Friday Quotes VIII

Hello Readers,

I wanted to share with you a few quotes today and hopefully this will get you motivated to start the weekend right. These financial quotes will help you get motivation in your life, whether it may be you are working a part-time / side job, looking at growing a business, taking care of a real estate property, or attempting to save a number of pesos this weekend by not making it rain in the clubs. Either way I wanted to share with you these excellent quotes and you guys can take the message any which way your mind desires.

Friday’s Best Quotes:

Money in this life is best enjoyed without any attachments to it or you. – RichUncle EL

American Corporations hate to give away money. – Stephen Ambrose

If you work just for money you will never make it, but if you love what you’re doing and always put the customer first, success will be yours. -Ray Kroc

Build a mountain of pennies by slashing the avalanche of expenses. – RichUncle EL

I am proud of these quotes today as I have been extremely busy with family distractions. Even though I am thrown off my usual routine I felt weird not creating a quote and carnival post for today. My first quote is based on avoiding all kinds of debt and my second quote is pretty much self explanatory. The other two quotes are based primarily about money, but also reflect how modern day corporations operate. Thousands of companies have a ton of reserved cash that are held in special accounts by being money making corporate machines. Companies can make money in any market, but those that understand how to treat customers right, will be the market leaders and have a global or multinational positive reputation.

Best PF Posts:

-Free Money Finance: How Various Traffic Tickets Impact Car Insurance

-Planting Money Seeds: My Emergency Fund: Taxable Investment Account

-Work Save Live: Buying a Car from Hertz Rent2Buy

-Mr. Money Mustache: Managed Payout Funds

-Financial Samurai: When Buying a Car Avoid Emotions

I hope you enjoy the posts and quotes as I did. Comment below if you have any favorites you would like to share with the moneywatch101 readers.

Interest is What?

Recently I saw a show called “Princess” on TV and it is based on spoiled individuals (90% girls) who walk around spending hordes of money with their income, with debt, and with other people’s dimes. It is hosted by a famous Canadian TV personality and finance guru, Gail Vaz-Oxlade. This show is shocking to me because, I have never seen anybody spend 75% of their income on wants and not needs. What are the typical wants they spend their money on: Manicures, hair-do’s, shopping sprees, massages, eating out and drinking.

On a recent episode, one of the young ladies that was featured last week did not know that if you pay with debt that the purchases made on the card accumulates interest on a monthly basis. Now if she applied for the card and never read the fine print, how many more people are this naive. She didn’t even know how to do a budget. This young lady has been living a reckless life, spending carelessly and on top of that did not even make a single effort to repay her debt. Thankfully this show is a half hour long for the viewers because by the end of it, and after 4 weeks time span she finally learned some personal finance basics and can now be more of an adult.

Who is to blame for this young person not knowing a basic money foundation principle, like interest repayments? Her parents for the most part are to blame, because they spent the majority of the time with her throughout the years. Have you heard of the saying- it all starts at home, well this girl all she got from her upbringing was spoilness, if that’s even a word. What a world we live in where another little princess in another episode, is currently making $2800 dollars a month, spends $4000 a month on things that do nothing for her, but increase her vanity and this went on for years. How did she get to spend so much month after month, by borrowing from her parents, her boyfriend, her sister, her credit cards, and (the icing on the cake) her poor old grandma. Can you believe the gaul of this individual. My jaw dropped as I couldn’t believe that 85% of the $4000 grand went to wants, and not a dime went to debt repayment.

So if you know a princess in your life please teach her what interest is and send her a link to Moneywatch101 or the thousand other personal finance websites, so that she can do better with her finances. The majority of the princesses I’ve seen on the show are in their late 20’s, and have $0 net worth. That is just unacceptable. This is just an example of the times we live in where hyper consumption is the norm and superior marketing tactics by the major companies in this world are legally stealing millions from the hands of the people in this society.

Be smart, Be frugal, Be strong, and Be resilient.

Watch your Money

Photo credit to Slice TV show Princess

Quote of the Day!

This is a quick post to see if a new commenting system is installed on my site. Sorry for the inconvenience. But to leave you with something here is a fabulous quote by yours truly.

If you bring home the bacon and invest it, you shall eat lobster and fillet mignon daily. -RichUncle EL

Watch your Money!

Time is Money

Have you heard this saying before? If you answered yes then you are not alone, this phrase is one of the most popular phrases of our time and for many decades. Benjamin Franklin is quoted as the originator of this quote. But do you take it for what it is literally or do you really grasp the meaning behind it? I have this exact quote up on this website if you look 45 degrees to the right you will see a cool watch with money representing the old adage of the phrase.

