So many good articles are finding their way to me lately! I thought this one might be helpful, and as usual I have some comments, which I'll add in red. This is too long for one post, so I'll add each rule one at a time and link the whole thing together. Enjoy! Here's the next installment. ============================================ The Four Golden Rules Of Personal Finance By Francis Kier Many successful people have mentors to guide them in learning the skills that lead to achievement, and I'll do my best to offer you some critical personal finance perspectives. They say that life is a school where you learn the lesson after the test. The same thing applies to money, but you can't go back in time to fix catastrophic financial mistakes that you have made over time. As long as you are alive, you are a player on the field of the money-game, and you need to know the basic rules before you get tagged by the experienced players. Rule #1: To earn money from money. The only way to escape becoming a wage slave for the rest of your life is to set aside savings. The profit on your savings can be used to increase your lifestyle spending, reduce the number of years until you retire, or allow you to actually have any retirement at all. How are you doing so far toward saving and getting it to earn money for you? [It might interest you to know that the savings rate in the US dropped to 0% a few months ago. Read more about it here: http://www.msnbc.msn.com/id/11098797/ ] Every dollar that you spend eliminates its ability to earn money for you in the future. I am not recommending that you stop eating at restaurants and going to movies, I am recommending that you use some common sense, like looking at your four biggest expenses over the last few months and aggressively finding a way to reduce them. The biggest obstacle for the first rule is personal debt of any kind (other than a mortgage for your home*) or a lease of any kind. Every personal debt that you incur reduces your net worth which could have been working for you over your life time. Acquiring personal debt is exactly like putting a large hole in your wallet. In the money-game, a huge transfer of wealth occurs between the 'Haves' and the 'Have-Nots' over the words, "I can afford that monthly payment." Here is a hint: the "Have-Nots" are the ones who make that statement. So please don't ever look at whether you can afford a monthly payment to make a purchase; pay in cash after you've saved for the item. [Everything that you buy with a 0%-interest payment plan must be over-priced. Behind the scenes, your payment contract is sold to a lender with an interest rate, and retailers don't do this without building-in an acceptable profit for themselves. Ask retailers how much the item will cost if you pay in full, and you could get a lower price.] *If you read my most recent posts, you'll know that even your mortgage can be a bad debt if you don't treat it with respect. See the discussion here To be continued... ============================================ Now, the thing that frustrates me about this type of advice is that often the writer tells you what you should be doing, but not how to do it. Most of the time I already know what I should be doing...but I could really use some help on the how. If that describes you, and you'd like a little help with tips to save, I'd like to recommend an ebook. It's written for people who think budget is a four-letter word. :-) I read through this book the other evening, to see if I would want to promote it on my website soon. I loved it! Though it was written for women, the methods for saving are doable for anyone, male or female, corporate employee or internet business owner. Best of all, it's a fun read and the methods are creative, non-threatening and well...fun. To get your own copy of Savvy Saving for Busy Women, Click Here! Hope you'll be back for the other three golden rules! Cheri

Hi Cheri, Good advice and I think savings is not a minus as in less than 0. In other words people are not only not saving but going further in debt. It is amazing what we could go without---try to cut back and find out. Amazing findings you are about to come upon. Mary http://www.optinmastercourse.com/mahofst.html http://hofs.en101.biz English and Spanish on Line Kids en101- ---preschool skills

Hi Cheri Indeed almost every seconderson has problems with money management and I see the cause with trying to live like your neighbour. We want to possess what we do not because we need it but because we do not want to be left behind. Of course, a very important poin t mentioned was that we need to save some before we spend on what we want to and this is where many of us are at fault as we tend to spend first and see what we have to save which more than not is 'nothing'! LOL - I am a victim of that 'nothing'; I should know! Cheers Myke

Hello Cheri Great forum. It is very informational and believe it or not, actually inspiring. I remember way back when, when it was recommended to me that I put %10 of my earnings into some sort of a savings program. Now that I am in my 50's I am kicking myself in the you know what fornot following that advice. I have been on dissability now for over 2 years and believe me, that is something that you must prepare for. To take roughly a 70% cut in earnings is very difficult to adjust to. In fact, it is litterally impossible. On dissability you litterally live hand to mouth and trying to figure out how to save for your future is comparable to learning how to fly, without a plane,LOL. Thanks for the information Cheri. I will be a regular visitor here. May a smile follow you to sleep each night,,,,,,,,,,,,,,,,,,,,,,,,,,,,, and be there waiting,,,,,,,,,,,,,,,,, when you awaken. Sincerly, Bill Vanderbilt Mental Health And Political Forums http://community.adlandpro.com/forumShow.aspx?ForumID=8212 http://community.adlandpro.com/forumShow.aspx?ForumID=9637 http://community.adlandpro.com/forumShow.aspx?ForumID=8259 http://community.adlandpro.com/forumShow.aspx?ForumID=13254 http://community.adlandpro.com/forumShow.aspx?ForumID=11791 Business Forums http://wv0079721.betteruniverse.com http://www.ourpowerforcedmatrix.com/team.php?UID=10561

Hi Cheri, great forum great financial education. Thanks again.