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Enjoy Life
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How does one write an article with intentions of helping readers enjoy life? I don't know.
In a financial context, there are some tips I can provide, but ultimately each person is unique. Even a husband and wife find peace and happiness in very different ways. Some find happiness by spending lots of money, others none at all.
The key, as with anything I believe, comes with balance. Sure, it can be fun to blow money! Extravagant trips, new toys, or a refreshed wardrobe... but how long will it last?
Here are a few ideas I've scribbled on my napkin covered in muffin crumbs that may help you find balance in your life, with respect to enjoyment and financial responsibility.
Auto-Pay Yourself First
Set up an auto savings plan into appropriate savings or retirement vehicles equal to a monthly amount that will meet your long-term goals. I've read several posts on the Bogleheads forum about successful individuals setting up these "auto-investments" and spending the remainder of their funds (after budgeted expenses) on the things which bring the most enjoyment.
Golf, fishing, travel, children's soccer gear, etc. Economists use the term "utility" when referring to how consumers make discretionary decisions, and that seems to be a nice way to look at it. Invest first, pay the bills, then spend whatever is left in your checking account on the things you enjoy most.
Helping Others WILL Improve Your Happiness
What if you've got plenty of toys, and spending money on yourself actually makes you less happy? Think back to a time where you've helped someone, not necessarily financially, but actually made a solid effort to improve the life of someone around you. Was it a family member or friend in need? Or maybe it was a stranger you just met, or have not met even to this day. A gift of your time or money to another is one of the easiest ways to create joy in your life, and I assure you that the next time you're feeling down on yourself, look around for an opportunity to bless someone. Undoubtedly, you will also be blessed.
Don't Miss Opportunities to Make a Memory
You know this already, but if anyone ever tells you that having a lot of money will make them happy, tell them to think again. As a Bank Manager, I see many wealthy individuals that are no happier than you or me. I'm talking "half-billion dollars" wealthy.
That being said, many of you may already have a solid financial foundation. Perhaps you're saving 25% or more of your gross income for long-term goals, and you critique every expense to make sure it's not wasteful. Take a moment, right now, to remind yourself that no one is guaranteed to make it to our "golden years." Life is full of surprises, and I'd feel a whole lot better knowing every now and again I made the choice to enjoy rare opportunities even if it meant my wallet took a hit.
Find Balance
The key here is to find balance. Life is about living, not existing! Nobody likes a miser, and its important to recognize, again, that no one is guaranteed tomorrow.
But wouldn't you say that money and opportunities are difficult to come by? I would.
Don't waste them foolishly. Recognize when it's best to "save it for another time" and when to make a memory.
Live simply
Love generously
Care deeply
Speak kindly
Leave the rest to God,
TB
Protect Your ASSets and Income
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/enter stage left man in suit with soap box. He calmly gathers himself as he places it on the ground and takes a bold step onto the box. He closes his eyes for a moment, and begins to speak.
AHEM.
Hello there! If you're anything like me, you have grown to be very cautious in your outlook of the world. The Madoff scandals, political gridlock, and rising white collar crime rates alarm you, and you'd like to assure you're doing everything you can to protect your wealth.
But even the insurance industry is full of scams. What type of insurance do you need for your family? I will address this in what follows, but let me begin with a few reminders to hopefully help you avoid massive losses, and I'll close with a few proven methods to "plug the leaks" in your path toward financial independence.
1. Run Away From Get Rich Quick Schemes
This one's a no-brainer, but it's worth a paragraph of discussion. The other day a client told me about some inside information he had on the "Denar Reset." I'm assuming this has something to do with the Iraqi currency, and I told him to RUN AS FAR AWAY AS YOU CAN from this. At least twice a week, someone comes into the bank after responding to a Craigslist add with a check for $5000 they'd like to deposit. It usually takes some additional questions to find out that they are required to deposit it, and send a portion of the check, usually $2000 to $3000 via Western Union, and "keep" the rest. Yes, the check they deposited "bounces" and they end up owing the bank money if they withdrew enough cash to bring their balance below zero.
Instead of relying on these and other types of high risk schemes, invest consistently and for the long-term in solid low-cost mutual funds like those found at Vanguard, Fidelity, or Charles Schwab. If you must speculate, say, with the purchase of some individual stocks, do so with less than 5% of your portfolio, and be sure to cut your winnings and limit losses.
2. Get Married only once
Many people don't quite understand that a divorce can be the most expensive event in your lifespan. If it helps you sleep at night, get a pre-nuptial agreement, especially if you have substantial assets you've accumulated prior to the marriage, or if you have been married once before and you'd like to assure assets get passed to your children, a trust might make sense.
3. Umbrella or Personal Liability Insurance
Buy a blanket insurance policy equal to the greater of your net worth or 1 million dollars. You may be surprised at the low monthly cost of something like this. Doing so will put a "buffer" between your income and assets and would-be lawsuits.
You'll never be able to fully eliminate risk in your life, but there are ways to minimize or protect yourself against it.
4. Have ENOUGH Insurance
Ask yourself this question: If TODAY something happened to your car, health, or house, would you be able to cover it?
In some cases, you can self insure by having a sufficient emergency fund, but in the cases of your car, health, or house... don't mess around. Make sure you have enough coverage. Chances are you have these types of coverages already, but ask questions and think of scenarios to ask your insurance agent. If nothing else, it'll help you sleep at night.
One more area you may want to consider is disability insurance. If you were severely hurt and unable to work, it would be nice to continue getting a paycheck.
5. Life Insurance
I'm putting this one in an entirely different category as there is a lot of confusion out there on how to best protect your family. Universal, Variable, Term... what do these all mean?
I'll give you a valuable tip. Don't even bother with anything other than TERM. If you have a family to protect, go online and look for a 20 year term offering 5-7 times your annual gross household income. This will likely cost you less than $35/month, and if something were to happen to you, it is nice knowing your family will likely be able to pay off the mortgage and have assets in place to begin to rebuild.
The monthly cost of TERM life insurance is far cheaper than other offerings, so take the excess monthly payment amount you'd pay for variable or universal life and invest it into your 401k or IRA.
Oh, and take care of yourself by not smoking. . . it'll lower your premium.
