Bank finance articles and tips

Money management may be one of the most important skills that all of us need to learn. Yet it is not always taught to us. I feel very fortunate to have been a student of Mr. Nick Cokinos for over 23 years. He has always told us about the value of earning a great living in the martial arts field, while investing our money in bricks and mortar and in the stock market. Mr. C. says: "Pay yourself first." I've followed his advice, and it's worked out extremely well for me.

My father-in-law used to remind us: "Short-term gains create long-term pains." It's very common to see someone with their daily Starbucks, eating meals out, planning their vacation, etc., instead of thinking about their life in the long-term and/or other long-term habits. The most successful people think long-term even in the short-term and plan for success.

My humble beginnings began in Rochester, NY, in 1986, when my love for the martial arts was so strong I decided to dedicate my life to it. I had been teaching at a YMCA and wanted more days and times to offer classes. The Y wasn't able to accommodate me so I signed a lease on my first location.

In 1991 when my lease came up for renewal his office told me it would be $2,225 per month to stay in my school. A 31% increase seemed pretty extreme to me, since at the time I was struggling to pay the rent.

Let's fast-forward 16 years. My school is very successful. I've purchased several residential properties. I've paid myself monthly and saved enough for a down payment on a commercial building. I was so afraid I was going to lose the check. Now I own a commercial building, from which I receive monthly rent.

If or when I decide to retire, I will still own the building and will continue to receive a monthly rent check. In a few years, I'll own the building, so once taxes and expenses are paid, the rest will be my retirement check. In addition to the dojo, I have two tenants in the building, who pay rent. I own five other rental properties, not including my custom-built home, which of course I live in.

The money management system that's worked for me has been:

"Goals we set are goals we get." It all began by setting goals. I set a goal to purchase one property per year for five years. This translated to six properties being purchased in eight years.

Get a system for saving your money. It's so easy to have 5%, 10%, or 20% of your income put into a separate account each week/month. Pick a number and "just do it."

"Track your monthly spending. Easy to do, but easy not to do." Jim Rohn

Budget. Spend less than you earn and buy the "right" things: houses, stocks, bonds, IRAs, businesses, etc. Do not spend on too many high-priced dinners, cars, vacations, etc.

Only borrow money for the "right" things: houses, businesses, and investments. Never borrow for liabilities: vacations, cars, credit card debt, or anything else that doesn't have the potential to increase in value.

All the best to you with your financial goals!

By Kathy Faust