Finances - Fundamental Philosophy - Never Lose Money

By Dustin Silverspoon

There is something great about A-list living and Finances, the eighteenth book of a twenty-one book series (The Insiders' Lifestyle Guides), is the next financial step to achieving such an extraordinary life. Become an owner of your money. Live where you want to live. Live how you want to live. Eat what you want to eat. Have a hobby. Be Passionate. Aim high, but don't over reach.

Look Inside: Focus on "Your" Goals; Build Life Long Friendships; Keep Life in Perspective; Work for the Passion and Fun of it; Running a Business; Hire Well and Manage Little; The Intelligent Investor; Learn from Mistakes; Wealth is About Accumulation; and Investment Portfolio.

Finances - Fundamental Philosophy - Never Lose Money by Dustin Silverspoon is a fun and entertaining short read. Since jet setting is part of such a grand lifestyle, the Insiders' Lifestyle Guide series theme includes a cultural or travel experience with every book.

Information is Timeless: Everyone holds a secret desire to be part of the A-list seeking a confident, fashionable, and extraordinary life. These series guides make transformation routine to which all men and women will relate - The Complete Makeover Series.

Actionable Strategies: The Insiders' Lifestyle Guide series contains specific strategies in each book and edition that can transform lives. It details social skills of boosting confidence, replacing bad habits, and reinventing one's self. This book will appeal to professionals, parents, and generations of young adults.

Appeal of the Authors: The Insiders' Lifestyle Guides are written by a team of contributing authors, all with a witty, quirky, slapstick appeal.

Series Overview: The Insiders' Lifestyle Guides is a first, of a twenty-one book series, that will be revised and re-launched periodically with all new material. Each book features famous themed cities represented of the book covers and includes an introduction comprising a short story about its featured city.

• Language: English
• Publisher: Aauvi House Publishing Group
• Release date: May 3, 2013
• ISBN: 9781301050604

Dustin Silverspoon

Dustin Silverspoon is one of the contributing writers for the several Insiders' Lifestyle Guides book series (A Complete Makeover Series). See the several press releases below to learn more about each book. Author Backstory: Dustin Silverspoon has always been on the path to success. Essentially the hardest thing to do in life is to actually believe and commit to your ideas. But this is exactly what Dustin has done. Not always functioning well in structured organizations and not one to like someone having authority over him, he believes he can do a job better than anyone else and will drive for maximum responsibility and accountability. He enjoys creating business strategies and thrives on the process of achieving his goals. Once he has achieved a goal, he is quick to replace it with a greater goal. Smashwords Titles by Dustin Silverspoon: Career - Occupation, Profession, Boardroom Finances - Fundamental Philosophy - Never Lose Money Entrepreneurs - Being Your Own Boss - It's Risky Not To Be Press Releases at AauviHouse.com Press & Media: San Jose, CA (August 9, 2012) - Aauvi House Publishing Group, Rags to Riches Entertainment Division, Announces New Book Release - Entrepreneurs - Being Your Own Boss - It's Risky Not To Be by Dustin Silverspoon San Jose, CA (August 2, 2012) - Aauvi House Publishing Group, Rags to Riches Entertainment Division, Announces New Book Release - Finances - Fundamental Philosophy - Never Lose Money by Dustin Silverspoon San Jose, CA (July 23, 2012) - Aauvi House Publishing Group, Rags to Riches Entertainment Division, Announces New Book Release - Career - Occupation, Profession, Boardroom by Dustin Silverspoon

Book preview

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Finances

Fundamental Philosophy – Never Lose Money

DUSTIN SILVERSPOON

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Rags to Riches Entertainment Group

An imprint of Aauvi House Publishing Group

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Published by Aauvi House Publishing Group at Smashwords

Copyright 2013 Dustin Silverspoon

All rights reserved. By payment of the required fees, you have been granted the non-exclusive, non-transferable right to access and read the text of this e-book on-screen. No part of this text may be reproduced, transmitted, down-loaded, decompiled, reverse engineered, or stored in or introduced into any information storage and retrieval system, in any form or by any means, whether electronic or mechanical, now known or hereinafter invented, without the express written permission of publisher.

E-ISBN: Smashwords Edition

Aauvi House Publishing Group, the portrayal of double-A’s formed in a broken circle, and the Aauvi name are registered trademarks of Aauvi Group, Inc.

Aauvi House books may be purchased for educational, business, or sales promotional use. Online editions are also available. For more information, contact us at [e-mail].

