Thursday, December 29, 2005
Quit and Grow Rich
An old cliché goes, “Poor people get poorer by acting rich and rich people get richer by acting poor.” People do not realize how small day to day purchases can add up to big bucks in the long-run. It may seem like a penny here and a nickel there doesn’t mean a whole bunch, but even little amounts can add up to big savings.
The truth is that cutting back on your lifestyle choices is probably one of the only things that you have control over in your financial life. Some examples of everyday expenses are listed below. The amounts are simple values, and do not include potential interest that can be made from investing the savings.
Pack of Gum
2 per week X $1.00 per pack X 52 weeks per year = $104.00
Cigarettes
1 pack per day X $4.00 per pack X 365 = $1,460 per year
Alcohol
3 drinks per week X $2.50 per drink X 52 weeks in a year = $390.00 per year
Specialty Coffee/Late
1 per day X $3.50 per cup X 365 = $1,277.50 per year
Bag of Chips
2 per week X $1 per bag X 52 weeks per year = $104.00 per year
Eating out for Lunch
One day per week X $10 lunch X 52 weeks per year = $520 per year
Gasoline
If you drive 15 miles less per week (or 1 gallon of gas) X $2.50 per gallon X 52 weeks per year = $130.00
Round of Golf
1 round per month X $20 per round X 12 months per year = $240.00
Pair of Shoes
1 pair per month X $20 per pair X 12 months per year = $240.00
Using Another Banks ATM
Once per week X $2.50 fee X 52 weeks per year = $130.00
Going to the Movies and Popcorn for 2
Once per week X $15 X 52 weeks in a year = $780 per year
Renting a Movie
Once per week X $3.00 X 52 weeks in a year = $156.00
Give up Regular Cable Television
$45 per month X 12 months per year = $540.00
Regular Cable Instead of Digital Cable
Save $25 per month X 12 months per year =$300.00 per year
You probably noticed that some of these examples are extreme (who can live without cable right?), but they do prove a very good point. Everything you buy means money out of your pocket, and as you can see, the little things add up quick. No matter your income level, spending less than you earn is a must to becoming wealthy.
About The Author
Jeremy LaDart is an economist with a passion for personal finance. In his spare time he runs http://www.moneytopics101.com. CopyRight2005 JML Enterprises, LLC.
The truth is that cutting back on your lifestyle choices is probably one of the only things that you have control over in your financial life. Some examples of everyday expenses are listed below. The amounts are simple values, and do not include potential interest that can be made from investing the savings.
Pack of Gum
2 per week X $1.00 per pack X 52 weeks per year = $104.00
Cigarettes
1 pack per day X $4.00 per pack X 365 = $1,460 per year
Alcohol
3 drinks per week X $2.50 per drink X 52 weeks in a year = $390.00 per year
Specialty Coffee/Late
1 per day X $3.50 per cup X 365 = $1,277.50 per year
Bag of Chips
2 per week X $1 per bag X 52 weeks per year = $104.00 per year
Eating out for Lunch
One day per week X $10 lunch X 52 weeks per year = $520 per year
Gasoline
If you drive 15 miles less per week (or 1 gallon of gas) X $2.50 per gallon X 52 weeks per year = $130.00
Round of Golf
1 round per month X $20 per round X 12 months per year = $240.00
Pair of Shoes
1 pair per month X $20 per pair X 12 months per year = $240.00
Using Another Banks ATM
Once per week X $2.50 fee X 52 weeks per year = $130.00
Going to the Movies and Popcorn for 2
Once per week X $15 X 52 weeks in a year = $780 per year
Renting a Movie
Once per week X $3.00 X 52 weeks in a year = $156.00
Give up Regular Cable Television
$45 per month X 12 months per year = $540.00
Regular Cable Instead of Digital Cable
Save $25 per month X 12 months per year =$300.00 per year
You probably noticed that some of these examples are extreme (who can live without cable right?), but they do prove a very good point. Everything you buy means money out of your pocket, and as you can see, the little things add up quick. No matter your income level, spending less than you earn is a must to becoming wealthy.
About The Author
Jeremy LaDart is an economist with a passion for personal finance. In his spare time he runs http://www.moneytopics101.com. CopyRight2005 JML Enterprises, LLC.
I'm A Credit Card Deadbeat: You Can Be One Too!
I am delighted to say that I am a credit card deadbeat! In fact, some of you might already be credit card deadbeats too, if so, I commend you for your excellent work! Now, as for those who don’t know what a credit card deadbeat is, before you start thinking I have a screw loose, you may want to continue reading!
