MOUNT ST. HELENS AND YOUR FINANCIAL REJUVENATION
I was recently on vacation in Seattle with my family. We decided to take a day trip and visit Mount St. Helens. I explained to my kids how I vividly remember May 18th, 1980, the day that the mountain erupted. I was sitting and reading the sports section, when a special news report interrupted the gardening show I was watching, and reported the news of the eruption. More than 50 people lost their lives in the blast. The devastation to the pastoral nature in the area was indescribable. Nothing survived; utter destruction.
What was so amazing about our trip to the mountain was how nature had recovered. It took a bit of time but the entire area has been reborn. You can still see fallen trees that lie like matchsticks, but nature has totally recovered. The movies they show in the visitor center once were about the blast and all the destruction that followed. Today, the movies are about the rejuvenation and the recovery that has taken place.
Not all is lost
While looking out at the crater of the volcano I told my oldest daughter that I am going to write a column about the recovery and personal finance. She asked me what the connection was and I gave her a lesson on the topic. There was so much inspiration to learn from how nature, in a short period of time recovered from total devastation. As an aside I recommend all environmentalists who believe that humans are the cause of all environmental carnage to visit this volcano and to see how little impact we actually have on the force of nature!
If you think that your financial situation is beyond salvation think again. You can always put an end to the mistakes that you’ve been making and change your situation for the better. The same goes for investing. Don’t dwell on past mistakes and swear that because of the mistakes you will never invest again, rather learn and analyze what you did wrong and then make smart decisions. I have counseled so many families who were deep in debt and had no hope of ever extricating themselves from their situation. When I say deep in debt I mean deep; $100,000-150,000 in debt (not mortgage). Well with lots of hard work and strong desire to change their financial lot, they succeeded in changing their lives.
What to do
Sick of the inspiration and want to know what to do? Here are a few tips to get you headed in the right direction.
- Budget– The only way to change is by taking control. Live on less than you make. If you let your expenses spiral out of control, you will end up with a big minus in the bank. But if you dictate where every single dollar is allocated, you will make sure that you spend less than your income.
- Get out of debt– A minus in the bank or with your credit card company is the guarantee for financial instability and is a major obstacle to getting ahead financially. It may not be easy but it’s a lot better to take those interest payments and plow it into savings, than to keep paying the credit card company. It may mean taking on a second job at night. Like I said it may not be easy but you will thank yourself for working so hard once you are debt-free.
- Build wealth– There is no shortcut to building wealth. You need to start investing and with discipline, the wonders of compound interest and the growth of the stock and/or real estate market, over time you will create a comfortable nest egg. Don’t fall for get rich quick schemes, they don’t work. Slow and steady is the recipe for success, and if you invest intelligently and consistently plow money into savings you will have a very comfortable nest-egg years down the road.
The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc. or its affiliates. Aaron Katsman is author of the book Retirement GPS: How to Navigate Your Way to A Secure Financial Future with Global Investing (McGraw-Hill), and is a licensed financial professional both in the United States and Israel, and helps people who open investment accounts in the United States. Securities are offered through Portfolio Resources Group, Inc. (www.prginc.net). Member FINRA, SIPC, MSRB, FSI. For more information, call (02) 624-0995 visit www.gpsinvestor.com or email: aaron@lighthousecapital.co.il.
