“People don’t become wealthy by accident, here’s how they do it’
This article describes 10 habits that anyone can develop that will improve their financial management skills—regardless if they want to be the world’s next millionaire or if they just want to live comfortably. For more information about each of the 10 items below, please see the original article.
- Start saving and investing early in life
- Automate savings and investments so deposits are made automatically on a regular basis
- Maximize contributions to retirement and investment accounts
- Never carry a credit card balance
- Live like you’re poor and adopt a “less is more” attitude
- Avoid the temptation to live beyond your means
- Be goal oriented and know what you consider to be important
- Get educated and learn about investments before investing your money
- Diversify your portfolio and avoid the temptation to put all your eggs in one basket
- Spend money to make money by hiring a qualified and experienced financial adviser, accountant, and, if needed, an estate planner
For more information go to http://www.marketwatch.com/story/10-habits-of-high-net-worth-women-2014-07-02?page=1
Teaching Suggestions
You may want to use the information in this blog post and the original article to
- Stress the importance of making smart decisions as opposed to foolish decisions.
- Tie the suggestions in this article to material in the text.
Discussion Questions
- Which of the ten habits described in this article can you use now to help manage your personal finances?
- The first suggestion, “start saving and investing early” is a basic principle we stress in the text. What are the advantages of starting early?
Melissa Hart
Focus on Personal Finance, 7e 