How Do I Start ?

If you want to learn how to play golf, put the ball on the tee and give it a swing! You may miss, you may hit the ground or you might actually make contact. But no matter what the outcome is, you have taken the first step.

Personal finance can be complicated or can be easy, but the most important step is to get started. Here are a couple of bullets to getting started today:

Make 4 lists

1. Expenses: write down every dollar you spent the last 30 days.

2. Income: w2, 1099, real estate, dividends, misc.

3. Insurance: health, life, disability, car, home, liability, etc.

4. Investments: 401k, IRA, ROTH, stocks, mutual funds, real estate, etc.

Get Organized

Old School: Print out all your statements and create manila folders with labels

New School: download an app like Dropbox and save the information to the cloud

Either option can be affective.

Get Educated

The only difference between where you are now and where you want to be in the future is Information. Information changes situations.

If you start your 401k and the company matches the first 5%, that is equivalent to making a 100% return if you make the initial 5% contribution.

The rule of 72: take the interest rate on your investment and divide it into 72 to see how long it will take to double. A 1% savings account will take 72 years to double, but a 8% mutual fund will only take 9 years to double. How many years do you have left in your life to double an investment ?

Find the right Financial Partner

Take the information you have from your expenses, income, insurance and investments (along with the statements) to a financial adviser you can work with.

Your initial goal is to get organized and educated on the right strategies for you and your business.

Most initial consultations are free, so this gives you some flexibility to pick the right financial partner.

Two things will happen when you find the right fit:

1. You will feel comfortable with the recommendations and fees the adviser is charging

2. You will feel more educated and understand your own financial situation so in the future if something happens to that adviser you still remain in control.

Please share your comments and experience on how you started in personal finance.

Good luck.