Tag Archives: finances

Becoming a millionaire takes time and discipline

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Becoming a millionaire takes time and discipline and even if you inherit it or earn thorough some great accomplishment likes sports or entertainment you need to have wisdom and knowledge to keep it!!!!
I believe that this article hits many key points that you will need if you REALLY want to be a millionaire!
Take a look and feel free to add your comments

10 Steps to Becoming a Self-Made Millionaire

You have to have a plan if you want to become wealthy
Building wealth for most people is a long process that requires discipline and sacrifice. There are many people who will waste their life away, wanting things to be different. Then there are those who are willing to change themselves to change where they are going. These are the people who have what it takes to become wealthy. These are the people who have a plan.

1. They don’t live like millionaires.

What we mean is, they don’t spend the way most people you would conceive as millionaires do. Those people who spend money like it’s going out of style generally end up broke. They must file for bankruptcy and get rid of their fancy house, cars, and materials to pay their debt. Self-made millionaires know the value in not spending all their money. They know waiting for what you want and saving for what you need is the only way to get there.

2. They are cheap.

More than not, when you meet millionaires, they are penny pinchers. They will be a little more stingy with their money. And that is OK! You don’t have to help every Tom, Dick, and Harry out there! They are wise with their money. Some of them are maybe a bit like Scrooge. You don’t have to be so extreme, but don’t spend every penny you have, just because you have it.

3. They give to charity.

Charitable donations not only help the conscience, they also help when tax season comes around. Those who give sizeable donations to charitable organizations, and have receipts for it, can take those contributions off their taxes. It is a win-win-win, right?

4. They invest.

Millionaires know that money sitting is just that — money sitting. It isn’t doing anything for you. Even if you don’t invest it, but you put it into a high interest account, it is more likely to accrue money for you later on than money in your pocket. When you get a paycheck, allocate what you need for bills and living, but put 10 percent into investments or savings

5. They earn a little more.

These are the people who are not afraid to go ask their bosses for a raise. They know how to work more hours at their job just to get that paycheck a little bit higher. They know how to do whatever it takes not to have to live paycheck to paycheck, because they put in the effort.

6. Get an education.

Although you will see some who do not get an education, the majority of millionaires see the value of an education, in getting a better job and compensated more for their work. School is expensive, but so is getting to millionaire status.

7. They work side jobs.

Many millionaires work one to three jobs, and their spouses do the same thing. They work as much as they can to bring home as much as they can.
8. They marry well.

Not that they marry rich. They marry someone with the same goals and value of money as their own. Their spouses may be as frugal, or even more so. That is the measure of good millionaires. They know how to become millionaires together.

9. They are organized.

They know where every penny goes. They know what each of their assets are doing. They do their own money managing. Do you think they would let someone who may potentially mess it all up take care of their money?

10. They teach their children.
Millionaires teach their children how to work hard and be millionaires. Their children know how to save for and earn what they want.

3 Tips to stay in the Money-Saving Mindset

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Everyone once in a while we need to know why we do what we do. This article is a short and sweet reminder help you stay focused on savings

3 Tips to stay in the Money-Saving Mindset

If saving money isn’t your strong suit, don’t worry. Changing your money habits will have its challenges, but with a little effort, you can stop making so many unnecessary purchases and start building a sizable savings. The first step is to think about your goals and priorities. Why do you want tosave money? You might be looking for the security of an emergency fund, hoping to spend less time working, or preparing to buy a new car. Recognizing what’s important to you will help you get to a place where saving money seems only natural.

1. Remember why saving is important to you

Here’s where your savings goals come in. Think about why you want to save money and take every opportunity to remind yourself. Talk about it out loud. Write it down. Even if your goal is as simple as saving for a single vacation, keep it in the back of your mind as you go shopping or seek out money-saving opportunities in your daily life. If your goal is to be a great saver in the long term, think about the financial freedom you will be gaining. It can be easy to concentrate on what you have to give up in order to save money, but if you shift your attitude to focus what you’ll get in return, it’s much easier to make the daily decisions needed to get there.

