Owner: Moneymonk URL:http://moneyliving.blogspot.com Join Date: Tue, 08 Apr 2008 19:14:32 -0500 Rating:0 Site Description: Personal finance and investing for wealth Site statistics:Click here
Does Your Child suffers from Affluenza? 2008-04-08 10:32:28 Authorities describe affluenza as an unearned feeling of entitlement for luxuries, and it's becoming an epidemic, especially among children. The primary symptom is overconsumption. John de Graaf, describes affluenza as:• A fever for shopping and spending.• Swollen expectations about material needs.• Decreasing immunity to the assaults of advertisers.• Self-concepts defined by brands of clothing.• A rash of debt by the time the victim leaves college.Like the more standard flu, affluenza can be a minor inconvenience or a more dangerous infection. In many cases it manifests itself in a whiny, selfish child with an overdeveloped sense of entitlement. But in some cases, that self-indulgent child grows into a self-indulgent adult looking for a free ride through life. Fortunately, when Read more:suffers
There is no money left over for saving, vacation, or entertainment 2008-04-07 10:31:21 Huh? How much you make? $62K a yearWhere is your money going? My house note.How much is that? $1300Utilities? $300hmmmmmI don't get it, that's only $1600 a monthWhere is the rest going? car, clothes, credit cards paymentsHow much do you think you spend on that? about $2000a month?YeahLOLHoly Smokes.My friend is a tax agent for HR block, and she does counseling for an organization 2 days a week, She told me she does not have the patience for it anymore.I asked why and she said.. because when you tell them to cut their lifestyle to have more money saved, they tend to give you a puzzled look!My take---had she avoided her lifestyle for 5 short years and just save maybe 10% and invest some funds for retirement, she would have fat cash cushion instead of a fat debt load.I doubt if I can counsel
Friday Quote 2008-04-04 10:15:40 Setting a good example for children takes all the fun out of middle age - William Feather
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What Makes a Good Mortgage Broker? 2008-04-03 10:58:56 Avoid any broker who quotes a price without first quizzing you about loan size, down payment, loan purpose, type of property, use of property, state, credit score, and documentation of income and assets.Good Broker
s Are Straight With Their Clients Here are some broker statements that indicate your broker is not being straight. If you hear any of these, head for the door:"I have a 1.5 percent mortgage for five years.""Don't worry about the rate increasing in two years -- I will be there to refinance you into a lower rate before that happens.""Don't worry about my fee. It's being paid by the lender." Read more:Mortgage
Whenever you leave your house, you inevitably spend money 2008-04-02 10:22:42 So what are the choices, stay at home and deprive yourself or go out and budget your moola! I was reading a story on CNN money and the title above was mentioned. I try to never let money control me. If I want to eat out oppose to cooking at home, I want to do it comfortably. I hope to never have to make a choice. The older I get, the less I want to go backwards financially. Stuff like that just makes me wanna think of more ways to make more money.Someone once said that, rich people work and sacrifice for about 10 years and they spend the other 50 years enjoying their lives. And the rest have fun for about 10 years and live the rest of their lives in debt and trying to get by.That stuck with me. I guess everyone has to pay a price for their comfort zone. Play now, Struggle later or Struggle Read more:Whenever
Let me American Express Myself--I bought a CAR 2008-04-01 10:19:01 Check it out:My Lex:It was only $60K, I paid it with my new AMEX card. (waiting for the car title) I have a 0% introductory rate. So I will pay AMEX $1700 a month for 4 years.pics courtesy of April Fool's
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Don't be short-term clever and long-term foolish 2008-03-31 10:30:53 Not saving was okay, people believed, because stocks and homes were rising in value. Tapping home equity made sense because rates were low and the interest was usually tax-deductible. Taking a 401(k) loan was fine because you pay interest to yourself.Indeed, with enough of these clever strategies, you could wreck your financial future. -says Michael Maloon, a financial planner Well I have to say if you're going to starve or face a foreclosure, raiding a 401k, does not seem too bad. Just have a strategy to get back to where you were financially. When you become back on your feet, SAVE SAVE SAVE, that way you won't be long term foolish. I made a lot of financial mistakes, however I came back with a vengeance!!!
