|Wealth Building Information|
Re-discovering the Fundamentals of Financial Planning
To lose weight in the 80's, we went on low-calorie diets. In the 90's, we switched to low-fat diets, and now, in the 21st Century, we are completely convinced that it's all about the low-carb diet. What ever happened to just eating healthy?
In a culture where everyone is looking for shortcuts, it's not often that you see something about fundamentals. Well, take note of the following three basics of financial planning, because it may just be what's been missing from your 'plate.'
1) Have a goal in mind! Savings are only as useful as your desire to apply them to a specific purpose. If your goal is a new home, great; if it's to send the kids to Fordham, even better; and if it's retirement, terrific. Once you have the "why," you must determine "how much," and "when." These two variables will determine how aggressive you must be, as well as how much of a present sacrifice you'll need to make in order to reach your goal.
2) Spend less than you earn! If you're a bit late in the game with this one, then the first order of business is to minimize your debt. The common American philosophy is to spend first, and save what's left. Contrast this with the Eastern tendency to invest first, and spend what's left. Can you guess which approach is more likely to lead to wealth? Many people will admit that it is unreasonable to buy a 50" plasma television if the only way to pay for it is with a monthly installment plan. Why then don't we apply the same philosophy to buying a home? When considering rent versus a mortgage, it is generally advantageous to have the mortgage. However, replacing the five-bedroom home with a nine-bedroom home before the five-bedroom has been paid off simply doesn't fit the model.
3) Invest monthly, and start now! $1,000 invested monthly is a heck of a lot easier than $12,000 at year's end. Add to that the concept of dollar-cost averaging and more often than not, you'll also earn more over time. Finally, because of compounding, the sooner you get started, even at a small amount, the less time it will take to get wherever it is you want to go-even if that includes a stop along the way for a low-carb tofurkey salad.
� 2004 Matthew S. Clement, All rights reserved.
Matthew S. Clement is a financial planner and investment advisor representative with Financial Network Investment Corporation, member SIPC. He provides holistic wealth management and retirement planning to individuals and businesses. He can be reached in New York at (845) 942-8578, or by email: [email protected].
High Flying Market Makes Good Buys Hard to Find
AS THE MARKET FLIES HIGHER, GOOD BUYS ARE BECOMING HARDER AND HARDER TO FIND.
I Dont Need A Financial Coach To Help Me!
You've been thinking that your financial life could probably be better, right? Maybe you think, "If I could just stick to a budget everything will be fine?", or how about "When I get that next raise or promotion, I'll have enough money to pay off my debts and save some money?" You may even be thinking,"I can do this on my own!"
Building Wealth: Its An Inside Job ? Part 2
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The Top 10 Steps to Extraordinary Personal Wealth
I recently came across startling figures about the average American's finances. Only 4% of us have significant savings when we hit age 65, and a majority of Americans have less than $1000 in savings. Perhaps even more troubling, nearly one-fifth of us have a negative net worth, meaning that we owe more in debt than the total value of our combined assets. In a land of wealth and opportunity, and in an age of unlimited freedom, attaining wealth is primarily a matter of choice and determination. The following are my suggestions for rapidly increasing your personal income and wealth.
Top 7 Ways To Get Rich
Want to be one of the lucky ones on the road to riches, want to be on the freeway to financial freedom, on your way to wealth?
7 Power Habits that Build Financial Independence
Financial independence is having the freedom to support yourself through your own efforts. Here are seven fundamental habits that will help you achieve and maintain financial independence.
Thieves Continue to Pull Off the Biggest Heist in History?Until Now!
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5 Easy Ways to Save and Build Wealth
1. Pay off high-cost debt. The best investment most borrowers can make is to pay off consumer debt with double-digit interest rates. For example, if you have a $3,000 credit card balance at 19.8%, and you pay the required minimum balance of 2% of the balance or $15, whichever is greater, it will take 39 years to pay off the loan. And you will pay more than $10,000 in interest charges.
Residual Income - 3 Ideas for Long Term Profits
A residual income is one that comes in no matter what--even when you are not working (or can't work.) It's something all of us will someday want and possibly need.
Wealth And Your Net Worth
Most people know it's important to keep and organize all of your vital financial information. But knowing you should and knowing how are two different things!
Self Improvement and Financial Security for the Future
Any successful person, or any anyone interested in self improvement and making a better life for themselves must be prepared to take responsibility for every aspect of their lives and their future.