When I say that I am a credit card deadbeat, I don’t mean that I avoid my credit card bills. To the contrary, a credit card deadbeat is the insider term used by credit card company executives and refers to all of the credit card users who pay off their bill each month promptly; in doing so, such customers pay no interest and prevent the creditor from making any profit! That’s me! I love being a credit card deadbeat!
The alternative to being a credit card deadbeat is what credit card executives call a revolver. A revolver is a credit card user that constantly carries a balance and is charged regular, monthly interest on their charges. Credit card companies love revolvers because they, in essence, increase the bottom line for the credit card company and make them a nice profit. Further, from an insider perspective, the best customers not only carry a balance, but also make their payments late, triggering extra fees and a higher interest rate.
Okay, so I've been a credit card deadbeat for awhile now, but last year I went even further in improved my deadbeat ways. Not only did I hang onto my hard earned cash by refusing to line the wallets of the credit card companies, but I also happily lined my own wallet with their money, to the tune of $1,402. Yes, that’s right, they paid me $1,402 to use their cards; continue reading to find out how!
Cash Back Credit Card
First, I applied online for a Cash Back Credit Card and I was instantly approved. My new cash back credit card arrived to my house the following week ready for me to use. This card offered me 0% APR for 12 months and carried no annual fee; With it, I made all of my gas purchases, as well as grocery and drugstore purchases and earned 5% back cash back on the gas purchases and 1% back on all other purchases. I have a family of four and the gas purchases included gas for my spouse’s car as well. My average monthly purchases and cash back earnings were as follows:
Monthly Gas Purchases $325 x .05 = $16.25
Monthly Grocery Bill $1,200 x .01 =$12.00
Monthly Drugstore Purchases $160 x .01 = 1.60
Total Cash Back Earnings From Credit Card $ 29.85 x 12 = $358.20
Airline Rewards Credit Card
I also applied for an airline rewards credit card and again was instantly approved online. Like the cash back credit card, my new airline rewards credit card arrived the following week, came with a 0% introductory APR for 12 months and had no annual fee. This credit card earns 1 frequent flyer mile for every $1 charged.
I charged many of my miscellaneous expenses, including major purchases and business expenses, on my new Airline Rewards Credit Card. As a result, the qualified expenses came to an average of $2,250 monthly or $27,000 for the year, earning 27,000 frequent flyer miles, more than enough for an airline ticket to Hawaii: a $500 value!
0% Introductory APR for 12 Months
Now here’s the kicker. Since both credit cards came with a 0% introductory APR for 12 months, I paid only the minimum payments on each card and placed the money for my purchases into a savings account earning 2.5% (rates have gone up since). Using averages for simplicity, I made 12 monthly deposits of $3,935 into a savings account earning 2.5% interest compounded monthly. By the end of the year, I earned $544 in interest!
My Total Credit Card Earnings for the Year
So here is my total earnings from the cash back credit card, airline rewards card, and interest earned.
Cash Back 12 x 29.85 = $358
Free Airline Ticket $500
Savings Account Interest $544
Total Earned $1,402
Just to make sure I maintain my deadbeat ways, now that the 0% introductory rate has expired, I’ve paid off my balance from the money I deposited into my savings account during the year. To be a credit card deadbeat you need persistence, determination, and discipline. I did it, and so can you!
About The Author
Stephanie Andrews is a contributing editor for http://www.credit-card-surplus.com , a well organized credit card directory enabling the user to compare and apply for offers including http://www.credit-card-surplus.com/cashback.php and http://www.credit-card-surplus.com/airline.php
When I say that I am a credit card deadbeat, I don’t mean that I avoid my credit card bills. To the contrary, a credit card deadbeat is the insider term used by credit card company executives and refers to all of the credit card users who pay off their bill each month promptly; in doing so, such customers pay no interest and prevent the creditor from making any profit! That’s me! I love being a credit card deadbeat!
The alternative to being a credit card deadbeat is what credit card executives call a revolver. A revolver is a credit card user that constantly carries a balance and is charged regular, monthly interest on their charges. Credit card companies love revolvers because they, in essence, increase the bottom line for the credit card company and make them a nice profit. Further, from an insider perspective, the best customers not only carry a balance, but also make their payments late, triggering extra fees and a higher interest rate.
Okay, so I've been a credit card deadbeat for awhile now, but last year I went even further in improved my deadbeat ways. Not only did I hang onto my hard earned cash by refusing to line the wallets of the credit card companies, but I also happily lined my own wallet with their money, to the tune of $1,402. Yes, that’s right, they paid me $1,402 to use their cards; continue reading to find out how!
