The 7 Best Money Tips

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stack of dollar bills in hip pocket of pants
Alamy
By Jerry Lynch, president of JFL Total Wealth Management

I have been a financial planner for quite some time now. There are a lot of things that are very easy to understand about planning and there are many other aspects that are incredibly complex. At least when you are starting out, by focusing on the basics and doing them well, you can get a tremendous jump start on your future.

Here are a few of the best tips that I have heard over the years:

1. You will not get rich in the stock market. You will get reasonable rates of return, but that will be over a long time horizon. People get rich in one of four ways: They inherit it, they make it in real estate, they make it by owning a business, or they save a tremendous amount over a long period of time. Do not overestimate the stock-market returns and understand how it works. Develop a reasonable investment strategy, stick to it and over time you will do fine.

2. Save -- no matter what. There is always a reason not to save but successful people do the right thing on a consistent basis. Often the best time to save is when times are at their worst. Looking back on 2008, the greatest returns in your portfolio are from dollars invested during that market downturn.

3. What is your plan B? "Plan A" never works and you need to make sure you have something to fall back on. Most successful people have not had everything go their way all the time. They know that no matter time and preparation that they do, things will never go exactly as planned. Having other alternatives that you can use to make the plan work is the key to being successful.

4. The tortoise always wins! Success is not the result of one great action and it is not a one hit wonder. It is about consistently doing the right things on a regular basis. The individual that gets in early, takes additional training and education, and consistently works to make themselves better in all aspects of their lives (family, friends and business) will beat the person who is more sizzle than substance.

5. Get the smartest people to work with you. My goal is to be the idiot in the room because that means I'm in the right room filled with very bright people. Every major decision I make I run by my advisors and associates first before I do anything.

I just put an offer on a building and prior to that, I ran the numbers by my accountant,
how to structure it with my attorney, my contractor had walked through the property with me, and my mortgage person gave me the financial options ... all prior to making an offer. Nobody can be an expert at everything, and understanding what your limitations are and then bringing in top people to help will make for much better decisions.

6. I have saved more money by saying "no" than by saying "yes." Not all deals are great ones and anytime something doesn't fit what you are good at, it is better to walk away and live to fight another day. Getting involved with projects that don't fit your core strengths generally is labor intensive, mentally exhaustive, and, more likely than not, you will lose you money.

7. Understand the "reasonable range" for anything. Someone offers to sell you a brand new Porsche Turbo convertible. "Zero to 60 -- in 3.3 seconds. It has a seven-speed power-shifting transmission with 520 horsepower and 524 pounds of torque. The list on it is around $160,000 and I can get you a brand new one for around $80,000 ... what do you say?" If you say "I'm in," then you are going to be ripped off for $80,000! People get themselves in a lot of trouble when they get away from reasonable ranges. Generally, deals that seem to have no risk are the riskiest, and investments with guaranteed large returns generally will guarantee that you lose money. I am not saying that there are not great deals out there, but if it is being proposed to you, really do your homework and due diligence.

I have been fortunate enough to work with some amazingly talented people over the years and they have given me some tremendous opportunities to learn from them. People make things way too complicated. These rules are simple and will make your life a lot easier!


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23 Comments

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Jenn Deloach

I do a paid for surveys site called cashcrate and I make around $150 a month. It won't make you rich but it covers my electric and water bill lol. It's really not hard and I have seen people on there make more than me. Here is the link check it out,

http://www.cashcrate.com/5388789

June 12 2014 at 11:54 PM Report abuse rate up rate down Reply
bobktmfs

It's always a long term process to get saving for retirement, because you just can't do it all at once. You need to get rid of those debts you can get rid of, like mortgages, car loans, students loans, as soon as you can. It's not easy to do, but please try. Learn more about what these kinds of obligations can do to you at http://www.mutualfundstore.com/financial-obligations-debt. I know it's not easy but we all have to do it if we want to live well after work.

May 06 2014 at 11:52 PM Report abuse rate up rate down Reply
elkhartbiker

The best way for a successful retirement is to be COMPLETELY OUT OF DEBT when you hang it up. You just can't retire and have debt unless you have a big stash put aside.

February 25 2014 at 10:10 PM Report abuse +1 rate up rate down Reply
IBruzEZ

Take 20 to 25% of your earnings and save them first, then live off the rest. If you can't afford it then, you can't have it. Don't use credit cards except for REAL emergencies, like a sudden car repair or you can't get to work. Always max out 401k investments as savings.

