Post Sisip Financial Planning Tips

Yes sparrow, you got that right.
I like the one that states - Choose your friends carefully.
I open a power savings account , I will park my money there, and use caution on any spending.

25 Financial Planning Tips From The Wealthy Barber Book ~

■Sound financial planning isn’t rocket science, just common sense, vanilla products and time-tested principles.
■Reverse mortgages turn finance’s most powerful force – compound interest – into an enemy instead of a friend.
■Owning a house, even a spectacular, fully paid for house isn’t a retirement plan, it’s where you live.
■Perceived risks in the stock market are inversely correlated to actual risks. It’s when most think the market is safe that it isn’t (after a long upward climb) & when most think it isn’t that it is.
■Unless you are born into – or marry into – wealth you’ll have to spend less than you earn.
■It’s hard to save because no one out there really wants you to – not banks, real estate agents, credit card companies, your kids or friends looking for company on an evening out.
■We have become consumed with consumption!
■Choose your friends carefully – our “reference group” has a huge influence on our spending. Hang out with financially savvy people in your own bracket.
■Learn to say, with conviction “Sorry but I can’t afford it” – it’s liberating and true and something others will accept and respect.
■Credit cards are evil; they allow us to act impulsively on our impulses.
■ Gaining a view of the world’s “have not’s” is a great way to add perspective and gratitude to your own life…and no, “Everyone” really doesn’t have one.
■Oscar Wilde said “I can resist everything except temptation” – so either avoid it by just not going to the mall or reduce your ability to give into it – don’t take the credit cards along for the trip.
■Spending begets spending – a new coat of paint in the bedroom is usually followed closely by a new duvet and towels too. It’s the “Diderot Effect”.
■Bank’s efforts to load you up with as much credit as you can service is decidedly not in your best interest – it’s in theirs.
■Look at potential inheritances as future bonuses and not an excuse to avoid saving.
■Ben Franklin warned “Beware of little expenses. A small leak will sink a great ship.”
■Don’t take debt into retirement. It drains cash flow, creates worry and subjects you to interest rate risk when you can least afford it.
■Live in a truly affordable home, stretching to buy the house inevitably leads to stretching to furnish it, maintain it, heat it and pay the taxes too.
■Expense summaries (keeping track of where the dollars go) really are valuable. They help you to limit your spending and also to prioritize it.
■Is it “splurge worthy”? Efficient spenders focus on dollar costs but also “joy units” received. Extra spending in one area requires extra discipline in others.
■People who live within their means are less stressed and happier. When we are satisfied with what we have we are truly wealthy.
■Forced savings techniques are the single biggest key to achieving one’s financial goals- save first and then go ahead and spend the rest.
■If you are prone to overspending a personal or secured line of credit is a flexible and efficient accomplice! Avoid them – the money is the bank’s, not yours.
■Three spending areas catch most people off guard: 1. Cars; 2. Dining out; and 3. little things. Not necessarily the highest or most foolish spending areas, just where they spent way more than they thought they were.


■The Best for Last

Before any of us go too wild with Post Sisip spending it’s useful to remember the best things in life aren’t things. Even long-coveted possessions go from “wow” to “whatever” remarkably quickly.