1. Take charge of your own money
The first and most important advice in money matter is to take charge of your own money. Nobody really cares about your finances as much as you do. Even top professionals, like brokers, advisers and wealth managers do not care where your money will eventually go, as long as they are getting their commissions. So, you and only you should be on top of the things.
2. Banish your fears
It’s not as difficult as it may sound. Most of the complexity about money matter is made up. The weapons of the trick campaign are terminology and complexity. They scare you with incomprehensible jargon, and you, in turn, not wanting to look silly, hand out all your money to professionals in hope that they would take good care of it.
3. Follow the Principle of One
Despite many encouragements from the banks, mutual fund companies and investment firms to buy more and more complicated new products, that we are told will save us tons of money in the long run, do not get caught in this trap. The best way is to keep your financial life as simple as possible. Get rid of unnecessary commercial junk. Follow the Principle of One:
One chequing account
One saving account
One small line of credit
One educational plan for children
One pension plan per adult
One spousal pension plan (if appropriate)
One non-registered investment account per family
One credit card attached to a loyalty program
One low-interest, low-fee backup credit card if you travel a lot.
4. Get your priorities right
Do yourself a financial inventory. Make yourself an Excel spreadsheet or use the Table function in Word. Go through all your bills, automatic bill payments (that are easy to overlook), annual and monthly fees, various life insurance policies, car payments, protection services fees. Eliminate everything that is sitting there and sucking up money from your pocket! Get your priorities right and dump everything you have no need of.