March 10, 2019

Are you on Economic Outpatient Care? What you can do to Preserve your Family's Legacy

We live in a world of abundance and generations of families have worked very hard and adhered to principles of frugality like never before. Many young people are living extravagant and lavish lifestyles that their parents would never have been able to achieve without a lifetime of frugal habits. Some young people are aware of this and have been following the priesthood of Finance and Budgeting, adhering to their parents teachings, and never asking for anything form their parents. Others however, are on Economic Outpatient Care. The Book The Millionaire Next Door lays out the concept and states in one sentence, "In General, the more dollars adult children receive, the fewer they accumulate, while those who are given fewer dollars accumulate more."

EOC is not a terminal condition, yet. But if not addressed, can be. I once met a terminal cancer patient whom also had a brain tumor, at a bar... This man was very kind and generous, I will never forget my new friend. Since his diagnosis of 6 months to live with Lung cancer and an incurable brain tumor he did what I think most of us would choose to do- live it up, baby! The amazing part of the story didn't come from the stories he shared of his past but the fact that he had lived passed his allotted 6 months. Due to advances in medicine and technology he was living longer than even he or the Doctors expected. This is true of Finance as well. Most of us in our youth have this feeling of invincibility and the lack of foresight, so we tend to make lavish choices that give us tremendous pleasure. The financial and economic tools available to us today are like never before. A recent enlightening conversation pointed out to me that "Millionaire" is just the new upper middle class. As more and more people have access to more and more information about saving, investing, and planning then it becomes easier to achieve Millionaire status if tempered risks are taken at appropriate times in one's life & certain fundamentals are adhered to and followed.

With an ever increasing emphasis on consumption and overconsumption, being "insta-famous", and still keeping up with the Jones' mentality by travelling to more and more exotic places your parents maybe never could, it's more important now more than ever to be over cautious that we aren't on Economic Outpatient Care. If concerted efforts to help protect the legacy your parents and grandparents worked so hard for aren't implemented then you may have little to gain, or worse.

So what steps can you take to get off of Economic Outpatient Care? First, start a budget. Budgeting is easier today than it ever has been. With a cashless society coming closer, no more envelope system and no more handwritten ledgers. With Financial Butlers, it's easier to manage your budget than ever before. Second, stop competing with your peers financially. This game ends in loss for you, maybe even debt. If they want to play that game, let them. We can cover how to get out of debt step by step if you want to schedule a consultation with us.

Thirdly, you can thank your parents for their generosity, but now it is time to have a frank conversation with them about your new resolutions and intentions to form an estate plan. This is a remarkable time in history to be alive because there is going to be a huge generational transfer of wealth occurring. If you haven't read the Millionaire Next Door I would encourage you to do so and then I would encourage you the invite your family to schedule a meeting with us at Thomas Wilson & Co. Because through Estate Planning comes true wealth generation. We can have a frank and direct conversation about what steps you need to implement and what tools we have to help you get there. Parents, if you're adult children are on EOC and you're footing the bill and want to have more to enjoy life, schedule a family consultation with us. We are clear, concise, direct, adaptable, and work in a team atmosphere for the benefit of everyone. We love coaching our families to success. We don't want you to not give your grandchild a birthday present, but we want to discuss what perhaps an even better gift would be.

We are here to help guide you to success.

 

To schedule an in person or phone meeting with our team please, click here and see our calendar page

March 9, 2019

Is Cryptocurrency the right investment choice?

 More often than not, most of my client meetings and conversations with total strangers who become friends, involve a discussion of Bitcoin, Ethereum, or other forms of cryptocurrency. Fascinating as always, these discussions on cryptocurrency (from here out Crypto) often end in a regulatory roadblock. For the average person, delving into understanding crypto can be, well cryptic. This post isn't about the basics or history of crypto as there is a wealth of resources available to anyone interested; this post is about whether or not it is a good investment for a portfolio.

As with all articles this is not a specific recommendation to invest and if you choose to do so, it involves significant risk and should be undertaken with a better understanding of your specific risk appetite. However, this post will involve a general opinion of whether or not it's something to potentially invest in.