Income-producing assets 2008-03-28 10:45:23 If an asset yields an income, to me it's an income producing
asset, such as:Stocks that pay DividendsA BusinessRental propertyRoyalties from a bookAn asset that does not produce an income, but yet is still an asset:401kRoth IRATraditional IRAPrimary HomeSo to have something in both categories is NOT bad, however if you are wondering how the rich stay rich, they spend their money on Income
producing assets (IPA)and their assets pays for their expenses, lifestyle and luxuries.simply put, The rich create their money by investing in IPAs. The more IPAs, the less dependency for a paycheck.
Any person who isn’t their own boss is underpaid 2008-03-27 10:06:54 I had a chat with a friend of mine about this. The title above was said to me during the conversation.My reply is that it's not meant for everyone to be an Entrepreneur. If we were all Entrepreneurs, we will have no employees.The argument/debate continued...When you work for yourself, you can make loads of money.I agree there is no limit, when you are your own boss. However, making a decent income does not mean you have not succeeded.The conversation went on and on and it need not to be posted here because it turned crappy.I'm a capitalist and I feel making money for yourself is always better, but I don't advise anyone to "jump ship" from a decent income and take on major risks without a life jacket. Think before you jump and make baby steps. Start a pt business before jumping to full time Read more:person
Credit Cards By Country 2008-03-26 10:21:30 Can you say: easy credit Do we consume a lot or do we just have access to easy credit in the United states?source: Foreign Policy
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Taking a break 2008-03-25 12:50:44 I have a slight headache. No posts today
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Only 1 out of 100 of us will be wealthy 2008-03-24 10:35:45 Alex Liu had a good article post on his blog about this statistic:According to a research in US, 100 people who work for 40 years:• Only 1 will be wealthy• 4 will be financially secure• 5 will continue working, not because they want to but because they have to• 36 will be dead• 54 will be dead broke - dependent on the meager Social Security checks, relatives, friends and even charity for a minimum standard of living.I remember my high school teacher told us a story similar like that above, but he use college degrees as the subject instead of wealth.It, of course had me thinking: "do I want to be a part of the minority or majority?" The choice was up to me.I guess the shortcut to all of this is that you can be an employee all your life or make moves on your own. Or perhaps a litt
Friday Quote 2008-03-21 17:08:21 A job is not about making friends. It's about making money and stealing office supplies. By the way, we're out of coffee filters." -- Hilda, from the show Ugly Betty
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Debtors Are Better Savers 2008-03-21 15:15:26 Two out of 10 Americans say they don't save much because they work too hard to scrimp on the things they really enjoyAmerica's Attitudes About Saving:Percent who agree with each of the following statements. Total Those who earn less than $50K Those who earn $50K+ Those who save part of their income Those who do not save part of their income You don't save much because you don't really worry about it 14% 18% 8% 10% 30% You don't save much because you feel you work too hard to scrimp on the things you really enjoy 20% 28% 11% 18% 29% You do save money, but not as much as you would like because of the expenses of daily living 80% 86% 78% 82% 82% You save as much as possible because you're worried about tomorrow 56% 60% 51% 58% 50% Even if you deny yourself an occasional vacation, cars
My investment portfolio --explained 2008-03-21 10:22:27 Stocks are riskyBonds are less riskyCash has no riskBut if you are young and have many paychecks ahead of you, choose aggressive mutual funds and interesting stocks.-Jim CramerI'm not a big fan of individual stocks, (I only own 2) I do like index funds and I have a mix of ETFs. As I get older however, I will more than likely shy away from stocks and aggressive funds.My index funds are apart of my retirement holdings and My ETFs are investment
s outside of my retirement. Primary use is for goal setting (5 year plans)My cash is for emergency use.So I have short term savings, mid term savings and long term savingsSo the only holdings I will not touch is my retirement. I use to always cash out my retirement every time I leave an employer. The older I become and the more financial knowledge I ga
What you really want from your money ? 2008-03-20 13:15:05 eeh? If I randomly ask 10 people that question they would not know. We all track our finances, net worth, credit card bills and so on.If you can really nail the goals that are meaningful and profound and urgent, "it inspires people to take action."George Kinder, a onetime tax accountant and money manager Truedat.Without a clear goal, you're just living day to day. If you just want to get out of debt, without having a valid reason why, you're going to stay in debt.I want to get out of debt, so I can contribute more to investments, sounds better.I want a house, is not going to cut it. List reasons why you want a house.George Kinder has a set of three questions famous for their ability to focus you on what really matters about money:Question 1Imagine that you have enough money to take care of
