Five more Keys to Personal Finance Success

by James & Miel on August 31, 2007 · 0 comments

Hello,

Most of these are inspired by David Bach, who is my current personal finance guru. There are a lot of personal finance gurus out there, but Bach does a good job providing unbiased advice that serves the average Joe.

He recommends that you do five things:

1. Prepare for Life Changes. The better off you are at living within your means and anticipating life changes, the better off you’ll be financially and emotionally. – This make good sense. In fact, we’ve written a series of posts on this topics. If you’d like to learn about getting ready for retirement, pregnancy and marriage feel free to read what we’ve said about these topics.

2. Read High Quality Publications. Bach basically says that you should focus on reading publications on aren’t afraid to take stand and recommend whats in your best interests. – To elaborate on this, I recommend that if you’re a trader, you check out Investors Business Daily. If you’re more interested in the reality of getting rich, check out The Millionaire Next Door. For the latest unbiased personal finance news, you should probably just hit google.

3. Prioritize Your Goals and Start Working Towards Them. Have some patience, focus on your accomplishments and learn from your mistakes. – My wife, Miel and I do this a lot. In fact, we’ve been able to accomplish most of our major goals, like coming up with a down payment for our apartment or paying for our wedding by being good to each other and working towards mutual goals.

4. Hire Yourself First. You are the best financial advisor you can hire. If you need help making major decisions, hire conflict free advisers who charge a fee for their time. Work in partnership with your advisers. Don’t abdicate control. – On this point, I’m not in complete agreement with Bach. Members of my family have worked successfully with financial advisers. They’ve found it to be a great relief.

5. Invest In Yourself and Others. Invest in your education, friends and health. – While its a bit cliche, this does make some sense. Being a personal finance blogger, I love talking about prices, and budgeting. Not everyone does, in fact, most people don’t – so it goes without saying that you should probably be spending time and energy investing in other aspects of your life as well and your friends.

Thanks,

James



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