As Smart as a Squirrel

We should never make a financial decision when afraid or drunk.  Even worse, we should never make a financial decision when drunk on fear.  With sound financial principles you can be at peace, like the little pig who built his house out of brick instead of sticks or hay.  Especially in times of fear such as recessions or depressions, the prepared always prosper.  Here are a few thoughts on how to build a solid financial foundation: 

1) It's the basic principles that work: some of the most profound truths in any field of study are very simple yet deeply profound.  When it comes to your finances, make sure you aren't so smart that you miss the opportunity to be wise.  

2) Make a budget: Even a squirrel plans out its nuts for the winter.  At least be as smart as a squirrel.  

Zig Ziglar says, "if you aim at nothing you will hit it every time."   

John Maxwell says, "A budget is telling their money where to go instead of wondering where it went.  

Jesus said, "Don't build a tower without counting the cost first."

3) Act your wage: many businesses and people start to get sloppy when they make some money.  They start rationalizing all kinds of toys and equipment that they don't really need all in the name of "adding credibility" or "increased productivity."   Just remember that no deal was ever made or lost based on the couch in the reception area or the car in the parking lot. 

4) Debt magnifies mistakes: most success comes from 10% of ideas, which means you survive the other 90%.  Even if your percentage is better than that, there is still a large portion of ideas that don't work.   If you pay cash to test an idea, you can build a mountain standing on a pile of mistakes.  However, if you borrow money to increase the size of a mistake it can put you out of business.  

5) Follow the rules of large purchases:  Dave Ramsey has 4 rules when making large purchases.  Outsource until you can pay cash, rent until you can pay cash,  buy used, and always pay cash.  

In order to build a solid financial foundation,  follow simple wealth building principles, make a plan for your money, act your wage and pay cash for big ideas so you can always live to fight another day.   And remember that if a squirrel can plan, so can you!

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