|Member since:||June 2008|
|About Me:||Debt free, except home mortgage.
Solid financial plan (do's and dont's):
Things you should do:
- Budget, budget (know what comes in and where it goes)
- stay out of debt (except mortgage)
- have a 6 month almost cash emergency fund
- put 15% into retirement accounts
- have a 15 year fixed rate mortgage with a payment of no more than 25% of your take home pay.
- have no more than two credit cards
- use them for online purchases (such as airlines tickets, amazon, etc)
- pay the cards off every month, well before the due date
- have term life insurance in place while you have small dependents and while you are building your financial future
- get LTC when you turn 60 or so
- when you are getting significant savings in your account, meet with a fee-only financial planner.
Things you should not do:
- collect credit cards as a sign of how well you are doing financially
- loan money to family or friends (make it a gift, w/o strings attached)
- sign up for Debt Consolidation
- buy from Cash Value Life insurance of any type
- get a car loan (it goes down in value)
- use your bank as your financial advisor
- use an insurance agent as your financial advisor
- impulse buy