Brian Feroldi on LinkedIn: Follow this playbook to make your finances bullet-proof in 2024: 1: Get… | 18 comments (2024)

Here's the order of operations we recommend to build wealth in 2024:

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Follow this playbook to make your finances bullet-proof in 2024:1: Get organizedYou can’t make good decisions without good information.Start by tracking your:- Income (monthly & yearly)- Expenses- Net Worth2: Optimize insurance coverageInsurance is boring and costly, but it prevents financial catastrophes.Shop around and get coverage on:- Auto- Health- Identity- Umbrella- Term Life- Homeowners / Renters3: Align spending with your values.Look at EVERY expense. Ask, “Am I getting enough value to justify this spending?”If yes, keep it (or increase it!). If not, find ways to reduce/eliminate it.4: 1-Month Emergency FundLook at your fixed monthly costs.Save this much and keep it in a checking/savings account that you don't touch.5: Eliminate High-Interest DebtDebt turns financial inconveniences into emergencies.Attack any high-interest debt that you have. Refinance if possible.Throw every dollar at it until it’s gone.6: Employer MatchIf your employer offers a match on retirement contributions (401k, 403b), contribute enough to capture it, but nothing more.Invest it however you'd like (I use index funds for simplicity)7: Full Emergency FundHow much? That depends on your situation.3-6 months is a good starting point.8: Health Savings Account (if applicable)Do you have access to an HSA? Max it out!HSA’s are truly amazing (triple-tax-free!)9: Individual Retirement Arrangement (IRA)Max out a ROTH or Traditional.Which one depends on your tax situation.If young/low tax bracket, favor ROTH.If old/high tax bracket, favor Traditional10: Fund Kids’ Education (If applicable)Want to help pay for your kid's education?- 529- UGMA- Coverdale11: Eliminate all non-mortgage debtAttack and destroy ALL remaining debt (car, student loan) that is not a mortgage.12: Build WealthUse any extra money beyond this point to:- Taxable investing (Stocks/Real Estate)- Max-out Employer Retirement Accounts- Mortgage Payoff Fund- Irregular Expense Fund (Car/Home Repair)Mix and match as you see fit.If you’ve made it this far, you’re a financial rock star!- Give more money to charity?- Luxuries?- Vacations?Spend any remaining money however you’d like.Wishing you financial success!

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This is Good Advice

Personal Finance Playbook -An useful advice 👌from Brian !!

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In the journey of life, few aspects carry as much weight as our financial decisions. Each choice we make in managing our finances can have a profound impact on our present and future well-being. Let's explore how "life is about choices" applies to our financial realm with some enlightening examples:Saving vs. Splurging: The choice between saving a portion of income for the future or indulging in extravagant purchases reflects your approach to financial planning. A prudent decision to save can build a safety net and open doors to new opportunities down the line.Renting vs. Buying: Are you torn between renting a home or buying your own property? Both options have their merits, but the decision you make will significantly affect your long-term finances. Buying a house may build equity and stability, while renting could offer flexibility.Investing Wisely: Deciding how to invest your hard-earned money is a critical choice. Opting for well-researched, diversified investments can lead to substantial returns and financial growth, while impulsive or uninformed investments may result in losses.Budgeting Skills: Your spending habits play a vital role in your financial health. Creating and sticking to a budget allows you to prioritize essential expenses and allocate funds for saving and investing.Emergency Fund: Life is full of uncertainties, and having an emergency fund can provide a safety net during challenging times. Choosing to set aside a portion of your income for emergencies demonstrates foresight and financial responsibility.Credit Card Use: Credit cards offer convenience, but they can also lead to debt traps if not used wisely. The choice to use credit cards responsibly, paying off balances in full each month, can prevent accumulating high-interest debt.Retirement Planning: Thinking about retirement early and contributing regularly to retirement accounts can set you up for a comfortable and stress-free retirement. The choice to start saving for retirement early allows your money to grow through compound interest.Insurance Coverage: Deciding on the right insurance policies, such as health, life, and property insurance, can protect you and your family from financial devastation in case of unexpected events.Debt Management: If you find yourself in debt, choosing a suitable debt repayment strategy, such as the debt snowball or debt avalanche method, can help you become debt-free faster and improve your financial standing.Remember, every financial choice you make is interconnected, and the cumulative effect of these decisions determines your financial trajectory. Empower yourself with financial knowledge, seek advice when needed, and make mindful choices that align with your goals and aspirations. Life is about choices, and when it comes to your finances, choose wisely for a secure and prosperous future! 💪💵

