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Put
aside a set amount regularly in savings or other investments.
The compounding of earnings can be substantial. The longer your
investment period, the greater the beneficial effect of compounding.
Click
here to calculate how fast your savings can grow. |
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Invest
in what you know. The better informed you are, the better
your investment decisions will be. If you don't want to learn
about investments, consider hiring a money manager and paying
him or her to do your investing for you. |
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Diversify
your investments. Have some of your money in an investment
that is easily converted to cash in case of emergencies. The
old adage "don't put all your eggs in one basket"
is excellent investment advice. |
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Prepare
an annual balance sheet (a list of all your assets minus
all your debts) to determine your net worth. A comparison of
your annual balance sheets will show you whether you're meeting
your financial goals. |
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Plan
where you want to be financially by retirement age. Over
90% of Americans must rely on the government or others for assistance
during retirement. With proper planning and diligence, you can
be among those who can retire in comfort. Click
here to calculate how much you need to save for retirement. |
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Update
your plan regularly. Review your financial plan often and
adjust investment choices when necessary to keep your plan on
track with your financial goals. |
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Don't
use credit to purchase consumption items. Wait until you
can pay cash for things which decrease in value. Borrowing money
to purchase a home is usually a sound idea. Using credit to
purchase household furnishings is not. |
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Pay
off your credit card balance every month. Your credit card
should be used for convenience, not as a source of long-term
financing. Credit card interest rates are much too high. |
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Monitor
your investments to maximize your after-tax return. The
difference that a 2% greater return can make in the growth of
your investments is dramatic. Click
here to calculate the monthly yield required to reach your
savings goal. |
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Have
your insurance agent do at least an annual review of your insurance
needs to determine that you are neither under- nor over-insured.
Be sure to contact your agent when you buy or sell any property. |
Lake Ridge, Virginia 22192
