9 Principles for Managing Your Money
“In this world, nothing can be certain, except death and taxes.”
It’s Tax Day in the U.S.! Whether you owe money to the IRS or will be getting a refund, here are 9 principles to help you manage your money better.
1. Pay Yourself First
Create an automatic way to put away 10% of your income (20% when you start earning over $100,000/year). Make this a habit throughout your life.
2. Get Out of Debt
The only things worthy of debt are your education, a house, or very well thought-out business ventures. The goal should be to work toward a debt-free life. Debt can ruin your life!
3. Have an Emergency Cash Stash
People under 50 should have 6 months’ worth of living costs in a safe place like a bank, and people over 50 should have 12 months’ worth stashed away for emergencies. Remember, you should only use it for real emergencies!
4. Save for Retirement
Take advantage of tax-advantaged retirement vehicles (i.e., Simplified Employment Pension Plan).
5. Invest Wisely
There are only 5 places you can employ financial armies: cash investments, bond investments, stocks or equities, real estate or commodities. You should diversify, keep costs low, invest for the long-term, and limit your risk by never putting more than 10% of your investment capital into any one thing.
6. Seek Wisdom
Develop a network of wise people who give invaluable advice. Whether you are looking for legal, tax or investment advice, a wise person acts slowly and deliberately, and seeks the best wisdom and advice available.
7. Set Goals & Track Progress
Set annual goals and break them down monthly to track how you are doing. Every year you should track your net worth (assets minus liabilities), and make sure it is growing every year toward your goals.
8. Use a Business Entity for your Distributorship
Use a business entity (i.e., an LLC) for your Jeunesse Distributorship. Take advantage of the tax benefits of being a business.
9. Give Back
Develop a habit of giving back and making charitable donations. Doing so will help keep money in perspective and you will be happier as a result!
By implementing these 9 principles for managing your money, you’ll be well on your way to financial freedom and the peace of mind that comes with it!