter about your money

Key Takeaways

  • If nothing else, follow the mantra of saving first and spending second.
  • People who put their goals in writing are more likely to achieve them than people who don’t.
  • Pay off high interest debt first, diversify your investments, mitigate taxes, get your estate plan in order and teach kids about the importance of money.

Avoid Being a Bad-News Pessimist

Key Takeaways

  • A $1,000 gain doesn’t give us as much happiness as avoiding a $1,000 loss. We’re pre-wired to focus more on bad news.
  • A “rational optimist” is someone who maintains a positive outlook on life (and investments), knowing that unfortunate events and results will happen from time to time.
  • Some investors haven’t returned to the market since the crisis of 2008. They’ve missed out on a 200 percent return on their money while waiting for the “other shoe to drop.”