Dr. Judith Gerhart, CFP
Certified Divorce Financial Analyst 
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Easy Money Lessons
January 3, 2009
#1: Saving Equals Freedom: We live in a “have it now” society. You may think you want to be rich- and that’s a great motivator- but what you really want is freedom. The real reason you should be saving your money is that saving leads to financial security, and financial security provides freedom. Having money in the bank will give you the ability to do what you want when you want to do it.
#2: Be An Owner: When I was 26, my father-in-law taught me a lesson that would ultimately shape the course of my life. One day at his newly built appliance store, he said to me, “Rachael, there are three types of people who come to my appliance shop: the people who work here, the people who buy, and the people who own the place. If you want to be rich, you want to own the place.”
#3: Pay Yourself First. The moment you get paid, you should pay yourself 10 percent first. That’s the secret to becoming rich. So if you make $1K, put $100 away. If you do this, you will never have to worry about money - ever!
#4: Do not buy things you don’t need. Starbucks- the rich man’s coffee. Just think of the huge nest egg you could have if you saved the money you spend on things you really don’t need. Take that money and start putting it into an envelope with a notepad which states all the money you’ve added each time. It’s like a game watching the numbers add up (unlike a checking account where the numbers seem to disappear into thin air).
#5: Get RID of Credit Cards. With your savings building up you will no longer need to depend on money you don’t have. Interest kills your pocket book in the long run and you could potentially end up with more debt if you don’t pay the balance in full each month.
By Rachael Tiedeman
Posted by Judith Gerhart on January 3, 2009 | Permalink | Post a comment
Topics: Finance |
