"Leadership to Build a Remarkable Life!" | TerryPetrovick.com

Don’t hold your breath if you are waiting for the government to bail you out . . . it’s not going to happen.

It’s always a good idea to depend on your own financial management.  I have personally experienced the saying, if you want to go broker then hire a “broker”.

We have to learn to think for ourselves.  If you have a solid financial partner consider yourself very lucky.  There are some great financial advisers out there but no one will take take of your financial interests as well as you will.

The new media is full of doom and gloom.  And the sad truth is most people believe all that garbage.  I rarely watch the main stream media and my life is filled with so much more postive energy.

The fact is we must manage our money.

There is no time like the present to review and create a new financial plan for yourself and your family.

Here are some steps to get you on the right track.

First Step: Emergency Fund

• Fund an EF (Emergency Fund) ASAP. Start with $1,000 – $3,000 depending on your income level. Focus and get this done as quick as you can!
• This fund is for emergencies you might be tempted to use credit for, like an emergency car repair.
• Get creative with funding ideas.
• Do some side work, overtime, or offer to take a co-worker’s hours if they need some time off.
• Sell stuff you don’t need to help fund your EF. eBay. Garage sales. Craigslist. Consignment.
• Consider turning off the cable, the need for a house phone, and review your cell phone plan.
• Check your spending for fluff like fast food, blended mochas, mall cruising, hair and nail expenditures, etc., etc.

Second Step: Pay Off Debt

• List your debts from smallest to largest and use our Roll-Up Plan to get them paid off, or contact us for help with designing a debt elimination plan. You cannot borrow your way out of debt.
• Debts = Credit cards, car loans, personal loans, student loans, medical bills, repossessions, unpaid taxes, judgements, liens, etc.
• Quit spending money you don’t have and stop using credit
• Make and keep a zero-based budget before the beginning of every month
• Pay cash for everyday purchases – you spend 15-20% more when you use an ATM card
• Pack your lunch, plant a “Victory” garden, quit eating out. Do whatever it takes to get it done.
• Create a laser focus on getting this done within 24-36 months. You can DO it!

Third Step: 3 – 6 Months of Income in Emergency Fund

• As soon as your credit is paid off, sock away some more cash
• A fully funded EF is your personal insurance plan – that can earn interest!
• This is not a vacation fund, tax fund, or play money fund
• This is your fund for catastrophic issues – job slowdown or layoff, medical emergency, etc.
• You will feel absolutely awesome when you have this done

Fourth Step: Review Your Retirement Plan

• Get professional advice on properly funding your retirement plan

Fifth Step: College Funding

• If you have kids that need college funding, now is the time to make a savings plan

Sixth Step: Pay Off Your Mortgage (or save for a large down payment)

• Review that budget – again
• Trim the fat – again
• Take the money that you were spending on debt, fully funding your EF, etc. and slap it down on your mortgage.
• If you pay extra each month, it actually decreases the amount of interest you pay on your loan, and gets your mortgage paid off much earlier.
• If you are renting, start saving for a BIG down payment for a home someday, or saving for a good used car you can pay for with cash.