Jeremiah 29:11

Okay, I thought I would start a post that will help peoples financial future including the dream of buying a Challenger.

People spend more time planning their vacation than their financial future.

Here are some basics:

1. Setting priorities - List the goals your want to pursue such as when you plan to retire, what kind of house to do you want to buy, things you want to achieve, exotic vacations.

2. Making a budget - Bring your spending under control, so that you get the most out of every dollar. For goodness sake don't use a credit card bill to pay for
another credit card bill

3. Banking and saving - some say save 3 months but I say save 6 months of emergency cash. This is for things that break or require maintnance. A dishwasher, refreigerator, air conditioner,
flat tire that got destroyed because of a nail in the side wall, or maybe you got laid off and need time to find the new job etc..

4. Basics of investing - Find a financial advisor that you can trust. You can visit some and once you find one stick with him. Typically, they will document your cash flow of your household, what your goals are and then determine a course of action on how to achieve those short/long term financial goals. They will typically recommend taking advantage of a 401K, but start other funds for college, buying a house or car etc. Getting house, auto, medical insurance should also be part of the equation to protect you assets you have saved over the years.


5. Planning for retirement - From the time you start working you need to start saving for your retirement.

For example to save $1M by retirement with a interest rate of 10% tax deferred.

Years before retirement vs how much you have to save per month.

40 - $156.82

35 - $261.21

25 - $438.73

20 - $1,306.00

15 - $2,392.78

10 - $4,841.40

5 - $!2,806.99

Put time on your side. You can't afford not to start. That is the magic of compound returns. Get started now.

7. Practice Dollar Cost Averaging - Forget the get rich quick schemes they are dangerous. Try the long term approach and by
the time you retire you can have more than you dreamed of and it could easily be millions of dollars.

Out of each pay check be sure you:

a.Tithe because after all the money you make belongs to God so give it to him.
b. Pay yourself next and put a consistant and same amount in your investments. This is for your nest egg.
c. Pay your bills and do not get bad credit.

So what is Dollar Cost Averaging - Instead of investing assets in a lump sum, the investor works his way into a position by slowly buying smaller amounts over a longer period of time. This spreads the cost basis out over several years, providing insulation against changes in market price. In a nutshell if you put $100.00/month into an investment, when the stock goes up you buy less and when the stock goes down you buy more and over the long haul you have paid less but have more stock. Bottom line is you have to be consistent and invest the same amount.
Don't chase the investment when it is up and then you don't buy because it is down you will just lose money. After all when it is down that is a sale or a bargain so why do we not buy it.....you see what I mean. That is why Dollar Cost Averaging eliminates the guess work and chasing stocks and investments. If a Challenger was on sale wouldn't you buy it?

8. Asset allocation- Do practice asset allocation. Asset allocation is about not putting all your eggs in one basket. Diversify your portfolio
based on your age in the different assets such as savings accounts, health and life insurance, bonds, mutual funds, stocks, and discuss the percentages
of each with your financial advisor.

8. Taxes - talk to a tax advisor to see how you can save taxes each year.


9. Estate planning - plan for who will inherit your wealth