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Happy New Year! We pray and believe that this year will be your year of Faith and Leadership over Wealth. We continue on this journey of financial freedom. We looked at budgeting as a starting point. We now focus on Dave Ramsey's 7 Baby Steps to Financial Freedom. Step 1: Launch Your Financial Journey with a R 20,000 Starter Emergency Fund In this initial step, your target is to quickly accumulate R 20,000. This emergency fund serves as a safety net for life's unforeseen events—those unpredictable twists you can't plan for. With various surprises on life's path, you don't want to deepen your financial challenges while striving to eliminate debt! Step 2: Eliminate All Debts (Excluding the Mortgage) with the Debt Snowball Method Now, focus on settling outstanding debts, be it car loans, credit cards, or student loans. Prioritize your debts based on balance, from the smallest to the largest, disregarding interest rates. This approach, known as the debt snowball method, empowers you to conquer debts one by one. Step 3: Establish a Fully Funded Emergency Fund Covering 3–6 Months of Expenses Debt-free? Fantastic! Don't stop here. Use the money previously allocated to debt to construct a fully funded emergency fund that safeguards 3–6 months of your expenses. This shields you from life's substantial surprises—like job loss or unexpected car repairs—without resorting to debt. Step 4: Use 15% of Your Household Income Into Retirement Investments Regardless of age, it's time to prioritize retirement planning. Allocate 15% of your gross household income to investments for your retirement. Initiate by increasing your company's retirement contributions. Further investments should flow into a retirement annuity —one for each spouse if you're married. Step 5: Fund Your Children's Higher Education With debts settled (except the mortgage) and retirement savings underway, turn your attention to accumulating funds for your children's college or university education. This step assumes your offspring navigate Algebra II and Chemistry unscathed! Step 6: Accelerate Mortgage Repayment for a Debt-Free Home Baby Step 6 is a game-changer! Your mortgage stands as the final hurdle to absolute freedom from debt. Envision life without a mortgage payment. Every additional contribution to your mortgage potentially saves you tens, if not hundreds, of thousands in interest. Step 7: Cultivate Wealth and Give Generously Debt-free individuals hold unparalleled freedom. The ultimate step is where the real joy begins. As you continue to build wealth, embrace generosity. Live a life unrestrained by financial burdens, leaving behind a legacy of prosperity for future generations. Now, that's the art of creating a lasting impact! We believe that this will be a fantastic foundation to build wealth on. Please leave a comment below if you have a testimony towards becoming debt-free and living in financial freedom. Be blessed,#FLOW #Faith #Leadership #Wealth

