- Do a quick, three minute look at your finances every Friday to ensure there are no irregularities and to keep your budget on track.
- One Friday every month, look at your assets and liabilities to ensure you are on track for any financial goals you might have.
- Once a year, do long-term planning to ensure you can save up the money you want, save for big expenses or things like vacations and other things you might want to do.
- Our brains have a system one that thinks very fast, automatically, and is always on and this is where we spend most of our time.
- System two of the brain is very slow thinking and it’s how we are able to do integrative thinking that helps us make decisions.
- While both systems are necessary, system two is where you want to operate when it comes to your money and making good decisions about your financial future.
- To have financial freedom, you must look long-term to achieve short-term financial flexibility and financial freedom.
- The two key areas to look at for short-term flexibility are expenses and savings.
- The two largest areas of expenses are in housing and transportation.
- Save 10% of your income and contribute at least the minimum to get the match on a 401K to ensure you have enough savings to cover emergencies or career moves.
- We tend to ask our close family or friends for financial advice when we should really turn to a professional to help us.
- When looking for a financial advisor, there are a few things you should keep in mind, but LRC – Leadership, Relationship, and Creativity, is key.
- Big-name financial firms are not always the best places to turn to for financial advice as many times, they have a set of services or products they are expected to push, whether you need them or not.