While every precaution has been taken in the preparation of this book, the publisher and author assume no responsibility for errors or omissions, or for damages resulting from the use of the information contained herein.

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Titles by Dustin Silverspoon

Career – Occupation, Profession, Boardroom

Finances – Fundamental Philosophy – Never Lose Money

Entrepreneurs – Being Your Own Boss - It’s Risky Not To Be

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Contents

Book Cover

Title Page

Copyright

Introduction

1 – Focus On Your Goals

2 – Build Life Long Friendships

3 – Keep Life In Perspective

4 – Work for the Passion and the Fun of It

5 – Running a Business

6 – Hire Well and Manage Little

7 – The Intelligent Investor

8 – Learn from Mistakes

9 – Wealth is About Accumulation

10 – Investment Portfolio

Closing Remarks

End of Book

About the Author

About the Publisher

Books by Aauvi House

Excerpts by Aauvi House

Credits

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Introduction

In its brief history, Aauvi House Publishing Group has become the new it marketers of information-based lifestyle solutions in the self-help and how-to markets for all age groups. Reinforcing a belief that living a planned extraordinarily fulfilled lifestyle is of paramount importance to its readers.

The Insiders’ Lifestyle Guides series is a first, of a twenty-one book series, that will be revised and re-launched periodically with all new material. These books feature famous themed cities represented by the book covers and include an introduction comprising a short story about its featured city. Annually, the series guides will be rolled up as chapter inserts into a single book and sold during the holiday season.

Anyone who desires the secrets to A-list living, values their appearance, is concerned about lifestyle or just needs more information can benefit from reading and continually referring back to the Insiders’ Lifestyle Guides series. Each book – practical in its approach – is full of facts that teach you how to make the most of your life, how to achieve peak performance, and how to maintain general health. In short, the Aauvi House Publishing Group, Rags to Riches Entertainment imprint’s ability to offer its readers a more complete and concise migration path to an extraordinary red carpet lifestyle, just got better.

Information Is Timeless

Everyone holds a secret desire to be part of the A-list seeking a confident, fashionable, and extraordinary life. These series guides make transformation routine to which all men and women will relate.

Actionable Strategies

The Insiders’ Lifestyle Guides series contains specific strategies in each book and edition that can transform lives. It details social skills of boosting confidence, replacing bad habits, and re-inventing one’s self. These books will appeal to professionals, parents, and generations of young adults.

About the Authors

The Insiders’ Lifestyle Guides series are written by a team of contributing authors, all of whom have a witty, quirky, slapstick appeal.

About Our Cover Story – Seattle

Since jet setting is part of such a grand lifestyle, the Insiders’ Lifestyle Guides series theme includes a cultural or travel experience with every book. That is, between promotional junkets, film festivals and red carpet appearances, celebrities can rack up as many frequent-flyer miles as they do trips to rehab. And so can you, once you have an insider bird’s eye view of the possibilities.

Whether traveling by plane or virtually by way of these pages, our cover story is Seattle Washington. The Space Needle is Seattle’s most recognizable landmark of the Pacific Northwest region of the United States and the symbol of Seattle. It was built for the 1962 World’s Fair, and stands 60 stories tall. The fairgrounds surrounding the Needle have been converted into Seattle Center, which remains the site of many local civic and cultural events.

Seattle is the county seat of King County, in the state of Washington. With 608,860 residents as of the 2010 Census, Seattle is the largest city in the Pacific Northwest region of North America and the largest city on the West Coast north of San Francisco. The Seattle metropolitan area of about 3.4 million inhabitants is the 15th largest metropolitan area in the United States. The city is a major coastal seaport situated on a narrow isthmus between Puget Sound (an arm of the Pacific Ocean) and Lake Washington, about 114 miles south of the Canada-United States border. In 2010, the container ports in Seattle Metro (Seattle-Tacoma) were the third busiest in the United States, after Los Angeles-Long beach and New York, serving as a major gateway for trade with Asia.

Logging was Seattle’s first major industry, but by the late 19th century the city had become a commercial and shipbuilding center as a gateway to Alaska during the Klondike Gold Rush. By 1910, Seattle was one of the 25 largest cities in the country. However, the Great Depression severely damaged the city’s economy. Growth returned during and after World War II, due partially to the local Boeing Company, which established Seattle as a center for aircraft manufacturing.