As a Financial Advisor, I owe it to pay it forward to all potential investors in helping them make prudent investment choices in their portfolios. I believe it's important to stay ahead of the bell curve of trends in the investment world as well as relying on fundamentals that have served so many well over time.

It's highly important to understand that crypto is a 100% digital currency that is (at the time of writing) unregulated by major governments. This lack of regulation is what appeals to many and why the returns that so many tout have been to extraordinary. But, like many unregulated or protected investments, more often than not, the stories of loss far outweigh the stories of gain. And the stories I have heard of those gaining small fortunes were the ones who "timed" their exit correctly and even have remorse on their exit as "too soon" due to the further running of their crypto holdings.

However, this does not mean it is a bad choice to be prudent and stay updated on timely news in the crypto world. When major news outlets like Bloomberg have reports on bitcoin and others, it means it is time for the layperson to keep a prudent eye on the next cryptocurrency. Allow me a moment to create a metaphor. When Myspace came out, it was a big phenomenon and drew many initial investors to it's web. Facebook was quick to enter the ring and be a major contender. At the time, no one had a crystal ball so it was uncertain as to whether Facebook or Myspace would be the "one" to be adopted my most. Here, 15 years later MySpace is a dinosaur and most youth have never heard of it. Facebook is still a well known platform and I personally, still use it as a tool to grow my business. However, now Facebook is losing to digital media that appeals to a younger and younger audience like Snapchat and Instagram. Correlations of digital phenomena such as the aforementioned can be drawn for crypto. Crypto appeals to a population that favors unregulated invesments. Other unregulated (or at the very least, less regulated) investment include things like Pink Sheets or Penny Stocks. There is no doubt people, to this day, are making fortunes in the Over The Counter stock market.

The penultimate choice of whether or not to invest in crypto comes from this train of logic. Until major regulation comes, and there are major governments and central banks that are investigating crypto as the future of currency. I postulate that one day, we will move further into this as a medium, but until the average person can be protected from fraud and other pitfalls, it is important to talk with someone you trust. Take baby steps in your understanding- everyone moves through life at their own pace and being patient and taking the time to understand it may pay dividends for your portfolio rather than jumping in to the next big crypto craze.

At Thomas Wilson & Co we are keeping a keen eye on the ever evolving environment of crypto as we see the benefits to position our clients and keep them ahead of the curve to capture an upside on the move towards a global currency that will most certainly involve a blockchain basis. As a Forbes article mentioned, "Blockchain won't solve everything, but it will certainly make things a lot easier for everyone."  Given this, it is important to delve deeper into the companies and governments that are using it and investment accordingly. True value will be gained from investments that are timely, well researched, and diversified.

In an increasingly digital world, it is vastly important to make prudent decisions with the help of experts. There is no replacement for a face to face meeting with a trusted advisor.

To Further note some advantages of blockchain and crypto: It helps simplify business and personal life through Transparent transactions. Blockchain is cost effective, long gone are bank and ATM fees. Once a transaction is confirmed the transaction is recorded on a digital ledger forever. Given it's decentralization, the availability of blockchain is available to almost anyone with a smartphone.

Recently, I learned that Kenya leapfrogged the 20th century due to smartphone technology. The key lessons learned are that Kenya has a corrupt culture involving bribing; however, with the introduction of cell phones and online banking power has been returned to the people of Kenya allowing them simplified protection of their money. This has allowed more money in the pockets (banks) of the people! Kenya and Uganda are two countries, well positioned, for exponential growth due to their acceptance of technology. I am planning a trip to these countries to see for myself and I will write a post on my experience.

Correlations of how blockchain will affect citizens globally can be postulated from this case study. You could further postulate that investing in crypto would be like investing in a bank stock; perhaps it's more prudent to find the companies and banking systems that are using blockchain to move their business into the next few decades.

At Caelian Capital Strategies, we are excited for the changes that blockchain will bring and the potential growth in our clients portfolios by investing in the companies that are using it. Click here to schedule a meeting with us, whether by phone call, face to face, or online scroll down and select it on our calendar.