6. Protect your health
That leads us to our last and most effective way to assure you only need to get rich once. You may want to read about how I avoided a $250,000 bill when I was diagnosed with advanced stage cancer without health insurance here to be reminded of how important having proper insurance is.
Take time out of each day to look out for YOU. This doesn't have to be expensive. Many of the ways I keep healthy both physically, mentally, and spiritually cost very little.
Eating a clean diet will keep your energy levels high, assist in resisting chronic illnesses and give you the look you want. The easiest one I've found is the Abs Diet which offers foods you CAN eat, and not foods you cannot. I like that.
An exercise regimen I enjoy is Crossfit. Be sure to start slow, and I like to mellow the workouts slightly as they can get very intense!
Spiritually, I take time each morning for devotionals where I spend quiet time studying the Bible and praying. This gets my head in the right place for the day and eliminates many of the stresses that can grind on us.
Lastly, at least once a week I'll take a dip in the water and surf. I can't tell you how relaxing this is, and a bean burrito afterwords helps make the world keep spinning.
Hopefully you've gotten some takeaways to put into practice into your own life. We've all heard the stories of successful people that have "struck it rich" only to lose it all and later gain it back, but why would we want to do that?
Get rich once.
TB
Carnival of Tortoise Banker, 7th Edition
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I'm baaaaaaaaccccckkkkkkkkk! PHEW! What a month it's been. We sold our 600 square foot condo, and bought a 1000 square foot condo up the road here in Hawaii all in less than 2 weeks! That's no excuse for taking time away from TB though, and I'm ecstatic to be back in the saddle bringing you great tips for building wealth slowly, as well as highlighting some of the best financial advice articles on the net!
So... without further ado... (by the way, I've confirmed it is spelled ado not adieu, AND when I googled "without further ado, I got... "without further ado: Cliché without further talk. (An overworked phrase usually heard in public announcements)."
Public Announcement:
Welcome to the 6th edition of the Tortoise Banker Carnival, a selection of my favorite articles related to building wealth this week. If you would like to be included next week, please submit your post via Blogger Carnivals. If you would like to host for a future edition, please contact me at slowandsteadytortoise@hotmail.com.
Here are the guidelines:
Mike @ Personal Finance Journey writes Money saving tips for the Laundry - Simple and easy Money Saving tips for the laundry. It doesn't have to expensive to keep your clothes clean! So... without further ado... (by the way, I've confirmed it is spelled ado not adieu, AND when I googled "without further ado, I got... "without further ado: Cliché without further talk. (An overworked phrase usually heard in public announcements)."
Public Announcement:
Welcome to the 6th edition of the Tortoise Banker Carnival, a selection of my favorite articles related to building wealth this week. If you would like to be included next week, please submit your post via Blogger Carnivals. If you would like to host for a future edition, please contact me at slowandsteadytortoise@hotmail.com.
Here are the guidelines:
- Posts submitted should be written within the last 30 days
- The posts must relate to building wealth, saving and investing, budgeting, entrepreneurship, or travel and lifestyle
- Submit by Wednesday night for the Saturday edition
- Please add a link to this carnival in your posts if you have been featured!
SBB @ Simple Budget Blog writes The Freelancer's Budget - So you've decided to quit your job and turn your hobby into a freelance career! Read here for tips on how to set up a budget when you're a freelancer.
Crystal @ Budgeting in the Fun Stuff writes Things I Don't Miss About My Last Day Job - Someone asked me if I missed having a "real" day job. Honestly, there are things I miss about it, but those are outweighed by the things I don't miss at all.
Kyle @ The Penny Hoarder writes Are You Making This Budgeting Mistake? - If you’re like many Americans, you sit down every month and make a rough budget. You estimate how much money will be coming in, and you write down what you will do with that money. Perhaps, like many Americans, when the end of the month comes, you find yourself looking at a negative number.
Rich @ Growing Money Smart writes What is Debt Ratio? - What is Debt Ratio? This post defines the ratio and give a take on what if the ratio is a high number
Luke @ Learn Bonds writes Why The Recent Drop In Interest Rates May Not Be What You Think - The factors that contributed to Wednesdays drop in Treasury yield may have more to do than just the Fed and quantitative easing.
Crystal @ Married (with Debt) writes Remembering the "Pay Yourself First" Rule - Before my husband and I went self-employed, I had a 401k and hubby had a pension plan. Those went bye-bye when we did. Now we are adding more options.
Tushar @ Start Investing Money writes Saving From a Young Age - There is a big difference between saving on behalf of your kids and teaching them good savings habits so they can start saving on their own. Many parents want to put something away for their children's future - perhaps to help them through college for example.
Ryan @ Cash Money Life writes Income vs Wealth - And What it Means For You - There is a big distinction when comparing income vs wealth. Income is how much you earn, wealth is how much you keep. Make your money work for you.
IMB @ Investing Money writes The Big Question for Investors-Inflation or Deflation - Investors are scratching their heads asking: “What in the world is going on? What is real? What should I believe?” This is the big question on inflation.
Minimalist @ Minimalist Finance writes Save Money on Heating This Fall - There’s no doubting that fall has descended upon the Western world. The days are becoming shorter, the leaves are falling off of the trees, and there’s a chill in the air that wasn’t around just a month ago.
Corey @ 20s Finances writes 6 Tips for Recent Grads to be Smarter With Their Money - Everyone knows that after graduation, there's a lot you need to do. One of the most important things you can do is learn to be smart with your money. Whether you already have a job, or you're looking for one after school is out, here are some money tips to help you stay ahead.
Mrs. Accountability @ Out of Debt Again writes Budgeting in a Move - After recently helping a family member move, I realized just how costly some moving products are.
Daisy @ Suburban Finance writes Getting Fit Without Spending a Fortune - Getting in shape without a gym membership is easy. Save money and slim down with some of our tips.
CAPI @ Creating a Passive Income writes Staying Safe: The Pros and Cons of Safety Deposit Boxes - People are doing all sorts of things to keep their valuables safe. Today we'll take a look at safety deposit boxes to establish whether they are efficient.
Tushar @ Earn More and Save writes 3 Things You Need to Know About Paying Off Debt - You're on a mission to earn more and save as much as possible. There is only one thing standing in your way. Debt. To build a solid financial foundation you first need to free yourself from the burden of debt.
