The Pocket Watcher's Seven (7) Money Rules

​

1. Budgeting: The foundational step. It involves creating a detailed budget to track all income and expenses. The goal is gaining clarity and control over cash flow, not just restriction.

2. Emergency Savings: Building a safety net (typically 3 to 6 months of living expenses) in a high-yield, liquid account. This step is crucial to prevent unexpected shocks from leading to new debt.

3. Debt Planning: Aggressively eliminating high-interest consumer debt (like credit cards) using either the Debt Avalanche (highest interest rate first) or Debt Snowball (smallest balance first) method.

4. Insurance Planning: Protecting the financial plan and assets by ensuring adequate coverage (health, disability, and life insurance) to mitigate catastrophic risk.

5. Tax Planning: Optimizing the tax liability by utilizing deductions, credits, and tax-advantaged accounts. This is about maximizing the amount of money the client gets to keep.

6. Wealth Planning: Securing the future through consistent, automated investment and maximizing contributions to tax-advantaged retirement accounts (401(k), IRA).

7. Estate Planning: The final step, ensuring a legacy by executing essential documents like a Will, Power of Attorney, and properly designating beneficiaries.