“Financial Facts from Fiction For Fixing Financial Fiascoes”©, by
Beverly Kennedy, Editor-in-Chief, September, 2014
PART 2 “ It’s not your fault ”
We have never been taught how to make good, sensible financial decisions and choices. Yet as youngsters we were taught how to print, write, ride bikes, spend and play sports. As adults we have been marketed, fooled or just plain persuaded to buy securities, gold, currency, real estate depending, expensive jewelry on the greed factor, yours or the salesperson. Our vanities have been exposed to clothes, jewelry and cosmetic procedures with expensive price tags. We were taught the alphabet in the proper order, but never taught the simplistic right priorities of making financial decisions.
So, enough is enough. You are now totally unprepared to deal with any financial crisis. You have never been taught to question political decisions that ultimately could hurt our economy and your financial security. Yet we have been warned all our lives about the dangers that could hurt our lives. We could drown if we can’t swim. We could get struck by lightning in a storm; or we could break any bone in our body if we are not careful. We are not prepared for the risks to our financial security which includes decisions about: *Financial,* business, *market, *political, *family, *legal, *interest rate, *liquidity, and
*health (most important of all). And the risk that is really hurting the economy. DEBT.
As young adults, we have never been told simply what we need to do before we invest or before we make any financial decision. So, “To avoid financial fiascoes”, we must put our priorities to four different permanent needs focusing first on the top four. These are in order:
#1 Balance your Budget of Income & expenses
#2 be prepared for the unknown with liquidity (available funds)
#3 We must have protection for all of life’s risks concerning our health, disability, and family estate planning.
#4 Pay off your debt ; BEFORE any long term planning (investing).
You are realizing how common sense planning has been diminished by sales & marketing to get us to buy! Spend! Invest! We are not taught or motivated to plan ahead. We as Americans new & old are totally unprepared and distracted to properly plan for the risks of life. Our first need Income & Expenses (permanent focus) is the toughest of all truths to really find out exactly what is our budget..
This is the stark reality of the whole truth.
#1 income from all sources must be listed.
#2. All assets and descriptions of these assets must also be listed. Be sure to describe whether it is an annuity, Ira, pension, life insurance, a collectibles, stocks, bonds, CD,, real estate, land, income property, gold, a business and etc.
Then the “facts from fiction”© meets with reality. All expenses and I mean all must be written in three groups or at least 2 groups if you break quarterly into 1st monthly expenses. The 2nd group of expenses, which must be listed, are yearly expenses. Now subtract expenses from the net income! This reality is going help you avoid going into further debt; and start you and your life partner on the road to financial security. Therefore, controlling your expenses and spending and staying on budget by making better choices is a good start for the solutions “for fixing financial fiascoes”© now and in the future..
Call me or email: 800-696-6566 , Bev@dpiinc.org ,if you have a question.
At your service, Beverly Kennedy, Editor-in-Chief