2. Hold yourself accountable

Budgets, spreadsheets, and shopping lists are enough to put the average consumer to sleep, but don’t be afraid to give this strategy a try. People who are already in the habit of jotting down notes or lists will likely be very successful making strict shopping lists and sticking to them. It doesn’t take much time, and it might save you the effort of trying to remember what you actually need when you get to a store. Once you make a reasonable budget for yourself, don’t stray from it.

3. When you get a raise, don’t increase your spending

It might seem natural to start spending a little more after a promotion. Maybe you start eyeing a larger apartment or some high-end gadgets. http://www.cheatsheet.com/money-career/3-tips-to-stay-in-the-money-saving-mindset.html/?a=viewall#ixzz3jEOhua00

6 Reasons Not to Be Ashamed of Your Frugal Ways

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Our society does a great job of labeling people that are different. Take a look at this great article from Yahoo that discusses the importance of FRUGALITY.

6 Reasons Not to Be Ashamed of Your Frugal Ways

A lot of people cry broke and whine about never having enough cash to get by, yet they’re not always willing to do what it takes to free up cash and save money. Being a frugal person is hard work. And if frugality doesn’t come naturally for you, resisting impulse buys can be a daily struggle, and you may go back-and-forth with whether to spend money on an item.

At the end of the day, a frugal mindset benefits your bottom line. So, while others may make you the butt of their money jokes, here’s why you’ll eventually have the last laugh.

1. This is who you are

We all have different money personalities. Some people are big spenders, whereas others hold onto a dime as if they won’t earn another. To each his own.
Just know that there’s a difference between frugal and cheap. Cheapness can affect the quality of your life, but frugality lets you enjoy the same qualify of life for less. Those who like to spend money might pressure you to loosen the purse strings. But if you’re not bothered by your spending habits, you don’t have to change your ways.

2. You don’t care about keeping up

If you’re committed to being frugal, chances are you don’t feel pressure to keep up with the Joneses or anyone else for that matter. We live in the age of financial peer pressure. This is a big problem in some social circles. If one friend buys a house, then the others are ready to upgrade. If someone wears designer clothes or buys expensive gadgets, then the others have to follow suit. It’s an exhausting cycle that not only reveals an impressionable mind, it keeps people broke.

3. It’s a financial necessity

Others might pressure you to spend money or make comments about your frugal ways. But if you’re frugal out of necessity, there’s no reason to be embarrassed or ashamed, especially since you’re willing to sacrifice more than a lot of people.
When dealing with money problems, some people want to save face, so they don’t make adjustments to their lifestyle. They continue with old habits, even if it further complicates their situation. A frugal person, on the other hand, does whatever it takes to save money so they can keep a roof over their head, food on the table and clothes on their back.

4. You might have a bigger bank account

This isn’t a guarantee, but if you choose not to spend your extra income, you’ll probably have a bigger bank account than those who poke fun at you. So, the next time you feel ashamed or pressure to adjust your frugal mindset, look at your savings account and consider how most Americans don’t have enough in their savings to handle a small emergency.

5. You can reach your goals sooner

You might have a long list of financial goals, but without a lot of extra money, it can take years to fulfill these goals. Being frugal speeds up your progress. If you reduce spending and free up cash in your budget, you’ll have income to pay off debt, save for vacation or prepare for retirement.

6. You’re teaching your kids good money habits

Kids often mimic the money habits of their parents. Remember this the next time you start feeling embarrassed about your frugality. If you’re an irresponsible spender, your children could imitate this behavior in adulthood with long-term financial consequences.

Knowledge is Power by Ed Clark

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The KEY to making a change is knowledge and that knowledge doesn’t have to be complicated it just has to be executed. Take a look at these 4 simple principles and see where you can make a change.

4 Personal Finance Principles to Live by For a Richer Life

Taking control of your personal finances is key to living a more stress-free and stable life — a truly rich existence. All you need to do is take the first step: start becoming more aware of your bank account, and live by these very basic principals that just about sum up what personal finance is all about.

