It appears everyone is done reflecting on 2010 and is now focused on 2011. One of the top news topics is the economy – the state budget deficit, unemployment numbers, interest rates, trade deficit, the national debt, stock market performance, bank lending, real estate market, international investments. As politicians state, “It’s the economy, stupid.”
The global, national, state and local economies are all vital. However, as an individual there is so only so much impact you can have. The biggest impact you can have is by focusing on Your Economy. Your Economy is something you have more control over. By simply following a few basic fundamentals, Your Economy can thrive even during difficult economic times.
Seven Keys to Your Economy’s Success
- Develop marketable skills: At the heart of Your Economy is your ability to generate income. Loyalty is an admirable trait, but if we have learned anything over the past 10 years of economic volatility, at the end of the day you are responsible for your career.
- Be good at your job: The good news is with today’s social media tools, there is about one degree of separation in our business community. Everybody knows everybody. The bad news is that there is one degree of separation. Ideally, you love your job. However, even if you don’t care for your job, do it well. Understand expectations and deliver.
- Limit your debt: Couple reasons – interest and saving. Who likes to pay interest? When you have debt, there is less money to save.
- Have a rainy-day fund: Three to six-months of cash available for unexpected expenses – medical expense, job loss (or reduction), car accident, etc. I am not Paul Douglas, but I do know that it is going to rain.
- Spend less than you make each month: What a concept. Using a financial tool such as Mint makes it easy to track your income and expenses.
- Save for the future: Vacations, cars, retirement, kid’s college fund, etc. Fail to plan, plan to fail.
- Share: Make a difference.
So basic. Old-fashioned. Tough to keep up with your neighbors doing this. Not easy. Especially, in today’s society. Dare to be different. Imagine if your parents had lived this way and taught these fundamentals to you? Imagine how your kids will be if you live this way and teach them these fundamentals? Focus on Your Economy. If nothing else, you will sleep better at night.
Agreed. The best book on personal finance I ever read was “Your Money or Your Life” by Joe Dominguez. It frames the discussion in terms of expenses instead of focusing soley on income strategies (e.g. investing opportunities, how to get the best return, etc.). It also puts into perspective how you want to use your “life” hours – what type of work, how much you need to earn to keep up with those purchase choices, debts et al. It doesn’t tell you what to do just how to assess what you want.
That’s some good advice!
Perfect.