1. Create a plan
- Focus on short-term and long-term goals
- Think about priorities and direction you want to go
- Create savings goals
- Turn your dreams into reality
2. Economize
- Don’t overspend on fancy items
- Learn the value of the dollar
- Pay off debts
- Learn good spending habits
3. Increase your Savings
- Build discipline into your savings plan
- Increase your savings each year
- Put money aside for short-term goals and emergencies
4. Pay down debt
- Pay off student loans
- Pay off credit card debt
- Create a plan to pay off highest interest rate debt first
5. Avoid new debt
- Think had about new purchases and whether they fit into your budget
- Try to avoid unnecessary debt
- Build your savings first before buying large ticket items
6. Make you money work for you
- Make diversified investments
- Spread your risk
- Don’t put all your money into one investment
- Don’t be greedy about returns
7. Start your retirement savings
- Enroll into your companies 401k
- Take advantage of company structure and possible matching by your employer
- Contribute into an IRA each year
8. Get Life Insurance
- Look at a term policy to cover the time you are at risk
- Determine the amount of coverage needed to support your family
- Avoid products that combine insurance and investment
9. Prepare for emergencies
- Create an emergency fund
- Build a fund that covers 3-6 months of your current cash flow
10. Cut Emotional spending
- Avoid unnecessary spending
- Take advantage of cash back programs
- Find something to occupy your time to avoid spending
- Cut unnecessary utility spending such as cable, home phone, etc.
All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.