March 19, 2015

How intermittent Fasting can Give you More Confidence (and other helpful tips)

http://www.businessinsider.com/daily-habits-to-increase-confidence-2015-3?utm_content=buffer1c11e&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer



"Wondering how to build your self-confidence?
Week in, week out we have guys arrive here in Los Angeles for residential boot camps.
And while we teach a lot of hard skills, we also emphasize one rather softer skill: practical confidence, the engine that drives everything we teach at The Art of Charm.
One fascinating thing I’ve come to know about confidence is that it’s mostly a set of learned skills and beliefs.
What’s more, while you’re learning these skills you can imitate the behaviors that demonstrate confidence externally and overtime you will develop the internal confidence to match..

What Science Says About Confidence

We’ve done a ton of research on confidence. Here are some things we learned:
  • Single-gender education increases confidence; 75% of students feel they learn better this way. This is probably why guys in our boot camps have such transformational experiences and easy time assimilating what we teach.
  • Confidence is a self-fulfilling prophecy. For example, children who think of themselves as the smartest in the room get the best grades.
  • The same study found confidence had more to do with lifetime earnings than IQ. In short, it’s better to be confident than smart.
  • Not only can overconfidence make you successful even when you know you’re bluffing, it might eventually become just regular old confidence.
  • Spending three minutes checking your Facebook can boost your confidence … unless people are ignoring you.
  • Good news for gamers: Playing games with an idealized avatar of yourself can boost self-confidence.
  • Learning a new skill provides a similar confidence boost to getting a $1,500 a year raise.
  • Likewise, sitting up straight in your chair will increase your overall confidence. This applies to posture overall. What’s more, behaving confidently will make you feel more confident over time.
I’ve actually experienced almost all of these running the The Art of Charm boot camps for so many years. It’s nice to see third party science validating all the cool stuff we’ve been doing. So how do you start translating this into confidence in your own life?
I’ve created this handy daily checklist to keep your confidence up and growing.

Get a Good Night’s Sleep

You may know that you need to get a good night’s sleep for proper muscle growth; But did you know that it also helps you to grow confidence? It’s important to be able to think clearly to have confidence, so you’re going to need sleep.
In fact, a study on doctors found that getting good, uninterrupted sleep not only meant higher energy levels; it also meant more confidence.
In any event, the important thing is to get a good amount of sleep every night. What’s more, I know that I always feel better about my day when it’s not rushed. That’s why I get up early — so I can start getting things done while other guys are still hitting the snooze button.
Elmore Leonard, crime novelist who created Raylan Givens, the protagonist of television’s "Justified" gave “wake up an hour earlier” as his central piece of writing advice to neophytes.
What’s more, you’ll want to lay off the snooze button. In the words of Tori Deetz, creative director of Visual Magnetics: “If you snooze even once after you initially wake up, you will waste that magical burst of energy you would have had all day if you just forced yourself to get out of bed right away.”
So start your day early with a good night’s sleep. Consider it the foundation on which your confident daily practice rests.

