When it comes to money, many people hold onto it tightly. Sooner or later, those who don't give to others end up being the fools with their money. A money principle is that it has to be shared or donated to others, especially those in need. It's a universal principle that works and actually helps you keep more of your money by spending less elsewhere or making money elsewhere.
That in a nutshell is how it goes in my life. If I don't 'share' money, I end up spending it on stupid, frivolous things. The principle of giving is a fact, and how it works may be based on the 'give and receive' principle from The Bible. I might have referred to a spiritual aspect, but even the scientific community has taken notice.
The ideal amount to give is 10%, but something is better than nothing.
Monday, August 26, 2013
Sunday, August 25, 2013
The Right Start Financially
At what age should one be educated to be money wise? New research suggests that our money habits are set by age 7. So basically the sooner we learn about money, the better we will be at managing our finances in life. It's tough talking to kids about money, but it can be done and by doing this it helps them make wise decisions about money.
Many of us have had a carefree childhood, where our basic needs were satisfied by our parents and others. If we were given an allowance, we probably didn't save it. If we earned money through chores or a paper route, we may or may not have saved, nor did we still understand money.
By being educated early and taught to save or do without things, we will know how to save for what we want, and how to put money away. Early education on money matters will make kids responsible for the decisions they make about money.
There are so many topics kids need to learn about money, so it is always good to start with the basics. I wish my parents and teachers had taught me more about money at an early age. In most families money is taboo and is either discussed later in life, or not at all.
Today with the internet, education is easy. Even the government has educational sources to teach your children well. Still the more you know the more prepared you are to set your kid on the right financial path. You know you really hit home when the lesson is learned.
A great interactive site for both parents and kids can be found here. Ironically its theme is about the true dynamics about money-Save, Spend and Share. I call this The 3 $s!
Many of us have had a carefree childhood, where our basic needs were satisfied by our parents and others. If we were given an allowance, we probably didn't save it. If we earned money through chores or a paper route, we may or may not have saved, nor did we still understand money.
By being educated early and taught to save or do without things, we will know how to save for what we want, and how to put money away. Early education on money matters will make kids responsible for the decisions they make about money.
There are so many topics kids need to learn about money, so it is always good to start with the basics. I wish my parents and teachers had taught me more about money at an early age. In most families money is taboo and is either discussed later in life, or not at all.
Today with the internet, education is easy. Even the government has educational sources to teach your children well. Still the more you know the more prepared you are to set your kid on the right financial path. You know you really hit home when the lesson is learned.
A great interactive site for both parents and kids can be found here. Ironically its theme is about the true dynamics about money-Save, Spend and Share. I call this The 3 $s!
Saturday, August 17, 2013
Who Wants To Be A Millionaire?
If you start early enough, it is possible to become a millionaire. The goal is to save 10% of your monthly income from the beginning of your working career until your retirement. The later you start, the more you need to save to reach a million dollars. That's why it burns me that financial education isn't taught to children as young as 4!
In the world we live in it is very easy to accumulate debt. The 'buy now pay later' mentality feeds our desire for immediate gratification. The deeper in debt we are, the less likely we are to save or invest money. Still, even with debt, we should save for our future and emergencies. We should learn to save and get better money management skills.
I have stated it many times that people should live below their means and stop trying to keep up with the Joneses. Better to be frugal today, than to spend your Golden Years working at the Golden Arches. Saving is the name of the game, but it doesn't mean doing without. It just means doing things differently to save a buck.
My advice is to avoid debt as much as possible and to pay off debt as soon as possible. Keep only one credit card for emergencies and make sure the balance is paid within 4 months, otherwise you may be going or are in deep. Credit cards are better than debit cards because there aren't as many fees. Also, with a debit card, you may be responsible for purchases you didn't make.
The biggest money drainers in life are vices and compulsions. The vices are gambling, drinking, smoking, illegal drugs, overeating, etc. The compulsions are compulsive spending, and what I refer to as the KleptoBuyer. Like a kleptomaniac a kleptobuyer buys 'stuff' they don't need rather than stealing it.
There is also money that is taken from us without our knowledge. When you shop, pay attention to the price scanners that are wrong more so than you might think. The product is suppose to be free for a miss-scan. Unless you have an inheritance, your road to becoming a millionaire involves sacrifice and diligence. The important thing to know is that a fool and his money really are soon parted. You can't be foolish when it comes to money and there are NO 'get rich quick' solutions.
