Then take a tip from some of the smartest people who ever lived. We found this intelligence in Money magazine:
- Benjamin Franklin once said: “For age and want, save while you may; No morning sun lasts a whole day.” In other words, save for your retirement and set aside an emergency fund “just in case.” Ideally, you should have three to six months’ of living expenses stashed in a low-cost, ultra-safe bank account or money-market fund. Bottom line: Without a comfortable financial cushion, a new roof, a lost job, or a medical emergency could easily derail your financial future.
- The next investment tip is from Miguel de Cervantes, author of the classic novel, Don Quixote. He once said: “It is part of a wise man...not to venture all his eggs in one basket.” In other words, spread your money around. Diversify by investing in foreign and domestic stocks, big and small companies, various bonds, cash, real estate, and commodities. That way, if you lose money in one place, the losses will probably be offset by earnings somewhere else. Even if one of your investments totally tanks, you won’t lose all your savings.
- The final tip comes from the artist Pablo Picasso: “Only put off until tomorrow what you are willing to die having left undone.” Despite those words, Picasso was willing to die without planning his estate and it took years for his heirs to reach a settlement with the French government. Of course, you may not have masterpieces or millions of dollars to put in your will, but it only takes a few steps to make life easier on those you leave behind. You can designate who gets what by writing your own will – but it has to be in your handwriting. Or you can set up an estate plan through a lawyer for less than $1,500 bucks. You can get referrals online at the website American Academy of Estate Planning Attorneys. Know this: the biggest flashpoint for family arguments is NOT money or big-ticket items – it’s the family heirlooms that pack an emotional wallop. So, check out the website “Who Gets Grandma’s Yellow Pie Plate?” It’s a guide to passing along personal belongings. You can get there through “YellowPiePlate.UMN.edu.”