About Finances

There is something great about A-list living and Finances, the eighteenth book of a twenty-one book series, is the next financial step to achieving such an extraordinary life. Become an owner of your money. Live where you want to live; live how you want to live; eat what you want to eat; have a hobby; be passionate; aim high – but don’t overreach.

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Focus On Your Goals

Today, individuals are living longer and healthier lives. However, ensuring that you can enjoy a longer and more active retirement makes it imperative to establish financial goals and plan ahead for a secure future.

Rising healthcare costs, changes in employer-sponsored benefit plans and potential future changes in Social Security benefits can affect the quality of your retirement.

Ironically, financial worries derive not necessarily from lack of money, but often from lack of planning. Solid financial planning can help take the uncertainty out of your financial future.

This book will help you begin the process of establishing financial goals and structuring your financial plan.

Identify Your Financial Goals

Every financial plan should include both savings and investment goals. By establishing goals, you have something to work toward which can help keep you focused.

It is recommended that you target at least 10 percent to 15 percent of your net income to save and invest each month. Generally, the best way to achieve this goal is to pay yourself first by establishing an automatic withdrawal that goes directly from your paycheck to a savings or investment account each pay period.

Determine Your Goals

While goals differ for everyone, most individuals should include those listed on the next page. Begin saving and investing now for short-term, intermediate-term and long-term goals.

Short-term (less than three years):

Pay debt in full.

Establish a good credit reputation.

Implement a disciplined savings and investment plan.

Create an emergency fund of at least three to six months of basic living expenses.

Purchase a vehicle.

Purchase insurance coverage appropriate for your situation.

Prepare and execute a will and power of attorney.

Intermediate-term (three to seven years):

Make the down payment on a home.

Plan for a wedding.

Increase income for additional goals or to reach your goals sooner.

Prepare for the birth or adoption of a child.

Provide for your advanced education.

Long-term (more than seven years):

Establish and work toward your retirement goals.

Provide for your children’s college education.

Plan to support aging parents.

Consider long-term healthcare.

Maintain desired standard of living for your lifetime.

Assess housing options and needs for retirement.

Consider the following steps to help you plan and potentially reach your financial goals:

Define your goals – what do you want?

Set an amount – how much money do you need for your goal?

Set a target date – when do you need to meet your goal?

Write down your goals – when you write down your goals it helps you assess what you really need or want.

Prioritize – prioritizing your goals will help you to develop a plan you can follow.

Develop a plan – establish a budget that includes your financial goals.

Review your progress – periodically review your plan and make adjustments as necessary.

Calculate Your Net Worth

Once you have established your financial goals, the next step is to determine the resources you will need to help you achieve those goals.

Prepare a personal financial statement to calculate your net worth – the value of everything you own minus the value of everything you owe. Use actual market values – what your property would be worth today if you decided to sell it and what your loans would cost you today if you decided to pay them in full.

Identify Your Sources of Income

Once you have completed your personal financial statement, you should be able to identify the resources available to help you achieve your goals. Net worth is just one aspect of your financial situation.

Income from resources such as salary, investments and retirement are important in helping you to achieve your financial goals. Determine how much is coming in, how much is going out and where it is going. When calculating your personal finances, be sure to include income from all of these resources.

Use a budget work sheet to estimate your current monthly income and expenses. It may help to use your bank statements and credit card account statements. Record your expenses to analyze your spending habits and make adjustments to help you achieve your financial goals.

Assess Your Resources

Now that you have identified your financial goals, calculated your net worth and determined your income, the next step is to assess all of your resources and begin developing your financial plan.

Emergency Funds and Insurance

This assessment should begin with a look at your financial foundation. That foundation helps protect you against unexpected losses that might otherwise keep you from meeting your goals.

A strong foundation begins with an emergency fund of easily accessible savings. Most experts recommend this fund should equal at least three to six months of basic living expenses to help protect you from unexpected bills or unemployment.

If you do not already have an adequate emergency fund, consider making it a priority on your list of financial goals. Keep your emergency fund in a liquid, easily accessible account such as a savings or money market deposit account.

Even an emergency fund cannot prepare you for catastrophic loss or illness. Most individuals buy insurance for these costly emergencies.

The most common types of insurance include:

Automobile.

Property (renters, homeowners).

Health.

Life.

Long-term care.

Disability.

It is important to review your current coverage’s at least annually to determine if you are adequately covered. Remember to factor in group coverage provided by your employer and government coverage’s such as Medicare, Social Security, disability insurance, and workers’ compensation insurance. You should also contact your attorney regarding your estate planning documents including a will, durable power of attorney and healthcare directives.

