“No matter what the politicians and monetary authorities say, the buying power of the dollar continues to decrease, with its current value 95 percent lower than it was in 1913.” The American Institute for Economic Research, January 2009 Cost of Living Report.
There’s a funny saying apropos to my Woodstock generation: Getting old is not for sissies. So true and don’t I know it! The same goes for achieving financial wellness – not for sissies.
Financial wellness takes more than balancing your checkbook, making your credit card payment on time, and investing in the stock market. It takes courage, the courage to consider and to follow a formula for success that is likely never to come out of the mouth of a traditional financial planner.
What I have studied and learned about money over the past 35 years is that making fully-informed and sound financial decisions involves more than meets the eye. The all-important first step is to get the big picture, the history of money. Yet there appears to be no educational emphasis to do so, and for good reason, given those who benefit.
However, with a snapshot overview of how we got to the financial pickle we’re in as countries, businesses families and individuals, the lights go on and new strategies make sense.
In today’s post-meltdown economy, I offer this formula for true financial wellness.
• Historical context regarding money and how it works
• A priority of paying down debts
• Inflation-adjusted to actual, not official, rate of inflation
• Multiple streams of cash flow
• An emergency fund other than credit
• Learn to live within your means
• Low to no use of credit
• The courage to stay the course
I have recently rewritten my free Special Report, The Baby Boomer Backup Plan to further provide relevant information about personal finance in today’s economy. This 14 page document is not only for those of a certain age, though they are the most at risk at this time. No catch; just thought my report might help you with your New Year’s Resolutions. Click here: Free Special Report to get your PDF copy. I will send it directly to your inbox once I hear from you.