10 Simple Truths About Money!

Happy New Year! I love this time of year because, typically, my phone rings off the hook during these first few weeks in January.  Here’s why. Lots of folks have decided it’s time to get serious about their finances. And it makes a lot of sense.

by Cathy Curtis, CFP

Cathy Curtis

The start of a new year is a catalyst for change and an opportunity to refresh and renew hopes, dreams and goals.  And for good or for bad, money is a key ingredient to making many (not all, but many) dreams reality. If it takes the start of a new year to get people motivated financially, I say that is a very good thing.

I support any kind of effort to get people motivated around finances because generally speaking, many people find financial matters to be boring, mind numbing, scary, annoying, frustrating and difficult.  Many would rather live with their least favorite in-law for life rather than deal with their finances. So I’m behind any and all tricks to get you moving. (If you’re one of the few that loves to track your expenditures daily, rebalance your portfolio every six months, and relish paying the bills, you can quit reading now!).

As I thought about this blog post, I considered two different approaches. First, I thought about a list of actions you could take starting January 1 to make your financial life more organized, give you more financial clarity, and ease your worried mind about money matters.

But before I ask you to take specific actions, I thought it important to share some basic truths about money. I call them the 10 Simple Truths About Money.  These ten simple truths form the basis of my financial planning practice. If you can begin to integrate these truths into your life, you can change your financial life. It’s that simple. 

The 10 Simple Truths 

1.  Procrastination Leads To Financial Fuzziness.
     Wouldn’t you rather have financial clarity?

2.  Your Money Personality Affects Your Money Behavior.
      Study your past to understand your financial habits and attitudes.

3.  Contrary To Popular Opinion, You Were Not Born To Shop.
       Live within your means; Don’t spend more than you earn. 

4.  Inflation And Taxes Are Money’s Enemies.
      Saving and investing are money’s friends.

5.  The Longer You Live, The More Money You Will Need.  
       A longer life means saving and investing early for a comfortable retirement.

6.  Saving, Investing, Diversifying, & Rebalancing Lead To Financial Success.
      This is an investment strategy that works, all it takes is discipline (or the help of a good investment advisor.)

7.  You Are Your Credit Score.
      Your credit score is the single most important tool institutions use to determine your creditworthiness.

8.  Money Grows Exponentially.
     The most powerful force in the universe is compound interest. – Albert Einstein.
 
9.  Stock Market Volatility Does Not Imply Direction Of The Stock Market.
      Volatility is the price we pay for a higher return.
 
10.  Choose Your Advisors Wisely
         Beware of Wolves in Sheep’s Clothing.

Learn more about the Simple Truths About Money on  my website  CurtisFinancialPlanning.  Once there, download a free copy of my ebook on the Simple Truths About Money. Or, if you’d like a hard copy of the booklet (a handy size you can carry in your purse) please go to the contact page and e-mail me, I’ll be happy to mail one to you. (While supplies last!).

Wishing you a happy, healthy and prosperous New Year!

Cathy Curtis is an independent fee-only Certified Financial Planner and a CA registered Investment Advisor based in the San Francisco Bay Area. Her firm, Curtis Financial Planning (since 2001) specializes in the finances of women, their families and their businesses. 

Cathy passionately believes in Financial Literacy and educates consumers through her website CurtisFinancialPlanning, her  blog: Of Independent Means, and her facebook business page Women and Money.  She speaks frequently about personal finance issues – most recently at the Financial Women’s Association in San Francisco, National Association of Personal Financial Advisors Norcal Group, and the Commonwealth Club.   

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Related posts:

1. Ups and Downs of the Stock Market: What’s the Impact on Your Investments?
2. From Financial Fuzziness to Financial Clarity
3. How to Indulge Your San Francisco Foodie Passion…on a Budget!
4. Personal Wealth: How to Handle a Financial Windfall
5. Manage Your Budget with Envelopes!

Posted on 05. Jan, 2010 by SFWJ in Money

Tags: Money, motivation, wealth, work/life balance