Larry Edwards & Associates
Call Larry(Laury) Today!
(801) 367-8454		 Darrell McKauley
   
4 PRINCIPLES
To Create Financial Strength
1  Manage your money wisely
2  Protect your income and your family
3  Accumulate Assets
4  Preserve your legacy

 

4 Principles To Create Financial Strength

PRINCIPLE 1: Manage your money wisely

Make positive decisions with your money

  1. Don’t spend more than you make—some guidelines:
  2. Manage your debt
  3. Create an emergency fund
  4. Set financial goals

PRINCIPLE 2: Protect your income and your family

Protecting your income and protecting your assets are key ingredients for creating a stable financial future.

Building wealth includes two phases:

  • First is the PROTECTION phase
  • Second is the PRESERVATION phase:

When you are younger you need protection for your income in the unfortunate case of your death or disability. When you are older you need protection for your retirement and your legacy to your family. That is why it is important to have adequate protection, especially for life, health, disability, personal liability, and coverage of property.

PRINCIPLE 3: Accumulate Assets

There are several concepts you need to understand to accumulate assets. They are:

  1. The effect of inflation:  What is inflation?  Inflation is the increase in price you pay for goods and services over time.  As of 2012, the average inflation rate since 1913 has been about 3.24% per year.  What does this mean for your financial goals or retirement?
  2. The Rule of 72:  Divide the interest rate into 72 to estimate the number of years to double your principle.
  3. The effect of taxes:  Taxes affect your ability to save—in fact, taxes may be the single biggest obstacle in creating wealth for you and your family.
  4. The effect of risk:  Market risk is the possibility that you can lose some or all of your money in an investment because of economic changes or other events.

When you are younger you need protection for your income in the unfortunate case of your death or disability. When you are older you need protection for your retirement and your legacy to your family. That is why it is important to have adequate protection, especially for life, health, disability, personal liability, and coverage of property.

PRINCIPLE 4: Preserve your legacy.

Creating a valuable estate can take a lifetime of effort. Protect that hard work with a plan to conserve and transfer wealth during your lifetime. Make sure your legacy does not end up in the wrong hands.

To Read the Full Copy CLICK HERE