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Table of Contents
July 2007
Issue Home
Thinking Like a Farmer
Reasons Why You Might Not Be Getting That Job
Five Simple Steps to a Happier Life
TMHA Seeking Homeownership Candidates
Do You Have Some Simple Advice for Managing Finances?
FSS Spotlight:
FSS Trivia
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Do You Have Some Simple Advice for Managing Finances?
Looking for some frugal financial wisdom? It's pretty hard to go wrong when your teacher
is one of the wisest and wealthiest men who ever lived: King Solomon. King Solomon's
proverbs aren't dusty maxims from the past; wisely applied, they are practical, precise
advice as current as what you can find from a financial planner today. Here are five tips
you can start applying today.
Strategy 1: Work Hard and Save Your Money Over Time.
Ever notice how the spare change saved in a jar just grows and grows, but your Vegas
winnings sprout wings the instant they're won? The best way to get rich is to save
consistently. Putting aside 10% of every paycheck is a good place to start, and direct
deposit makes it even easier to set aside. Even if you have as little as $5 or $1 to spare,
put it away. Some financial experts recommend starting with a $1000 emergency fund and
building it up to three to six months' income. Don't give up! It will grow.
Strategy 2: Avoid Cosigning on Loans-Better Yet, Don't.
Agreeing to cosign a loan (even with a trusted friend, relative or your child)
can become a sticky situation, especially if that fellow cosigner cannot pay. When you
co-sign, you need to be extremely careful to make sure that the cosigner will be able to
pay the whole debt. For example, if your kid defaults on their loan payments, the lender
will run to you, expecting their money. They don't care that you're trying to support a
family, saving for retirement, just barely scraping by, etc. They just want the money and
will snatch your "bed" away if they must.
Strategy 3: Where Possible, Don't Use Credit and Loans to Buy What You Can't Afford.
Strive to be debt-free. There are some situations where some debt might be taken on, such as a home mortgage
or a school loan. But even in those cases, be discerning about what you can afford and borrow
as little as possible. Cash is the best option since you see where the money goes.
Credit cards make it easy to spend more than we have, especially if you buy into the idea
that "more" is better. However, the more you have to borrow, the more you have to pay. And
if you have any existing debt that you want to kill, try the "snowball" method. Start with
the smallest debt, pay over the minimum as much as you can afford, and pay the minimum on
everything else. Once that debt is paid, "snowball" (add on) that amount to the next
smallest debt.
Strategy 4: Work Hard and Well, and Plan Your Vision.
You get out what you give. And if you give nothing, expect nothing. Look at the farmer who plants a crop.
He tends it carefully to ensure it brings a good harvest. Your attitude towards your work
also says much about you. You might not be the most talented in your abilities, but if you
have drive, it will help you to become thoughtfully competent, and that will be noticed.
Make a point to plan your life and vision so you will bring in a "good harvest" and "serve
kings."
Strategy 5: Be Generous with Your Resources: Give Joy.
Ironically, yet refreshingly, wealth multiplies when you share it. We all know this but often fall
into the temptation to hoard and be selfish. How many stories have you heard of a wealthy
person who refused to give, and then ended up with nothing? Where possible, be generous with
your time, money and resources. Make a difference, even if it's just smiling today. This life
we live is one to be shared with others. What "bread" are you holding onto that could be spread
among others? Don't worry. It will return to you again someday.
Take the Next Step:
Decide to implement at least one of these practical and precise tips in your life, starting today.
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