Finances and Financial Discipline

Generally speaking, everyone knows what to do to secure one’s financial future. However, some don’t take action. What you really have to do is quite simple. First, you have to earn money. Second, you have to spend less than you what you earned. And third, you have to save and invest.

One of the first things you ought to do is sit down one day and write what your expenses are and also what your income is. Then you have to figure out how much you can save and also whether you can cut down on some of your expenses.

Think about ways to increase your income. My drink machine brings me about $3,000 a year. We also have t-shirt and Proshop sales. Take some of the income from these sources and invest.

You have to get rid of all your debts. If you have four credit cards, pay them off one by one, starting with the one with the least balance. It won’t happen overnight, but with financial discipline, it can definitely be done. If need be, cut back on your spending as much as possible while trying to be rid of debt.

Don’t wait for the perfect time to arrive to begin your investments. Today is the perfect time.

You need to open an investment account. Find a company like Schwab or E*TRADE and find an accountant and get involved in your investment account, so as to ensure tax benefits.

The rules for investment are simple. Keep it simple. Pick something that may not give you a huge return, but also carries less risk. It’s a good idea to diversify your investment by investing in mutual funds (which consist of a variety of stocks-some of which will go up and some of which will go down) as well as bonds and treasuries. Don’t jump into investment too quickly. Go in slowly.

Try to automate your investments every month, so that you can be on track toward achieving your financial goals

Don’t be afraid to ask questions. Talk to people who know more than you about the financial world. Just walk into a bank and ask questions. “Well, if I gave you $500, what can you make it do for me in five years?”

Don’t be afraid to invest just a small amount. But make sure you do it all the time.

My advice to others is that if you don’t know where you want to be, you won’t get there. So analyze your goals. And then take the steps to get there. Make sure your goals are realistic.

Figure out an age for retirement or at least an age where you’d like to be prepared for retirement. This will make it easier for you to figure out how much you have to invest every month in order to reach that magic number. I use a website called This shows you how much you would have in the long-term along with your interest, if you invest a certain amount every month.

If you have kids, you have to figure out if you’d like to save money for their college education, and also if you would like them to inherit money after you pass away.

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