Don @ Money Reasons writes Do I Have Brilliant Ideas on Helping the Econony or No? - These are some ideas I have for helping the economy. While I think they are original, I wonder if they are being considered already within the government?
SFB @ Simple Finance Blog writes Concerns that Parents should think about before cosigning a Loan - There comes a time in your life when you may be requested to co-sign on a loan.
Lauren @ L Bee and the Money Tree writes My New Net Worth - Should I count my home's value in my net worth?
Suba @ Broke Professionals writes Money Terms You Need to Know - Read these critical money terms that you should know to be knowledgeable in the personal financial world.
LaTisha @ Young Finances writes How Can I Use Credit Wisely? - Credit cards are not evil. You can build a healthy credit history. Use credit to borrow, get better car insurance rates and potentially secure employment.
Debt Guru @ Debt Free Blog writes Security for Less: Cutting Your Car Insurance Costs - It's time to research options and get the most out of your insurance policy. Here are five tips to cut car insurance costs without missing out on coverage.
Jester @ The Ultimate Juggle writes Fairness In Spending On Kids - When I first heard the phrase (work smarter, not harder), I dismissed it as business jargon for (work harder for us with no extra pay).
Hank @ Money Q&A writes Are You Losing The Financial Game Of Life? - Are you losing in the financial game of life? If you answered yes, you’re not alone. In 2008, 1 in 10 workers were made redundant.
Brent @ PersonalFinance-Tips writes 5 Secrets to Breaking Your Bad Financial Habits - If you want to gain control over your finances and break unhealthy habits, follow the following five tips. 1. Take Emotion Out of the Equation Some people spend a lot of money because they associate certain items with an emotion or experience. For example, a person may buy dolls because she associates them with her childhood and happy memories.
Cat Alford @ Budget Blonde writes Make Your Home Fancy and Modern On A Budget - If you want to modernize your home on a budget, here are some great tips to get that bright, airy feel you want without breaking the bank.
Maria @ The Money Principle writes Frugality or folly: home baking - Is home baking frugality or folly? I say that naking your own bread makes you frugal artist; what do you think?
Mr. Frenzy @ Frenzied Finances writes What High School Never Taught You (And Should Have): What is a Bond? - High school teaches you algebra, english and history - but it doesn't teach you finance! Read here to learn all about a bond.
Wayne @ Young Family Finance writes Minding Your Business: What Type of Corporation are You? - Is your business a nonprofit, sole proprietorship, or corporation? If you're starting a business, it could be important! Find out here.
Roger the Amateur Financier @ The Amateur Financier writes 4 Sources of Income in Retirement - A guide to several sources of income during retirement, including social security, pensions, personal savings and investments, and working part-time,
Don @ MoneySmartGuides writes 5 Autumn Home Maintenance Tips - With winter approaching, it's important to get your house in order for the cold weather. Here are some autumn home maintenance tips for you to implement.
krantcents @ KrantCents writes Do You Plan or Plan to Fail? - I plan because I do not plan to fail! If you have goals, you need a plan to make it happen. A budget is a form of a plan. Why budget? A budget is supposed to help you achieve your financial goals.
Tushar @ Finance TUBE writes 3 Tips To Prepare Your Family For Cost of Aging - Admitting that your loved one is getting older is hard but not as hard to figure out our family will afford the overwhelming cost associated with aging. From hospital care to doctor's visits, caring for your loved one Here are three tips how to financially prepare: Firstly learn more about financial planning.
Jacob @ AllPersonalFinance writes Tax Season Is Around the Corner: Six Things To Do Today To Prepare - Many people do not start thinking about their taxes until April 15 approaches. However, it is never too early to start preparing for the next tax season. Preparing early can help you save a lot of time and stress. Read about these six tips that will help you prepare for tax season!
Eva Baker @ TeensGotCents writes The Envelope System - An Update - I use the envelope system to budget my money. I have been working very hard to save up for a car, college and retirement - here's an update!
Ted Jenkin @ Your Smart Money Moves writes Let Me Tell You How It Was When I Was A Kid - Remember. Remember how thoroughly annoyed you got when your parents sat you down for that tongue lashing telling you about how spectacular your life is today
SavingMentor @ How To Save Money writes Know How Much Car Repairs Should Cost - I don’t know about you, but whenever I head to the service center to get my car inspected I’m always very apprehensive about what kind of problems they might find and how much it will end up costing me to get it fixed.
Tushar Mathur @ Everything Finance writes Three Tips to Save Money on Halloween This Year - If you couldn’t already tell by the store displays and kids already running around in their costumes, Halloween is only a month a way.
Mr.CBB @ Canadian Budget Binder writes Living on a budget is for losers - A budget for some people means they are restricting themselves from spending and for others it means understanding where their money goes. There is no wrong or right answer when it comes to budgeting because a budget doesn't have to be an excel spreadsheet all you need to know is where your are at, where you are going and are you succeeding at reaching your goals.
Edgar @ Degrees and Debt @ Degrees and Debt writes 7 Financial Tips for College Freshmen - Tips for College Freshmen regarding their finances!
Anton Ivanov @ Dreams Cash True writes Portfolio Planning Basics – Opening Appropriate Investment Accounts - Learn about the different types of investment accounts, including retirement, taxable, Traditional, Roth, 401k Plan and IRA accounts.
Jessica Moorhouse @ Mo' Money Mo' Houses writes For Love & Money Friday - Financial Topics Every Couple Should Discuss - In order to get our finances all organized, my husband and I have decided to get together every Friday to discuss a new money topic. Here are just a few topics we've planned on discussing in the coming weeks.
Jeff @ Making Sense of Cents writes Don’t Let Addicting Side Hustles Ruin You - Dedication like that can be a valuable trait when it comes to the long-term success of your side hustle. However, as I’m finding out, if you get too obsessed and lose sight of other priorities, then a side hustle addiction can be detrimental.
Dividend Growth Investor @ Dividend Growth Investor writes Long Term Dividend Growth Investing - The only thing that is constant in life is change. The world of dividend investing closely follows this eternal truth as well.
