It’s been a busy couple of weeks and I’m just now taking a few minutes to write a quick note.  Okay what really happened was a crazy MySpace app that I started using… anyway, I’m slowly weening myself off of it.

Now, for today’s note… I just read an article about how some of the youngest boomers are struggling financially.  The article goes on about the difficulties facing them in such harsh economic times.  My primary criticism of this article is mostly lacking key to solving the whole thing.  Personal Accountability aka Personal Responsibility.  I don’t mean to be harsh.  In fact, if you’re hurting financially I hope that some of the advice I’ve provided in other prior posts will help you devise a good financial plan for your life. 

So, what to do when you’re struggling financially?  First, admit that the problem is not more money, the economy, gas prices, your mother-in-law, spouse, children, etc. etc.  Admit that the problem starts with you.  If you’re married the problem is both you and your spouse.  Admit that you have a problem.  Decide to do something about it.  Then commit to the following:

  1. Budget ruthlessly.  Learn to scrape every last penny out of your budget.
  2. Emergency Fund.  Get a thousand bucks in savings and then come back later to beef it up to 3-6 months.
  3. Pay off all debt except the house.  List in order from smallest to largest.  Then beef up the Emergency Fund.
  4. Save:  for Retirement and kid’s college.  Experts suggest 10-15% of gross going to retirement.
  5. Pay off the mortgage.
  6. Invest: the mortgage payment and become wildly wealthy.

How cool would it be to retire without a house payment, without a car payment, and a couple of million in the bank?  It’s entirely possible.  It’s not fun, it’s not glamorous.  Your friends will probably thing you’re a bit strange… sorry, this isn’t get rich quick,  but it is a plan to become very wealthy so you can enjoy the retirement years.  I personally don’t plan to retire but do plan to own my own companies that are managed by good people I trust so that I can travel and do other things.

It’s your choice.  Do you want to be a broke boomer?