Cash Back Credit Card
First, I applied online for a Cash Back Credit Card and I was instantly approved. My new cash back credit card arrived to my house the following week ready for me to use. This card offered me 0% APR for 12 months and carried no annual fee; With it, I made all of my gas purchases, as well as grocery and drugstore purchases and earned 5% back cash back on the gas purchases and 1% back on all other purchases. I have a family of four and the gas purchases included gas for my spouse’s car as well. My average monthly purchases and cash back earnings were as follows:
Monthly Gas Purchases $325 x .05 = $16.25
Monthly Grocery Bill $1,200 x .01 =$12.00
Monthly Drugstore Purchases $160 x .01 = 1.60
Total Cash Back Earnings From Credit Card $ 29.85 x 12 = $358.20
Airline Rewards Credit Card
I also applied for an airline rewards credit card and again was instantly approved online. Like the cash back credit card, my new airline rewards credit card arrived the following week, came with a 0% introductory APR for 12 months and had no annual fee. This credit card earns 1 frequent flyer mile for every $1 charged.
I charged many of my miscellaneous expenses, including major purchases and business expenses, on my new Airline Rewards Credit Card. As a result, the qualified expenses came to an average of $2,250 monthly or $27,000 for the year, earning 27,000 frequent flyer miles, more than enough for an airline ticket to Hawaii: a $500 value!
0% Introductory APR for 12 Months
Now here’s the kicker. Since both credit cards came with a 0% introductory APR for 12 months, I paid only the minimum payments on each card and placed the money for my purchases into a savings account earning 2.5% (rates have gone up since). Using averages for simplicity, I made 12 monthly deposits of $3,935 into a savings account earning 2.5% interest compounded monthly. By the end of the year, I earned $544 in interest!
My Total Credit Card Earnings for the Year
So here is my total earnings from the cash back credit card, airline rewards card, and interest earned.
Cash Back 12 x 29.85 = $358
Free Airline Ticket $500
Savings Account Interest $544
Total Earned $1,402
Just to make sure I maintain my deadbeat ways, now that the 0% introductory rate has expired, I’ve paid off my balance from the money I deposited into my savings account during the year. To be a credit card deadbeat you need persistence, determination, and discipline. I did it, and so can you!
About The Author
Stephanie Andrews is a contributing editor for http://www.credit-card-surplus.com , a well organized credit card directory enabling the user to compare and apply for offers including http://www.credit-card-surplus.com/cashback.php and http://www.credit-card-surplus.com/airline.php
Friday, December 23, 2005
Benefits of Personal Finance Software
In this age of information, keeping track of your finances does not mean an archaic jumble of ledgers, calculators, and papers filled with calculations in chicken scratch. Now everything can be taken care of on your computer through personal finance software.
Personal Finance Software: Organize Your Finances
Your finances are complicated. You have money coming in and money going out. You have bills and investments as well as multiple bank accounts. Personal finance software will keep everything organized for you. Depending on the software you use, it may be able to separate portions of your finances into various categories for you. For example, Quicken separates your checking accounts from your savings accounts and allows you to track your investments all at the same time.
Organization saves time. Taking a few minutes to input your purchases and paychecks eliminates those hassles associated with staying on top of your finances. Rather than rifling though bank statements and bills for hours, everything is right here in the program. As long as you put each purchase and paycheck into the software, your checkbook will automatically be balanced. Some programs also feature functions that will create a budget for you; yet another time saver.
Personal Finance Software Knows Where Your Money Is
In order to keep more of the money you make, you must know where it is. Personal finance software gives you the power to know where each penny is at a glance. Some will even create reports for you that detail where your money goes each month. This feature will help you locate the leaks in your budget and reduce your expenses every month.
The overview personal finance software gives you is one of its main benefits. It allows you to take off the blinders and truly assess your financial situation. With this new-found view of your finances, you will be able to effect changes like never before. The old adage applies; you have to know where you are before you can get to where you want to be.
About The Author
Jon Martin is the webmaster of Your Personal Money Management, a site established to help you keep more of the money you make.
http://www.manage-your-debts.com
This article comes from the Home Financial Software section of the site. http://www.manage-your-debts.com/home-financial-software.shtml
Personal Finance Software: Organize Your Finances
Your finances are complicated. You have money coming in and money going out. You have bills and investments as well as multiple bank accounts. Personal finance software will keep everything organized for you. Depending on the software you use, it may be able to separate portions of your finances into various categories for you. For example, Quicken separates your checking accounts from your savings accounts and allows you to track your investments all at the same time.
