Money Management: Handy Tips on How to Avoid Being Broke
|
 |
Sunday, 25 October 09 - 10:12 AM (GMT +03:00) By Anthony J Namata in Money Matters |
| ||
What I saw on Facebook this morning under the keyword "broke" is overwhelming, to say the least. All these people whining about how broke they are would appear to them, to be a pretty daunting predicament to overcome, and reflects the true state of the economy. The recession is really biting in, that's for sure. So what can you do about it? In this short article, I want to go over the reasons why people go broke in the first place (recession or not), and how to seriously curb the spending. I will also share tips on how quick, simple, and easy it is to sell the stuff you no longer need for cash (or great products)!
Call me a miser if you like, but I have watched people spend money they didn't have and seen, firsthand, the trouble that that landed them in. I for one, would rather be a miser with money in the bank than flat out broke and destitute. Not that I haven't been broke, I sure have, but I learned from it. It wasn't a place I want to be, not now, not ever. So how then does one break the shackles that tie you down to a never-ending spiral of debt and frustration? It really is quite simple when you put your mind to it. I will show you how to quickly re-invent yourself financially. You will be pleased to have stumbled upon this article.
So let's begin. The very first thing you MUST know is that you can always live on less. You don't need that extra pair of shoes, that new dress, that new pair of jeans, that new mobile phone you'd promised yourself you were going to have no-matter what, just put a firm lid on all of that and ONLY buy what you REALLY need. And I mean that literally. If you develop this into a habit (stopping to THINK before you buy) you will gradually begin to realize that you have more money in your pocket (and in the bank). The trouble with most people is they buy on impulse... they'd step into a store, see something they had absolutely no intention of buying, and buy it! Just like that, without even giving it a second thought. I know it feels great and that it is therapy in itself--especially when you're feeling down for whatever reason--but the error of your ways begins to set-in once you get home and take a closer look at what you've just spent a substantial amount of money on when, as it happens, there's still that grocery list that needs sorting out, or your child's school fees that needs to be settled and so forth. Now where are you going to find the extra cash to pay your bills or shop for groceries when you've already spent it? The trick is to prioritize EVERYTHING.
I usually have a list of items I want to buy, but what I do is I prioritize the list. Absolute essentials always go first, and then there are the little things I might want to acquire... like a couple of new CDs, or maybe a new home theater or a new mobile phone. What I do is I take a good hard look at what these items cost, and whether or not I must have them now! For example, it took me ages to get a new mobile phone, not because I didn't have the money, but because I had other items on my priority list that were more important. And here's something else, NEVER spend every last dime you have on you (priority list or no priority list), money has a nasty habit of dragging you down deeper and deeper into debt when you don't have a penny to your name. Don't ask me why. Just look around you. Isn't it true that when you're broke you tend to get even more broke? Well, there's your answer right there. So to avoid this, make sure that you have some money saved after all your purchases for that month have been made. Leave the pending items on your priority list for another time. You won't die, trust me.
So what can you do to recover at least some the money you've spent on items you hardly use? This is getting interesting isn't it? You've spent a fortune buying stuff on impulse, you haven't got a penny to your name, and now you want your money back? Sounds far-fetched? Trust me, it isn't. The solution is to auction, or to simply sell the stuff you don't want in your closet, or around the house anymore. There's money lying dormant in those items right there, you just don't know it yet. Make a list of all the items you posses that are cluttering your living space, and get rid of them! It's that simple. With auction sites all over the Internet, if you spent a bit of time itemizing, photographing and listing your items online, your efforts will pay off in the end. But please, don't go SPENDING more money to do this. Only list your items on sites where it is free to list, or costs very little. Remember, the purpose of this article is to show you HOW to avoid being broke.
In summary: The reason why many people go broke is because they lack the discipline to curb the spending. The trick is to get in the drivers' seat and to take charge of your finances. The first thing you'll want to adapt into your lifestyle is to train yourself to THINK before you buy. Whether you'll agree with this or not, we all tend to buy items that we DON'T really need. We buy on impulse and then regret our actions later. Exercising control by prioritizing your shopping list at all times will not only save you a fortune, it'll help you avoid being broke. But don't go spending the money you've saved, save it! And better yet, get rid of some of your unwanted items. You will be amazed how much money is lying around the house in those items we call clutter. Itemize them, photograph them, and list them online for sale! This is perhaps the quickest way to resurrect your finances that I can think of, off the top of my head.