February 25 2014 at 7:22 PM Report abuse rate up rate down Reply
1 reply to IBruzEZ's comment
Sunny

I know people always say never to use credit cards, but I always use them. And, I use them to my advantage. I always pay my balances in full every month because I never buy things I can't afford. Plus, I get cash back and all kinds of incentives for using my cards. I get enough cash back money each year that it pays for a summer vacation and all my Christmas gifts for my family.

February 25 2014 at 9:05 PM Report abuse +1 rate up rate down Reply
golfbtr1

I don't believe that you can't get wealthy in the stock market. I have invested in both the stock market and have purchased numerous houses. But you have to be wise with your investments. Stock market purchases have to be carefully planned based on past performances. I look for stocks that have dipped but still have the potential to rise to it's 52 week high. I try to purchase these stocks as the come off of their low 52 week point. Granted it's not an exact science but neither is the housing market. Untold millions have be lost in housing over the last decade. Timing is everything in both markets. I have taken my gains from the stock market and invested in solid income producing properties. Most of the properties are in nice areas but in need of a little work. I don't mind getting my hands dirty if the end result is profitable and you shouldn't either. But if you aren't mechanically inclined, you can still hire that out. Some of the stocks that have been profitable for me that I purchased 5 1/2 years ago and sold during that same period were: APPLE Purchased 1,000 shares at $106, then another 1,000 shares at $88. 3 years later I sold for over $400/share. Catipillar was another, Stone Energy another, Halliburton another. All were purchased 5 1/2 years ago and sold to purchase real estate properties. They had all dipped and I took advantage of those dips. I now have 3 condos on the beach in Orange Beach, AL, 2 houses in Gulf Shores, AL, 3 rent houses in my home town and a personal house that I live in. I only owe $120,000 on these properties that are worth $3,850,000.

February 25 2014 at 6:00 PM Report abuse +1 rate up rate down Reply
Joseph Lamarca

Here's a few tips I found to save
1) Pay cash, if you don't have cash, don't buy it.. But if you must....
2) Get cash-back credit card from Discover and only use that. (It's like 5% back)
3) Full coverage auto insurance for just $30/month from 4autoinsurancequote
4) Find cheapest gas from gas buddy app

February 25 2014 at 5:56 PM Report abuse +1 rate up rate down Reply
Chet Hiner

That is the best advice for making money that I have read on the web. Most people are not disciplined enough to follow it.

February 25 2014 at 1:50 PM Report abuse +1 rate up rate down Reply
sandcar25

The general population must make money however and whenever they can. Once we are given the chance to make even a little legal money doing for someone what they are willing to pay us for doing, then, we must continue doing even more for them so that they will pay us more.

We must sometimes give up our grand ideas about how we see ourselves and admit to ourselves that, perhaps someday we will become what we dream but for now we must forgo that and try to please the people that are paying us right now. This is a good stradegy and if followed up with reigning in our insatiable desire for immediate satisfication and our natural desire to want what others have got we could become independently wealthy someday.
However, after all is said and done, we may find we are not indepently rich we might find that we are really happy nevertheless even though in the end we do not have a pot to piss in.

Spend less and save more!

February 25 2014 at 1:33 PM Report abuse rate up rate down Reply
alfredschrader

To start with filling your wallet with cash like it shows in the article into is a major mistake.
Why ? To start with you could lose your wallet. Cash is a bearer instrument. It belongs to whom ever is holding it. Having a lot of cash in your wallet means it is not working for you making interest.
I never have more than $5 or $10, if that on my person.
For the same reason you don't want to have expensive gold chains, or gemstones, or anything else very valuable that can be lost.

The best wealth building tips are in Proverbs in the King James Bible.
Follow those, and you'll have more money than you'll ever need. One example ?
"The substance of a hunter is precious - a prudent hunter roasts that which he took" What ?
Everything you have came from God. Don't waste it. Don't cook more than you and your family can eat and then throw it out. Re-use and re-purpose everything (make it all last, don't waste anything) etc.

February 25 2014 at 1:17 PM Report abuse rate up rate down Reply
jrb359

It's not how much you make, but how much you keep!

February 25 2014 at 1:03 PM Report abuse +2 rate up rate down Reply