Good Evening ,morning, afternoon ladies and gentlemen where ever you are on planet earth! This year has been alot of ups and downs in real life and the economy and the markets.Unpredictable is what I would call this whole years climate when it comes to the economy and markets.Since we have had a new president there has been a lot of up's and downs in the markets it relates to his policies and what direction he is trying to lead the U.S. in.
My first subject is on the individuals who are making a lump sum of money for a specified period of time. In other words, or related to, people who are contracting, on commission, or just getting a nice sum of change from somewhere. Know that if you receive an amount of money for specified period of time, then that is what it is for and not forever. I have personally witnessed a number of individuals who have earned a lot of money, and stop earning that money, but then they still keep spending as if they are making that same amount of money living out of their means! If you are making a good sum of money invest and diversify. Always keep in mind that you will not get rich working for someone else, there is always a cap. Unless of course you are a CEO and get those stock options along with pay!
Some things to consider if you are thinking of making the most of the money that you have earned:
Fully fund an emergency fund- 3 to 6 months reserve
Invest for retirement- Doesn’t have to be a 401k but some type of income investment that will be there for the long term. IRA’s, Real estate stocks, mutual funds etc...
Set up some type of college fund for kids- Not necessarily a 529 plan because it can only be spent on education, and who knows, maybe your kids will not want to go to college. Maybe they will want to be an entrepreneur.
Enjoy your hard work- Don’t work yourself to death! Get out and enjoy some of your money. Live for the moment a little, give you r life a good balance, it’s healthy for you.
Give – Don’t forget about the less fortunate even if its not money give time and effort pass on and educate others, Each one teach one.
Pay off debt- Pay off the debt that you have the highest interest on and remember to leverage! By leveraging I mean don’t spend all of your money on Debt. Some times the amount that you can make off an investment can be more than the interest that you have to pay on other debt.
Depending on your situation you should distinguish between good debt and bad debt. Good debt is debt that will eventually appreciate with time and give you some type of return , like a mortgage, or school loans which will pay off in the future for your investment in an education.
When investing a nice amount of money some tips on what to ask yourself
What kind of returns are you looking for?
How much risk are you willing to take?
How active can you be in managing your lump sum investment?
What is your time frame for accumilating this sum amount?
Websites to check out:
FINRA.ORG ( Education materials on its website, a financial calculator, tools and quizzes
Mint.com- Site offers free personal financial software that helps you keep track of spending. All of your accounts in one place can be quite handy. Its safe and secure and good tool to manage your money.
Allbusiness.com- Financial Blogs, tools, forums, and news & advice.
Quote of the day-
Discipline, Drive, Determination