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If you're having trouble managing your finances, look out for these red flags:🚩🚩🚩1. Living paycheck to paycheckDespite earning a steady income, you never seem to have enough money to cover your expenses. You struggle to make ends meet and often rely on credit to bridge the gap. Savings and investments are nonexistent in your financial plan. 2. Impulsive spendingYou often make purchases without thinking them through, leading to financial strain. This could be due to sales, deals, or emotional triggers. Your budget is frequently disrupted by these impromptu buys.3. Not saving for retirementYou haven't started saving for retirement or contributing to a pension plan. Neglecting your retirement jeopardizes your financial security in your later years. You may not fully understand the importance of starting early 4. Accumulating debtYour debts continue to grow, and you're unable to pay them off.The interest and fees accumulate, making the situation even more overwhelming.You may resort to borrowing more money to cover your existing debts5. Inability to track expensesYou have no clear understanding of where your money goes each month. Without monitoring your spending, you're unable to make informed decisions to improve your financial situation. Budgeting is a foreign concept to you 6. Lack of financial goalsYou haven't set any short-term or long-term financial goals. A lack of direction makes it difficult to prioritize your spending and savings. Consequently, your financial growth is stunted7. Overspending on non-essentialsA significant portion of your income is allocated to discretionary expenses, such as eating out, entertainment, and shopping. This leaves little room for savings and investments 8. Avoiding financial discussionsYou feel uncomfortable discussing money matters, even with close friends or family members. Avoiding these discussions perpetuates your lack of financial control. You're unwilling to seek help or advice.9. Not monitoring bank statementsYou don't regularly review your bank and credit card statements for errors or potential fraud. This oversight may lead to unexpected financial losses. Keeping track of your accounts is not a priority 10. Relying on windfallsYou depend on sporadic windfalls, such as bonuses or tax refunds, to cover your expenses or pay off debt. This reliance on irregular income sources is unsustainable and prevents you from developing healthy financial habits11. Financial literacyYou have limited knowledge of personal finance concepts and tools, which hinders your ability to make informed decisions. You're not interested in learning or improving your financial literacy. This perpetuates your lack of control over money.12. Inability to say noYou struggle to decline social invitations or resist peer pressure, even when they conflict with your financial priorities. This often leads to overspending. #LarrystoneSpeaks

Being good with money has more to do with how you behave than anything.Commit to these money habits over the next 3 months to take control of your finances in 2023:• Pay yourself firstSave/invest money before splurging on wants. Do the following:- Set up automatic investments- Save 10-20% of your income- Contribute to your retirement funds- Open a Roth IRAInvesting allows you to pay for your freedom with the money earned today.• Upgrade your circle of friendsOur surroundings frequently determine our level of success. Be around people who discuss: , Business, Self-development, Investments, Life goals. The more time you spend with people who want to improve, the better you will become.• Increase your incomeThere are a limited number of expenses that you can cut back on or eliminate. However, there is no cap on the amount of money you can earn. Whether it is a side hustle, a raise, or a new business, find ways to always increase your earnings.• Invest for retirementOne of the best investment options is your 401(k). Some companies offer a free match if you contribute up to a certain percentage. Don't let that free money slip away. Every dollar counts in the long run.• BudgetA budget is a tool that gives you control over every dollar you earn. How to budget:- Allocate 50% of your income on needs- 30% on wants- 20% on savings and debt repaymentIf you can't track your expenses, you won't know where your money goes.• Live below your meansYou cannot accumulate wealth if your expenses exceed your earnings. The benefits of living within your means include: Financial freedom, Less stress about money, Saving for the future, Prepared for emergencies.• Set financial goalsMany people make better preparations for their upcoming wedding and vacation than for their retirement. Set SMART goals: Specific, Measurable, Attainable, Relevant, Time-Bound. Failure to plan is to plan for failure.• Manage your debtDebt can be a barrier to your financial success if you don't know how to manage it. Tips to manage debt: Build an emergency fund, Have a spending plan, Stick to a savings routine, Pay off your credit card in full each month.• Become financially literateLack of financial literacy makes it impossible to accumulate wealth.Do the following: - Read books- Study money topics- Study what successful people do- Listen to podcasts- Find a mentorTo master something, you must first understand it.• Create an emergency fundHaving an emergency fund is essential to handling life's unexpected curveballs. An emergency fund protects you from: Borrowing, Making bad financial decisions, Living paycheck to paycheck, Being late on your bills. #africanwisdom