How to Build Your Self-Confidence with Your Morning Routine

Confidence is a practice. Sorry if I’m belaboring the point, but it bears repeating. So you’re up an hour or so earlier than you’re used to after a good night of rest. What do you do with yourself now?
You start your morning routine. What’s your morning routine? It can vary from one man to another. But here’s a basic outline for men looking to get started. Tweak it as you see fit
  1. Exercise
I know, right? We’re nuts. But the science agrees with us. Morning exercise is going to help you lose weight and burn fat better than doing it later in the day. Other benefits include improved cardiovascular impact and more energy throughout the rest of your day. And let’s not discount the fact that while everyone at work is complaining about going to the gym later, you've already done it.
An accomplishment, first thing in the day. For the first twenty minutes for the first couple of weeks, you’re going to hate it. But once you bust through that wall you’re going to walk around with your head held high. You’re a person who gets things done.
  1. Eat or Don’t Eat
You might want to skip breakfast: A process known as intermittent fasting works for some guys looking to boost energy levels and burn fat. In fact, there are a lot of ways to do it. Really, whether or not you want to get into that is up to you. I’m neither a doctor nor a nutritionist nor a personal trainer. Definitely talk to at least one of them before you start an intermittent fast.
Otherwise, you’re going to want to eat something at the beginning of your day. My advice is to not eat anything that goes into a microwave or comes out of a box. Start your day right with a healthy breakfast. Your body will love you for it after a hard, early morning workout. Here are some great options for a good breakfast from the people over at the Mayo Clinic.
Another cool thing about making a healthy breakfast is that it gives you time to collect yourself. Making your own breakfast can be a sort of working meditation. After that hard workout, take some time to focus your brain on the task at hand.
  1. Make Yourself Look Your Best
Hop in the shower. Not only are you going to need it after that workout, but it’s going to make you feel great. Some guys like to go for the cold shower that’s all the rage among men on the Internet these days. Me, I like mine hot. Some guys, including professional athletes, alternate hot and cold to activate their nervous system. After my shower, I shave, comb my hair and put on threads for the day.
Starting your day with a shower and a grooming routine is a serious investment in yourself. What you’re saying to the world is “I’m worth the time it takes to look good.” Best of all, it really doesn't take all that much time to get yourself looking spic and span. It’s not just other people who will pick up on the subtle signal that you think you’re worth it; You’ll know, too.
  1. Brief Meditation or Reading
Even if you only have ten minutes or so, I highly recommend taking ten minutes to sit quietly or read something inspiring. For some guys it’s the Bible, for other guys it’s "7 Habits of Highly Effective People."
At the end of the day, it doesn't really matter. What matters is that you’re trying to call back to what your core values and aspirations are. You’re starting your day by orienting yourself toward them. Which provides an excellent basis for the final part of your morning routine.
  1. Setting Goals for the Day
If you plan to do nothing you’re going to hit that goal every time. So before you head out into the world, come up with goals for the day. These might be work-related or they might be personal. The important part is that they be actionable, measurable goals you can complete throughout the course of a single day. Write these down, because you’re going to want to revisit them at the end of your day.
If you’re an app guy, here are seven goal tracking apps that can help you to keep your eyes on the prize.

Affirmations Will Keep You Going Throughout the Day

Flickr/Daniel Zedda
The affirmations I teach through The Art of Charm aren’t woo-woo, New Age wishful thinking. On the contrary, affirmations from The Art of Charm are designed to remind you to stay on target. They’re not a magic formula that’s going to make everything OK. They will, however, help you to keep your eyes on the prize when times get tough.
So how do you craft an affirmation like The Art of Charm?
  1. Identify the problem. For example, let’s say that you’ve been spending the last 45 minutes messing around on social media when you promised yourself you’d be a workplace superstar. It’s clear you’re procrastinating.
  2. Specify your goal in general terms. Using the example cited above, the problem isn’t social media per se. Rather, it’s that you want to be more productive than you’re currently being.
  3. Ask yourself a simple question: Why? In this case, the “why” is “Why do I want to be more productive at work?”
  4. Answer the question. For the example we’re using, the answer might be “because I want the promotion I’ve been working so hard on,” “because I’m passionate about this project” or “because I have a review coming up.” What you’re trying to do here is say — in total honesty — why you want to accomplish whatever your goal is.
  5. Say it to yourself. For example, your final affirmation in this case might be “I need to stay on task because I’ve worked too hard for this promotion to fail now.” Take a few minutes to really let it sink in.
The point here is neither to give yourself some kind of bogus pep talk or to berate yourself like a drill instructor. Rather, what we’re doing here is gentling reminding ourselves of why we want — need — to accomplish a goal we’ve set for ourselves.