1. Pay yourself first

This is a common personal finance phrase that many people live by. But what does it really mean? No, paying yourself first isn’t buying anything you want and letting your bills collect dust. Basically, it means that before you spend your new paycheck on necessities or wants, you should squirrel away a portion of it to your savings. Getting into this habit is helpful because you’ll learn to prioritize saving, and the steady stream of monthly contributions is the best way to grow your emergency, savings, and retirement accounts. The best and easiest way to pay yourself first is to automate it so that the process is mindless.

2. Live within your means

Don’t spend more than you can afford to spend. Don’t take on loans or debt if you can’t afford it. This even means being cautious on what is generally considered “good” debt. Ever since the financial crisis, all of us had to reassess what we initially thought of as good debt, which includes mortgage, school, and car loans. Once people started getting laid off and defaulting on payments, the good debt very quickly becomes bad. That’s not to say that you shouldn’t go to the college of your dreams; but you should still weigh the costs while keeping in mind realistic expectations of job prospects postgraduation. And if it’s truly worth your investment, you should find ways to cut costs. Other than not taking on debt, conscious spending is also part of what it means to live within your means.

3. Prepare for the long term and the worst

Don’t spend your time living only in the here and now. Think ahead, and start preparing for your retirement and emergencies by starting an emergency fund and contributing to your retirement accounts.

4. Knowledge is king
Keep reading and keep learning about how to better your personal finances. This is just the start of your journey, and there is so much out there to learn

10 Ways That Too Many People Throw Money Away by Ed Clark

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Take a look at the list and see where you can FIND some money!!! I must admit that I am guilty of doing some of the things on the list.

There are all sorts of ways to cut spending and boost your savings, and there are just as many ways to sabotage your own finances. In addition to missing out on money-saving discounts, making unwise shopping decisions, and purchasing unnecessary items, you might also be throwing your money down the drain for no real reason at all. Often, all it takes is a little effort and organization to fix the problem. But first, you need to be aware of all the ways your money is being wasted. The list could go on and on, of course, but here are 10 ways consumers repeatedly throw their money away.

1. Never redeeming gift cards

Even if you don’t want your gift card, at least give it to someone who will use it. American households also average $300 in unused gift cards, and nearly half of recipients do not use the full value of the card. Don’t be the person letting these dollars go down the drain.

2. Letting Groupons expire

According to Yipit, roughly 15% of Groupons go unredeemed by the time the expiration date rolls around. Make a note of your daily deal coupon’s expiration date to ensure this doesn’t happen to you. And if your Groupon does expire, you can still get some value from it. The digital coupon should retain its face value at the organization for at least five years.

3. Buying tickets and not showing up

4. Paying late fees

Even small late fees add up quickly. This can include everything from overdue library books to Redbox DVD rentals to late payments on utilities or credit cards. To avoid incurring late fees on your credit card,CreditCards.com suggests paying far ahead of your due date, changing your payment due date if possible to coincide with your payday schedule, scheduling automatic payment, or setting a reminder for yourself. If you are hit with a late fee after all, call customer service and ask to have the charge waived. On your first offense many companies are willing to let the late fee go.

5. Paying banking fees

It seems like every year banks come up with new ways to nickel and dime their members. Between minimum balances, fees for checking accounts, and ATM fees, these charges can add up. No one should have to pay for basic banking services. Many are having better luck avoiding these unnecessary fees after joining a local credit union. Credit unions typically offer free checking accounts and savings accounts with better interest rates. If you find yourself frequently out of cash and paying charge after charge from ATMs, instead get into the habit of getting cash back from debit purchases when you are out grocery shopping.

6. Not returning unwanted goods

It’s easy to let unwanted items or gifts just sit there in the closet, but with a little effort, you could be getting money back in your pocket. Even if you are past the return date, give it a try anyway. You may be able to at least get store credit. For online purchases, many retailers even cover the cost of shipping for returns. CBS News compiled a list of stores with generous return policies, such as Walmart, Target, Costco, and Kohl’s. Some retailers will even take returns without a receipt.

