Fred Harteis News Articles - The Not-A-Millionaire guide to financial security

Fred Harteis News Articles - Who doesn't want to be rich? But let's face it, getting rich gets hard very fast if one or more of the following conditions applies:

You're not an investment banker or venture capitalist.
You're trying too hard to live like one.
You went ahead and had the cutest darned kids.

Being financially secure, however, isn't out of the question. And once you achieve that, you've laid the groundwork for living well.

In fact, there's no point thinking about rich until you figure out how to get – and stay – solvent.
Solvency doesn't have anything (or at least not much) to do with how much you make. Any financial planner will tell you they've had high-income clients who, given free rein, spend themselves into the ground.

Broadly speaking, solvency means being able to meet your financial obligations. How solidly solvent you'll be depends on how you define "meeting your financial obligations." You may be able to pay the minimum on your credit card bill, but being able to pay off the whole balance every month reduces your financial risk.

Build a cushion
For life's pricey annoyances, there isn't MasterCard. There is an emergency fund.

It's a hassle to build if you don't have one, but you'll be glad you did next time your transmission sputters or your boss hands you a pink slip.

Walbert recommends setting up a high-yielding money market account dedicated exclusively to emergency money.

To fund it, besides curbing spending where you can, you might deposit:

• A bonus or financial gift from a relative

• A small amount from your paycheck every month – ask your employer to direct deposit it.

• Money you get back from a flexible spending account, a transportation reimbursement account or an insurance claim.

• An extra paycheck. If you're paid every two weeks, you'll get 26 paychecks a year. So in some months you'll get three instead of two. If your fixed monthly expenses don't change, you might be able to set aside one paycheck a year.

Live on less than you make
Earmark at least 10 percent of your gross income for retirement savings – which can be invested pre-tax in a 401(k) at work or in other tax-deferred savings vehicles.

Then live on 90 percent of your take-home pay and bank the rest for shorter-term savings goals like a down payment or vacation.


Adopt a pay-go, pay-off strategy
With a few exceptions, don't charge more than you can afford to pay off in full every month. Ideally, the only debt you should carry from month to month should be mortgage debt and student loan debt, the interest on which may be deducted on your tax return and which represent investments that can pay off later (your home and your education).

Source: Cnn.com

About Fred Harteis: Fred Harteis leads Harteis International. With a background in Agriculture Fred Harteis has lead many successful business ventures.