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Getting your financial house in order should be a major goal for 2008. I would like to offer you a few tips that I have found to be very helpful in getting my financial house in order. You should open up several money market accounts. The first account, you can call for your purpose , a cash on hand account. This account should contain three months of personal living expenses plus a three month's of business expenses at all times. This account is used for short term cash crunches. The second account that you should open up, is a money market account called your wealth account. This is where you deposit money short-term, to accumulate wealth. When you get enough money in this account. You can then send it off to a better investment vehicle, whether that be a CD, stock, bond or mutual fund. The next money market account, you would want to open is if you are in business for yourself and have to pay quarterly estimated taxes and or payroll taxes. This account is called a tax account. You should have your accountant set up a quarterly estimated tax payment schedule. You should then deposit monies to meet that obligation on a weekly basis into your tax account. The next account, you should set up is a retirement account of some sort. It can be an Ira, Roth Ira,SEP, or any other retirement plan that you and your financial planner feel will best suit your needs. It always seems a daunting task to have to put away the money. What you want to do, is to figure out how much money you want to have in each account, and then work backwards, saving the minimum amount each day week or month. For example, if I wanted a $12,000 in my cash on hand account, I would need to save $1000 per month, or $232.55 per week, or $32.25 per day, in order to meet my goal of $12,000 in total. Always try and work in the least common denominator. Doesn't it sound a whole lot easier to save $32.25 per day versus saving $12,000 for the year? If you need help setting your financial goals, you can call Dr. Inselman from creative coaching at 1-888-201-0567.
Easy way to Acquire Wealth
Written by Bill, on 17-01-2008 23:14
Dr. Inselman, I found the best way of achieving wealth, is to start the habit of saving early and frequently. I got this concept from my father taught me that it is better to save something than nothing. Even if you stop buying lattes each day and save that money. You will be well on your way to acquiring wealth. It is also important to get a good financial planner as well as learning the basics of investing yourself. I've been using this formula for over 25 years, and it has enabled me to establish a nice nest egg. |
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