In the world we live in it is very easy to accumulate debt. The 'buy now pay later' mentality feeds our desire for immediate gratification. The deeper in debt we are, the less likely we are to save or invest money. Still, even with debt, we should save for our future and emergencies. We should learn to save and get better money management skills.
I have stated it many times that people should live below their means and stop trying to keep up with the Joneses. Better to be frugal today, than to spend your Golden Years working at the Golden Arches. Saving is the name of the game, but it doesn't mean doing without. It just means doing things differently to save a buck.
My advice is to avoid debt as much as possible and to pay off debt as soon as possible. Keep only one credit card for emergencies and make sure the balance is paid within 4 months, otherwise you may be going or are in deep. Credit cards are better than debit cards because there aren't as many fees. Also, with a debit card, you may be responsible for purchases you didn't make.
The biggest money drainers in life are vices and compulsions. The vices are gambling, drinking, smoking, illegal drugs, overeating, etc. The compulsions are compulsive spending, and what I refer to as the KleptoBuyer. Like a kleptomaniac a kleptobuyer buys 'stuff' they don't need rather than stealing it.
There is also money that is taken from us without our knowledge. When you shop, pay attention to the price scanners that are wrong more so than you might think. The product is suppose to be free for a miss-scan. Unless you have an inheritance, your road to becoming a millionaire involves sacrifice and diligence. The important thing to know is that a fool and his money really are soon parted. You can't be foolish when it comes to money and there are NO 'get rich quick' solutions.
Sunday, August 11, 2013
Saving Money Tips
Regardless what your earnings are, you have to save money for emergencies, leisure and retirement. If you have nothing saved, you're just asking for trouble that's waiting to happen. What's worse than not having any savings, is being in debt over your head and not having any savings.
The first thing one should do is keep track of spending habits and see where the money is going. When you see where the money goes you get an idea where you can eliminate or cut. Sacrifice now and be rewarded later in a big way. If you spend it now or go in debt, you will have an impossible task later.
A good starting point would be saving all your loose change at the end of each day. Better would be putting away $1 bills at the end of each day that are in your wallet. Best would be putting your $5 bills in a jar at the end of the day. At the end of the month these should be deposited into a bank savings account or other investment.
Any money you get from bottle deposits or other "extra" income should be deposited into an account also. This is a start to getting a bit of a savings together. The discipline required is that it must be done religiously and that the money isn't touched except for true emergency.
The next step would be to find out where you can save. Make your own coffee instead of buying it, even from a gas station. The savings add up quickly. Bring your own lunch to work instead of buying your food in fast food restaurant. Eat out less and you'll save a bundle.
Clip coupons when grocery shopping. Try SavingStar where you register your store cards and purchase displayed items for refunds that you pick. Buy generic, most of the time generics are just as good. Stock a pantry of food and go grocery shopping less. Buy in bulk and join a warehouse store with a friend and split the cost.
When it comes to shopping, most deals are online. Google coupon codes and see if you can manage a saving you probably didn't know about. Check here for other deals and ways to save money.
Make a monthly budget, but put the money aside weekly. Your rent, utilities and bills that remain constant, save for it weekly by dividing by 4. In months where you get a 5th paycheck, try to use this for mostly savings and paying more on the bills you owe.
The best way to save is to live below your means. Of course it would help if you knew how to stretch your dollar. Learn to be frugal, and save money. Here are more tips.
The first thing one should do is keep track of spending habits and see where the money is going. When you see where the money goes you get an idea where you can eliminate or cut. Sacrifice now and be rewarded later in a big way. If you spend it now or go in debt, you will have an impossible task later.
A good starting point would be saving all your loose change at the end of each day. Better would be putting away $1 bills at the end of each day that are in your wallet. Best would be putting your $5 bills in a jar at the end of the day. At the end of the month these should be deposited into a bank savings account or other investment.
Any money you get from bottle deposits or other "extra" income should be deposited into an account also. This is a start to getting a bit of a savings together. The discipline required is that it must be done religiously and that the money isn't touched except for true emergency.
The next step would be to find out where you can save. Make your own coffee instead of buying it, even from a gas station. The savings add up quickly. Bring your own lunch to work instead of buying your food in fast food restaurant. Eat out less and you'll save a bundle.
