Do you know a high number of people spend over a 100% of income. They do not have margin in life. They continue to spend on unnecessary things. They continue to spend in order to find happiness. It is the 1 number rule in the area of money management. Hey stop the crying and stop the spending in order to find surplus funds. The choice to funnel 20% of pay from the very first paycheck will allow you the margin you need to not abuse personal finance. Obviously if in Debt you might not be able to funnel 20%, and thus should be directed towards debt.
Avoid Paying Interest for Debt as it’s a black hole
Paying interest on money you don’t own is the ultimate trap. Pretending to be OK financially, while borrowing on debt to fund a lifestyle is never good. Be creative to find ways to pay it back or to avoid it at all costs. Debt is never the answer and those who tell you it is, are stuck in debt themselves. They want company and you should immediately stop listening to that advice. I’ve been in and out of debt and I’ll be honest being in debt is stressful, and those times when out of debt felt great. Avoid giving free money away and tell the banks to keep their expensive loans.
Hey what’s going on my great readers. Today we will analyze something people will most likely give you a cross eyed stare if you bring up this topic. It is something many are too scared to bring up due to peer pressure. But I am up for the challenge, because I feel this topic is right up my alley with owning this PF blog. Let’s contemplate the title a bit and see why certain people want to be enslaved to luxury brands. Does Buying Luxury Brand Products Enslave you to Them? I truly believe so because the mark up is so ridiculous for no apparent reason except that it has the name or logo on the product.
Even Kanye West once said it in a song called New Slaves on the Yeezus album. He is the king of contradiction with his music / message and then does the opposite when it comes to selling his own line of products. He says people buy all the same thing, but its all peachy if they buy his $200 dollar sweater with holes in them. He gets on people for buying competing luxury brands, and his clothing pieces are extremely high in price just like the luxury brands.
In life there are no short cuts and you have to understand this in order to pursue the life you want. What drives you in life? IS it to travel the world? IS it to have luxurious things? OR maybe it is to attain a business one day. Whatever it may be, it takes sacrifice and dedication to achieve all of those probable dreams. You cannot reach the finish line in 1st place without first putting in the work. Same applies to life; you can’t expect a free retirement without saving for it. Just like you can’t magically whip up a brand new Lexus without thinking how you will be able to afford it. That’s why I want to stress in life there are no shortcuts. Unless you just want to get by doling the minimum.
In life everything has a cost associated to it whether an action or non-action is taken. The fancy car that might bring you joy today will probably set you back 14 thousand dollars a year for 5 years. (70,000+ dollars less for retirement all due to a luxurious transportation choice) Because of this 1 choice you now have to work for 4 extra years and in the process delaying the trip around the world you desired to take.
Now I’m not knocking car purchases, but it is a simple example to illustrate why you must not take short cuts and realize the choices you make have consequences. I bet you can find examples of those choices in life which will set you back or push you forward every day. Like for example the daily $10 dollar lottery habit, that if saved may potentially turn into a 200 thousand dollar portfolio at age 59. What is the cost trade off for mistakes we make? It is a big cost and it will only hurt you in the future.
6 Creative Ways to Save and Eventually Replace Income
They say if you can save 25 times annual expenses that you can retire so lets play a fun game of thinking in terms of 25 times saving goals. Below is a fun list to get you to think differently about money. I believe we all have the opportunity to win with personal finance and it merely begins with choices. The choice to save 25X expenses is very difficult and I wont sugar coat it. But with every passing day and year, you can get a bit closer. See below for the 6 creative ways to save and eventually replace income.
Hey do you desire freedom? Is it tugging at you as you slave away for 40 hours a week sitting at a cubicle? We should all be striving to reach freedom in any way possible. No job ever truly has your back, because they want you plugged in and locked down with golden hand cuffs for eternity. How long is a long time, 40 years is the average amount of time people end up working. Add up the school years and it balloons to 60 years. Now if those stats don’t motivate you to complete the 6 steps of freedom then I do not know what will.
Imagine a time where the alarm clock doesn’t go off and you can now enjoy 3 day weekends. The boss will be very jealous of you when you hand in your resignation letter because said boss wants freedom too.(Boss just doesn’t disclose the desire all to protect the company’s bottom line)
I have 3 weeks of vacation time and with 52 weeks in the year, it is not enough to allow me a 3 day weekend every week. So I must pursue freedom because of this fact and because I just don’t like people telling me what to do. I place a higher value on family and a more favorable life / work balance. Continue reading The 6 Steps to Freedom
Financial pride is a thing and it can be a long stressful life if you can’t take pride out of finances. Nobody wants to be guided with how they manage money, but if that were the case, then all the bad decisions people made financially would’ve never occurred. That gut check you sense when you’re about to make a sizable expense is the exact warning, to help you reconsider such a devastating financial event. If you find it OK to take multiple vacations a year because you think you can afford it, while you continue to live life paycheck to paycheck that’s a perfect example of non positive financial pride. Financial pride (negative meaning) can be a simple mindset to fix, steering you to make unwarranted financial decisions that are not financially optimal. How to stop financial pride is simple and you will see the answer below.
