In 2010, it should be clear to you that the rules have changed for middle class American families. If you don’t understand this, you are much more likely to financially fail in the next decade.
How do you get your family on the path to safety and build wealth in the economy ahead?
There are some basics we believe when it comes to save and investing money. We believe you must do your own research about ways you can save money and ways you can invest based upon your emergency savings, debt and ability to stomach risks vs. return.
How do we see it?
It starts like this:
1. There are two critical things that you must work to accomplish for your family over the next decade as the United States faces stronger headwinds in economy and other challenges. Those two things are reducing debt (especially credit card debt) while you build emergency savings. You should set as a goal to increase your savings by percentage of how much you are saving of your after-tax paycheck each time you get paid. *See our “1% Savings Plan” in past blog entries or get it in “How To Survive Any Financial Crisis” at http://www.middleclassmoney.com.
2. You should set as a goal and build a plan that helps you build 15 to 18 months of your family expenses in emergency savings. The old 3 to 6 months of expenses in emergency savings rule is TERRIBLE ADVICE in the 21st Century. If you lose your job, you may not be able to replace your income for 12 to 18 months OR EVER. Tread carefully and build your plan to strengthen your future.
3. Once you have captured your correct emergency savings (15 to 18 months of expenses in money market and certificates of deposit), you must focus on building an “Asset Train.” Think about it this way: Trains go places. If you build assets (purchase assets) consistently and regularly over time, you will build wealth. This can be done in a variety of ways. It can be through your 401k and either a Roth IRA or Traditional IRA. You can build assets in NO LOAD mutual funds. You can eventually purchase real estate, but keep in mind that you want to focus on building assets and NOT DEBT. So, be careful to focus on assets that generated more of themselves.
4. Do exercises with your family members where you learn about ways to save and invest. When you do this with your children, you set off a lifetime of smart habits that will mean they will get stronger (wealthier) over time.
5. Focus on earning additional income outside of your “day job” specifically for pouring into saving and investing priorities.
In investing and saving money, there is a basic rule that “rules” over all others. If you don’t understand something, DON’T do it.
You can get ahead in the economy in the coming decade. You should not take things for granted – including your job.
How will your life at work improve when you know you have 15 to 18 months of expenses in personal savings?
Get started. And help us spread this blog by putting it on your Facebook wall. The people you love and care about (and your friends) can use this kind of advice. It can make a huge difference in their lives. We will appreciate your spreading our message because we know we can only help people when others help this blog by spreading access!
You can build wealth. You can do this. Get started!
HELPING YOUR KIDS GET AHEAD
If you think I was born saving money, you are wrong. My family is filled with hillbillies from Louisiana. There are members of my family that don’t believe in 401ks or IRAs. I was not brought up to save and invest regularly and I have made every mistake you can think about when it comes to money. I have had to learn the absolute hard way how to get savings on track and make it a part of your life without killing your lifestyle. I have had to learn the hard way how companies mislead with marketing. It is my mission to share what I have learned about regularly saving with my own children and also share it with you. That’s why we have a lot of “free” (blogs like http://www.boostmywealth.wordpress.com and http://www.stickyasset.com/blog and groups on Facebook like “Coupons & Coupon Codes”)!
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!
Connect with us on Facebook with these free groups:
“Coupons & Coupon Codes”
“Live The Lifestyle Your Family Deserves”