Even if you are not obsessed with the meaning like I am, I think we all can use our time more effectively. Can I ask you a simple question? What would you be doing right now if you did not have to work for earned income from a job? If you ask me that question I would probably be doing something relating to sports. Biking, running, swimming, strength training, basketball, even rowing for gosh sakes, all of these activities is what I would do be doing. I would alternate each one of these every day until my bones yelled at my brain to stop the torture I am placing on them. I am exaggerating of course, as I am a family man and I will definitely spend the majority of the time with them, I cannot be that selfish.

At times I wonder when I am at lunch all those guys I see on random occasions, bike riding around town as if they are already in the retirement stage and can do as they please. Well if you plan now early in life you can realize it sooner than later, because you guessed it, Time is Money and money can buy you time. Freedom from being tied down to a desk, from scrubbing a deli counter, or from doing the myriad of jobs in this world. The ultimate Freedom is a sweet pleasure only a few folks and retirees can speak of. But you might say to me, RichUncle EL I like my job and I’ll say to you, more power to you and ask you, but would you do it if you had an income stream of 5 grand a month from investments? What will be you’re answer? You will never know because you are not taking the steps to gain the freedom to live your life the way it is supposed to be. I see people who waste funds living great now, but how long will that last or how long will you have to work later to pay for your retirement because you live extravagantly now.

The average person works about 35 to 45 years and then retires tired and jaded because it took so long to be free. Now why would anybody want to be so far away from freedom for the majority of their life? If you could make or take a few small steps now that may potentially save you 15 years later, why wouldn’t you do it? Most people get corporate jobs to gain financial freedom, but does it really buy you that freedom if you do not take advantage now.

Continue reading Time is Money

Top 10 steps for Money Growth

Warren Buffet

Money Growth Steps

Protect your income- Save those dollars
Live for tomorrow by watching what you do in the present
Avoid debt like the plaque
Keep expenses very low and do not succumb to lifestyle inflation
Increase retirement and emergency contributions by 1% or more every year
Have piggy bank and every year cash in the coins for savings or debt repayment
Use as many rewards / cash back programs as possible
Work harder in finding side gigs
Buy assets that pay interest or dividends
Read PF Blogs and watch your Net Worth

These are all the steps I do to increase my nest egg and I think each and every one of you should do the same. I sometimes feel with simple steps, we all can see great results. These steps are things you may have already done in the past, but maybe you are too busy with life’s routine and have not adhered to some of the steps above in a while. Well I am here to set you on the right money path. Find the time and the energy to do what is right to make your wallet fat with dollar bills. Don’t be like that baby in the capital one commercial that turns down free money. Use the skills you have and follow your path to achieving a greater sense of financial freedom.

Personal growth comes from realizing who you are and then improving on your weaknesses. Thus changing bad spending habits into routines that will enhance your money mantra. A lot of you are already realizing that to make it in life is getting harder then folks had it back in the good ol’ days, but do not fret as you have the ability to change and improve. Follow the steps above while establishing a online financial system to really change your future.

The pic above is a shot of the most successful business person ever: Warren Buffet. He is a living definition of what it is to have money growth. As he grew up in the middle class and now is worth over 40 billion dollars.

Comment if you already follow the steps listed above or if you have another system you use to stay in tuned with your finances?

RichUncle EL

Pic provided by AP press.

Saving Money Tactics

As we all know saving money tends to be an extremely difficult task with all the bills and expenses we accumulate throughout the years. How can you fight back and defeat the non-savings bug? By utilizing smart money tactics and creating a barrier between you and your money.

Anyone can do it as the system is not prejudice to race, but favors towards stubborn minded people who stick to a system of always paying themselves first. Most people are set in their ways and do not want to embark on a mission to better themselves by trying new financial tactics. What new savings tricks have you done recently? If you have not gone out of you’re comfort zone, try a few of the tips below:

Saving Tactics:
*Open an online only savings account and direct deposit a set amount per paycheck (Barrier 1)
*Apply for your employers retirement plan with at least the employer match or up to 15%
*Open another checking, savings account and do not get checks/debit card(Direct Deposit Also, Barrier 2)
*Open an online brokerage account for scenarios if you see a cheap stock or mutual fund( For Investing )

This is system will utilize the two other accounts aside from your main checking account to use for 1. Goal Savings, 2. Emergency Savings. They will both have a direct deposit from your paycheck unless you can be diligent and transfer the money yourself every pay period. Most people will eventually forget or decide after three deposits that they need the money for something else. If you set it up for direct deposit through your employer then you will be less likely to remove the system. It will continue indefinitely and grow over time to help you achieve that emergency fund you have been dying to fund for a long while. A automatic system like this is just the beginning steps as you can add even more layers to the mix with DRIP’S and DSPP’s. (Dividend reinvestment plans and Dividend stock purchase plans)

Saving Money Tactics:

-Match your Friday spending and save the same amount

-When you go out to dinner, save the same amount of the bill in online savings

-Get the biggest piggy bank and attempt to fill it with all the loose change you can find

-Pay yourself first every pay period, even before bills.

