Here is a top 10 list for becoming more financially successful — in descending order of importance.

No. 10 — Start early.  Procrastination is the great hindrance to financial success. The miracle of compound interest takes time.  For example, if you deposit $5,000 in a 6 percent IRA account every January, you will have $197,134 in 20 years. If you wait until December every year to put the money in the account, you will have $183,928 — a difference of more than $13,000. Same amount of money, same 20 years, but you see the difference.

No. 9 — Do your homework.  Every successful investor I know is a real student of the investment arena.  Read magazines and newspapers and watch investment-oriented TV programming. Read the fine print. Informed investors understand what is going on with their money.

No. 8 — Control risk.  In order to control risk, you must know your tolerance for risk. Evaluate your risk-taking ability. If on a scale of one to 10, you are a four, don’t invest in volatile investments that fit risk-takers at level eight. Measure each investment’s risk.  If you would lose sleep if your money was down 20 percent, it is out of your risk range.

No. 7 — Make a plan.  If you don’t have a plan and know where you are, how will you ever know if you’re making progress — or if you have arrived at your destination? 

No. 6 — Be disciplined, save regularly. It’s all about discipline.  It doesn’t matter how much you start with. What matters is how much you finish with. Success in any field takes discipline — money and financial success are no different.

No. 5 — Don’t be a miser, enjoy the journey.  Discipline and success don’t equate to being a miser. The journey of financial success is just that — a journey. The path does not have to be filled with selfishness or hoarding. Planned giving is good giving. Stopping to smell the roses and letting others do the same is a worthy consideration.

No.  4 — Reduce your taxes. Building wealth does not include paying more than your fair and legal amounts of taxes. There is nothing noble in giving the government more than they deserve. 

No. 3 — Diversity, diversify, diversify. Get the idea? Buy stocks. Buy bonds. Buy real estate. Buy CDs. You get the idea. Planned diversification is a part of No. 6 and No. 7.

No. 2 — Use good advisers.  No matter how much you read and study, you can’t have all the knowledge. The perspective you gain by using good accountants, insurance agents, stockbrokers and investment advisors may make all the difference in meeting your goals.

No. 1 — Trust your instincts. If it quacks like a duck and walks like a duck, it’s probably a duck. If it sounds too good to be true, be careful of letting your greed take over. Walk away from people and investments that don’t feel right.

Notable Quote: “How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” — Robert G. Allen

Call or write Tom at 254-0155 or e-mail suntrm@aol.com.