This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Don’t intake knowledge without effective application
Many people have access to these personal finance resources, but they have yet to make any game-changing decisions that will positively impact their financial portfolio.
Once you acquire sound financial knowledge, reflect, and then implement. The sooner you implement, the sooner you reap the benefits and elevate your finances.
Emergency Fund: It’s such a basic step that many, unfortunately, skip. But whenever you don’t have an emergency fund in place, you can easily pull yourself back into debt because you don’t have the cash to cover an inconvenience or a financial emergency. Get your emergency fund in place with a minimum of 6 months worth of expenses, with a goal of 12 months of expenses. When you have 12 months, you’re more bulletproof to financial inconvenience.
Debt: Control the debt, limit the debt, and keep the debt to a minimum – unless you’re leveraging it (e.g., using debt to invest in intelligent real estate properties). Optional debt (i.e., credit cards, personal loans, mortgages you couldn’t afford from day one, and unnecessary student loans) is optional, which means you can avoid it if you make wise choices.
Retirement: Just because you’re retired doesn’t mean you have to stop working, but your retirement goals can set you up to where you can focus on conducting the work you’re most interested in without having to be as concerned about the financial benefits of investing considerable time into your passion.
Diversification: There are so many investment opportunities that we can take advantage of, but most of us opt for the traditional stock market because it’s easy, accessible, and the most discussed avenue for investing. But high accessibility doesn’t mean it’s the best option. Keep your investments diversified so you don’t have to concern yourself with dips in the market. If there is a dip in one market, but you’re diversified in several other baskets, one or two dips will not affect you.
Control Inflation: When you earn more, it can be easy to think you should spend more. Do the opposite. Earn more and spend the same or less. Then when you arrive at a certain point, the income increases won’t even matter because you’re GOOD.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.