-Sign up for all employer sponsored savings / retirement / profit sharing plans. (Start small, then increase)

If you do all these steps you will have a great online saving money system that can not be stopped easily. Systematic barriers will help you grow your accounts without you ever interrupting it. Simple steps can lead you to a better more relaxed financial life. Also very important to consider always set up a beneficiary for all your accounts just in case an emergency occurs.

Contact me if you have any questions regarding setting up a system like this. But really all it takes is a desire to begin by guiding yourself to complete all the Saving Money Tactics.

Rich Uncle EL

Pic is courtesy of moneywatch101.com of a typical Bank in the old days.

Friday Quotes VII

Friday’s Best Quotes:

Action is the foundational key to all success. -Pablo Picasso

Working 8 hours a day for others then relaxing another 4 at home will never do much for success- RichUncle EL

Believing you can do it is always the first action towards success-RichUncle EL

Defeat is not the worst of failures. Not to have tried is the true failure. -George Edward Woodberry

As you can see the theme of today’s quotes are based on success and how to really grab it and make it a part of your routine. People work for themselves everyday and provide for their families by doing what they enjoy doing. Have you ever met somebody who was self employed and did not enjoy what they did to provide for themselves? I have not, and I consider those individuals as truly successful in their own ways. You make a trinket and sell it on Etsy, amazon, or EBay that is an excellent way to succeed in a small way. If you sell a thousand of those trinkets then you are really winning.

Blogging is also a way to work for yourself by writing original pieces of literature that you can pimp out to the world. Some get paid to offer excellent advice on personal finance and others do it for the love of the game. Either way I am doing something I like to do and that is sharing with all of you what’s in my head relating to personal finance.

The content this week in the PF blog world has been a bit lacking but I will share with you a few that I enjoyed reading.

Best PF Blog Posts:

The Money Counselor-Intimidated by Investing Jargon

Mr. Money Mustache-Tim Ferris vs. MMM (Old Post)

AddVodka- Why PF Bloggers are self centered

I hope you enjoy the posts as I did. Comment below if you have any favorites you would like to share with the moneywatch101 readers.

RichUncle EL

Apple vs. Google

Two giants in the Internet and consumer electronics retail space battling it out for supremacy. Which company do you support ? Now if you support one of these companies by buying their retail products, does that mean you might consider investing with them? Both companies are doing great things in terms of technology and pushing the consumer to try on new gadgets they normally would not even consider buying in their everyday life.

Just 4 years ago nobody had a tablet, now all I see are a bunch of zombies typing away at an IPAD or Kindle Fire or an Android powered Tablet on the streets. Even little kids are being held captive by launching into their hands by their parents a $599 Ipad / IPhone so they can play their favorite app games. What a bright future we have when I walk into my local pizza eatery and I see a cute couple typing and finger pointing at their devices instead of having a genuinely rich soul fulfilling conversation. Instead, that great couple became a travesty in today’s society by being in the present and not really being there. You can thank all the smart phone companies and the cell phone companies for turning us into fanatic (checking status updates) individuals every 3 minutes to make sure you do not miss a single picture or comment. Can you say media overload three times?

Let’s get back to the matter at hand Apple Vs. Google. Who is better? Who has better opportunities to grow the stock and finally reach the $1000 per share price?

Current Price for each Stock is:

Aapl- $606 per Share
Goog- $576 per Share*

1 Year Target Est:

Aapl- $723
Goog- $733*

Price to Earnings (How cheap the current stock price is compared to it’s earnings):

Aapl: 14.80*
Goog: 17.58

So there you have it one company dominates the the Internet search arena and the other has a steady growth rate in the consumer electronics market place. One of them owns the android cell phone operating system and the other has the mac operating system with the most popular cell phone in the world, the IPhone. I think one day their will be an (I) in front of every word and Apple will own thousands of new more sophisticated products. See below for a small breakdown of each companies competitive advantage in a each others target market space.

Apple Owns: Google Owns:

IPhone/Ipad                                                    Android/YouTube/Google +
Itunes Streaming Industry                                Blogger Industry / Adsense
Mac TV / Computers                                     Worlds #1 Search Engine Site / Google Earth
Retail Mega-Stores / Great Culture                  Nexus 7 Tablet / Motorola / G Series Cellphones

In my opinion I tend to favor the company that offers a dividend (Apple) as a potential company to invest in as a general rule of thumb. But Google has so much more to offer and in a wider audience than Apple does. Just with YouTube alone, I think Google will be the #1 company in the world in the next 5 years in terms of brand loyalty. On the other hand I think Apple will reach the 1,000 dollar price faster than Google, so for market capitalization only apple will hold the #1 position for the time being. One thing I noticed before thinking of who will be the world’s best company is an important fact to consider, that Google has a lot more competitors as compared to Apple. Which is not very good for business.

I am taking your bets as who you think is the better company by the comments below.

RichUncle EL