Chapter 7

Look Ahead

• Look ahead, set goals
• Devise a plan of action
• Develop sales resistance
• Spend less than what you earn
• Invest for the long term

Set Goals

Life is uncertain. You must be ready for curve balls. If you have a goal and a plan, the curve balls will not derail your life.

• Education = $$$
  Education is an asset that no one can ever take from you.
• Define Success
  Success is about more than money. It’s about being happy and having a meaningful life.
• Get your dream job
  Having a job you love is very rewarding.

Protect Yourself & Develop Sales Resistance

• Everyone is trying to sell you something
  Companies spend millions of dollars on psychological research trying to figure out ways to get you to buy their products. This is psychological warfare. Even if the psychology doesn't work on you, it will work on your friends. Then you have to fight peer pressure.
• Understand wants versus needs
  Before you surrender your money, ask yourself – “Why am I really buying this? Has advertising taken over my mind?” and “Has peer pressure influenced my decision?”
• Outsmart the advertisers
  Practice sales resistance and you will become stronger.

Spend Less Than What You Earn

• Set up an emergency fund.
  Everyone needs to have 3 to 6 months of their basic living expenses in an emergency fund. This is so that if something bad happens, you can continue to meet your basic needs without borrowing money or selling stuff for three to six months.
• Add to your savings every paycheck.
  Pay yourself first. If you add to your savings account every paycheck before you can spend it on something else, you will have a better life.
• Never borrow unless absolutely necessary.
  Borrowing money is dangerous. The stakes are higher than most people think. Your credit score can impact your rent, insurance and utility rates. It can impact your ability to get a job. It will determine the size of your car payment. Always pay your bills on time.

Summary