In recent years, I have come to the realization that these biblical instructions should be adhere to in all parts of life. The company you keep will inevitably affect your life in every way,  especially your finances. It can be devastating. Here is one account we all should learn from.

Janet had been a very hard worker.  She strived to pursue excellence in everything. As a young child growing up, she promised to build an independent, prosperous life for herself. How was she going to more out of life? She was going to set goals and work hard to achieve them. By her late twenties, she had accomplished many of her goals including owning her home.  She knew she wanted more, she mustered the strength and decided to open her own business.

She had worked hard for this and knew she would be successful. Just around that time, she met up with Sanico.   He pretended to share similar goals and dreams. He was persuasive and aggressive.

Before long, He was telling Janet about a business idea that he wanted Janet to help him with. She told Janet how impressed he was by her work ethic and could only trust him to help him with that idea. Janet thought about it and decided she liked the business idea enough to move forward.  Janet placed her own business goals on hold to pursue Sanico’s.  She reasoned that if everything worked according to the plan. They both would be rewarded proportionally.   However, unbeknownst to Janet, Sanico had his own master plan. As soon as the business starting getting off the ground; Sanico became increasingly more arrogant and started alienated Janet from the business. He brought others in without Janet consent.  It became obvious to Janet that she had been dealing with masterful deceiver. Janet had overlooked previous signs, which subsequently caused her to suffer greater financial lost. Janet is now relying on the court to help her recoup some of her money. 

What has happened to Janet happens to women and men all the time. They get taken by the wrong company and before they realize what is happening, their lives would have already taken a different course. I will say it again; the company you keep will impact you financially. Those who are winging it through life will eventually drag you to their standard.  It has been said that a person income will usually be the average income of his or her five closest friends. We all know that misery loves company.

Should we be vigilant and strategic when selecting the company we will keep or do business with? I say, emphatically, yes!  The price for not being careful is too high.

After this sadistic relationship, Janet is rebuilding and. now knows it is vital to guardedly watch her associates with her money.  (GR)

We cannot change yesterday. So our focus should be on our future. When life throws you lemons, you need to make lemonade. Spending time reliving the past mistakes either with your finances or personal relationships is futile. Yesterday is gone; we can learn from the past and focus on doing better from now on.

1. 2. Do your annual financial check up.

This is so important, you cannot know where you can go if you do not know where you are. Knowing where you stand with your finances is crucial. I refer to financial check up as a lighthouse; it can definitely lead you to the right destination and help you avoid financial woes.  How do you do a financial check up? Start by pulling your credit report annually. You should review your accounts and investment portfolios as well.  Just like with a medical condition, you might need expert help, get it immediately. Do not wait; you may be a grave situation.

1. 3. Create a budget.

No matter how much money you make, you need a budget.  When you create a budget, you are telling your money what to do, without a budget your money tells you what to do. How does your money tell you what to do? When you spend your check or money cannot afford to pay back at the mall and not take into consideration your bills. It is imperative that we focus on first thing first, things that are important and urgent to take care of with our money. Your budget should include your giving, you saving and calculated spending. You can only manage your money and plan properly for now and the future if you have a budget.

1. 4. Know the difference between savings and investment.

These too things are not the same. Saving is a short term strategy. When you need your money to be easily accessible, you would want to put it in a checking, saving, CD or money market account at your local bank or credit union. Today some brokerage firms offer these banking services also. On the other hand, Investing is something that should only be done if you have time. It is a long term strategy, you need seven plus years to invest. The opportunity to grow your money and to take advantage of the market should only be exercised if you have time and understand the risk associated with your decision. Suitability and your objective are as crucial as time horizon. Many people are afraid to invest because they do not understand it. They are afraid of the volatility in the market.  Therefore, it is imperative that you work with a professional, Financial Advisor, who can help you with your decisions.  We all need to overcome our fears of investing, Inflation is a silent thief; it erodes the value of you dollars. Prices are going up. A dollar today will not be able to purchase the same things tomorrow. To retain purchasing power, we all need to combat inflation by getting our money to work for us in the market.

1. 5. Insuring families, yourselves and properties against unforeseen circumstances.

Why do we get car insurance or any other type of insurance? The answer is simple; we are trying to transfer risk, the risk of having to be personally responsible for losses. Many families are carrying to many risks themselves by not properly insuring their lives. When you pass away the only way your family or love ones can continue financially is if you had insurance. Insurance can help you realize the dream of sending your children to college, help your family to stay in their home and cover final expenses.  Very few people are able to self insured, which is having sufficient savings to live on if the main bread winner were to die. Therefore, Insurance is not a leisure, it is a must have.

There are two options, temporary or permanent insurance. Temporary insurance offers an opportunity to get coverage for a specific time usually from one to thirty years. It is less expensive and most common.   Once the policy expired, the insured will need to find new insurance either with the current or a new insurance company if he/she is still insurable. On the other hand, permanent insurance allows the insured an opportunity to have insurance for life. The insured also gets to kill two birds with one stone. While the primary purpose is insurance, the insured simultaneously have the opportunity to build cash value that can be access while the insured is living through loans or withdrawals. That cash is available to the insured to use however he/she wishes. The tax deferred growth and opportunity to create a nest egg is very attractive to most people.   Talk to your financial Advisor or Insurance Agent today to see which type of insurance is best for you and your family.  Life is so fleeting, do not put off what you can do today for tomorrow.

As Financial advisor, I would advise you to spend time in the market; trying to time the market is futile.

Do you have plans to send your kids to college? A 509 or a Coverdell plan is great to set up any time. Are you working towards retirement? Do you want to enjoy your retirement or save on taxes?  Sign up to your employers’ sponsor retirement plan or set up an Individual retirement Account today. Working with a qualified financial professional to create a strategy to help you achieve these objectives should be your only concern.

The market is like life; you have your ups (bull market) and down (bear market); If you stay the course life usually rewards you for endurance. You must however, follow and stick to certain proven financial principles.

One of such principles is diversification. We all have heard that it is not wise to put all your eggs in one basket. When it comes to investment, spreading your money among several funds is a great way to reduce risk.   A well diversified portfolio will help weather those inevitable financial storms.

Systematic investment is another way to take advantage of the opportunity that exists in the market. Contributing to your investment account regularly can help reduce the risk of buying only when the market is high.  Systematic investment allows you to participate in the market regardless of where prices are.  In the long run, your average cost per share will be between the low and the high prices. That is the concept of dollars cost averaging.

Finally, proper asset allocation is imperative; Rebalancing your portfolio and doing a financial check up every year is paramount.  Investors are angry when they lose money in the market; many times it’s a direct result of their lack of involvement. When was the last time you review your retirement and investment portfolio?   You are responsible to do a financial check up and rebalance your assets at least once a year.  Take control of your finances and give the market time to reward you. I encourage you to take a closer look of your portfolios with a Financial Advisor today.