Robert @ The College Investor writes 10 Ways To Lose Money In The Stock Market - Just like understanding risk and reward, investors need to understand both how to make money in the stock market, as well as how to lose money in the stock market. While some of these are very simple and straight forward, others are more complicated, while another set focus on lost opportunity costs. Here’s what you need to remember about losing money in the stock market:
Christopher @ This That and The MBA writes Creative Ways to Fund Your Small Business Idea
Dollar @ Easy Extra Dollar writes Home-based business will help you figure out and make a huge of money quickly - There are some useful tips that will assist you to track costs without having plenty of information and details in the workplace. This is usually the best idea to keep a personal life separate from your business, this is considered as the case in which allowances can be made.
Matt Becker @ Mom and Dad Money writes Roth IRA as an Emergency Fund – Is it a Good Idea? - The concept of using your Roth IRA as an emergency fund is one I find incredibly interesting, mostly because of the mental or behavioral considerations. From a purely technical standpoint, it can make a lot of sense. But from a behavioral standpoint, it can be dangerous when you start mixing your retirement savings with other purposes. Today I'd like to explore some of the strengths and weaknesses of taking this approach.
Adam @ Money Bulldog writes The Financial Benefits of Volunteer Work - Get yourself familiar with the financial gains that a lot of people wouldn't expect from volunteer work.
Adam @ Money Rebound writes The Mistakes That Stop Your Savings Account from Building Up - Want to know which habits can cost you money in the long run? Well, it's time to break loose from them.
Daniel @ Sweating The Big Stuff writes When Was The Last Time You Wrote A Check? - I rarely write checks these days with easier alternatives like PayPal abound, so it was surprising that the most recent check I cut was to a friend.
Jon Haver @ Pay My Student Loans writes What is the Obama Student Loan Forgiveness Program - President Obama’s biggest saying in this is a college education is only worth so much when the debt you receive is so high. This statement can be controversial because other people tend to believe a college education is a priceless necessity for a successful life.
Jerry @ Repaid.org writes 5 Top Financial Rules to Remain Debt Free - 5 Top Financial Rules To Remain Debt Free October 2, 2013 7:00 am Debt 0 comments Edit Whether your goal is to become debt free or simply pay down your debt somewhat, you may feel a bit lost in the beginning. Never fear, you are not alone. Here are a few tips to help you stay the course.
John S @ Frugal Rules writes Why So Many People Fail At Becoming Debt Free, Part II - If you’ve ever been in debt you know how difficult it can be to climb your way out of it. That success is generally tied back to having a plan and vision to become free of it – which is something many people miss out on and thus why they fail at ridding themselves of the debt.
Pauline @ Make Money Your Way writes Side hustle series: How I make money flipping phones - This is a guest post from Stephen he will explain how he make money flipping phones.
Pauline @ Reach Financial Independence writes The case for earning more - On the earn more, spend less equation, I strongly stand on the earn more side, because spending less is finite.
Grayson @ Debt Roundup writes When Opportunity Knocks - I had an opportunity to score a new to me Jeep Wrangler. I thought about it and ended up getting a used auto loan. There are some reasons why and I lay them out here.
Lisa E. @ Lisa Vs. The Loans writes The Future You - Are you making life easier or more difficult for Future You? What things do you need to sacrifice in order for Future You to be content?
Great write ups, gang! Keep up the great posts.
Aloha,
TB
8 Ways to Motivate a Paycheck to Paycheck Family Member
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For the last few months, a client and I have corresponded via email about investing. He had several breakthroughs with discovering the 3 fund portfolio at Vanguard, and has become an avid reader over at the Bogleheads forum. He has managed to get his fiscal house in order and asked what the best way to talk about money with a family member is.
In his case, it was his brother. You know... the "I can't take it with me when I die, so I'm going to live paycheck to paycheck just to make sure I spend every dollar I've got" kind of guy.
So what's the best approach to pointing this loved one in the right direction?
1. Buy Them a Book
Wrap it nicely and make sure it's an easy read... something like The Coffeehouse Investor
. . . a book that spends more time talking about hiking and baking pumpkin pie than investing, because quite frankly, you know they're not going to have the patience to finish the book without falling asleep several times.
2. Buy Them a Cup of Coffee About a week later, take them to a coffee shop and buy them a cup of coffee. Here are a few pointers to create an effective framework for the conversation.
- What was your favorite aspect of the book?
- If you had one day to live, and you needed to explain this book to your 18 year old son, what would you tell him?
- Do you believe in "paying yourself first?"
3. Send Them Emails with Helpful Insights
Check out my post Do Not Delay, Start Investing Now for some raw numbers on the dangers of putting off saving.
4. Offer to take a look at their 401k plan at work
If they don't have a 401k through their employer, help them set up a ROTH IRA if they don't already have one, as well as a monthly direct deposit.
5. Call Them
Ask What They Would do TODAY if their car broke down, were fired, got diagnosed with an illness, and were late on their mortgage payment. Use this conversation to highlight the wonders of having an emergency fund.
6. Find Out What Their Dreams Are
Be sure to point out how they can achieve these dreams in terms of a monthly deduction into their retirement account (or 529 plan if their dream consists of sending their kids to college).
7. Ask Them to send you an email detailing the definition of "Financial Independence."
Save this email to your computer, and re-send it to them from time to time.
8. Lastly, assist them in identifying a definite major purpose.
Ultimately, our goal is to get them to write down their definite major purpose with the below structure, and place it in the center console of their car to read prior to work, and on their bathroom mirror to read just before bed.
I'll close this post by praising you for taking the initiative to help your loved one achieve financial success, and have faith you'll succeed with this task!
(from Think & Grow Rich, chapter on Autosuggestion)
Create a definite plan for carrying out your desire, and begin at once to put this plan into action. The instructions given in connection with the six steps in the chapter will now be summarized, and blended with the principles covered by this chapter, as follows:
Cheers,
TB
Check out my post Do Not Delay, Start Investing Now for some raw numbers on the dangers of putting off saving.
4. Offer to take a look at their 401k plan at work
If they don't have a 401k through their employer, help them set up a ROTH IRA if they don't already have one, as well as a monthly direct deposit.
5. Call Them
Ask What They Would do TODAY if their car broke down, were fired, got diagnosed with an illness, and were late on their mortgage payment. Use this conversation to highlight the wonders of having an emergency fund.