7. Failing to ask for a refund

Consumers who are dissatisfied with their service often don’t take the time to voice their concerns. Those people that do, however, could end up with a full refund or at least a discount. If you have a bad experience with a hotel, auto mechanic, cell phone carriers, or hairdresser, to name a few, don’t be shy about speaking up.

8. Never disputing mistakes on a bill

If you think your bill may be incorrect, it’s worth disputing the charges with the company. At most respectable businesses, the error will quickly be corrected.

9. Forgetting to follow up on a rebate

The sneaky thing about mail-in rebates is they are designed to be so complicated that consumers either forget to mail them in or do so incorrectly.

10. Not claiming money that’s yours

Every year, unclaimed money is reported by the government, and rightful owners are encouraged to step forward and claim their funds. Find more information about unclaimed money from the government atUSA.gov.

How to start your 2013 off the right way with a financial plan!

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Financial independence is a slippery idea.

It is hard to define. A simple Google search yields a fantastic amount of, sometimes contradictory, definitions. The best one, in my opinion, tells us that financial independence is when you have sufficient personal wealth to live indefinitely without having to work actively for basic necessities. Financial independence is even harder to put into practice; but it is not impossible.  It is much easier when you realize that becoming financially independent and amassing wealth is a slow process that takes time, self-discipline and most importantly a plan.  You must be consistent, create good habits to cut your everyday expenses, generate extra income, and put money into some of the following standard investments (i.e., stocks, mutual funds, bond, real estate, etc.) that can be beneficial to you now and in the future. With your time and effort what you are doing is developing a strategic plan that will begin to look like something. So now 2013 is here and you are wondering what steps you are going to take to start your 2013 off the right way to become financially independent with a plan, here we go: Create a plan and make sure you stick to it with. NO EXCUSES!  Before you create a plan make sure you understand the difference between Gross Income and Net Income. Gross income is your salary- the total dollar amount your employer agrees to pay you over a given time period. Net income is what you take home- the amount you earn after your employer makes deductions for taxes and benefits.  People make a huge mistake of budgeting from their gross income when they should be budgeting off of the net income. You must create your financial plan from your net income.  Having a financial road map that is generated from your net income will help you prepare your plan with numbers that will keep you out of trouble and make sure you are not unrealistically assuming you have money that you don’t have.  A financial plan based on your net income will also help you figure out how much you’ll need to retire and then help you determine how you’ll hit that goal on a weekly, monthly, and yearly basis. The goal of your financial plan is to look at where you are today and where you want to go. Then it sets out all the steps you need to take to get there: helping you create a budget, track where your money is going and reevaluate if your money is being spent strategically to help you attain your financial goals (being knowledgeable about how every dollar is spent, saved, or invested is crucial for staying on track). You will also need to make sure you understand how much you will need to retire. You can do this by talking with professionals or, if you are like me and pinch every penny, you can use free websites and calculators. You can type “How much do I need to retire” into Google. I believe that when looking to create an effective, efficient and compelling financial plan you need to identify and be specific with your financial goals.  Financial goals need to be created using the SMART system (Specific, Measurable, Attainable, Realistic, and Timely).  It’s not enough to say that you want to create an emergency fund you need to use SMART and say I want to create an emergency fund and have $7,500 in it by the end of the year by saving $150 out of each paycheck.  Being as specific as possible will make your financial plan realistic by putting measurable goals into the forefront of your plan. Not having a financial plan is not acceptable. Remember it is not about getting rich it is about becoming wealthy (on your own financial terms) and doing more with what you have. If you have no plan you have no progress. Not having a plan will create stress in your life. You’ll likely have more worries about money, you may not know where you are today or how to plan ahead, you could even lose control of your spending and fall behind on your bills, etc. So remember you would not take a long road trip without a map. In the same way, you need a road map for your financial future. A financial plan looks at where you are today and where you want to go. Then it sets out all the steps you need to take to get there. I hope the content above helps you start your 2013 off the right way with a financial plan.