20 Life and Financial Principles for a Better Future

These are a few principles gleaned from personal experience, years working as a business consultant, and from my experience as an advisor in the Governor’s Finance for the State of California. If you take the time to read through and apply even a few of these principles, I’m sure you’ll see positive results in your life!

1) Manage your life, rather than let your life manage you.

2) Track your income and expenses – without that, all else is just guessing.

3) Evaluate your financial decisions and purchased based on your “Return on Investment.”

4) Manage your risks to achieve your end goals (use savings or insurance, etc.).

5) Know your goals – they help you to keep your focus.

6) Money does not behave like math.

7) Spending wisely – (i.e.: rent versus buying).

8) Maintain balance in your life.

9) Know how to generate revenue.

10) The world is a complex place. By the time you hear of the “good deal”, it’s likely too late.

11) Character impacts us and others.

12) Wealth only makes you more of what you already are.

13) If you see someone with a nice home, it means that they are likely doing something of value for their society.

14) Be a producer, in contrast to a consumer.

15) Your life financial plan is like going across an ocean in a general direction with the hope of finding a safe harbor which you cannot yet see. Many things, such as waves, storms, and poor choices will impact you as you negotiate your way. It is not like following a path through the woods.

16) Everything you do has financial implications – perhaps big, perhaps small.

17) Of the five major resources in life, you are always transferring one resource into the form of another resource.

18) Keep your maintenance costs low, and maximize assets you can invest in order to achieve a greater return on investment and build for the future.

19) Plan long-term. Maturing is sacrificing short-term satisfaction for long-term gains.

20) Discipline is a key element for almost everything.

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