6. Find Out What Their Dreams Are
Be sure to point out how they can achieve these dreams in terms of a monthly deduction into their retirement account (or 529 plan if their dream consists of sending their kids to college).
7. Ask Them to send you an email detailing the definition of "Financial Independence."
Save this email to your computer, and re-send it to them from time to time.
8. Lastly, assist them in identifying a definite major purpose.
Ultimately, our goal is to get them to write down their definite major purpose with the below structure, and place it in the center console of their car to read prior to work, and on their bathroom mirror to read just before bed.
I'll close this post by praising you for taking the initiative to help your loved one achieve financial success, and have faith you'll succeed with this task!
How to Develop a Definite Major Purpose
*Credit: Napoleon Hill Foundation
Create a definite plan for carrying out your desire, and begin at once to put this plan into action. The instructions given in connection with the six steps in the chapter will now be summarized, and blended with the principles covered by this chapter, as follows:
- Go into some quiet spot (preferable in bed at night where you will not be disturbed or interrupted, close your eyes, and repeat aloud (so you may hear your own words) the written statement of the amount of money you intend to accumulate, the time limit for its accumulation, and a description of the service or merchandise you intend to give in return for the money. As you carry out these instructions, see yourself already in possession of the money. For example, suppose that you intend to accumulate $50,000 by the first of January, five years hence, that you intend to give personal services in return for the money, in the capacity of a salesman. Your written statement of your purpose should be similar to the following:
By the first day of January, 20.., I will have in my possession $___,000, which will come to me in various amounts from time to time during the interim.
In return for this money I will give the most efficient service of which I am capable, rendering the fullest possible quantity, and the best possible quality of service in the capacity of salesman of ___ (describe the service or merchandise you intend to sell).
I believe that I will have this money in my possession. My faith is so strong that I can now see this money before my eyes. I can touch it with my hands. It is now awaiting transfer to me at the time and in the proportion that I deliver the service I intend to render in return for it. I am awaiting a plan by which to accumulate this money, and I will follow that plan, when it is received.
- Repeat this program night and morning until you can see (in your imagination) the money you intend to accumulate.
- Place a written copy of your statement where you can see it night and morning, and read it just before retiring, and upon arising until it has been memorized. Remember, as you carry out these instructions, that you are applying the principle of autosuggestion for the purpose of giving orders to your subconscious mind.
Cheers,
TB
Do Not Delay, Start Investing Now
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Hours upon hours were spent inputting data into excel spreadsheets and creating charts and graphs for marketing presentations. Lunch breaks at my desk and heading home at 7pm quickly became the norm.
There was a silver lining came at the end of each day though. The asset manager I was interning for would take me aside into the client entertainment room for a game of pool and a draft beer.
I know… not too shabby.
This veteran of the industry gave me several reading assignments each month, and we’d always take the time to discuss my findings. Ben Graham’s The Intelligent Investor
, Bill Schultheis’ The Coffeehouse Investor, and The Four Pillars of Investing
by William Bernstein are a few of the titles I remember.I’m very grateful for the time my boss took to share these books with me, as they really ignited a passion I never knew I had. Not to get rich; although that’s a nice byproduct. The real passion that was ignited within was a desire to become financially independent, or no longer reliant on an employer.
One of the “gems” he would constantly remind me of was to START NOW. “Put anything you can away RIGHT NOW. Gather up $1000 and throw it into a target date retirement fund at Vanguard, and focus on nothing more than increasing the % of your total income saved over time. Build your net worth ALWAYS.”
He was a very successful asset manager, and I’m sure he was near the top of the industry in his line of work, but he’d always remind me that you need to focus on “saving now, and saving as much as you can afford.”
It wasn’t until I reached my mid-twenties that I realized that dollars stash into retirement accounts in the early part of your career are FAR MORE valuable than dollars invested later in life.
Let’s take a look at an example of a 25 year old investor that puts $5000 into an IRA each year until he turns 35, and not a dollar more. We’ll compare that result to 35 year old investor that doesn’t begin funding an IRA until age 35, where he begins contributing $5000/year until age 60. You might think that the 35 year old investor contributing to their IRA for 25 years would end up with far more than the 25 year old investor doing this for only 10 years, but let’s take a look at what happens when compounding increases an investor’s returns over time:
Begin at 25/8% Return
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Begin at 35/8% Return
|
|||||
Age
|
Investment
|
IRA Balance
|
Age
|
Investment
|
IRA Balance
|
|
25
|
$5,000
|
$5,400
|
35
|
$5,000
|
$5,400
|
|
26
|
$5,000
|
$11,232
|
36
|
$5,000
|
$11,232
|
|
27
|
$5,000
|
$17,531
|
37
|
$5,000
|
$17,531
|
|
28
|
$5,000
|
$24,333
|
38
|
$5,000
|
$24,333
|
|
29
|
$5,000
|
$31,680
|
39
|
$5,000
|
$31,680
|
|
30
|
$5,000
|
$39,614
|
40
|
$5,000
|
$39,614
|
|
31
|
$5,000
|
$48,183
|
41
|
$5,000
|
$48,183
|
|
32
|
$5,000
|
$57,438
|
42
|
$5,000
|
$57,438
|
|
33
|
$5,000
|
$67,433
|
43
|
$5,000
|
$67,433
|
|
34
|
$5,000
|
$78,227
|
44
|
$5,000
|
$78,227
|
|
35
|
$5,000
|
$89,886
|
45
|
$5,000
|
$89,886
|
|
36
|
$0
|
$97,076
|
46
|
$5,000
|
$102,476
|
|
37
|
$0
|
$104,843
|
47
|
$5,000
|
$116,075
|
|
38
|
$0
|
$113,230
|
48
|
$5,000
|
$130,761
|
|
39
|
$0
|
$122,288
|
49
|
$5,000
|
$146,621
|
|
40
|
$0
|
$132,071
|
50
|
$5,000
|
$163,751
|
|
41
|
$0
|
$142,637
|
51
|
$5,000
|
$182,251
|
|
42
|
$0
|
$154,048
|
52
|
$5,000
|
$202,231
|
|
43
|
$0
|
$166,372
|
53
|
$5,000
|
$223,810
|
|
44
|
$0
|
$179,682
|
54
|
$5,000
|
$247,115
|
|
45
|
$0
|
$194,056
|
55
|
$5,000
|
$272,284
|
|
46
|
$0
|
$209,581
|
56
|
$5,000
|
$299,466
|
|
47
|
$0
|
$226,347
|
57
|
$5,000
|
$328,824
|
|
48
|
$0
|
$244,455
|
58
|
$5,000
|
$360,530
|
|
49
|
$0
|
$264,012
|
59
|
$5,000
|
$394,772
|
|
50
|
$0
|
$285,132
|
60
|
$5,000
|
$431,754
|
|
59
|
$0
|
$569,981
|
||||
60
|
$0
|
$615,580
|
||||
Total Investment: $55,000
|
Total Investment: $130,000
|
|||||
Portfolio Value: $615,580
|
Portfolio Value: $431,754
|
|||||
As you can see, the aggressive youngster that decided to skip morning coffee runs and expensive bar tabs ended up with a 30% larger nest egg than the investor that delayed until the age of 35.