Confidence Is a Look

Remember what we talked about above? Confidence is largely a set of behaviors. Even if you don’t feel confident, you can fake these behaviors. There are two easy ones I always bang on about in our articles and in boot camps:
  • Posture: Stand up straight. Sit up straight. Practice it in the mirror until it’s second nature to you. You’ll feel more confident as well as look more confident. In no time, people will start treating you like you’re a confident man. And that, my friend, makes it way easier to act in a confident manner.
  • Smile: Smiling makes you look more confident and approachable. You should practice this in the mirror, especially if you’re not a super smiley guy by nature. Remember that you want to smile with your whole face, not just with your mouth.
Try those two consistently for a couple weeks. Then take note how it has impacted how people around you perceive you and behave towards you.

Your Evening Routine



Your evening routine caps your day. It’s not as extensive as your morning routine. What you’re really doing here is twofold: First, you’re reflecting upon your day. Second, you’re setting yourself up for a good night of sleep. 
Bedtime routines help you to fall asleep faster and get more restful sleep; Some guys include evening meditation here as well. That’s going to help tomorrow’s morning routine go down a lot smoother.
  1. Clean Up and Brush Your Teeth
It’s good to spend a couple minutes washing your face and brushing your teeth before bed. I know a lot of guys think acne is something for kids, but let me tell you — it can come back with a vengeance when you get older. So take care of your skin. Multiple studies show that men’s skin is one of the most attractive qualities he can have.
  1. Change Into Your Pajamas
That might be some shorts and a t-shirt, but it should be something designed for sleep. I personally love legit pajamas. What you’re doing here is sending a subtle signal to your brain: “The day is over. You can start relaxing. See? I even have my sleep clothes on.”
  1. Recap Your Day
Go over your goals for the day. Did you accomplish them? Why or why not? Be honest. When you’re done doing that, write in your journal.
  1. Read
Put the devices away: The light from your smartphone or tablet is no good for your sleep hygiene. Read a book until you’re ready for sleep. Then start all over again at alarm time.

Checklist

  1. Sleep well.
  2. Exercise.
  3. Eat (or don’t).
  4. Wash and Groom.
  5. Meditate.
  6. Read.
  7. Set goals for the day.
  8. Craft affirmations as needed.
  9. Stand up straight.
  10. Smile.
  11. Clean up.
  12. Get into your pajamas.
  13. Recap your day.
  14. Read.
  15. Repeat."


March 18, 2015

How saving 1% of your income can make you a one percenter

Gotta love it! Source: MarketWatch

"When it comes to saving for retirement, what difference can another 1% of your pay make? Plenty.
Thanks to the magic of compounding, “a little bit (of extra savings) today can go a long way tomorrow” in terms of the retirement income it’ll generate, says Fidelity Investments, which crunched the numbers for a report released this week."
If you'll remember, I spent a lot of time explaining how compounding interest works, I even have a youtube video out on it, somewhere!

According to Fidelity’s calculations, a 25-year-old with a $40,000 salary must set aside an additional $33 a month to save an extra 1% annually. But that little bit of extra savings will translate into an additional $320 of monthly income (in today’s dollars) over a 25-year retirement. (This assumes our 25-year-old earns a 1.5% annual raise, net of inflation, works until he is 67, and invests his savings in assets that earn a 7% annual return.)
This actually scary, because at the time of writing, I am 25 years old! An additional $320 of monthly Income, compounded back into my investment, would earn me $973,986.33 by the time I am age 67. That number is definitely nothing to balk at, but exactly how many 25 year-olds' do we know socking away an additional $320 a month instead of investing it for the long term?

Of course, the benefits are less dramatic for those with shorter time horizons. But that doesn’t mean the strategy isn’t worthwhile.
The journey of a thousand miles begins with a single step. If you need to pay yourself in retirement, you need to build your retirement account like the house from the fairy-tale regarding the 3 little pigs.