Organization saves time. Taking a few minutes to input your purchases and paychecks eliminates those hassles associated with staying on top of your finances. Rather than rifling though bank statements and bills for hours, everything is right here in the program. As long as you put each purchase and paycheck into the software, your checkbook will automatically be balanced. Some programs also feature functions that will create a budget for you; yet another time saver.
Personal Finance Software Knows Where Your Money Is
In order to keep more of the money you make, you must know where it is. Personal finance software gives you the power to know where each penny is at a glance. Some will even create reports for you that detail where your money goes each month. This feature will help you locate the leaks in your budget and reduce your expenses every month.
The overview personal finance software gives you is one of its main benefits. It allows you to take off the blinders and truly assess your financial situation. With this new-found view of your finances, you will be able to effect changes like never before. The old adage applies; you have to know where you are before you can get to where you want to be.
About The Author
Jon Martin is the webmaster of Your Personal Money Management, a site established to help you keep more of the money you make.
http://www.manage-your-debts.com
This article comes from the Home Financial Software section of the site. http://www.manage-your-debts.com/home-financial-software.shtml
Saturday, December 03, 2005
What People Buy On Payday
Some people think that to become wealthy, they need to live in a certain lifestyle and buy certain things that the real wealthy people have. By doing so many of them would finally end up in a financial turmoil and are far from being what they had always dreamed of: real wealthy or simply financially free.
The truth is, different people with different financial conditions buy different things on payday not because of how much money they have but because of their particular mindset that drove them to buy those things in the first place.
-- When the poor go shopping...
Poor people would go and buy the things we would simply call 'little stuff'. They buy things that are inexpensive (and sometimes useless) simply because they are inexpensive.The 'little stuff' won't cost them much but it won't worth anything to them over the years -- and because the money was all spent on 'little stuff', this will be the only thing they will have.
Some people who are even less fortunate like many in my own country, Indonesia, won't even have 'stuff'. When they go shopping on payday they buy food and maybe some clothes -- just basic things they need to survive for one month.
The poor won't have enough money to save, let alone invest. So what comes in on payday, goes out on 'little stuff' or food to survive. They simply just don't educate themselves that their income could have been used to create more income -- and this has caused a lot of financial pain. Yet, it does not need to be this way.
-- When the middle class go shopping...
These are successful people with well-paying jobs and great carreer. Because of this, society mistakenly considers them as 'the rich'. The middle class would buy things that we would call 'liabilities'. Liabilities are things that cost you money. A car would be a liability -- you would spend money on gasoline, insurance and not to mention the thousands of dollars of monthly payment for the new car. A house should also be considered as a liability -- although some people would call it 'asset', we can't escape the fact that buying and owning a house would actually cost you -- which makes this more a 'liability' instead of an 'asset'. But when you buy a house and rent it out and it pays you money regularly, then the house is called an 'asset'.
Typically, the middle class split their big fat check into two and one portion of it goes out to pay for the downpayment of a new car (or a new house) or anything that are actually 'liabilities'. By the next month, they will have created another thousands of dollars of monthly expenses for paying the installments. After this, they would want a new Rolex watch, or another car, or a boat, or an expensive vacation.
The middle class may make big fat paychecks because of their successful carreer. But if the money that comes in are constantly spent on 'liability', it won't take long until they wind up highly stressed out in a financial turmoil. In the end, the middle class find themselves enslaved by their jobs because of the liabilities. It means they have no choice than to go to work and make more money every month to be able to pay off their liabilities.
The problem with both the poor and the middle class is, generally their income is dependant on their own effort/ time. The case with the poor is, that they exchange their time with their employers money -- while there is only so much you can do in 24 hours with your own effort. On the other hand, the middle class exchange their high education and expertise with someone else's money. As soon as they stop 'exchanging' time and education, the money stops coming.
-- When the real wealthy go shopping...
Real wealthy people would go out and buy things that we would call 'asset'. Assets are things that pay you money.
The example would be investments, stocks, bonds, real estate,... Another example of asset is education. If you buy education and apply it to produce income, your education is an 'asset'.
Real wealthy people would always put aside a certain portion of their income to buy assets like those. The wealthy simply spend their money on things that can produce more money.
If you want to become wealthy you have to find assets that would earn you income and with the income, buy more assets to earn you more income and so on. One example of affordable asset you could buy is a business. Any business that creates for you passive ongoing income is your asset. Passive income is income that requires little work or no work at all. This type of income is the income that you earned from work you did just once.