Now I know many people in their 20s are focused on other priorities, and that’s fine. Getting married, paying off student loans, buying a car, and saving for a down payment are all expensive and deserve our full financial dedication.But what if we decided to take the frugal path, and route money that might have gone toward a lavish wedding and honeymoon, or a brand new car into our retirement accounts? I know several people that paid less than $250 for exchanging vows at the county courthouse and later enjoyed a potluck barbeque with family saving over $20,000!
Buying a new car is one of the most expensive mistakes many people make. By buying a 2 to 3 year old vehicle, we’re able to get a 30% discount on the purchase price, a possible savings of over $10,000!
Take a moment to think of some ways you may be able to “delay gratification” and send excess funds into your retirement accounts! I know you’d like to be in a position more like the left hand column above than the right.
TB
The Tortoise Banker Carnival, 6th Edition
·
Heard a wonderful short story this week I'd like to share.
A young boy on summer break sat one day at the breakfast table with his Grandfather. The boy looked to his Grandfather, a retired Marine Corp General, and asked, "Grandpa, I want to be the smartest in my class. Can you teach me everything you know?"
The Grandfather replied, "Yes, but are you ready for such wisdom?"
The boy affirmed, so the Grandfather brewed a pot of tea and poured two cups, one for his Grandson and one for himself.
"Take a moment to visualize the cup in front of you containing everything you already know. Now, picture the pot as the wisdom you seek."
With that, he poured tea into the boy's already full cup and it overflowed onto the table.
The boy jumped to his feet confused and grabbed a cloth to clean up the mess, but his Grandfather grabbed his shoulder and sat him back down.
"Did your cup have any more room for tea?"
"No." Said the boy.
The boy's Grandfather then looked at him with a loving smile and said, "If it is true wisdom you seek, take the time to empty your mind of what you already know so that you may look at things with a fresh and eager perspective. Too often, we go about the world assuming we already know everything there is to know. If you desire to become wise, empty your mind. Just as you must empty your cup to have more tea."
With that, the boy finished his cup of tea, and his Grandfather filled it up.
Is your cup full this morning? If so, take a big gulp and enjoy the tremendous contributions to this week's carnival!
A young boy on summer break sat one day at the breakfast table with his Grandfather. The boy looked to his Grandfather, a retired Marine Corp General, and asked, "Grandpa, I want to be the smartest in my class. Can you teach me everything you know?"
The Grandfather replied, "Yes, but are you ready for such wisdom?"
The boy affirmed, so the Grandfather brewed a pot of tea and poured two cups, one for his Grandson and one for himself.
"Take a moment to visualize the cup in front of you containing everything you already know. Now, picture the pot as the wisdom you seek."
With that, he poured tea into the boy's already full cup and it overflowed onto the table.
The boy jumped to his feet confused and grabbed a cloth to clean up the mess, but his Grandfather grabbed his shoulder and sat him back down.
"Did your cup have any more room for tea?"
"No." Said the boy.
The boy's Grandfather then looked at him with a loving smile and said, "If it is true wisdom you seek, take the time to empty your mind of what you already know so that you may look at things with a fresh and eager perspective. Too often, we go about the world assuming we already know everything there is to know. If you desire to become wise, empty your mind. Just as you must empty your cup to have more tea."
With that, the boy finished his cup of tea, and his Grandfather filled it up.
Is your cup full this morning? If so, take a big gulp and enjoy the tremendous contributions to this week's carnival!
Jessica Moorhouse @ Mo' Money Mo' Houses writes Would You Sacrifice Your Relationships to Be Rich? - Some people will do anything for the almighty dollar, even sell stories about their family to the press to make a quick buck. But what's the point in having boatloads of cash if you had to sacrifice all of your relationships to get it?
Kevin Watts @ Graduating from Debt writes Practical Solutions to Student Loan Reform - A Look at Practical Solutions to Student Loan Reform
Mrs. Accountability @ Out of Debt Again writes 4 Tips to Stay Organized - Summer organizing, anyone? I am amazed at how having an organized living space saves time, allowing me to focus on the important things in my life.
Don @ MoneySmartGuides writes 5 Ways to Save Money On Your New Baby - The birth of the royal baby, the first child of Duke and Duchess of Cambridge and the third in line to the British throne, is a magnificent way to feel the joy and happiness that your own little royal will
Tushar @ Earn More and Save writes Heading to College? 5 Ways To Avoid Student Loan Debt - Going to college and getting a degree is no longer the American Dream - it's the norm. With so much competition in today's job market a college degree is almost necessary. However, many would be students are hesitant about taking out loans to fund their education.
Michael @ The Student Loan Sherpa writes How am I ever going to retire with all these student loans? - If you are sitting on a bunch of debt retirement seems like a far away dream, but if you are smart about your spending and where you put your money, you can make your debt disappear AND still have a shot at comfortable retirement.
Tushar @ Start Investing Money writes 3 Reasons to Be Careful if You Get Financial Advice Online - The internet has changed our lives in lots of different ways. If we have a question we need an answer to, it is easy to hop online and find the information we want. Except of course, we cannot always be sure we're getting the best information.
