Atlanta CPA Provides Top 5 Financial Tips for America Business & Individual Taxpayers for 2010 as You Plan for Retirement...A Financial Survivability Series

Atlanta CPA Provides Top 5 Financial Tips for America Business & Individual Taxpayers for 2010 as You Plan for Retirement...A Financial Survivability Series

Though there are many financial advisers and CPA's alike of all shapes, sizes and types have views otherwise, I believe the best way to survive a recession is to always act like you are in one. These precepts, if you let them, will do much to change your paradigm about the way you spend and invest money. For it is by our leaning on the wisdom of others that we are best able to learn what we do not know and to avoid costly burdensome and avoidable mistakes. Just as we are to put on the Very Armor of God to be prepared for life's challenges, so should we be wise and judicious in managing all of your financial affairs. Also, it is prudent to always keep in mind that all good and perfect gifts come from God and as revealed in the Parable of the Talents, God will take away from all those who fail to be a wise manager. These tips will do much, if you let them, to change your financial peace and to allow you to sleep more peacefully at night:

 1. Ten Year Rule. Watch the Little Things. Just as in life many smaller indiscretions lead to bigger ones so it is with managing your money. Being sure to watch and limit, what appears to be the little purchases, will do much to help you build a nest egg and to plan for retirement. One of the best tips I uses for this I call the Ten Year Rule. All too frequently I hear people describe and expense as being insignificant by saying "it's only a $100 a month." By applying the Ten Year Rule to his thinking you will soon discover that what appears to be only a $100 a month is indeed $1200 a year and is $12,000 for a decade, and that's not "chump change".

2. Be Debt Adverse. In the Bible we are encouraged as a Body of Believers to always a borrower and a debtor be. The recession was caused predominantly by greed. Greed by those who wanted to make every loan possible regardless of time tested techniques in determining fairly the capacity of debtors to repay a loan and greed by those who procured loans, where any small hiccup would derail their ability to repay a loan. Just as in all phases of life, there is a Day of Reckoning that avails itself, especially to all who are unduly financially burdened.

3. Limit the Rewards. Several years ago I was working with a client who had achieved a financial goal they had set for themselves and set out and purchased a luxury vehicle costing over $50,000. They did this all the while knowing that their business owed over $200,000 in taxes. I believe that along the way we should always stop to celebrate achievements, graduations, job promotions and many other varied issues of success. However these should be tempered with practicality, rather than debt. Rewards in life will often be large and luxurious, but the price tag should not include going into debt. Though many a bride and groom want a big wedding the celebrate the joy of their union as well they should, but this expenditure should be appropriate given the size of their income and bank account and not based upon the availability of a credit card balance. For example at a recent wedding I attended the groom actually served as the wedding coordinator and family members volunteered with many of the set up issues to dramatically limit their expenses, while sacrificing nothing on the event itself.

4. Do the Opposite. This advice is not for the faint hearted or for those who sleep lightly at night for it is often our passions and not our logic that dictates our steps. History has taught us that it is when the market is soaring higher than higher that our human frailty dictates that we will buy at this time guaranteeing that we will buy when the market is at or approaching its peak. Conversely it is when the marked is in a tailspin and values are plummeting that people are prone to jump out of the market thereby guaranteeing the sales price received approximates the lowest price possible. Whether in good markets or bad, I believe basic investment strategies should not change. Keeping in mind your mind open and all the options available at the forefront of your mind will do much to ensure that you have peace of mind when making financial decisions. Although I do not look forward to a down market as this would be imprudent; however I do take advantage of a soft market to invest as stocks and investment options are all at bargain prices.

5. Play Act. I bet this is one you have never heard before, but I believe Play Acting will do much to avoid problematic spending, acquiring debt and all types of investing decisions. The goal of Play Acting is to ask the "What If" questions. What if questions include, what happens if I get sick, become disabled, the market tanks, and my spouse or myself lose a job or even die? What am I going to do? What is my wife and family doing to do if I leave them in a predicament unable to take care of or fend for themselves as I have unduly burdened myself or them, by mortgaging their future with no margin for any financial miscue of any type. It is also prudent to Play Act before putting money in the Stock Market as the many varied and highly likely ups and downs in the market will do much to challenge but all of the very seasoned investor. Stock Market is not for everyone so do not be led to pursue any investment where you are unable or unwilling emotionally or financially to burden the risk and still sleep at night.  

"Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!" What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31 Why are these verses here? Learn how His CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html  

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/  (An Atlanta CPA firm) and for his latest book Overcoming Life's 9/11's: Job's Journey and to learn about his ministry visit http://www.john-dillard.com/  To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 Proudly serving Duluth, GA, Gwinnett County and Beyond.