Today is the day 2008-03-19 18:08:42 VISA went public today on the NYSE. I bought some shares to see how it goes. The stock will is traded under the symbol: V
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Cutting expenses, sucks ......... my rant 2008-03-19 11:24:03 yeah, I said it.I was watching a pf guru on tv give average advice to a caller. She was 5K in cc debt. The caller had a good excuse---job loss and she had to pay a medical bill. She lived off her cc card for the 4 months the time she was out of work. So to me, she was not overspending, she simply did not have enough cash to hold her over.I'm guessing she was single, because she did not mention a significant other.The advice the pf guru gave her was so average--> Cut your expenses, get on a budget. Get rid of your cable and Internet. Do not eat out, etc. ( I mean that's the advice you give to someone that spend everything they make)I'm sorry, but I would have gave her different advice (quick & dirty) Get a pt job and throw whatever funds (from your primary job) you have leftover minus e Read more:Cutting
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Individual Development Accounts (IDAs) 2008-03-18 15:50:33 Individual DevelopmentAccounts
(IDAs) are matched savings accounts that enable low-income American families to save, build assets, and enter the financial mainstream. IDAs reward the monthly savings of working-poor families who are building towards purchasing an asset - most commonly buying their first home, paying for post-secondary education, or starting a small business. IDAs make it possible for low-income families to build the financial assets they need to achieve the American Dream. A variety of government and private sector sources matches $2 for every dollar you save. NO STRINGS ATTACHED. So if you want to save for a house, start a business or build wealth. IDA programs can contribute to your goals.Directory of IDAs in your state
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At what point do you splurge??? 2008-03-18 11:54:18 I know all you pf bloggers have goals-- getting out of debt, retirement balance to be at xx, net worth need to reach xx, but at what point
you say to yourself " MY TURN"Is there a pf rule? do you reach a goal and then start spending? I say this because I want an iPod TouchI was in the Mall, I go sometimes to walk/exercise when I don't feel like going to a gym. I came across the Apple Store, having time on my hands I said this is the moment I can test out the iPod Touch.OMG !!!! Now I know why they say " a luxury once sampled, becomes a necessary" --I fell in love :) You TubeInternetMapsMail StocksWeatherNotesand of course, MUSIC galore I can have my old school, new school, R&B, pop tracks all in the palm of my hand.LOVE IT' I can listen and watch my pf videos. LOLI just cannot pull myself
Don't stretch yourself to the max--financially 2008-03-17 11:37:19 Let's take the typical middle class couple, Pedro and Aiesha. They both have college degrees, student loan debt, car debt and maybe a few credit cards. They have a combine income of $85K.So Aiesha says to her husband we make too much money to be staying in a one bedroom apartment, We should buy a house. (it's almost goes hand in hand that when you get your first real job, we rush out to consume stuff). So they go to their local neighborhood mortgage company and apply for a loan. Guess what, THEY"RE APPROVED! This is the time to capture their smiles because it will be the last time they will both smile together. LOLTheir loan agent gets them approved for $212,000 (2 and 1/2x their gross income). Pedro gets excited and calls his family members to tell them the good news. Now he feels like a
Friday Quote 2008-03-14 14:33:44 Wealth isn’t about spending money,it is about acquiring and maintaining it.There are only 3 things you can do with money, give it away (charity,tithe), Spend it (purchase items, services) and Save it (invest, mm accts)I try to do all 3. It keeps me balance, but the most important is to me is to maintain it, because it brings security and more freedom.Have a good weekend as always
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The American way of life 2008-03-14 10:38:07 You get married in the late 20s now in the states and you have a kid and then you want, of course, to live in a nice house in a neighborhood with a good school. The American
way of life virtually compels most people to take on a lot of consumer debt and it doesn't really give you an opportunity to get rid of it, -Robert Manning, Ph.D., author of "Credit Card Nation," ...and it doesn't really give you an opportunity to get rid of it, I had to make sure you get that last part.America is designed to have you in debt for LIFESo there are basically only two choices: live the American Life and stay in debt or don't and stay out of debt. I guess I'm in between. LOL