Hold your very own online garage sale! Use TripleClicksDeals to clean out your closets, attic, and garage. List and sell dozens or even hundreds of items and start putting cash in your pocket TODAY! Give it a try with a FREE listing at TripleClicksDeals.com
The New Normal: Great Opportunities in a Time of Great Risk
|
|
|
Tuesday, 10 February 09 - 10:38 AM (GMT +03:00) By Anthony J Namata in Money Matters |
| ||
Back in the 40s, 50s, and 60s, it was fairly easy to plan for a secure future. People picked a career, a spouse, and a place to live, and those basic decisions put them on a predictable course for the rest of their lives. Especially if they were lucky enough to land at a big corporation with great benefits and smart enough to buy stocks.
In the 70s, 80s, and 90s, technology and global competition transformed the world. An increasingly strong economy masked spiraling instability in the workplace and the world. A rising stock market lulled people into thinking they were in control of their lives.
But now we’ve entered a totally new era, which Roger McNamee calls the New Normal. It’s a time of great uncertainty—about terrorism, corporate scandals, the outsourcing of jobs overseas, and much more. The old safety nets aren’t coming back, even when the economy recovers. But the good news is that the New Normal also offers tremendous opportunities. This book—by one of Silicon Valley’s most insightful and successful investors—explains how to make the most of your life, career, and money by embracing the future.
The New Normal is the era of the individual. In companies large and small, each person now matters more than ever before. The Internet has finally made it easy to launch and grow a real business. For entrepreneurs and managers, the global economy opens previously untapped sources of supply and demand, cost savings and innovation. Individual investors now have access to tools and knowledge that were, until recently, restricted to professionals.
Roger McNamee has written a sweeping book in the tradition of Megatrends that clarifies this new era and gives readers a practical blueprint for success.
List price: $24.95. Get your free copy now! (while supplies last...) and MANY MORE books like these absolutely FREE by subscribing to the
International Association Of Home Business Entrepreneurs
About the Author: Roger McNamee is a prominent Silicon Valley venture capitalist and investor, having managed top-performing funds at T. Rowe Price, Integral Capital Partners, and Silver Lake Partners. He has been profiled in many publications and appears regularly on CNBC. He also plays guitar for the Flying Other Brothers Band.
Follow Me On Twitter
http://twitter.com/tojona
Money Talks - Best Ways to Invest Small Amounts of Cash
|
|
|
Saturday, 20 September 08 - 01:57 AM (GMT +03:00) By Anthony J Namata in Money Matters |
| ||
by Anthony J. Namata
With the recent cataclysmic events on Wall Street still unfolding and reverberating across the planet, interest in what goes on on the stock market -- even for those who haven't got a clue -- has risen. Whether you're a complete novice at this; or have an inkling or experience in how the money / stock markets work, this article will aim to show you the best way to invest small amounts of money and how that 'little' initial investment can grow and benefit you long-term, even when you've only got $20 to put away right now.
$20 may not sound like much but you can use it to buy shares in Johnson & Johnson, Intel, or even Harley-Davidson. And there are over 1,000 options available; and when you've got $100 or more to invest, your options are even greater. Now let's take a closer look at the mechanics of investing small, large and medium amounts of cash.
Let's start with $20. Is it really worth investing such a pittance? Well, indeed! And one way to do that, cheaply, is through Dividend Reinvestment Plans (DRPs), also known as Drips. DRPs and Direct Stock Purchase Plans (DSPs) allow you to bypass brokers -- who charge commission -- by buying direct from the companies you want to invest in, or via their agents. There are over 1,000 major corporations offering these types of stock plans, many of whom don't charge a penny, or when they do, usually the fees are low enough to make it worthwhile to invest as little as $20 or $30 at a time. Ideal for those who are starting out with small amounts to invest, Drips will enable you to purchase frequently. In fact, once you're in the plan you can set up an automatic payment plan without even having to buy a full share each time you make a contribution. If you can only invest small amounts of money every month, Drips, no doubt, may be one of the surest, steadiest ways to build wealth over your lifetime.
If you have a couple hundred bucks to invest, however, you may want to consider investing it in an index fund that tracks the S&P 500 (which has traditionally returned about 10% per year). Low minimum index funds that require as little as $250 -- usually restricted to IRAs (Individual Retirement Accounts) for you to call yourself an owner, will allow you to add as much money as you like, as frequently as you like, after your initial investment with no additional costs or commissions. You simply purchase index funds directly from mutual fund companies, so there are no commissions to pay to a middleman. If you have a few hundred dollars to start with, then this is a great, low-cost way to establish an instant, widely diversified 500 companies portfolio.
