Beyond the previous post titled 10 Things I Think I Think About Money, what is my foundational belief in how to effectively manage wealth?
1. Have a plan and be intentional. You will not be an accidental millionaire.
2. Cash is king. Be prepared to be liquid.
3. Be happy with your career. You’ll need (and want) to keep earning an income beyond historically traditional retirement ages.
4. Manage your tax liabilities. They are your single biggest “expense”.
5. Use your money to do things that make you happy. Incorporate some fun into your financial plan.
6. Diversify. Not just in asset allocation, but in managers, styles, risks, etc.
7. Manage downside risk. Seeking shiny gold stars for one-year investment performance may not be a good long-term strategy.
8. Give money away. Sharing your fortunes with others makes you happier and makes you care more about your own success so that you can keep giving.
9. Actively manage money. Don’t stare at the stock market ticker, but conduct periodic how-are-we-doing reviews to be sure you are on top of things.
10. Don’t spend more than you earn.
