THE TOP 10 HABITS 4 FINANCIAL HEALTH

Saturday, November 3, 2007

THE TOP TEN HABITS 4 BUILDING FINANCIAL HEALTH

The bottom line in Building a Healthy Financial Foundation has been all but obstructed by all the rosy cotton-candy hype surrounding the Law of Attraction.

There is really ONE (1) basic or foundational habit that you must master. That is, you must master one habit if you really want to enjoy financial health: KNOW YOUR NUMBERS!

KNOW YOUR NUMBERS, I

1.Track all your expenses and income, daily.

2.Track all your assets and liabilities, weekly.

3.Track your investment portfolio, weekly.

Start this habit early – when you have little or no money, and little or zero investments and assets.

Continue practicing this habit as your wealth increases.

Making money is not difficult. Keeping your wealth from flying out of your life is the big Challenge.

KNOW YOUR NUMBERS, II

A.Know and track the APR you are paying on your credit cards.

Unaware of the nature or number of APR? Learn all about it

http://www.federalreserve.gov/Pubs/shop/

B.Know what this APR costs you for every $100.- you borrow or charge.

C.Know what Compound Interest is, and how it works when you borrow or charge $$..

If you have no clue about Compound Interest, go here:

http://math.about.com/library/weekly/aa042002a.htm

D.Know how much you need to pay every month (beyond the Minimum Payment) in

order to prevent your CC debt from mushrooming out of control.

KNOW YOUR NUMBERS III

1. Know how Compound Interest can work for you, when you bank your money

http://math.about.com/od/formulas/a/compound.htm

The more you understand these numbers and how they work, the more you will see

where your money gets a better return.

A higher APR AND a better Compound Interest can make a big $$$ difference. (Compounded weekly ? Monthly ? Quarterly?

Not All Compound Interest rates are created equal).

2.Know the strengths and the weaknesses of various ‘parking’ options for your money:

Certificate of Deposits (CDs) and Money Market Accounts (MMs).

Understand the value and the shortcoming of the liquidity of one,

the higher rates of the other,

and the way each specific offer provides its own Compound Interest formula.

http://www.bankrate.com/brm/news/DrDon/20020926a.asp


Overwhelmed by all these numbers and terms? Start learning.

Step by Step.


A CAUTIONARY TALE


Listen to the cautionary tale of a rock star – one that luckily ended well.

In the Sunday, October 28 2007 Business Section, Duff McKagan,

currently of the Velvet Revolver rock band,

remembers back to his Guns N’ Roses heady days in the 1980’s;

when “torrents of money streamed into his wallet from multiplatinum albums”.

He had, he says, little interest in tracking his cash,

a lack of interest that grew out of ignorance: “we knew nothing about money.”

Only after losing wads of cash, did Mr. McKagan make a wise decision:

‘he gave up partying and went back to school to study business.’

Today, the reporter, Janet Morrissey tells us, “Mr. McKagan, 43,

tightly monitors the finances of his current band, Velvet Revolver.”


Be smart; start learning all about money and numbers NOW.


Have the solid foundations ready for the Law of Attraction to fill your coffers.


Warm Regards

Dinnah Pladott


Copyright Dinnah G. Pladott, Ph.D., 2007 All Rights Preserved


www.leadership-skill.com
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