Wednesday, July 05, 2006

10 tips from a Millionaire Dad

My dad has always given me great advice about money: Save, Stay organized, Plan for tomorrow. I could write a great book based on the advice from my parents. But someone else has written a-My-Dad-and-Money book. Here is a news release that I received, featuring 10 financial tips.

"When it comes to finance, father really does know best,
according to Charles W. Buffington, Jr. and Charles W. Buffington III,Buffington's son, who said: "My dad became a millionaire following simple principles. I listened to his advice, and I did what he said. And it worked.
Today, my wife and I are financially secure because my dad said it, and I did.

Together they have written: He Said It, I Did It Lessons From My Father
on Mastering Personal Finance.

The Buffingtons offer the following tips for minimizing debt and maximizing
1. Have a clear vision and strategy for your financial future: remember
that hope is not a strategy
2. Give generously and wisely: practice educated giving
3. Keep score know your true net worth, play aggressive offense by
investing and aggressive defense by eliminating or reducing debt
4. Live below your means
5. Create a realistic budget: Budget = Income Planned Spending +
6. Start investing now and make it a habit invest every month
7. Figure out a way to buy a home
8. Avoid debt at all costs... if you have debt, realize that it is costing
you money, and causing unnecessary worry. When paying off debt, prioritize
your payments reduce the highest-interest debt first
9. Keep good credit know your credit score and take decisive action
to improve it
10. Find multiple streams of income find investment vehicles such as
401(K)s, mutual funds, and bonds, or turn your passion or hobby into a
business. Opportunities are all around you. Open your eyes for your own
streams of income.

The sad reality is that millions of Americans lack basic financial knowledge.
Consider these statistics:
Eighty-five percent of Americans have a true net worth of less than $250
The average savings of a retired couple amounts to only $7,000
Paying off debt accounts for 92 percent of family disposable income

For the senior Mr. Buffington, these statistics are all too real. Like many,
living on the paycheck-to-paycheck treadmill was a part of life for Mr.
Buffington. Buffington recalls that he even thought he was doing pretty well
until he lost his job and realized that his choices were limited because he had
no savings and lots of debt. At that point, Buffington saw that he had one of
two choices he could be a victim, or he could be a victor. Buffington chose
the latter and sought help from the best resource he had available: his
Father. And Buffington did far more than break the confines of debt; he
became a millionaire and achieved financial freedom.

Charles Buffington, Jr., founded a management consulting firm and is a
graduate of Harvard Business School. He runs the Buffington Foundation,
which works with charities that help women and children. Charles Buffington
III is a graduate of West Point and holds an MBA from Emory University. "


John W said...

It's not rocket science.
Everything you need to be successful you already posses.
I think believing yourself to be successful is the biggest obstactle you will ever encounter.

"Wether you think you will or you think you wont, you are absolutely correct." Henry Ford.

A plan, determination & time. Don't forget to celebrate the small victories along the way (like paying off that first credit card).

Neel Shah said...

theres another book called "rich dad, poor dad" and it also gives good tips about personal wealth management...

the question that most interested me was "why does someone who wins a lottery worth 1 million stay a millionaire???"

thats because (s)he wouldnt know anything about savings and predictions and all..

cheers :)