"Be prepared, be worried, and be careful" – Jim Rodgers
In 2014, what ever resolution you have, make sure you get your financial house in order, meaning…
- Debt, pay down all high interest credit card debts. Only hold "Working debt" you can liquidate at the time of your choosing.
- Focus on Equity, seek means to improve your ownership or equity position. Buy life insurance, education insurance, medical insurance.
- Reduce your home costs, build or rent "sustainable" accommodation.
- Build Liquidity – From January, open a saving account, pay in via standing order 10% of your salary without fail.
- Try and accumulate a "rainy day" fund equal to 6 month of your salary. Fix it at a bank. Reinvesting the interest paid.
- Cash will be king.
- Build a Defense – Buy some commodity you can store for value e.g.Gold, Land with proper title.
- Write a will.
These are simple tips, don’t procrastinate, do them.
Do them NOW!
By Kalu Aja
PS: These are simply tips and you should seek a professional financial adviser for related counsel as deem necessary.
The author (or RDM) does not make any guarantees or provide any risk or financial assurances.