Learning to manage your money can be the difference between a life a struggle and a life of ease. Learning money management is not complicated.
Here are some secrets for a life of financial strength from Northwestern Mutual Chairman and CEO John Schlifske that he shared with a group of students from St. Louis University:
1. Don’t try to beat the stock market. Just make sound investments.
2. Do not borrow money to fund a lifestyle you can’t afford.
3. Learn to live below your means – in other words, live on less than you earn.
4. Always put aside an amount in savings.
5. Although it’s not as “sexy” to drive a car that might not be as nice as your neighbor’s, in the long run you will have a much better life if you can learn to live within your means.
John also says that being in a position of having to worry about being able to pay your debts makes you lose options in life, limits your freedom to easily change jobs, and even limits your ability to have the funds to take advantage of investment opportunities.
Thumbs up from The Fat Dollar! We’re here to help you learn to live well on the dollars you earn.