Clip coupons when grocery shopping. Try SavingStar where you register your store cards and purchase displayed items for refunds that you pick. Buy generic, most of the time generics are just as good. Stock a pantry of food and go grocery shopping less. Buy in bulk and join a warehouse store with a friend and split the cost.
When it comes to shopping, most deals are online. Google coupon codes and see if you can manage a saving you probably didn't know about. Check here for other deals and ways to save money.
Make a monthly budget, but put the money aside weekly. Your rent, utilities and bills that remain constant, save for it weekly by dividing by 4. In months where you get a 5th paycheck, try to use this for mostly savings and paying more on the bills you owe.
The best way to save is to live below your means. Of course it would help if you knew how to stretch your dollar. Learn to be frugal, and save money. Here are more tips.
Saturday, August 3, 2013
The Money Tree
The problem with today's society is that most people aren't educated financially. They live for today by buying what they can't afford and end up drowning in financial debt. We should be taught to save from a very young age and we should always have more saved than we spend. It takes discipline when it comes to money and sacrifice is a norm. Better to do without something you can't afford, or that will dip into your savings.
Gambling is a money drainer for most. It is something that could actually ruin you financially, especially if you are addicted and need to get a daily fill of some gambling itch. Lady Luck is not on your side, and the only Big One you'll hit is working at the Golden Arches in your Golden Years!
Money works by saving 10% of your weekly earnings and investing 5%. Ideally, this would happen from your first paycheck to beyond your retirement. Mortgage or rent should be 25-35% of your earning. Utilities about 10-15%. Food about 15-20%. Cash on hand 5-10%. Entertainment 10%. Lets call this a basic formula with variables. Perhaps you spend less and save more or vice-versa. The main idea is to follow the money and crack down your spending habits. This will help you develop a budget.
With a budget you start to plant the seeds. The trick is not to pick the fruit until it is ready to be harvested. That usually means retirement. It is never too early to plan for your retirement. Educate yourself in any way when it comes to wealth. Learn and discipline yourself on saving money.
Need more tips on saving money? Here's a hundred little steps that might help. Find extra money working overtime, finding a part time job, selling some of 'your stuff', doing services for cash, etc., and any opportunity that can earn income.
Money doesn't grow on trees, it grows from hard work, education and discipline. If you are in debt and aren't saving, then there is a problem. The problem needs to be fixed before the ship has sunk. Even Martha Stewart can teach you a thing or two. There are even the No Brainer tips we overlook or forget. You can never get enough tips on saving.
I don't have cable and gave up my home phone. On the other hand my internet fee has increased. I use to commute 135 miles a week to work, now I only commute a total of 35. I took a pay cut, but get more overtime. I moved from a $650 a month rent plus up to $100 in utilities, to $520 a month rent that includes utilities. I have built food reserves, and sometimes go weeks without shopping for everything accept perishables and vegetables.
Teach your children well.
Gambling is a money drainer for most. It is something that could actually ruin you financially, especially if you are addicted and need to get a daily fill of some gambling itch. Lady Luck is not on your side, and the only Big One you'll hit is working at the Golden Arches in your Golden Years!
Money works by saving 10% of your weekly earnings and investing 5%. Ideally, this would happen from your first paycheck to beyond your retirement. Mortgage or rent should be 25-35% of your earning. Utilities about 10-15%. Food about 15-20%. Cash on hand 5-10%. Entertainment 10%. Lets call this a basic formula with variables. Perhaps you spend less and save more or vice-versa. The main idea is to follow the money and crack down your spending habits. This will help you develop a budget.
With a budget you start to plant the seeds. The trick is not to pick the fruit until it is ready to be harvested. That usually means retirement. It is never too early to plan for your retirement. Educate yourself in any way when it comes to wealth. Learn and discipline yourself on saving money.
Need more tips on saving money? Here's a hundred little steps that might help. Find extra money working overtime, finding a part time job, selling some of 'your stuff', doing services for cash, etc., and any opportunity that can earn income.
Money doesn't grow on trees, it grows from hard work, education and discipline. If you are in debt and aren't saving, then there is a problem. The problem needs to be fixed before the ship has sunk. Even Martha Stewart can teach you a thing or two. There are even the No Brainer tips we overlook or forget. You can never get enough tips on saving.
