money Archives - Page 2 of 3

Will Cash Retire

PayPal changed the world by offering an online exchange of funds between anybody in the world. Now fast forward a decade later and almost every bank offers electronic money exchanges. Some of you are thinking nah physical money will never go away. But I think one day it just might face a horrific demise. Not that I am a proponent of this happening, I am all for holding those green dead presidents in our hands. I just think the tide will turn one day and there is nothing we can do about it, the government will have the last say in this argument. Have you heard recently about BITCOIN and all the hoopla facing this weird monetary vehicle? Well this is the eventful future and not exactly like those coins, but something similar to it. Thus I keep thinking will cash retire?

Have you ever seen an option to send money online now days by your bank? Well they are all pushing for the end of physical cash because then they will have less operating costs. Is this a shock to all of you? I hope not because as you should know banks always want to decrease expenses while controlling the money with tight-fisted grips. A digital age is becoming more prevalent as wire transfers become just as easy to send as having somebody’s email. Soon there will be an app for that as cell phones are holding more power now than a computer for managing finances on a daily basis. Wait that little white device (Square) that can be attached to your cell can accept a credit card payment for services rendered in a summer garage sale. Guess what that device will eventually assist the final retirement party for good old Benjamin Franklin. Don’t say I didn’t warn you, but maybe you will now realize that this could very well be the future of money.

Here are a few facts about; Will Cash Retire:

-Canada got rid of the penny, soon other coins will follow

-USA wants to get rid of all coins

-Direct Deposit is pushed by all employers and government programs. (Social Security/ Disability/ Unemployment)

-Banks only give promotions to new customers when you set up direct deposit

-Retail Companies want you to get their store card (20% off if you do it – One time)

-PayPal money exchanges are growing every day (Be Careful There’s a fee for this service)

-Square is taking over! 6 Billion Yearly in money exchanges- wowzers (It will cost 2.75% of all sales)

-Online Banks like ING offer the same service to send money to others.

-BITCoin ATMs will soon hit a mall near you. (Hopefully a Fad)

-Trillions of dollars are being exchanged everyday by Currency Dealers (Largest Exchange in the world)

-In 1990 Cash and checks consisted of 85% behind all spending; now it is about 39%

-Every day we all are using less and less cash (See a trend)

-In 2010 3.1 billion was paper transactions and 4.8 billion was cards/electronic

What do you think of those facts? If somebody all the way in japan wishes to purchase a product you have listed on EBay, no problem PayPal to the rescue. I feel that one day we will be viewing physical cash in a museum, unless you are a PF blogger and have the foresight to stash a variety of crisp bills in a photo album hoping they will turn into a collectible one day.

Will Cash Retire? Comment below with your point of view on this topic?

For further Reading look here:

Rich Uncle EL

Some facts were found in Fortune Magazine

Bad Money Habits

As you remember from a few months ago I wrote a post about all the great things I am doing right with my money and how this will lead me to prosper in the world of personal finance. Well this is the follow-up to that post as I will divulge all the bad money habits I am currently dealing with and will attempt to fix and or correct in the near future. As I mentioned before and you have heard a thousand times in your life, nobody is 100% perfect. But maybe you can join my club and be in the 98% perfect organization.

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Top Ten Reasons not to Save Money

Hey today we have a light-hearted post for you guys. I am going to share the Top ten reasons why you should not save money ever. If you agree then you are facing one of these things below or thinking about one of these ten reasons, but if you disagree then you are a fan of the savings mantra. I think from time to time it is fun to joke around a bit.

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The Best Personal Finance Tips

This list is a recollection of all my posts and I have selected the best personal finance tips of all time. I am looking back and analyzing those little things that made an impact in my life financially speaking. I want all of my readers to take a second after reading this list, and just pluck out those things that resonate with your life and your money habits. I am really anxious for the next few months as I am looking to expand on my personal finance capacity by reading more and asking for advice from older wiser individuals with greater experience in this field. What does that have to do with the best personal finance tips I will share with you today?

Well it all comes down to what I know regarding Personal finance, and I can either stop learning or continue to learn. That means staying current with the best money management topics. Which in turn will help me share more with all of you guys in the future. If I learn more, then I can reciprocate that back towards you with great content.

