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To be intentional with his cash flow, he sets time aside to budget monthly.
I also review my accounts regularly, including my investments.
Use Consumer Debt
I dont take on debt to afford my lifestyle, Musick said.
He said doing so isnt sustainable.
Car loans leave you in debt and paying interest on a depreciating asset, he said.
He said consumer debt works against building wealth.
It takes away from your net worth and constrains your future cash flow, he said.
Keep It All for Myself
Giving back to others is important to Musick.
Shopping around can literally pay off.
The first step in personal finance is building up your cash reserve or emergency fund, Rawlings said.
This is what keep you from going into debt when life happens.
Most people only think about diversifying their investments and never think to diversify their taxes, Rawlings said.
Market timing is a surefire way to underperform long term.
Inflation will eat up your money over time, he said.
You have to invest your money and allow compound interest and time to do the heavy lifting.
Then when a down year comes, they find themselves stretched too thin, he said.
This often happens withreal estate purchasesand is where the term house poor comes from.
So, spending $10,000 to save $3,000 in taxes still means you spend $7,000.
Given that, he advised against spending money on things you dont need just to get a tax deduction.
Spend Money on Things That Dont Align With My Values
Everyones values are different, Rawlings said.
To have the funds to do that, he said you shouldnt spend money on things you dont value.
Invest In Cryptocurrency
Cryptocurrency is a highly speculative investment with no true underlying value, Adams said.
This is how stocks appreciate in value and sometimes also pay dividends, she said.
Cryptocurrency is simply worth whatever the market deems it is worth at any given time.
She said it is currently rarely even used as an actual currency.
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