Personal finance is something that affects every one of us, whether we like it or not. Unfortunately, many of us put off dealing with our finances until it's too late, which can lead to stress, anxiety, and financial instability down the line. The good news is that it's never too early (or late) to start taking control of your personal finances.If you're in your 20s or 30s, now is the time to start thinking about building a solid financial foundation. This means creating a budget, saving for emergencies, and investing for the future. It may seem daunting, but the earlier you start, the more time your money has to grow. Even if you're in your 40s, 50s, or beyond, it's not too late to start making positive changes. Whether it's paying off debt, creating a retirement plan, or simply improving your financial literacy, there are steps you can take to improve your financial situation at any age.Here are a few tips to help you get started:Create a budget: The first step in taking control of your personal finances is to create a budget. This means tracking your income and expenses, and making a plan for how you will spend and save your money. There are many free tools and apps available to help you get started.Save for emergencies: Life is unpredictable, and having an emergency fund can help you weather unexpected expenses, such as medical bills, car repairs, or job loss. Aim to save at least three to six months' worth of living expenses in an easily accessible savings account.Invest for the future: Whether you're saving for retirement or other long-term goals, investing your money can help it grow over time. Consider opening a retirement account, such as a 401(k) or IRA, and contributing regularly.Pay off debt: High-interest debt, such as credit card balances or personal loans, can be a major drain on your finances. Make a plan to pay off your debt as quickly as possible, starting with the highest-interest balances first.Improve your financial literacy: The more you know about personal finance, the better equipped you'll be to make informed decisions about your money. Take advantage of free resources, such as online articles, books, and podcasts, to improve your financial literacy.Remember, taking control of your personal finances is a journey, not a destination. It may take time and effort, but the rewards are well worth it. By starting today, you can take the first steps toward a more secure financial future.#investing #personalfinance #investing #investment #strategy #trueinvesting#stockmarket #sharemarketindia

Financial Tips for Your 20sYour 20s are an exciting time filled with new opportunities and experiences. It's also a critical period for setting the stage for your financial future. Here are some valuable financial tips for people in their 20s:Start Saving Early: Begin saving for your future as soon as possible. Even small amounts add up over time, thanks to the power of compounding. Aim to save at least 10-20% of your income each month.Create a Budget: Develop a budget that reflects your income, expenses, and financial goals. Track your spending, prioritize essential expenses, and cut back on unnecessary purchases. Budgeting helps you stay on top of your finances and build good money management habits.Establish an Emergency Fund: Build an emergency fund to cover unexpected expenses like medical bills or car repairs. Aim to save three to six months' worth of living expenses in a separate savings account. This safety net provides financial stability during challenging times.Pay Off High-Interest Debt: Prioritize paying off any high-interest debt, such as credit card balances or student loans. Focus on eliminating these debts first, as the interest can accumulate quickly and hinder your financial progress.Invest in Your Retirement: Take advantage of employer-sponsored retirement plans, such as a 401(k) or similar accounts, especially if your employer offers a matching contribution. Contribute enough to receive the maximum match to benefit from "free" money and start growing your retirement savings.Build a Good Credit Score: Establish and maintain a good credit history by paying your bills on time and using credit responsibly. A strong credit score is crucial for future financial endeavors, such as obtaining a mortgage or favorable loan terms.Invest in Yourself: Continue investing in your education and skills development. Acquire new certifications, attend workshops, or pursue advanced degrees to enhance your earning potential and open doors for career advancement.Live Below Your Means: Avoid the temptation of lifestyle inflation. While it's natural to want to enjoy the fruits of your labor, try to live below your means and avoid unnecessary expenses. Focus on saving and investing for your long-term goals instead.Learn about Investing: Educate yourself about different investment options and strategies. Consider diversifying your portfolio by investing in low-cost index funds, stocks, or real estate. Start early to benefit from the potential growth and compounding effects over time.Network and Seek Mentorship: Build a strong professional network and seek guidance from mentors in your industry. Networking can lead to new career opportunities, valuable advice, and connections that may benefit you financially in the long run.#FinancialTips #MoneyManagement #PersonalFinance #YoungProfessionals #LinkedInPost

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