Let's look at the numbers if I were to wait 10, 20, or 30 years to start saving:

According to Fidelity:
  • A 35-year-old with a $60,000 salary who saves an extra 1% annually must save $50 more a month now, but will receive an additional $270 of monthly retirement income in today’s dollars.
  • A 45-year-old with a $70,000 salary who saves an extra 1% annually must save $58 more a month now, but will receive an additional $160 of monthly retirement income in today’s dollars.
  • A 55-year-old with an $80,000 salary who saves an extra 1% annually must save $67 more a month now, but will receive an additional $70 of monthly retirement income in today’s dollars.
So, after I run some calculations:


  • A 35-year-old re-investing 1% of savings will have $385,670.98 by the time age 67 is reached.
  • A 45-year-old? Assuming the exact same parameters will have $99,943.30 by the age of 67.
  • Finally, a 55-year-old using the numbers provided by Fidelity will gain $15,728.65 by retirement (age 67)


The message: Small steps can have big consequences when it comes to retirement.
“When you ask people, ‘Can you save more?’ many people think, ‘I can’t,’” says Jeanne Thompson, a vice president at Fidelity. That’s because they “assume that they have to save so much more and a little bit isn’t going to make a difference.” But the key insight, she adds, is that “little incremental differences can make a huge difference over time.”
Which, even if my calculations are wrong, the power of compounding interest by starting sooner means a difference of $588,315 in earnings for that nest egg of yours. Which is money working for you while you sleep.

According to Fidelity, many people underestimate the impact saving 1% more can make. When asked how much an extra $50 a month would amount to over a 25-year period, the median response was $17,000—or less than half the $44,000 value Fidelity projects.
Fidelity recommends putting away 10% to 15% of annual pretax pay for retirement, including matching contributions from an employer. “But if you don’t save this much from the get-go,” don’t despair, the company says. “Start by saving up to the company match,” says Thompson and then increase your savings rate by 1% every year until you hit the 10% to 15% target.
More potentially good news: When told the benefit of saving 1% more, almost 90% of the 1,039 people who responded to a poll Fidelity conducted said it would either be an “extremely easy” or “easy” thing to accomplish.
As the economy improved, 22% of Fidelity’s 401(k) investors actually increased their savings rate over the past year—by an average of 4 percentage points (that is, 4% of their pay)."

While I would always recommend to fund your retirement with after-tax dollars, so that your bucks grow tax-free and can be accessed, at retirement, without taxation, Fidelity argues some great points here. Start saving now. Increase your savings each year. Compounding interest is one of the greatest wonders of the [mathematical] world. Now you know how the 1% became the one percent, they just invested 1%!

The Four Pillars of Building Wealth



         The concept of building wealth is one that appeals to mostly everyone, even you. Growing up, I always saw my family struggling with paying the bills because when mom would get angry she would make me well aware that raising me and my younger brother was not affordable! When did you start realizing it was time to concentrate on building wealth??
         Depending on your personality (spender vs saver) the journey forth looks different, but you are all climbing the same mountain. So, if you've decided that the journey of a thousand miles begins with just one step, these four starting points are the only available for everyone.

 

Pillar One


 Saving more or spending less (doing both is like getting a 10 second head start) is the easiest step because you have immediate control over. The way this feels though is psychological, you have to exert self-control. Have you been to another country? We live in the lap of luxury compared to almost all other first-world countries. Don't give in to peer pressure by feeling the need to keep up with the Joneses. Imagine you are 10 years older than you are now, ask yourself "How will this purchase make me wealthy 10 years from now?"

There's a common pillar of people who have succeeded financially and it's that they have lived within their means. It's time to start budgeting.


Pillar Two


Simple in concept, difficult in practice, you must earn more or start earning what you are worth. Everyone can earn more, but earning more isn't as controllable as your spending/saving habits... The best way I can get across to you is: if you are hourly or salaried you can earn more by having a side income. Flipping things, like houses or cars, starting a website, eBay, etc. It's time to earn what you're worth. If you are commissioned, you either need to work harder or sell something else because if you are commissioned and doing great, you probably wouldn't be reading this. Time to work harder and smarter!


Pillar Three


Don't go into debt. It's hard to pay off. If you have debt, pay it off.

If you need advice ask me in the contact me form above. I'll help you get in touch with someone who can give you a plan of attack to pay it off.


Pillar Four

Whether or not you like it, inflation exists. The only way to beat inflation is to invest money in an interest bearing account whether that be stocks, bonds, ETFs, a mix of all these, mutual funds, REITs, indexed variable annuity funds, indexed universal plans, etc. etc. etc. the list is long and comprehensive. The point is, you can bury money in your backyard, but it's not doing you any good.

