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'You can be poor when you're young, but you can't be poor when you're old.' That was the tag line used some years ago in a financial services television commercial.

Truer words were never spoken.

I was relatively poor when I was young. Not on your life!

Now I'm anything but a financial genius but there are five basic principles that I've learned and used to secure our financial future. A major part of your family's financial program is to insure against major financial loss. Consider paying off your credit card immediately if you have money in a savings account'as with the mortgage, the interest earned on the savings is certain to be lower than what's charged by the credit card company.

“You can be poor when you’re young, but you can’t be poor when you’re old.” That was the tag line used some years ago in a financial services television commercial.

Truer words were never spoken.

I was relatively poor when I was young. Just just about everybody I knew was and it was kind of fun. We lived an practically associational lifestyle, sharing money, accommodation, food, beer, and other essentials of post-pubescent life. Would it be as much fun if I had to do it all the same today? Could I do it again? Not on your life!

Now I’m somewhat but a financial genius but there are five germinal principles that I’ve learned and used to secure our financial future. And while far from wealthy, I have every confidence that I will not have to live in a refrigerator box whenever I quit working and that my wife will be able to well sit on in the event of my premature demise. (You should know I’m at an age where I think eighty-five is a premature death!)

Is preparation a secure financial future akin to rocket surgery? point-blank not— you need to do five key things to get started:

1. Determine your short and long-term financial goals. Start by taking a comprehensive snapshot of your current situation—your assets, net income, debts and living expenses. Once you’ve done this you can start setting long and short-term financial goals. Decide what lifestyle you want to enjoy among now and when you retire; what retirement lifestyle do you expect to have and what sort of education do you expect to provide for your children.

2. After you've prized where you are now and where you want to be in the future take steps to protect your talent to get there--and stay there once you’ve arrived. A major part of your family’s financial program is to insure opposite to major financial loss. There are simply no guarantees at cross-purposes with serious illness, accidents or untimely death. So take the steps necessary to insure in preparation for loss of life, loss of income and loss of physical assets.

3. Pay yourself first. Save at least 10% of pre-tax income – more if possible. Pay down your mortgage as quickly as possible, especially in times of low interest. In the short term, you'll be break up off reducing a mortgage that costs you 6% than earning hard a taxable 1.5% (or less) in a savings account.

Maximize your RSP/401K contribution every year and make the contribution at the origination rather than at the end of the year. Simply doing that will substantially increase the size of your retirement nest egg when you’re ready to cash out.

4. Avoid credit traps. If you use credit cards, many times pay any money owing until interest is due. Consider paying off your credit card immediately if you have money in a savings account—as with the mortgage, the interest earned on the savings is adducible to be lower than what’s decisive by the credit card company. not touch using credit trick for cash advances. Usually the interest indebtedness are higher for these and the bill enter on immediately. If you do balance the books a cool on your ruff try to negotiate a lower rate with the credit card company. If you need money urgently, it's usually cheaper to negotiate a personal loan with your bank or credit union.

5. Finally, protect your family in the event of your death. Make a Will. If you die without leaving a Will in all likelihood the only thing you’ll really leave your loved ones is a skin mess—one that could take many years and a whole collect of money to sort out.

Without a Will, the court/government will decide how your property and possessions will be divided. I would expect there are two probability of them simulation in a way consistent with what your wishes might have been—slim and none!

Making a Will doesn't mean the Grim Reaper is again to pay you a visit. It simply means that your thing will be sorted out in the ways you want and, as a result, you can go not far your life with a peaceful mind seeing that your loved ones are protected.

These five principles are only a starting point—a few suggestions that any financial management professional can improve and expand on. If I have one regret not far how I’ve handled my financial condition of things over time it is not enlisting enough professional help. When we were starting, the financial management wholesale was neither as big nor as sophisticated as it is today. Who knows, with control help, I might be writing this from some warm Caribbean tax haven rather a cold Calgary office!

“Don’t try this alone—use a trained professional,” is beyond compare the best recommendation I’m really qualified to give.

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