Necessary Tools for Financial Success

Not having a system in place to control your finances and hoping it will work out is called luck…today I discuss a better alternative.

Podcast Details
Podcast Title:  Necessary Tools for Financial Success
Podcast Series: Financial Literacy Boot Camp

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WHAT WE’RE TALKING ABOUT TODAY

Check out episode MK030 (as it is a precursor to this episode)

Tool #1 – You need a system in order to achieve financial success (5:35-6:55)

Remember the acronym K.I.S (Keep it simple).

Complexity is the enemy of progress…

There are 5 ways to spend money (see episode 24 of Maven’s Keys for more details)

  1. Tax payments
  2. Debt payments
  3. Charitable giving
  4. Current lifestyle support
  5. Future lifestyle support.

 

Tool #2–You’ll need cash flow management (6:58-10:10)

  • Try to 50-30-20 rule with 50% of spending on categories 1-3, 30% on category 4, and 20% on category 5.Accompanying Resources for this tool:  FLBC Episode 44

Tool #3 – You need investments. (10:12-12:35)

Accounts like IRAs, 401(k)s compound tax-free or tax-deferred and offer a current tax break.

Accompanying Resources for this tool:  FLBC Episode 11

Tool #4 – You need insurance. (12:35-14:35)

If you don’t have enough capital to provide for catastrophes (e.g. house fire, long hospital stay, death, disability) you need to transfer the risk of that happening to someone–this is why you need insurance.

Accompanying Resources for this tool:  FLBC Episode 6

Tool #5 – You need an estate preservation (14:40-17:50)

Click here to download the letter.

Accompanying Resources for this tool:  FLBC Episode 49

#financialtools #financialliteracy #economicempowerment #personaldevelopment #behavioralfinance #financialadvice #episode60

HOW TO STAY IN TOUCH

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

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