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)
