Setting Financial Goals
The first thing to do before you begin setting financial goals for yourself is to determine your net worth. That’s an important piece of beginning investment advice because it’s important to know where you are so you can measure your progress as you move forward. Figuring your net worth is easy. All you have to do is add up everything you own and subtract everything you owe. In other words subtract your debt from your assets and what’s left is your net worth. After you have done that, the next step in the area of sound financial advice is to pay yourself first. A good rule of thumb is 10%, to savings and possibly investments before you pay your bills. For most, if they pay their bills first, they don’t have anything left with which to invest, but if they pay themselves first, they still find a way to get the bills paid.