A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Friday, August 12, 2005

Taking a Proactive Approach With Your Finances

I'm currently re-reading Stephen Covey's The 7 Habits of Highly Effective People. It is the kind of book that is good to read every year or so because the ideas it contains are that important.

The first habit discussed in the book is that of proactivity. According to the book, "proactivity means that as human beings, we are responsible for our own lives. Our behavior is a function of our decisions, not our conditions. We can subordinate feelings to values. We have the initiative and the responsibility to make things happen."

In that light, I would like to lay out what a proactive person looks like when it comes to personal finances.

When it comes to personal finances, a proactive person:

1. Takes responsibility for their financial situation.

2. Lives within their means.

3. Saves a significant portion of their income.

4. Invests their money prudently.

5. Does not chase after the hottest investment ideas.

I'm sure there are other attributes that could be added to the list.

I realize that I'm probably preaching to the choir when I talk about this stuff because if you are reading this blog, chances are you are serious about personal finance. If you stumbled across this blog, I hope the material it contains helps you become a proactive person when it comes to your personal finances.

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