Andre's Blog

From earning your very first dollar at a neighborhood lemonade stand to investing in a retirement plan, there are a few steps along the road to wealth that many people share. How you choose to proceed from each of these landmarks, however, can determine how successful you will be in managing your money.

Not all financial decisions need to be complicated, but here are a few milestones that you will want to consider carefully:

Selecting a career - you likely didn't stay on the career path that you dreamed of as a child ... after all, few of us grow up to be pirates or fairy princesses, but choosing a career is a decision that can certainly affect your lifetime wealth.

Of course, potential earnings aren't the only thing to consider when choosing a career; you also want to think about education and training, job marketability and security, and what you enjoy doing.

Avoiding debt - you may have accumulated some debt in the form of student loans or credit cards as you were starting out on your own, but how you handle those expenses can set the course for your future wealth. Budget as much as you can toward such high-interest debt until these expenses are paid, then begin building your savings.

Buying a home - as one of the biggest purchases you're likely to make, buying your first home requires some planning. In order to avoid having the cost of private mortgage insurance (PMI) added to your monthly payments, you should plan to pay 20 percent of the purchase price as a down payment. You should also meet with a mortgage professional to discuss your income, monthly debts, credit history and assets which can help you determine how much you can afford and get prequalified for a loan.

Expanding your family - getting married and having children may not seem like a financial decision, but it certainly affects your money. Before taking the plunge, discuss your financial goals with your partner and make a plan of how the two of you can work together to achieve those goals.

Making investments - the key to investing wisely is to do your research. Weigh your potential for gain against the risk of loss before purchasing stocks or other investments