After my one and only bounced cheque at age 24, I resolved to learn about wealth management. I’ve discovered at age 51 , that good wealth management can actually bring you happiness. There is a lot less anxiety about life when you know you have money.

This is my  basic advice to maximize what you have.

1. Don’t spend more than you make. Really think if you need an item BEFORE you buy it. Make a list of the items that you need that make you happy. Ask yourself “How will purchasing this thing affect my life?” If you have to think about it, it’s probably not a necessity. Don’t fill your cart at Wal-mart.

2. Pay with cash or debit card. If you do use credit, then pay off the purchase in full when the bill arrives. Watch bank charges carefully. If you can maintain a minimum balance in your account, often bank charges are waived. ATM charges can be $4 per transaction, so track those expenses as well.

3. Buy a home you can afford, and  put down 10% minimum of the purchase. You have to allow for unexpected expenses. I.e. a new roof or job layoff so 3 months salary saved is important. Make sure you buy enough life insurance and disability insurance to cover off your debts. Term insurance is inexpensive.

4. Get a high deductible on your auto & home insurance. Handle small issues out of pocket and save your insurance for major problems. Not only will you stay in your insurer’s good graces, you’ll reduce your annual premium by 10%.

5. Know your credit history. If it’s bad, then put yourself on a budget to correct it. A poor credit history can affect your life for awhile, and cause a lot of anxiety. If you are unable to make a payment, call your creditor. They would rather get something than nothing from you.

6. Try to keep expenses down by using free services. The library is a great source of entertainment and education. You can obtain magazines,books, movies and music for free.  Use community services in the area such as gym facilities and watch for free events at local parks.

7. Lastly, advice I received years ago makes even more sense now: Pay yourself first. It’s good financial discipline to take 10% of your monthly pay and deposit into a separate saving account. You’ll be amazed (and very happy!) at the amount you saved and maybe even are able to say “I’m rich!”