I want to conquer the unknown. I really, really want to live on the water and captain my own boat. I have dreamed of going around the world on a boat.
Give to yourself as much as you give of yourself! This means you have to put yourself first.
It may take you months or even a few years to build up an adequate emergency savings fund. That's okay.
In January we start saving money, getting out of credit card debt, funding our retirement accounts, and we're doing wonderful. Then, every single year like clockwork, starting in November, all of you fall into this trap that says, 'I have to buy this gift... I can't show up at this party and not have something for everybody.'
Your credit score affects the interest rates you're offered on credit cards and loans, can be used to vet your job application, and in some states may influence your insurance premiums.
I am a big believer that orderliness begets wealth. A pile of bills and statements - whether paid or not - is a sign that someone is clueless about what's coming in and going out. When you consciously open, read, and file away your bills and statements, you are connecting with your money and taking control of your life.
We tend to focus on assets and forget about debts. Financial security requires facing up to the big picture: assets minus debts.
Everybody in America started to define themselves by all these things they had around them. And all of a sudden it came tumbling down. So the old American dream has died, and that is a good thing.
The middle class has disappeared. We have a highway to poverty and no roads coming out.
Make this the year you tackle that credit card debt once and for all.
A revocable living trust allows your heirs to avoid probate entirely and keeps you in complete control of your finances while you're alive. You can always make changes to what's in the trust and to how you'd ultimately like it managed or disbursed.
Never cosign a loan. Once you have cosigned, you cannot get out of it - even on your deathbed.
Pay off your mortgage before retirement, and that's one less bill you'll have to worry about when you're on a fixed income.
I'm a big advocate of a work-for-pay setup rather than an allowance that isn't attached to chores - it's a great way to impart the value of money to your children.
Money is such an amazing teacher: What you choose to do with your money shows whether you are truly powerful or powerless.
I generally encourage people to make good on debts when they have enough money to repay them. But once a delinquency has been reported to a collection agency, paying it off won't help your FICO score. The damage has already been done, and the blemish will remain on your credit report for seven years.
The world does not need another credit card.
Structured settlements are a common way for people who have been injured to receive an insurance payout. The periodic payments provide ongoing income and reduce the risk of blowing a lump sum through poor financial choices.
If you can't afford the upkeep of your home, it makes no sense to do a reverse mortgage. You will just end up having to sell eventually when you realize you can't afford the home, and whether you have any equity left after the sale depends on the size of the reverse loan that must be settled.
Here's my gift-giving rule: Respect your current financial situation.
