7 Most Important Financial Decisions In Your Life!

Key financial decisions we made decide throughout our life determine and impact our future in terms of security, retirement and level of success. A keen understanding of the road maps in front of us will keep us prepared for pitfalls, disappointments, recessions and eventually triumphs ahead.

Here are the 7 key financial decisions that will make or break our life journey towards wealth, health and happiness.

1        College Education

It doesn’t matter what degree you’ll take for in the end, it’s what you gained along the way, i.e. the critical thinking process of gathering, organising and presentation of information into a thesis or reports and the network of contacts and resources you learned. All those determine how good your grades will be but don’t be prepared just for a job. Job’s aplenty but be prepared to strike your own since very few employees can afford to buy a bungalow, a Mercedes or a penthouse unless they are CEO, or offered stock options

2        Car purchase

If you count car as assets, you end up owning “doodads”, reference Robert Kiyosaki’s Rich Dad-Poor Dad book. Cars, smart phones and smart TV are merely consumables disguised as assets. Many a young man upon graduation buys his first car and then settles for 5 years debt loan. Upon loan completion decides to buy another new car and hence the debt cycle continues. The winner will be the car manufacturers and the banks. Be savvy, buy 2nd hand instead.

3        Choose Your Friends and Life Partner Carefully

Our life is punctuated with lots of trials and tests. Studies have shown most of us living and mixing with people who have +/- 20% of our annual gross income. Hence goes on to say we are comfortable with our life and we never strive nor dream big. Your best friends are not your friends if they hold you back your dreams, remember that. It’s time to meet with eagles, soar and hunt with them, eagles being the top earners or mercurial masters in your company.

4        Your Home buying decision

Many of us consider our home our asset. Again typically home mortgages are long terms commitments for commonly 30 years and by the time we fully pay up, we are too old to enjoy our retirement. It’s family-passed down idea or notion to assume we have a nest when we retire. However how much we can afford is subject to scrutiny that we should buy what we can afford and pay down the mortgage whenever we get a raise or a bonus and cut down the huge, huge interest costs that banks and mortgage companies rob us.

5        Investment Plan

Unless one has a 10% set aside each month for our retirement nest, one cannot hope to sleep in peace nor wake up in peace. In our country, the government forces all employees to contribute 10% and employers to top up another 10% making it 20% per month set up for retirement. It is good. Even IRAs are good but as we retire, we have some golden eggs. Still studies have shown that all those eggs will be finished in less than 5 years. Hence it is important to have an investment plan besides IRA to hone our skills, create another set of eggs so that we are ever prepared when we reach retirement.

6        Goals in Life

Life is good or bad depends on which side of the fence you sit and also more primarily on how your mindset perceives failures, success and disappointments. There’s always a silver lining behind each cloud if we can see it. Still we are on the Titanic, each day we are nearer our graves and never regret what we have done nor regret what we have not done.

7        Life Plan

Things always happen for a reason but when we plan, we are always able to come back to the chosen path in our quest for happiness, wealth and health. Besides that Plan, it is worthwhile to have regular kaizen or continuous improvement reviews to see our strays, mistakes and what else is needed beyond us. It might be a visit to another town to meet a guru, read a book, pay a master to apprentice us, get brainstormed ideas from networking but move, move nearer your goal each day.

As a conclusion to this 7 key financial decisions, maybe what one needed is not found here, don’t be afraid to ask for directions here or in the following:

  • Google finance
  • 4 Steps to Wise Financial Decisions
  • Why financial decisions?

 

 

 

 

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3 Responses to 7 Most Important Financial Decisions In Your Life!

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  2. Xoli says:

    Here are some tips for putting tthoeger a late-start retirement plan just avoid to panic. Take comfort in the fact that it doesn’t necessarily take four decades to finance a retirement plan. Make up for the loss of Compounding Returns Magic with another kind of magic. Forget about using the conventional rules of thumb to determine how much you are going to need to live on in retirement. Ignore dumb advice to up your risk profile to make up for lost time financing your retirement plan. And consider working in retirement.

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