6 Ways To "Live and Finish Rich in 2012"

Here's some good advice from David Bach, he says to "Live and Finish Rich in 2012." I think it's great advice if you are planning to be an expat.


1) PAY YOURSELF FIRST - have a goal of doubling your savings.  Then, look at your 401K and increase your contribution  by 1%.

2) MAKE YOUR FINANCES "AUTOMATIC" - Change the way you get paid by directly depositing your pay into your checking account. Then by using online banking and bill pay, you will distribute your money automatically into the following key accounts:

Retirement Savings

Emergency Savings

College Savings

Dream Account (i.e. vacations, holidays savings)

Mortgage Payment

Credit Card Bills (minimum payment, so you will never miss a payment again)

Recurring Bills (utilities, phone, cable, etc.)

3) GET A WILL - for as little as $50 using a program such as Quicken WillMaker or you can hire an attorney to help you. Critical things that you will need in your will are:

Health care directive
Financial power of attorney
Executor documents
Final arrangements

4) TRACK WHERE THE MONEY GOES "AKA FIND YOUR LATTE FACTOR®" - The best way to improve your financial life that I know of, other than paying yourself first, is to track where your money is actually going. I would use a site like Mint.com, or Yodlee Money Center.


5) CLEAN IT OUT AND SELL IT - accumulating stuff is not cool and your heirs will just ditch it or put it in a cardboard box high up in the garage.


6) GIVE SOMETHING UP - One of the fastest ways to cut your expenses in 2012 is to pick ONE thing and give it up.