An ellipsis to your success is hidden in the word prosperity. Take a letter; make a word; assign a meaning, discover a pathway to your prosperity. You might be tempted to think of this as a simple word game. Remember that to play is to use both halves of your brain.
Clearing Blockages to Increase the Flow of Money into Your Life
Money is probably the most challenging thing for many people to manifest. It can also be easiest. Just look at those who have millions or billions of dollars. It doesn't matter what the economy is doing, there will still be a great many people with an abundance of money. What are they doing differently? Are they just "lucky"?
Saving Money By Spending Wisely
Why is it that the older and richer people become, the more conservative they are with their money? Have you ever done or know someone who has made an investment that promised a 10% interest or profit per month? Everyone wants to make above average profits. It is amazing how many people will send their very hard earned money across the world to Nigeria or to Boca Rattan, Florida on the promise of a telephone acquaintance to make them much richer. People give their money to complete strangers in hopes of making more money.
Your Money Or Your Life
Have you stopped to realize that although you go to school to learn about important subjects, no one teaches you how to manage your money? � Money is an essential part of life in our pursuit of happiness, yet very rarely will a parent sit down and tech their child how to handle their money. � This is true in grade school, high school and worst college.� So what happens?� Many of us end up in an extremely large amount of debt.� We can't seem to get it together even if we make more money. � I found myself in this trap about 13 years ago.� I had an okay job, a car, and an apartment.� Nice I thought soon I would buy a house and live the "American dream".� Wrong!� I could never save enough to buy a house.� I had plenty of credit cards, so many that I never had enough money due to many payments to put aside for my dream home. � What was happening to my paychecks?� Well, I was over extended in credit card debt for one.� The buy now pay later syndrome was well embedded in my head.� That mentality had to stop!� Since, I wasn't terribly behind in my payments I was able to get some help from the creditors.� I simply asked for a lower interest rate and/or the ability to skip a payment.� After that call, I had to cut up and dispose of the cards.� No! I didn't cancel my cards but I got rid of them just the same.� � Next I bought a tablet just for my budget information and bills.� I also purchased a software program to keep track of my expenses.� I think it is important to keep something manual that you can carry as well as a computer software tool. � Next, as bills came in, I wrote them down with the name, address, phone number of the creditor, my total balance, interest rate, and minimum payment due, the due date, and if there were any annual fees acquired with the card. � Review the card with the highest interest rate and pay more then the minimum due.� Always ask if they can reduce your rate or seek the possibility of debt consolidation buy applying for a low interest rate loan or credit card.� If you haven't cut up your credit cards do not get a consolidation loan.� Because most likely once your payments are manageable you'll start using your cards again. � Minimizing your spending is the key to financial freedom.� Make sure to start a savings plan after you've gotten your debt under control.
Its High Time for Lifetime Savings Accounts
I'm constantly reading articles on the internet and in financial magazines in which so-called financial planning experts express perplexity as to why about 30% of employees do not participate in their employers' 401(k) plans. These writers don't seem to have clue. Well, allow me to enlighten them a bit. For the most part, it's because of the restrictions imposed on the employees' money.
Build Wealth - Formula To Success
A mole travels one road, according to the way nature intended him; and a squirrel travels another. They cannot follow the same path to get ahead. But the mole is not a failure because he cannot climb a tree, nor does the squirrel sit down and mope because he cannot travel under�ground. You cannot make a ship sail on dry land to any port; and it is equally foolish to try to make one person reach money and prosperity by the same road which another travels with ease.
Top 10 Secrets of Getting Rich!
As many people have observed, "Success leaves clues." If you want to achieve extraordinary success in the coming year, study the experts, do what they do, and modify their techniques to suit your particular situation. It's easy!
The Predicament of the Newly Rich
They are the object of thinly disguised envy. They are the raw materials of vulgar jokes and the targets of popular aggression. They are the Newly Rich. Perhaps they should be dealt with more appropriately within the academic discipline of psychology, but then economics in a branch of psychology. To many, they represent a psychopathology or a sociopathology.
Increasing Your Wealth by Increasing Your Financial Literacy
Perhaps the primary message of Rich Dad, Poor Dad is increasing basic financial literacy. Perhaps I should say financial literacy for the common man and woman. The reason I say this is because the principles taught in the book are very simple--the fundamental personal finance. Some people may even say the what Kiyosaki teaches is dangerously simplistic.
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