There are numerous of passive income creation opportunities. One asset that I have found (and is affordable for me) is investing in my own small business, Success University -http://www.e-money-machine.com. I find this an invaluable asset because I have free access to the most powerful success oriented personal development education, presented by over 50 of the world's greatest minds in personal achievement. The education that I get is
applied in my day job, causing me to earn even more income than before. And the business opportunity of Success University -http://www.e-money-machine.com, is just an outstanding asset that allows you to earn money even during your 14 day free trial.
This article has been written in the hopes that it will be an eye-opening piece of information on managing you personal finances better.
About the author:
Dinar P. Wiria-Atmadja earns money as a student of Success University -http://www.e-money-machine.com She is also the owner of Proven Map to Success & Financial Freedom - http://www.financialfreedomawaits.com
The truth is, different people with different financial conditions buy different things on payday not because of how much money they have but because of their particular mindset that drove them to buy those things in the first place.
-- When the poor go shopping...
Poor people would go and buy the things we would simply call 'little stuff'. They buy things that are inexpensive (and sometimes useless) simply because they are inexpensive.The 'little stuff' won't cost them much but it won't worth anything to them over the years -- and because the money was all spent on 'little stuff', this will be the only thing they will have.
Some people who are even less fortunate like many in my own country, Indonesia, won't even have 'stuff'. When they go shopping on payday they buy food and maybe some clothes -- just basic things they need to survive for one month.
The poor won't have enough money to save, let alone invest. So what comes in on payday, goes out on 'little stuff' or food to survive. They simply just don't educate themselves that their income could have been used to create more income -- and this has caused a lot of financial pain. Yet, it does not need to be this way.
-- When the middle class go shopping...
These are successful people with well-paying jobs and great carreer. Because of this, society mistakenly considers them as 'the rich'. The middle class would buy things that we would call 'liabilities'. Liabilities are things that cost you money. A car would be a liability -- you would spend money on gasoline, insurance and not to mention the thousands of dollars of monthly payment for the new car. A house should also be considered as a liability -- although some people would call it 'asset', we can't escape the fact that buying and owning a house would actually cost you -- which makes this more a 'liability' instead of an 'asset'. But when you buy a house and rent it out and it pays you money regularly, then the house is called an 'asset'.
Typically, the middle class split their big fat check into two and one portion of it goes out to pay for the downpayment of a new car (or a new house) or anything that are actually 'liabilities'. By the next month, they will have created another thousands of dollars of monthly expenses for paying the installments. After this, they would want a new Rolex watch, or another car, or a boat, or an expensive vacation.
The middle class may make big fat paychecks because of their successful carreer. But if the money that comes in are constantly spent on 'liability', it won't take long until they wind up highly stressed out in a financial turmoil. In the end, the middle class find themselves enslaved by their jobs because of the liabilities. It means they have no choice than to go to work and make more money every month to be able to pay off their liabilities.
The problem with both the poor and the middle class is, generally their income is dependant on their own effort/ time. The case with the poor is, that they exchange their time with their employers money -- while there is only so much you can do in 24 hours with your own effort. On the other hand, the middle class exchange their high education and expertise with someone else's money. As soon as they stop 'exchanging' time and education, the money stops coming.
-- When the real wealthy go shopping...
Real wealthy people would go out and buy things that we would call 'asset'. Assets are things that pay you money.
The example would be investments, stocks, bonds, real estate,... Another example of asset is education. If you buy education and apply it to produce income, your education is an 'asset'.
Real wealthy people would always put aside a certain portion of their income to buy assets like those. The wealthy simply spend their money on things that can produce more money.
If you want to become wealthy you have to find assets that would earn you income and with the income, buy more assets to earn you more income and so on. One example of affordable asset you could buy is a business. Any business that creates for you passive ongoing income is your asset. Passive income is income that requires little work or no work at all. This type of income is the income that you earned from work you did just once.
There are numerous of passive income creation opportunities. One asset that I have found (and is affordable for me) is investing in my own small business, Success University -http://www.e-money-machine.com. I find this an invaluable asset because I have free access to the most powerful success oriented personal development education, presented by over 50 of the world's greatest minds in personal achievement. The education that I get is
applied in my day job, causing me to earn even more income than before. And the business opportunity of Success University -http://www.e-money-machine.com, is just an outstanding asset that allows you to earn money even during your 14 day free trial.
This article has been written in the hopes that it will be an eye-opening piece of information on managing you personal finances better.
About the author:
Dinar P. Wiria-Atmadja earns money as a student of Success University -http://www.e-money-machine.com She is also the owner of Proven Map to Success & Financial Freedom - http://www.financialfreedomawaits.com