See below for The Best list you will ever come across regarding money management and personal finance:

Continue reading The Best Personal Finance Tips

What you Don’t Know?

I recently heard a story of a young person who after working for many years invests a percentage of pay in a 401K, but after all those years never actually cared to look at the pay stub to see how much money was exiting every pay period. Can you believe this? I look at every pay stub and analyze it to a tee. What did I want to find out? Basically to see all the amounts taken away by the government and how much is being deposited by my employer to my 401K, and I can not fathom a person not checking this or even knowing the amount on a monthly basis. This is the premise behind the What you Dont Know topic in the title.

If this is very shocking to all of you as it was to me when I heard the audacity going on in some people’s minds. But can you blame them for not caring or not being on top of this aspect of money in their life. Unfortunately yes they are partially to blame if for years the employer was not contributing the exact amount that should have been deducted from said person’s pay stub into retirement accounts. Maybe hundreds or thousands of dollars left in the laps of the employer because people were too lazy to check a simple pay stub. Do you think the employer will fix the issue voluntarily? Maybe but I wouldn’t leave it in their hands.

There has been countless stories of employer financial mismanagement where the pay stub amounts were incorrect or the stories of retirement money not being deposited. Granted some of those stories involve simple easy to fix payroll errors, but if the employee is not aware of it who will catch those errors? It is a simple fact of life we cannot disregard because of all the other things we have to deal with in life.

Simple Pay stub Research:

-Check your exemptions on the pay stub

-Multiply the weekly or bi-weekly amount and make sure it adds up to annual income.

-See how much is going to the government in taxes

-See how much is going to your retirement accounts.

-Analyze the difference between gross and net ( Amount should be equal to tax deductions and 401K contributions)

-Make sure your Social Security number is accurate. ( Social Security Retirement figures depend on this)

The simple easy check list above will help you avoid major errors with your money later. I know it can be hard to take time out for things that might not be of interest to you, but pay stubs should always be analyzed with every new job you get.

What you Don’t Know can hurt you in the long run.

Become Informed with Finances.

Comment and let us know if you have caught any errors on your pay stub?

RichUncle EL

Spent $0 in a week

How:

Hey don’t judge me, I had all the food I needed and all the drinks were already chilled in my ice box, didn’t need to buy gas or anything else. It was a regular week and I finally reached a milestone. I always thought that this would be difficult to accomplish when I started blogging, but I can now say that I have done it at least 3 or 4 times in the last 4 months. It all started by tracking every penny I spent in my handy dandy notebook. The days of the week that I didn’t spend any money vary, sometimes the spend fast week started from Friday to Friday or most recently from Sunday to Sunday. As you would be shocked that I didn’t make a purchase during the weekend, I will let you know that it could be done. So if you want to accomplish a similar feat for all mankind or maybe just for your wallet, start tracking every purchase and then make drastic cuts by planning ahead of time. Groceries should be purchased to last you through the week, your gas tank should be filled prior to as well, and for crying out loud avoid any major retailers.

Why:

As you might be asking yourself why did I put myself in such a predicament of being a terrible consumer and not adding to our nation’s GDP. Well if you may ask I did it to add to my Net Worth which is my very own GDP. Another word for this extreme sport as per shopaholics everywhere, is basically called a spending fast. I had a goal in mind as a way to test myself to think differently and I was going to achieve it no matter what. Every step taken financially will hopefully lead me in the right direction towards achieving my goals. Not a single online purchase, not a single candy bar, and not a single article of clothing purchased in that week.

Conclusion:

The end result if I do this more often than not, I will reduce my annual expenses and systematically increase my savings. I have so many goals in life and I want to achieve them as badly as we all need air. Well maybe not that bad, but you get my point. Sometimes to achieve something you have to make drastic changes and this is my major change as of right now. I can not say that I will keep the spending fast going for long or that I might not spend money on something as dumb as a $150 dollar pair of Jordan’s. I can clearly state that I am more focused and determined than ever to do what I have to do, which is to be in a more stable personal finance foundation while growing my net worth.

RichUncle EL

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

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