What can you do with a grand?
What would be the best way to invest $1,000-plus? Well, if you open up a discount brokerage account, and can scrape up an additional $1,000 a year to add to your original investment; and let's say you've got 40 years to retirement, if you start with $1,000 and invest an additional $1,000 each year, and your money earns 10% annually, then when you're ready to retire at age 65, you'll have $532,111.07. Wouldn't that seem worth it? And if you set-up a Roth IRA, you won't even pay tax on that $532K when you withdraw it!
Anthony J. Namata is a successful home-based business entrepreneur who lives in the sun and earns an extraordinary living online. He is also the author of The Gems Report (How to Become An International Gemstone Dealer), and is committed to helping people around the world gain financial freedom and independence through global network marketers SFI Marketing Group.
How to Develop the Habit Of Saving
|
|
|
Friday, 05 September 08 - 12:22 PM (GMT +03:00) By Anthony J Namata in Money Matters |
| ||
Money Management
How to Develop the Habit Of Saving
Break Away from Debts and Frustration
Sadly, this is another much violated area. Surprisingly, very few people save a penny of their income, yet this is one of the fundamental laws of wealth creation. You should save 10% of your income - and you should do this every month before you do anything else. As far as you are concerned this should be money that just isn’t available - invest it immediately! This should form your Wealth Accumulation Bank.
Now I am going to tell you something, which will probably surprise you - NEVER TOUCH THE MONEY! No, I am not crazy, but this is one of the peculiarities of life - it is no good saving the money for a rainy day or emergencies, because you will find that an emergency will crop up fairly regularly - you’ll just never create wealth. Most people consider a birthday, Christmas, new car etc. as an emergency - your funds will never mount. If you have a specific goal towards which you are moving, you should set up a separate account - a new car savings account for example - BUT NEVER TOUCH YOUR WEALTH BANK!
But what if you are already living to the limit, up to your neck in debt with unpaid bills. With no spare cash how are you going to save 10% of your income? If this is the case, and I’ve been there myself, you have to start saving something maybe 1% of your income, or put your loose change in a jar and invest it in an interest account at the end of each month. Any time you receive a bonus - Christmas, birthday money etc., invest it once again. It doesn’t matter how small the amount, once you start saving and it develops into habit, good things WILL begin to be attracted to your life.
Whether you believe so or not, you can always live on less. If you’re up to the limit, save some of your income at least pretend it isn’t there - you will learn to get by! People who have followed this law have found that after a while they begin to save 2% of their income, and then 3,4,5,10,15,20 percent. The more one saves, the more money one seems to attract into one’s life - try it.
Don’t spend expected income: Many people, especially those in business, fall into this trap. They purchase goods on the premise of what they expect to come into the business the following month. Or perhaps, if they are in networking, they’ll spend their commission before they’ve actually received it. DON’T! Wait until the money is in your hands. If you don’t, life has a nasty habit of kicking you where it hurts, as a reminder not to act so capriciously.
Keep quiet: Keep your success to yourself. The moment you start boasting about what’s going to happen in your life and how well you’re doing, you can be sure something will go wrong - don’t ask me why - but it happens.
HOW TO AVOID BANKRUPTCY!
Do you know that most individuals and companies go out of business? They start with incredible dreams, but within a year, their dream deflates like a balloon after a party.
Today we can see companies making the same silly mistakes all around us. Business can often be likened to the shape of a horn. Enter through the wide end, splashing out money on: offices, plush furniture, company cars, business dinners and brunches, hotels, excessive marketing material and paying yourself fat wages etc. - can lead only one place, BANKRUPTCY!!
If you enter through the wide end of the business horn, as most do, you will find it extremely painful trying to squeeze out the other end. However, enter through the narrow end of the horn, re-investing your money in your business, focusing on the long-term, exercising stringent financial control and you will grow and expand with your business as the end of the horn widens infinitely - you’ll find your journey a pleasure. Leave the luxuries in the early days and the tempted extravagance well and truly alone. Why move into plush offices, when you can do the same work from home for example - grow with your business, it has a life.
DON’T LET YOUR EGO CONTROL YOUR BUSINESS - LEAVE IT TO YOUR HEAD!!!!
While you've been reading the above, thousands of people all over the world have been working to put money in my pocket. I even make money while I sleep! By this time next week, so could YOU. Get full info here!
... More items are available in my News Archive