For example I almost purchased a used car for 4 grand just to drive it on the weekends. Rationality went out the door because I wanted a new shiny toy, but after thinking it through, I decided I needed to fix a few projects around the house first. What if we could just take a moment to decide whether a purchase makes sense in our lives? Would everyone avoid spending and live a so called miserable life from those who relate spending and happiness?
Why is it that people who spend a lot, think people who don’t spend a lot, live unfulfilled? The first step to getting around how to stop financial pride is to not believe money & spending equates to happiness. If you’re happy you live happy, and spending 60K on a new Lexus shouldn’t define that happiness. Or maybe by taking 3 vacations per year, you think it can possibly shoot your happiness gauge up a few notches. The experiences coupled with memories should make you feel better for sure, but if it means you just added debt to have fun, then that is counter to happiness.
Driving a car comes with a fair share of responsibility. Getting behind the wheel of a car means that you are ready to face the challenges of the road and the financial burdens that come along with the process. One of the most important aspects of driving is discovering the best fit for auto insurance. There are many different options to explore. Local insurance, for example, can be an excellent idea to take to heart. By pursuing a more personalized experience, you’re likely to get results that you appreciate.
Finding the best auto insurance for your needs is all about having the most helpful information to make your decision. Consider these points and find a way to insure your car without having to go broke in the process.
The Credit Factor
Your credit can come and haunt you at several different points in your life. Whether looking to buy a car or insure it, you have to have your credit score in a certain range to be offered the most appealing options. You want to be able to spend less each month on your payments while still being covered in a practical way. With a poor credit score, this is not going to be possible. The best thing to do when you are in search of quality insurance is to work hard to improve your score.
Getting your credit rating into a position that will work to your advantage is not a small feat. You will need to dedicate time to this practice and focus on small, manageable ways to make a dent in your number. Hold out hope and keep striving towards a better tomorrow and you’ll find that you are able to qualify for a wider range of plans and policies.
Understand Options
Auto insurance can cover a lot of different areas. While it is a law that all motorists must have some form of auto insurance, it only mandates a very basic package. In truth, auto insurance is designed to cover many options as long as you remember to include these items in your policy. The best way for you to truly understand all of the different options in front of you is by sitting down with a local insurance agent and getting to the bottom of everything out there.
You will find that there is a policy that meets your exact needs out there. Instead of simply taking out an insurance plan because it helps you to meet the minimum requirement set forth by the government, you’ll find that it is far more useful to have a plan that actually reflects your specific concerns as a motorist.
Staying Safe
Good insurance is a wise safety precaution. Life has a way of throwing a curveball your way when you least expect it. To be prepared for any uncertainty that may develop, you’ll want to think over the various options out there for you. Figure out what your credit score is and take time to improve the number. Consider all of your options by meeting with a local agent. Find a plan that works for you and get ready to start your future as a more secure driver.
Using Real Estate to Fund Your Retirement: Yes You Can
With the current economic climate what it is, it’s understandable that you’d be worried about the viability of your retirement fund. There are a lot of great ways to beef up your retirement fund through side gigs, but if you want reliable income, real estate is going to be your best bet. Here are a few of the different ways in which you can utilize real estate value to help keep you in the black throughout your retirement.
Reverse Mortgages
First, it is important to understand that a reverse mortgage is not income. It’s more like a loan program for retirees. Much like a second mortgage, a reverse mortgage is based on the amount of equity you’ve built up in your home. Most people use it to either offset whatever payments they’re still making on the home or to beef up a retirement fund. How you use the money is up to you.
You can repay whenever you’re able–as long as you keep living in that home. If you move, you have to start paying back the loan. If you pass away before the loan is paid off, your heirs will inherit that loan. Current reverse mortgage statistics say that when this happens, the most popular option for heirs is to allow the lender to sell the home and send them a check for however much is left over after the loan has been repaid. Either way, you don’t have to worry about it.
Downsizing
If you no longer need the larger home you purchased to accommodate your growing family (who has long since moved out), sell your home and use the proceeds to either buy a new home or to pay for a rental. Smaller homes are cheaper and easier to maintain. You can also earn extra money buy selling off the stuff you won’t be moving to your new place.
In addition to the monetary benefits, small homes are better at maintaining their temperatures, which is good during the months with severe weather. They also usually stay cleaner because there is less space in which a mess can build up. Finally, they give you an excuse to get out of hosting every single holiday because you simply won’t have the space to accommodate everyone!
