BE PROSPEROUS: 7 Steps to Winning with Your Money and 4 Pitfalls to Avoid
Class by Doug Parry
Path to Riches…Winning with Your Money!
1) Pay an Honest Tithing & A Generous Fast Offering for Life
Pres. Gordon B. Hinckley, “Grant us faith to look beyond the problems of the moment to the miracles of the future. Give us faith to pay our tithes and offerings and put our trust in Thee, the Almighty, to open the windows of heaven as Thou hast promised. Give us faith to do what is right and let the consequence follow.” (“Lord, Increase Our Faith,” Ensign, Nov. 1987,53)
2) Stop Hemorrhaging Your Income (Stop going in debt)
You must accept personal responsibility
Income less Spending = Savings or Debt
Increase your income or Decrease your spending = PAIN/SACRIFICE!
Sell your debt payments & toys (assets that have value)
3) “Stay out of Debt Fund”
Save an initial amount of cash: $1,000 to $2,000
This small amount of “Savings” acts as a shield of protection
--to keep you from sliding into debt…stuff happens…unexpectedly!
You must have these cash resources available in order to “Pay as you go!”
Continue to add $200 monthly to the above amount—Make this a part of your monthly budget
4) Become “Debt-Free”—then—Stay “Debt-Free” for life
Begin throwing all your energy & resources to attacking your debt
Adopt a ZERO tolerance—no exceptions attitude towards debt—excluding an affordable home
5) “Emergency Fund”
Save an additional amount of cash (minimum): $5,000 to $10,000
Ideally accumulate enough cash to cover 6 to 8 months—of living expenses
This larger amount of liquid “Cash Savings” acts as a secondary wall of defense
--to keep you “Debt-Free!”
Enhance your Self-Reliance—Build up an adequate supply of “Food Storage, Clothing, & Fuel”
6) “Stop Working Someday Fund”
Save monthly a minimum of $150 for you & $150 for your spouse or $300 per couple!
Ideally save 15% of your take-home pay…Over your working-LIFE!
“Small amounts of $ saved, regularly, over long-periods of time nourishes your wealth-tree!”
Avoid high-risk, speculative investments—Scams, Schemes offered by someone you KNOW!
7) Purchase an affordable HOME—then—Pay your HOME off early
Pay off your home mortgage in 15 years or less—if possible!
“The difference between being rich & being poor is not having a house payment”
Make a down payment of 20% in order to avoid paying PMI (Private mortgage insurance)
Your total mortgage debt payment should NOT exceed 25%-30% of your take-home pay!
Keep your family secure—NEVER borrow the equity out of your home—for any reason!
“Life’s tough…it’s even tougher if you’re stupid” (John Wayne)