By Steve Sanchez
GCN Live.com
We all have dreams – some big, some small – but we all have them and they do come in all shapes and sizes.
I would like to focus on “The Money Dream”. The money dream, you ask? Steve, doesn’t this sound a bit selfish, or like something out of Gordon Gekko’s mouth from the movie “Wall Street” (Greed is Good). No, I mean that we all have a money dream in one way or another. For some, its helping your kids through college; for others its having a secure retirement; and yet for others its taking lavish trips, buying a luxury car, buying a big home, or being charitable. Nevertheless, these all involve money!
So now, lets put those dreams into action. How you ask? This economy isn’t exactly stable. My answer is this: it’s you that has to be stable, not economies! The first thing to make your dreams a reality is perspective and discipline to a plan.
Here are some steps you might need to take to start seeing your Money Dream come to pass:
1. Dare to dream big and make the decision that you will see it though regardless of the challenges or adversities that may attempt to get in the way.
2. Hire a competent adviser who shares the same philosophies to help you frame the basis for your dream. The adviser should show you how to:
• Make a budget you can live with
• Reduce debt
• Save money for short-term needs
• Invest money (safe-money) for the long term and your money dream
• Be accountable for your spending
These are merely a few steps to get started. However, these steps are vital to putting the dream on the starting line. You and you will cross the finish line. Your adviser can only hold you accountable. Making your money dream a reality is your decision and ultimately your responsibility.
Now comes the part most of us don’t want to hear. In fact, it can burst the dream bubble. Here it goes… STOP SPENDING MONEY UNWISELY!!!
The only way to see your money dream through is save, save, save, invest, invest, invest!!! There are no shortcuts unless you win the lotto or a rich relative leaves you a windfall. That is certainly not the norm; what is the norm is being accountable for every dollar coming in and going out. It doesn’t matter how much you make; you need to always – and I mean always – pay yourself first and make wise decisions for that money.
Today in our country we are at an all time low for savings. In fact, for the first time since the Great Depression, the national savings rate has fallen to below zero. America, we need to start paying ourselves first. What does it mean to pay yourself first you ask?
Well, the simplest answer I can give you is you should at least work one hour per day for yourself. This means putting a minimum of 10% of your gross income into some sort of pre-tax account like a 401k, 403b or an IRA. Now remember, this is the minimum. The more you can save and invest, the sooner your money dream will become a reality. The issue I see with our own clients who have sought our counsel is they have good intentions but terrible money habits. I explain to them we have all suffered this problem including myself and again I remind them that our perspective on money needs to change before we can change. I share with them as I’m sharing with you, that your dream is achievable and that my job primarily is to hold them accountable. Again, ultimately its up to them just as its up to you! I will caution you, not to fall for any schemes that promise high returns with no risk, THERE IS NO SUCH THING! At times when we find ourselves needing to catch up on our goals it’s easier for us to get taken advantage of. I have said this many times, Safe Money Planning Strategies are the best way to see your financial dreams come to pass. I will be doing an article soon on some Safe Strategies to consider in which none will be related to the stock market and Wall Street Casino.
In closing, I want you to dream and dream big. Your dream is your own and in this great country, we can do anything we put our minds too – history has shown us that! Remember regardless of economies your mindset is what determines your success or failure. You cannot let your past dictate your future. Yes, we all have to modify when times are tight, but modify does not mean putting our plans on hold. It simply means adjusting to see it through.
NOW GO OUT AND BUILD YOUR MONEY DREAM!
Steve Sanchez is the host of the Steve Sanchez Show, which airs on GCN Saturdays 8:00a-10:00a Central Time. Listen to the show On Demand.
The above article is merely opinion and Steve Sanchez is not offering investment advice and suggests you seek counsel from the proper professionals with the correct licenses that can help you determine your goals and objectives.
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