I don't have cable and gave up my home phone. On the other hand my internet fee has increased. I use to commute 135 miles a week to work, now I only commute a total of 35. I took a pay cut, but get more overtime. I moved from a $650 a month rent plus up to $100 in utilities, to $520 a month rent that includes utilities. I have built food reserves, and sometimes go weeks without shopping for everything accept perishables and vegetables.
Teach your children well.
Saturday, July 27, 2013
Retirement Planning
If you have a long way to go, here is a wake-up call...it is never too late to start planning for your retirement. The sooner you start, the better your nest egg will be padded and secure. If you are on the edge of retirement, you have to have a nest egg, otherwise relying on SSI will put you in the poorhouse.
If retirement is near, investments must be secure. McDonald's is a solid dividend paying stock. When it comes to metal investment, always go with gold at iShare. Choose a simple portfolio of Vanguard mutual funds with this, this and this! Get more investment advice at Real Clear Markets blog.
Retirement communities are starting to pop-up that are lifestyle oriented, so that you can retire with people who share your interest. You might even think about getting more bang for your buck in a foreign land. If you retire away from family and acquaintances make sure you have some sort of support you can fall back on if it doesn't work.
Retirement should not be ventured into without planning. Remember that for the most part retirement is permanent and many see the goal of retirement at 62 years of age. Age 62 is like a fool's gold for retirement. As far as SSI the payments may not have any buying power if you live beyond the life expectancy. Unless health is an issue, full retirement age will pay better in the long run, and the magical age of 70 will almost double your age 62 benefit. Things to consider.
Keep in mind that retirement is ever evolving. When planning for retirement, it is better to save, invest, plan, prepare and have surplus than live like a pauper. No doubt, when retiring you need all the help you can get.
You should make out a will as soon as possible. The reason is because you just don't know!
If retirement is near, investments must be secure. McDonald's is a solid dividend paying stock. When it comes to metal investment, always go with gold at iShare. Choose a simple portfolio of Vanguard mutual funds with this, this and this! Get more investment advice at Real Clear Markets blog.
Retirement communities are starting to pop-up that are lifestyle oriented, so that you can retire with people who share your interest. You might even think about getting more bang for your buck in a foreign land. If you retire away from family and acquaintances make sure you have some sort of support you can fall back on if it doesn't work.
Retirement should not be ventured into without planning. Remember that for the most part retirement is permanent and many see the goal of retirement at 62 years of age. Age 62 is like a fool's gold for retirement. As far as SSI the payments may not have any buying power if you live beyond the life expectancy. Unless health is an issue, full retirement age will pay better in the long run, and the magical age of 70 will almost double your age 62 benefit. Things to consider.
Keep in mind that retirement is ever evolving. When planning for retirement, it is better to save, invest, plan, prepare and have surplus than live like a pauper. No doubt, when retiring you need all the help you can get.
You should make out a will as soon as possible. The reason is because you just don't know!
Tuesday, July 23, 2013
Solid Investment
If you are close to retirement, don't make these mistakes that will derail your plan.
I have a stock that can be very profitable at the expense of unhealthy habits. Even with peaks and dips, Philip Morris will always be profitable. Smokers will continue to smoke and PM will always be in business. Like anything else, stocks come with a risk. If I ever recommended an overall stock that even pays good dividends, it would have to be PM International.
Another stock that profits from smokers is Universal(UVV) that supplies the tobacco. Cigarettes may be unhealthy but most smokers will continue to buy them or cheaper alternatives as prices skyrocket.
Another stock that deals with tobacco among other things is Reynolds American(RAI) which has an affordable price.
Along the lines of cancer research and cures, these stocks seem to be the ones to watch.
Consider adding these stocks to any portfolio.
I have a stock that can be very profitable at the expense of unhealthy habits. Even with peaks and dips, Philip Morris will always be profitable. Smokers will continue to smoke and PM will always be in business. Like anything else, stocks come with a risk. If I ever recommended an overall stock that even pays good dividends, it would have to be PM International.
Another stock that profits from smokers is Universal(UVV) that supplies the tobacco. Cigarettes may be unhealthy but most smokers will continue to buy them or cheaper alternatives as prices skyrocket.
Another stock that deals with tobacco among other things is Reynolds American(RAI) which has an affordable price.
Along the lines of cancer research and cures, these stocks seem to be the ones to watch.
Consider adding these stocks to any portfolio.
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