Start with the basics and learn as you grow (go) like weightlifting and losing weight, unless you are being really risky the best thing to do is just start. Like Nike says "Just Do It"

That wraps it up really, just get started, the journey of a thousand miles begins with the first step and before you know it, you'll be looking back and seeing things you could've done differently, but ultimately you're glad you're ahead of the game.


What are you waiting for?

December 26, 2014

Resolutions and checklists. Starting a new path to financial freedom doesn't need to just be a New Year's thing

Paula Pant wrote this great article recently. I think it follows up on some of the ideas I've laid out on my site and goes into detail about things I don't focus on. It is worth taking a look and making sure to bookmark to check up each decade.


Below is a short excerpt of the bullet points I found most helpful. Credit Paula Pant
In Your 20s
  • Build your savings. This includes an emergency fund and funds for any special savings goals like vacations, holiday gifts, etc.
  • Start saving for retirement. The earlier you start, the more time your money has to grow. Start off by opening a 401(k) or Roth IRA and see if your employer offers matching contributions. 
  • Avoid consumer debt like the plague. Nothing you're thinking of purchasing is worth spending the next few decades of your life repaying. Find a way to pay for your purchases in cash, and avoid the "everyone has debt" mentality.
  • Get insured. Even though you're fairly carefree right now, you should absolutely have renter's insurance, health insurance, car insurance and life insurance. Don't cut corners; skipping insurance is penny-wise and pound-foolish. If you think owning insurance is not cost-effective, please educate yourself on insurance more. Owning it actually increases your wealth through leveraging.
  • Live within your means. This is interpreted as "Buy what you earn."
In Your 30s
  • Up your savings game. Your savings goals are bigger now –- paying for a wedding, putting a down payment on a house, having a baby. 
  • Continue your retirement contributions. Aim to put aside 10 to 15 percent of your income.
  • Invest. You don't need to be a stock market whiz. 
  • Start estate planning. Create a power of attorney, healthcare proxy (also known as a living will) and a will that outlines who will get your assets should you pass away.
  • Avoid lifestyle inflation. As your salary increases, channel those funds towards goals like savings and retirement, remember?
In Your 40s
  • Save for your children's education. If you haven't already done so, it's time to start, pronto. Open a tax-advantaged account like a 529 College Savings Plan.
  • Check your retirement goal progress. You should be able to replace 70 percent to 85 percent of your current income when you retire. Are you on track? Use an online tool to see how close (or far) you are from your retirement goals.
  • Maximize your tax savings. You're likely paying the highest taxes of your life, but you may also qualify for some great deductions. Meet with a CPA to make sure you're claiming everything you can.
In Your 50s
  • Gather an advisory board. As you near retirement, you want to make sure all your ducks are in a row and your retirement and investment strategies are ready to take you through the financial stretch. Research and meet with fee-only financial advisers and CPAs for professional advice. Make sure your financial adviser is bound by a fiduciary obligation"to you, meaning that they legally must give you advice that's in your best interest, not theirs.
  • Evaluate your portfolio. Review your asset allocation-are you being too conservative (or taking more chances than you're comfortable with).
In Your 60s+
  • Review your estate plan. Does anything need to be changed with your will, health-care proxy or power of attorney?
  • Create a retirement budget. You'll lose some expenses, like that mortgage you'll have paid off, but you'll gain others, like additional medical expenses or the need for someone to help you with the yard work. Work out a budget to make the most of your retirement funds in this stage of your life.
  • Plan out your withdrawals. How will you make use of your retirement assets? In what order will you withdraw your funds, and how much will you withdraw at a time? Sit down with your financial advisors to discuss what makes the most sense for tax purposes.
  • Downsize. Stretch your funds further by moving to a smaller home or apartment. You'll save on maintenance, property taxes, utilities and more.

While it may seem daunting to stay on track and working with all the obstacles life throws at us, this is an excellent guideline from Paula to help you stay on track! Check out her blog, Afford Anything