Net worth is a joke, cash flow is better 2008-03-13 10:57:05 yeah I said it.If you stop working today, how long can you survive financially? 3 , 6 , 12 months or 1 day?To me, having enough cash flow is the real reward.What good is it when you have a big house and a Mercedes park in the garage and no cash to put gas in the car. If that car and house is not making you money, you cannot survive off it. Sure you can sell them, but you now will be out of a car or house. And a 401k technically is not your cash. So when you don't have enough cash to whether a storm, your net-worth becomes a joke.Example: A person with 500K of equity in their home and also have a 401k with a balance of $500K. They maybe considered as a millionaire. But honestly, their not. So, I go by cash flow with is how much you have as liquid (non retirement investments and cash)assets. Read more:better
Solo 401(k) 2008-03-12 15:42:54 The contributions to your Solo 401(k) are based on self -- employment income, not on income earned.While most retirement plans provide a tax break and help you save for the future, the self -- employed 401(k) offers additional benefits:Contribution flexibility -- Since it's viewed as a 401(k) with profit sharing, you get to decide each year whether to contribute and how much to contribute to your Solo 401(k). Meaning, if you have a good year, you can choose to put more money into your plan, but if your earnings are less than favorable, you can choose to put little or nothing at all into your plan, says Craig Lewis Gillooly, CEO of www.401kbrokers.com. Higher contribution limits -- You can contribute more money to a Solo 401(k) on less income than you can to an IRA, Simple IRA, or a SEP --
Welcome to the Good Life 2008-04-09 17:43:28 Good drinks, food and of course a pleasant scenery. Who doesn't want that life? (well unless you are afraid of heights!)Some people can get that life now, regardless of their financial situation (ie. credit card) One swipe is all you need. And of course next month the pain comes in your mailbox, the dreadful bill.Option 2, save your money - which takes a lot longer than swiping a card. It may take years! and that's only if nothing major happens during the saving process.Option 3- just ignore the whole thing. Opt.1 - may force you to live paycheck to paycheckOpt.2 - requires a boat load of patience.Opt.3- establish the difference between needs and wantsAH-HA and then there's Opt.4--try your best to make more money. Sell items on craiglist, take a pt job for 2 months, acquire more skills Read more:Welcome
Home equity and borrowing 2008-04-09 10:21:01 If you risk something that is important to you for somethingthat is unimportant to you is just does not make any sense-Warren BuffettWhen I heard him say that, I immediately thought of many people that risk their house (using home equity) to pay off credit cards or other debt.Your home should be your comfort zone. When you risk it for something foolish, you're going to add stress to your life. I would never risk my home for mistakes/debt I incurred in the past.photo credit:equity4profit.com
Friday Quote 2008-04-11 17:15:16 “If you have a garden and a library, you have everything you need.” - CiceroI guess food and knowledge is all you need:(
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How much should you pay yourself when you get paid? 2008-04-13 17:54:31 David Bach tells you where you'll be according to what you save. Dead Broke: Don't pay yourself first. Spend more than you earn. Poor: Spend everything you make and save nothing. Middle Class: Pay yourself first five to 10 percent of your income. Upper Class: Pay yourself first 10 to 20 percent of your income. Super Rich: Pay yourself first at least 20 percent of your income. He means investing this percentage and not just saving it in a bank.45% of the check is gone when I get paid.5% goes to my kid college fund10% goes to retirement investments20% goes to my non-retirement investments
Why we spend and what we can do about it 2008-04-16 16:51:41 According to Stuart Vyse, author of the book, "Going Broke: Why Americans Can't Hold on to their Money," these are some of the reasons/variables:Before: Layaway was the common way for consumers to set aside products they couldn't yet afford. Now: Consumers' buying power is almost unlimited as credit card issuers compete for business.Before: Consumers generally planned and saved money before making big-ticket expenditures. Now: The ability to buy products before you can afford them dramatically reduces wait time. Plus you can get almost anything shipped overnight from all corners of the globe.Before: You had to at least shower, dress, get in the car and drive to the mall. Now: Online shopping anyone?hmmm, I partially agree, Credit cards indeed have taken over "layaways" and we now have more
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