Posted by M.S. on June 4, 2009
If there were 8 simple rules you could follow that would help you build a fortune and a satisfying life, would you be interested to learn about them?
Just in time for Summer reading, I recently came across a very inspiring book written by Dwight R Lee and Richard B McKenzie called “Getting Rich in America“.
I highly recommend this book because the focus of the book is on “ordinary people” like you and me, people of modest means and talents and how they “made it” through simple steps taken without sacrificing their quality of life.
I believe wholeheartedly in the idea that if you want to accomplish something, model someone that has already done it. This book uses real life examples of people that have accumulated enough money to be financially independent and tells you how to do that too!
They went from Frugal to Rich!
Here are the 8 Simple Rules featured in the book:
1. Think of America as the Land of Choices
2. Take Compound Interest Seriously
3. Resist Temptation
4. Get a Good Education
5. Get Married and Stay Married
6. Take Care of Yourself
7. Take Prudent Risks
8. Strive for Balance
The quote from Ben Franklin at the front of the book explains it well. “The way to wealth is as plain as the way to market. It depends chiefly on 2 words, industry and frugality: that is neither waste time nor money, but make the best use of both. Without industry and frugality, nothing will do; and with them-everything!”
So basically, that means work hard and be frugal! If you save your money and invest, it will build wealth!
Look at these thought provoking questions the authors pose to help you on your way to getting rich!
Buy it used on Amazon.com or request it for FREE at your local library!
It is well worth your time!
Posted by M.S. on May 11, 2009
According to recent news reports, the average American family has credit card debt of over $8,000. You will NEVER get wealthy carrying this kind of debt, because your money is going to paying off your past rather than building your future! Let’s create a plan to get rid of it NOW.
Did you know that when you have this type of debt, the magic of compound interest is working against you, rather than for you? Face it, you are making the credit card companies rich–not yourself! That should the incentive to get moving on this!
Start to turn things around right now and gain some financial peace of mind.
First and most importantly, STOP using your credit cards now! Don’t make things any worse than they already are! The next step is to determine what money is coming in and what is going out each month. Where do you stand on both sides of that equation?
Let’s look at the income side of things. How much do you have coming in each month? Add up all salary and wages, child support and any other income you receive.
Then, determine what you have going out each month. Be honest! In order to see exactly what you owe, add up all credit card bills and the all bills paid through your checkbook. Once you you know exactly what is coming in and what is going out, you can develop a spending plan. If you find you are spending more than you have coming in, you are not alone! It is reported that over 40% of American families spend more than they earn each month!
Once you know exactly where you stand, you can focus on the 2 basic sources for the cash you need to pay off debt: spend less of what you currently earn or make more money. We’ll examine the ways to do both of those in Part 2.
Posted by M.S. on May 5, 2009
When our children graduated from college, we reflected on what words of wisdom we could share to guide them on their own journey towards financial prosperity. We believe it could be boiled down to these 4 simple steps.
#1. Define how you want your life to look. Be very specific. Do a dream board where you gather pictures from magazines and create a photo montage of your future life. Show the dollar amount you want, the family you aspire to, career goals, homes you will buy, the fabulous travel you intend to do, etc. Now that you know what you are aiming for, you should set concrete financial goals to get there. Set a 1 year, 5 year and long range goal and start working hard and saving to achieve it!
# 2. Pay Yourself First. The minute you land a job, enroll in the company’s 401-K program and contribute the maximum amount. You have 40 years for the money to grow, so allow the power of compound interest to work for you and reap the huge benefits of all those years of growth. Alfred Einstein said compound interest is the 8th wonder of the world! If you are serious about becoming wealthy, you must save a much larger percentage of your income than the average American. Start with saving and investing 20% and go up from there! Do you want to be rich or don’t you? You will not get wealthy by spending all your money on junk. Learn to cook and make your coffee at home. Ok, splurge once in a while.
#3. Only buy appreciating assets, whenever possible– NOT depreciating assets. That means only buy things that will generally go UP in value over time- that is things like houses, stocks, mutual funds, etc. You can buy them now at fire sale prices (unless you think the world is coming to an end.) Do not buy loads of designer clothing and shoes, fancy overpriced cars, etc. You are not Don Trump! Don’t try to live like you are! You have a much better chance of getting wealthy if you defer gratification and wait to buy all those fun toys when you actually have the money to afford them! Now is the time to save and build up your nest egg. We know this is contrary to what most people do! That’s why most people have NO money!
# 4. Take care of your body! What good will wealth do for you if your health is a wreck? Eat less, exercise more, reduce stress. That’s the best investment you will ever make!
Now get going!
