Heading into the New Year everyone wants to know, what they can do to get financially fit–fast! Well, here are my five pieces of financial advice for 2012 …drum roll!
1) PAY YOURSELF FIRST. That means the moment you earn a dollar, you direct at least the first hour of income in the day to a retirement account (like a 401k plan, IRA, Roth IRA or SEP IRA).
2) SAVE MONEY AUTOMATICALLY. That means that everything you save for yourself, make the money move automatically. You have your earnings deposited automatically for you, and it’s moved automatically at your bank into the various savings accounts you set up for retirement, emergency, college savings, home etc.
3) PAY DOWN YOUR DEBT. If you have credit card debt, rather than worry about investing right now focusing on paying the credit card debt down. Go to http://finishrich.com/dolp/ and download my tool to help you pay down your debt or go to Debt Wise which is a site I promote with Equifax that helps you pay down your debt -automatically, saving you time and money (in interest) in the process! Debt reduction is the key to financial security and freedom…so get serious about paying it down in 2012.
4) REFINANCE YOUR MORTGAGE FROM 30 YEAR TO 15 YEAR. If you can afford to make extra payments on your mortgage – do it! If you are really ready to get serious about being debt free, refinance from a 30 year to a 15 year mortgage. The rates on mortgages are the lowest that we have practically ever seen, and now is a great time to do this.
5) GET SMART FINANCIALLY. To me the best investment you can make financially in 2012 will be in your own financial education. Learn more, read books, take classes, and make sure to tune in to NBC’s TODAY show – Money 911 each week, visit the section of today.com … make learning about money a priority, learning everything you can about YOUR MONEY, what you own and what you can to invest. Financial education is a MUST in 2012!