Roger @ The Amateur Financier writes Net Worth Update: August 2013 - An update, sharing my net worth as of the start of August 2013, discussing how my technical difficulties have complicated things this past month.
Mr. Frenzy @ Frenzied Finances writes Consumer Tips: How to Score Deals While Shopping - Looking for some nice deals while you shop? There are always great options available - just be on the look-out. Here are some consumer tips!
MR @ Money Reasons writes How Much Money Is a Lot of Money? - Money has changed meaning to me as I grow older. Read some of my funny history around how I viewed money, and what a lot of money is to me today.
Tushar @ Finance TUBE writes Two New Places To Sell Your "Stuff" - So you got to host full of stuff and you can use some extra money. You are probably aware of the traditional ways to sell your items places like in the paper and other areas, have a garage sell, list on Craig list or on ebay.
Tushar Mathur @ Everything Finance writes How to make your gaming budget go further - These days it’s very difficult to stretch your budget, and even when you set a limit it is often hard to ensure you don’t exceed it and incur debt.
Ted Jenkin @ Your Smart Money Moves writes 4 Money Tips For The Dog Days Of Summer - This is the rainiest summer season I’ve experienced since I moved to the state of Georgia.
Corey @ 20s Finances writes How to Successfully Switch Careers - Find out how to switch careers and go forwards instead of backwards. Doing something you enjoy doesn't mean taking a pay cut.
Maria @ The Money Principle writes From retirement to life design - Focusing on employment, pensions and retirement may not be the things to focus on. Here I suggest that we should re-focus on work, income and life style design.
Cat Alford @ Budget Blonde writes Tips for Getting Your First Credit Card - If you've never had a credit card before, here are tips for getting your first credit card. They can actually be a great financial tool if used wisely!
Wayne @ Young Family Finance writes Powering Down: Ways to Save Money on Utilities - Simple changes in your use of electricity and water can save you money. It's not hard! Read here for tips on saving money through utilities.
Bargain Babe @ BargainBabe.com writes Back to School Deals - Back to School deals for the 2013 school season are happening! Even if you do not have kids in school, this is the best time of year to stock up your home office or craft...
Harry Campbell @ Your PF Pro writes What Is The Easiest Job You’ve Ever Had? - Even from a young age, I’ve been hustling to find the easiest jobs that would pay me the most. When I was a kid, my neighbor and I would steal lemons from another neighbor’s tree and sugar from his parents to set up a lemonade stand on the corner. I’ll be honest, the money wasn’t great, but since my parents didn’t give me an allowance, it was the only way we could make money so we could buy candy at the liquor store
Lindy @ Minting Nickels writes Thinking of Quitting Your Job? Don't Forget to Consider These Perks You'll Leave Behind - After I completed graduate school, I was lucky to land a tenure track teaching position.
Harry Campbell @ My Financial Road writes My Savings Problem - Recently, I read “The Automatic Millionaire” by David Bach and it dawned on me that I although I have been paying myself, I haven’t been paying myself FIRST. I was simply going through the motions of going to work, paying my bills and saving whatever was leftover at the end of the month. This led to me not saving so much since I would spend a little more on groceries or go see a movie or something and there wasn’t much left to save.
CAPI @ Creating a Passive Income writes The Experience Problem: Applying for Jobs Without Experience - In this economy, it is hard to find jobs. It is even harder if you do not have any work experience on your resume. Read here for tips on how to do this!
Ryan @ Cash Money Life writes Are You Really Work from Home Material? - Do you have what it takes to work from home? Many people love the idea of working from home, but find that it is more difficult than they ever imagined.
Daisy @ Suburban Finance writes How to Improve Your Credit Score - So you are looking to buy your first home or maybe even finance a new car and you are worried about your credit. Although raising your credit score is never a quick and easy task, there are various immediate actions that you can implement today in order to start the process towards raising your credit ...r
Jon Haver @ Pay My Student Loans writes How to graduate with no student loan debt? - The most common methods include loans and grants. However, loans and grants are not the only options for aspiring students. Today, I’ll detail some methods to ensure you graduate college without taking on debt. Many have done this before and if you’re wise, you can do it too.
John @ Ourinsurancecanada.com writes How Do Canadian Consumers Spend Their Money? - The majority of annual household consumption in Canada goes toward necessary goods, services, and products, while entertainment and superfluous expenses make up minority categories.
Pauline @ Reach Financial Independence writes Building Wealth While Building Muscle - This post compares wealth and muscle building in an attempt to get progressively better and reach your health and financial goals.
Luke @ Learn Bonds writes The Corporate Bond Market: Often Misunderstood and Underappreciated - The first part in a multipart series on the corporate bond market. What you need to know to start investing in corporate bonds today.
Crystal @ Budgeting in the Fun Stuff writes Thrift Store Challenge Update - I Bought ALL of the Clothes... - Back in May, I started my own challenge. I decided that I would only buy clothing from second-hand stores like Goodwill and resale shops until June 2014.
Shredding Debt @ Shredding Debt writes Debt Payoff Progress for June 2013 - We made some more progress during the month of June which is good news.
Robert @ The College Investor writes The Minimalist Guide to Creating a Realistic College Budget - College students and recent college grads usually don’t have very deep pockets. Often faced with huge debt loads, busy schedules, and less than glamorous jobs, budgets can easily get pushed to the side.
Robert @ Entrepreneurship Life writes FreshBooks Cloud Accounting Review - FreshBooks is one of the most popular online cloud accounting programs available right now. It started out as invoicing software – and it revolutionized the invoicing industry by integrating payment directly into it’s online service, and having a myriad of other features. I know that I originally interacted with FreshBooks Cloud Accounting as a customer, as one of my vendors invoiced me using it. I found it pretty slick and easy to use as a customer, so I wanted to try it out myself.
Little House @ Little House in the Valley writes An Easy Tip to Retire with 30% More - It wasn’t until I reached my mid-twenties that I realized that dollars stash into retirement accounts in the early part of your career are FAR MORE valuable than dollars invested later in life.
SBB @ Simple Budget Blog writes For College Students: Budgeting Your Daily Expenses - Heading to school? Great! Keep in mind how important budgets are. Read for the tips needed for college students to budget their daily expenses.
