financial strategies

4 Financial Strategies to Implement Now

by Jason on February 8, 2012

What you are about to hear is nothing new.

Sometimes hearing nothing new is good though.  After all, it takes quite a few times to hear something before it “sticks”.

So don’t be so quick to brush this advice off as old news.  I recommend we seriously consider if we are applying these strategies.  If not, then we need to set time aside to figure out what we need to do.

1. Be More Generous

It’s hard to imagine being more generous in times like this. After all, we are coming out of the Great Recession and it doesn’t seem like things are getting any easier out there.

Although an economy, job market, and stock market like these test our faith, nothing brings greater joy than helping others in need.

What a great time it is to become a more generous person.

2. Pay Off Your Debt

Yes, this is a no-brainer.  This point cannot be stressed enough.  The economy is not doing well, the Fed is printing money like it’s going out of style, and the nation as a whole is facing enormous debt!

If you haven’t begun to get out of debt, you need to stop reading this and find a Financial Peace University class in your area.

Debt is a serious killer to your financial progress, your joy in life, and your relationships.  Now is the time to change.

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3. Save at Least 10% of Your Income

Once you start your debt reduction plan and you get yourself in a position to save, I suggest you stretch yourself as much as possible.  Start with saving at least 10% of your income.

When you are able, increase that saving percentage by one or two percent each year.  This seems so obvious, but when you look at the historic household savings rate over the last 20 years, it becomes extremely apparent that this point needs to be trumpeted from the hilltops.

4. Diversify Your Holdings

The three most important words when it comes to investments are diversify, diversify, diversify!

In this extremely volatile market, it becomes vital that we spread our holdings out among several different asset classes.

Diversification also includes holding short, medium, and long term holdings, alternative investments, hard assets, cash, stocks, bonds and other investments that can help spread out risk and increase returns.

So there you have it. Is this basic information? Yes, however, the application of this basic information has never been more needed.

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