Will 2016 be the year that you start building your real wealth? I hope it will be mine. It can be ours if we set our minds to do it. Each year, GoBankingRates, the personal finance site, asks the world’s most famous financial experts for their tips for the coming year. These are some of the best tips. You can use these tips no matter how much money you do have or don’t have in essence. Just follow the advice given and you can possibly end 2016 with lots more money in the bank or in your investments possibly. It may end up being way more than you or I have now.
Here are some of the best, as well as, the wisest of tips to use to your advantage in the New Year:
- Don’t lose money.
Warren Buffett has one piece of wisdom, which he does like to repeat, and he puts it in his own way. “Rule Number 1 is this: Don’t lose money. Rule Number 2 is this: Never forget Rule No. 1.” What does this mean to you and me? Especially since this is coming from the mouth of the Oracle of Omaha, who has taken some big public losses on his investment, which were big. He is, despite this, still one of the most successful of investors ever known. What does this mean?
The interpretations may differ here. However, I do think it means one thing, and that is to carefully think over the down side of any investment. This is to avoid investing into anything that doesn’t inspire one to have lots of confidence about it or the value of the investment itself. The very same can be said about not having a thorough understanding of it either. This is why Buffett doesn’t invest in anything tech, and when he invested in IBM, he broke this rule. He also broke his rule about not losing money.
- Make sure to construct a portfolio that is carefully balanced.
Tony Robbins is a man who went on a quest to learn about finance from some of the best minds in the business. This is because of one reason, and this reason was, he got angered by the losses that every day people did get due to banker misbehavior during a financial crisis. Robbins advice is to create a mixture of investments that do stick to the following principles. These principles are don’t lose money, seek out investments that offer potential rewards that are far greater than the risks attached to them, create a portfolio that is tax efficient and that allows you to keep most of your money as opposed to giving it to the government. Diversify your investments as much as possible. “If you do this, you will be protected no matter what,” he states.
- Do save any amount you can.
The bestselling author and analyst Whitney Johnson does advise people to invest. Do it, no matter what, and do it with savings. It doesn’t matter if the savings is just a few dollars each week. This still can amount to an amazing amount of money, if you continue to save it, over the course of many years. “And, in order to be safe in case of a financial setback, which can prove to be devastating. You should try to save at least six months of what you would normally spend and keep it in the bank. Period,” she says.
- Plan how to reach your financial goals.
It is very easy to set a financial goal for one’s self, states a former Buffalo Bills wide receiver and personal finance author Chris Hogan. “It’s pretty much like the difference between trying to wish you could go to the beach and getting the car loaded up with towels. You then want to put gas in the car and get going. “The necessity of such a said plan may sound simple, but in essence, it is the only thing that people tend to overlook when it comes to their money,” he further explains. “Any dream that isn’t backed by a plan is simply a wish.”
- Try to negotiate everything if possible
Many things are able to be negotiated. These many things do include everything from a cable plan to medical expenses to beyond. The only thing it does take is a tiny investment of time and a little bit of guts. Simple as that. I know I do that.
The author of Rich Bitch, financial expert Nicole Lapin, is very willing to give you her take on it.
“The worst thing that anyone can say is no. They usually will not for this reason,” she explains. What she is advising all of you, including myself to do is this, and that is to call all of your providers up right now and ask them for much better pricing. “If you want to start a New Year that will be financially fabulous. Do this, okay, and do it now!” I agree with her.
- Quit spending your future wealth already
Sure, the Apple Watch is very tempting, but if you give into sudden and short-term splurges. The less wealth you will end up saving in the long term and for the long term. This is something that financial coach and serial entrepreneur Josh Felber does advise you not to do. When you think about doing purchases large and small, do consider one thing, and that is if you must have that item right now and can make do just fine with something a whole lot cheaper in price tag. Would you go for something used or something you may already have? Just think over it. I know I do.
“In order to create real wealth, you need to stop spending your future wealth, and this includes on goods or services that you want today, and will eventually deprive you of wealth for the long term,” comments Felber.
- Do learn about finances as much as you can
Don’t ever let someone else make the decisions for your money. If you can’t understand finance, advises author Robert Kiyosaki, who wrote the book called Rich Dad, Poor Dad.
“Never wait around for the government, a financial adviser or your boss to help take care of you,” he adds. “You need to become financially educated so that you can make the informed decisions yourself and for you alone. Do take responsibility for both your life and future. Don’t give that right to anyone!” I got to agree with this man wholeheartedly.