Mike @ Personal Finance Journey writes 5 Tips on Borrowing Money from Friends - 5 relatively easy ways to Borrow Money from Friends and still keep the friendship solid and avoid all the drama.
Kathleen O'Malley @ Frugal Portland writes Wantable: Is it Worthwhile? - Wantable has a very fun premise. You fill out a survey and they send you the items they think you want based on those results.
Jacob @ AllPersonalFinance writes Will you be renting short term, long term or forever? - With the housing market as challenging as it is right now, a lot of people are struggling to save enough money for a deposit on a first home and we're seeing a lot of people renting for much longer than they might have in the past.
Lauren @ L Bee and the Money Tree writes Blow Money is a Non-Negotiable - I find that a small amount of blow money is essential to debt payoff success.
FI Pilgrim @ FI Journey writes Build A Better Budget Part 1 - The Mindset - It pays dividends to think through the process of creating a budget before you get started. What's the purpose? What does it consist of?
Holly Johnson @ Club Thrifty writes Operation Frugality: Save Money by Eating Old Food - Do you want to save money by eating food that you already have? If so, please join OPERATION FRUGALITY: SAVE MONEY BY EATING OLD FOOD. It'll be awesome!
Monica Iannacone @ Monica On Money writes $25 August Giveaway and Goals! - Now that it's August, it's time to think about my financial goals for the month. Here are my top 3 goals for August.
Suba @ Broke Professionals writes The Rising Price of Child Care - From school tuition to medical bills and everything in between, paying for kids-related expenses is growing as fast as my children themselves!
krantcents @ KrantCents writes Things you must do to succeed at real estate investing - Things you must do to succeed at real estate investing
Nathan @ AsknWhy writes How to Avoid Business Pitfalls - Usually, amateur business entrepreneurs both online and in the actual world miss this a thousand times.
Buck Inspire @ Buck Inspire writes Ellen Degeneres Returns To Host The Oscars - If you're a fan of Ellen, you're in luck. She's returning to host the Oscars next year!
Evan @ My Journey To Millions writes It is Amazing How Local Personal Finance Can Be - Most people discuss personal finance rules in absolute terms. I hate it! I truly believe there are almost NO SET PERSONAL FINANCE RULES.
Brent @ PersonalFinance-Tips writes Organizing and Packing Tips for Easy Relocation - A house move comes with a bundle of mixed feelings. On one hand you are super excited about the new house, the new location etc. but on the other hand there is the monster of the move scaring you.
ETZ25 @ Entertainment Timez writes AIG Delivered, But Where Is Everybody? - AIG delivered, but still there aren't many investors in the stock, at least not non-institutional investors (us home investors). Is this a mistake given the facts?
Kyle @ The Penny Hoarder writes Think You Can't Afford a Smart Phone? - Smart phones are everywhere. You might look at your friend’s smart phones with envy and wish that you, too, could get one. You may think a smart phone is out of your financial reach, but you may be surprised.
Crystal @ Married (with Debt) writes Introducing MikeS - Married with Debt - Please meet our new staff writer, MikeS, who is married with debt too.
Eva Baker @ TeensGotCents writes How To Get A Part Time Job - REI - An interview with Ken Bevill of REI. Ken and I discuss the specifics of getting a part time job at REI for teenagers - what to do and what to avoid.
Minimalist @ Minimalist Finance writes Instilling Financial Responsibility In Your Teenager - Instilling Financial Responsibility In Your Teenager has been published on Minimalist FinanceTeenagers can be difficult students. Most teens would rather be out with their friends or playing their favorite sport than learning about money and money management.
MMD @ IRA vs 401k Central writes What Are My 401k Investment Options and Choices? - When you receive that packet with all the different 401k investment options to choose from, what does it all mean? This post will help you figure that all out.
DW @ Great Passive Income Ideas writes Great Extra Income Opportunities Using The Internet - You don't need a second job. There are lots of extra income opportunities that can easily be done with nothing more than the touch of a computer. Here are a few to try.
Mr FD @ Financial Debauchery writes Poor Customer Service Skills = Why I Hate Blockbuster - If you think that poor customer service skills aren’t likely to drive a patron to absolutely despise a store and every location it has, then think again.
Matt Becker @ Mom and Dad Money writes The Mythical $12,000 Baby - The reports out there say it costs $12,000 in the first year of raising a child. When making your own decisions, it's important to remember that that number is just an average. It doesn't reflect your personal situation or your ability to make different choices. Let's look at some of the ways you can be different.
Christopher @ This That and The MBA writes Opening a Savings Account For a Child - Selecting the right type of savings account though can be easier said than done. Not only is convenience important when it comes to personal banking but the terms and conditions of bank accounts these days are things that must also be taken into consideration.
John S @ Frugal Rules writes Investing in Stocks: Are You a Trader or Investor? - There are various strategies investors can implement in the stock market yet many do not stop to think which is best for them. This lack of preparation can significantly undermine their investing efforts and hinder their attempts to grow wealth.
Prairie Eco Thrifter @ Prairie Eco Thrifter writes So You've Maxed Out Your Emergency Fund - Now What? - Once you’ve reached your goal and have a nice, healthy emergency fund in your bank, what do you do next? Spend all of your extra cash frivolously? Keep contributing to your emergency fund as if you don’t have a limit? Here are some suggestions on what your savings focuses can be after you’ve met your goal.
Pauline @ Make Money Your Way writes Make money with your garden - Here are a few ways you can make money with your garden, by selling your plants, produce or canned goods.
Bryan @ Gajizmo.com writes 150 Famous Quotes By Famous People - Whether we are trying to improve our lives personally or professionally, we all sometimes need famous inspirational quotes to help us power through the challenge in life. Whether it is life, death, success, failure or money, famous quotes by famous people can provide insight into how to better our lives. Here is a list of the 150 best famous quotes that will inspire and motivate you to achieve.
Mr.CBB @ Canadian Budget Binder writes Budgeting Tips For Low Income Families - A budget does not discriminate so no matter what your income is you can use a budget to account for your personal finances.
Jon @ Novel Investor writes Best Mutual Fund Screener Online - The best mutual fund screener will help you filter through the tens of thousands of mutual and index funds so you can build a solid portfolio.
And there you have it! Great posts from the week of 8/12-8/18. Until next time!
TB
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