I had a boyfriend once who was much older and wiser than I. We were both very financially stable and the subject of money was something we discussed often.

I remember we were discussing a business idea and playing around with how much money we can make from this venture, when he said: “It’s not about how much you make, you know….it’s all about how much you keep.” I wish I can say that after hearing those words of wisdom I began to save, save, save, but quite on the contrary, I mostly spent, spent, spent. Only within the last few years I became fascinated with the idea of making money from saved reserves.

Here are a few simple steps that can create wealth and peace of mind.

I don’t care if the guy you are dating is “THE GUY,” never lend money to your boyfriend. Try to avoid lending money to friends unless your relationship with them doesn’t matter, or getting money back isn’t an issue.

Oh, and please, don’t be gullible….don’t open your boyfriend an account with Verizon or some other establishment, or co-sign his application. You don’t want to run after him trying to collect.

Single or divorced, you HAVE to plan for a financially stable retirement. Unless you are an heir to a large estate and have a team of Financial Advisors, please take a sober look at your retirement plan. Do you even have one? Start taking steps to PAY YOURSELF FIRST. Figure out the amount you can allocate for savings, and stick to it. When a check comes in, put away that amount and than pay all your bills.

Invest with the brain not with the heart.

Remember the 90’s? Nothing lasts forever. Don’t put all your money in one stock or one industry. DIVIRSIFY and sleep at night.

DO YOUR HOMEWORK

If there is a business opportunity that’s knocking on your door, conduct your research first and remember everything that sounds too good to be true usually is.
Gather as much information as possible before handing over your money.

If you own a home, re-visit your mortgage. If you have a good FICO and equity in your home, you can save money. “Your home mortgage is the biggest financial decision you will ever make and like any big commitment, it is worth constantly refining and improving. If your current mortgage can be lowered by even .5%, your payment will be substantially lower,” says Daniel Shkolnik, Senior Mortgage Consultant at First Source Mortgage (Daniel@firstsoursemortgage.net). That money should be put aside in savings, on top of the allocated monthly amount.

Real Estate is a good long-term investment. I know of several ladies who pulled their money together and bought small homes that they fixed and rented out. Ideally you want to break even on rent or be in a positive cash flow. Even in a bad market, real estate typically does better long term.

Several of my friends purchased duplexes and when their kids grew up and moved away, they moved into one of the apartments in the duplex and rented out the other one. After several years, they live rent free.

Life Insurance should make sense. There are several options to choose from. Discuss with family and friends and ask them how their own plans did for the last few years. Find out about their insurance agent or talk to others in the industry.

401K’s should be taken complete advantage of. Shoot for the maximum. Invest as much as you can, and be on top of it. Your accountant and your financial adviser should have your best interest in heart, but they have tons of clients like you and sometimes overlook things. You need to know where, when, and how your money is being invested.

Know you IRA’s

If you are self employed, find out about a SEP-IRA. According to LINK TO: “Wikipedia,” http://en.wikipedia.org/wiki/SEP-IRASEP-IRA,
funds are taxed at ordinary income tax rates when qualified withdrawals are taken out after age 59.5 (the same rule as for traditional IRAs). However, contributions to a SEP plan are deductible and will lower a taxpayer’s income tax liability in the current year since the money invested is tax-free.

Roth IRA works a bit differently. You invest post-tax money into the Roth IRA, but when you withdraw it, the money is tax free.

The original traditional IRA allows you to make your deductible contributions. You can change between various investments through out the years without getting taxed. However, once the money is out, you will be taxed at your current tax bracket.

Keep in mind that money in your savings accounts are earning very little. Educate yourself about various CD’s, money market accounts, and real estate investments.

Be smart, be pro active, take care of your heath, and create your wealth, and STOP
Living Pay Check To Paycheck.

To your success.