Here are the 6 strategies that will make you rich:
1. Establish the new GOLD STANDARD for your personal FAMILY EMERGENCY SAVINGS FUND. This should be 15 to 18 months of expenses in savings (money market savings accounts and/or certificates of deposit with an FDIC-insured bank). What? You don’t have this in savings? No worries. Establish a pattern of savings and follow a plan to build this reserve for yourself and your family. We can show you how to do this at our blogs (www.stickyasset.com/blog and http://www.boostmywealth.wordpress.com). Or you can go past the basics with “How To Survive Any Financial Crisis” at http://www.middleclassmoney.com. Savings always builds faster than you think it will if you commit to doing some of the basic principles we recommend involving automatic and “trick” savings. The old days of thinking that 3 to 6 months of expenses would do “just find” is like smoking crack and being hopeful that you are going to go far in life. It just doesn’t add up.
2.. Review all debt. Start with credit cards. You don’t own credit cards. CREDIT CARDS OWN YOU. Put every credit card you own on the kitchen table. Find out the interest rate on each card. Twice every month, call each credit card company. Ask for a supervisor. Tell them you are having difficulty because of the economy and that you want to reduce your debt and you don’t want to file bankruptsy. Please with them to eliminate your interest rate while you pay off the card. Repeat again. Repeat again. Don’t be bashful and don’t be afraid to call them again and again. Be committed to the idea that they can help you reduce and eliminate your interest rate. In the meantime, separate your cards by interest rate. If you can do so without creating more problems for yourself, transfer your balances to the card with the lowest interest rate. If you cannot do this, pay the minimum on each card EXCEPT the one with the highest interest rate. Pay AS MUCH AS YOU CAN on this credit card until it is paid off. Then, rotate to the next highest interest rate. Remain focused on reducing and eliminating this debt until it is GONE. You should do this review every six months until you have zero credit card debt.
3. Make sure you are enrolled in your company 401k AND a Roth IRA or Traditional IRA (yes, both) and that you are working with an eye on putting away regular savings. If you thought this was optional, know that things are not going to go well for you later in life. That’s the facts.
4. Think like a corporation. Reduce your expenses by 15 – 20%. Look at your spending over the last 3 – 6 months. Review the differences between “wants” and “needs.” There is no reason to go “crazy,” but you are likely to find more regular spending than is necessary. Use what you see to create 10 – 15% or more savings each month. Start by identifying how much money you were spending that you can now reduce and put that in action to help you reduce your spending and get on track with personal savings. You should do this review every six months.
5. Get hardcore with anyone who sends you a bill. Be open-minded, but call them. Ask to speak to a supervisor. Tell them that you have been hit by the bad economy and that you must reduce your bill (the bill they send you) by 10 – 15%. Ask them to help you figure out how you can do it. Again – be open to suggestion. They may suggest bundling services or dropping down in a level of services or they may negotiate with you to and allow you to pay a slightly lower amount. DO NOT AGREE TO ANY ADDITIONAL LOANS OR ANYTHING THAT INVOLVES EXTENDING DEBT.
6. Focus on building assets. Once you have eliminated your credit card debt, established your proper (Gold Standard) emergency savings fund and gotten your 401k and Roth or Traditional IRA going steady-as-she-goes, you must focus efforts on purchasing ASSETS that reproduce themselves (like dividends with stocks….only you should use a mutual fund like Vanguard to reduce fees and diversify for you). You should purchase assets like your parents purchased closes, stereos, movie tickets, et all. The more assets you purchase the faster you will produce wealth.
Like these “tips”? Want more than the basics? Get our FREE monthly e-saver at http://www.stickyasset.com/blog or purchase the only thing we ever sell: How To Survive Any Financial Crisis.” It’s only $4.95 at http://www.middleclassmoney.com.
The only recession that is important is the one at your house. Get a plan, move ahead. If you like the advice in this blog, forward it to five of the people who you love and care about the most. Let’s take this economy back and make sure OUR PEOPLE are served BEST. We can do it!
SAVE MORE THAN MONEY
In this country we don’t do enough to teach our children about money, managing money, saving regularly (and automatically), compound interest and steady investing for a long-term future. As a parent, we are always concerned that they get a good education and go to a good college so they can make a lot of money or have a valued career path. The truth is that we could do our children the biggest favor and one of the best things by sharing with them sound saving and investing principles.
You can join our free Facebook group (or have your children do it, too) by searching in the Facebook bar on your “wall” for “Live The Lifestyle Your Family Deserves.” Click on “become a fan.” It’s free and it ties our free blogs into that group.
If you want to give your children the same information we are giving ours, you can purchase the only thing we sell on any of our blogs or groups. It’s called “How To Survive Any Financial Crisis” and you can get it for only $4.95 at http://www.middleclassmoney.com.
Thank you for reading our blog and good luck!