Save for Your Goals

Once you have established a solid foundation with an emergency fund and insurance, you are ready to begin saving and investing for your financial goals. For this next exercise, you will use a savings goals worksheet to identify the gaps between your financial goals and your resources. Then take a look at ways to combine the two.

Finding the Gaps

Now look back at your savings and investments line on your budget worksheet. How does the amount you are currently saving compare to the amount you have determined you should save each year to reach your goals?

Some individuals discover they are saving more than enough to meet or exceed their goals – but for many, the conclusion is much different.

Your savings goals worksheet encourages you to work on your goals today. It assumes your pay increases and returns on investment will only keep pace with the rate of inflation.

Adjusting Your Plan

Here are some questions to ask yourself if the amount you are now saving falls short of the amount you need to save to reach your goals:

Are you paying yourself first with a disciplined saving and investment program that saves at least 10 percent to 15 percent of your net income?

Could you increase the amount you are saving?

Could you earn more and spend less?

Are you spending too much on impulse purchases and neglecting long-term savings goals?

Are your goals too ambitious?

Could you change or eliminate any of your goals?

Could you delay any target dates of your goals?

With these questions in mind, take another look at your savings goals worksheet and at your budget worksheet. Make adjustments in both until your actual savings is equal to your goal savings. When you have completed your adjustments, you should have a savings plan for this year and a forecast for your future.

Repeat this exercise annually. If your income increases, you receive interest and dividends, unexpected bonuses or find other ways to accelerate your savings, then you should accelerate your progress toward your goals. Be prepared to modify your goals if you suffer a setback. The key is to remain flexible.

Plan Ahead

Now that you have completed your analysis, it is time to create your action plan for next year.

Your Savings Plan

You can begin by developing your savings plan, including the amount you plan to save and the method you will use to save it. An effective savings plan begins with these basic elements:

Start saving early. The earlier you begin, the more money you can potentially accumulate.

Save your pay increases. Either put the money into your retirement plan or into another savings plans.

Establish an automatic savings plan. Have money deducted from your paycheck or your bank account and automatically deposited in a savings account.

Your Investment Plan

Next, examine each of your financial goals to determine whether it is a short-term (less than three years), intermediate-term (three to seven years) or long-term (more than seven years) goals. This will be determined by the length of time you have until the goal’s target date or until you will need the money allocated to that goal.

For each of your goals, consider how much investment risk you are willing to take for the goal. Generally, the riskier an investment, the more it fluctuates in value. Generally, its potential return may be greater, but so is its potential loss.

To determine how much risk you are willing to take for each of your goals, consider the following:

How essential is the goal?

Can you afford to lose any or all of the money you are investing?

Do you want to protect that money – even if it means potentially lower returns?

Update

Review your financial situation and adjust your goals and plans for reaching them at least once each year and at significant life events – such as marriage or divorce, the birth or adoption of a child, a job promotion or unemployment, the purchase of a home or other real estate, relocation, or the death of a spouse or heir.

A good time for your annual review is when preparing your federal income tax return when financial records are readily available.

Evaluate your life-long goals and anticipate the following economic factors that affect your plan:

Rate of inflation.

Your federal income tax bracket.

Interest rates.

Overall economic conditions.

Assess your resources and update your worksheets, so you can see what adjustments you need to make to your financial plan.

Consider Professional Assistance

You may want to consider working with a Certified Financial Planner practitioner if:

You want to improve your overall financial situation but do not know where to start.

You would like a professional to evaluate your existing financial plan.

You need specialized advice about investment strategies, risk management, estate planning or adapting your savings plan for changing family circumstances.

You have experienced a life event.

You do not have time to build your own financial plan.

You need help balancing multiple goals, such as saving for college and retirement.

Selecting the Right Planner

Make sure you find the right financial planner for you and your family:

Ask individuals you respect for names of financial planning professionals they have consulted.

Ask about the financial planner’s background and work experience.

Ask as many questions as you need to understand and feel in control of your financial future.

Facing the Future with Confidence

Knowing where you are now financially, where you would like to be and what resources you have to make that possible, will help you face the future with confidence.

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Build Life Long Friendships

Ancient philosophers and modern-day scientists agree: Strong social ties are a key – perhaps the key – to happiness. You need to have someone in whom to confide; you need close, long-standing relationships; you need to receive and offer support. Studies show that if you have five or more close friends with whom to discuss an important matter,