1. Track your income and expenses.
Knowing how and where you’re spending your money is the first step towards using it more wisely.
2. Make sure that you’re adequately insured.
Adequate insurance is a cornerstone of a solid financial foundation.
3. Build an emergency fund by saving money every month in a high-yield online savings account.
Emergency funds allow you to sleep better at night knowing that your prepared to handle a large, infrequent, and perhaps unexpected, expense when it arrives.
4. Pay yourself first and save at least 15% of your pre-tax income.
Make your lifestyle conform to your budget rather than the other way around.
5. Start saving early and make it automatic.
“Compound interest is the 8th wonder of the world.” – Albert Einstein
6. Maximize tax-advantaged savings vehicles like 401(k)s, IRAs (and Roth IRAs), and 529 accounts.
When the government encourages you to save by reducing your taxes, take advantage of the offer.
7. Pay off your credit card bill in full and on time every month.
Carrying a balance on a credit card is a red flag that you may not be managing your finances appropriately.
8. Keep your debt to a minimum.
Too much debt reduces your financial flexibility and makes you more susceptible to a financial shock.
9. When buying a car, buy a used one – for cash.
With few exceptions, cars are depreciable assets and only lose value over time.
10. Live small.
Living small is environmentally friendly and leaves you with more money to spend on the experiences that you value most.
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Pathway Financial Advisors, LLC-“Pathway”), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Pathway. Please remember that if you are a Pathway client, it remains your responsibility to advise Pathway, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Pathway is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Pathway’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request. Please Note: Pathway does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Pathway’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.