Wealth in Words

Every day we face a barrage of stimuli from the world around us. If we are not careful, these distractions can keep us from reaching our goals. When you focus equally on essential as well as non-essential tasks, nothing gets done. Think of it like a race car team preparing a car before an important race. There are countless tasks that could be done in the limited hours beforehand but ultimately the o nly thing that matters is doing the tasks necessary to get the car across the finish line. When it comes to steering your money and finances in the right direction, make time to decide which vital functions you must address right now to make improvements this year.  These vital factors are your most obvious or urgent needs. For example, paying down credit card debt, student loans, car loan, creating a budget , building a savings account , or starting investing  could be one of your top three financial priorities. Begin to focus all your effort on improving these t...

Sticking to a spending plan can be tough. One of the keys to successful budgeting  and staying with your financial plan is to regularly check in with where your money is going. Any simple tool like a pen and paper, smart phone, or Microsoft Excel is effective for tracking finances. Instead of putting off planning, the basic monthly cash flow budgeting plan below can be quickly customized with your income and spending habits within a few minutes. The minimal work required for you to input and maintain your numbers periodically will pay dividends, literally, as you get a better grasp for where your money is going and how to create more of it .   After making it a priority to track your finances, regularly schedule time each week to assess how your current spending compares to your initial budget. You may realize you need to rein in spending or, better yet, but less-likely, you are under-spending. The important thing is to regularly schedule a “date” with your ...

In light of Mother’s Day I thought it would be helpful to reflect and impart some of the financial wisdom my mother shared with me. These quick, simple nuggets of advice continue to prove useful as I navigate adulthood. 1. Create a budget Soon after graduating college I was able to secure an investment job in the region I wanted. However, this required that I move out of home and begin living on my own. Facing this new chapter in my life, my mother took time to write out a budget  with me detailing my cash inflows versus outflows and determined how much I could expect to have left over. She emphasized that the key was to have something left over each month to  save   or invest   while still living comfortably. Overall, I learned that a budget is nothing more than a road map that helps you maintain control of your finances. 2. Maintain a healthy savings reserve Growing up I did various jobs during my summer breaks from school. During this time my moth...