By Dennis Harting
Article Word Count: 695
This is one of the most fundamental concepts for creating wealth. The ignoring of this simple principle is what creates the massive amount of struggle so prevalent within our society. In this era, people have the tendency to do the exact opposite of what is necessary for financial growth.
The majority of our society works for a paycheck. They put in their hours to receive their pay every couple of weeks. Before they get their check, the taxes and other governmental obligations are removed. This leaves them with their net pay for the period. Of course, this the amount that people then need to live on.
Naturally, everyone has basic obligations. Expenses such as rent or mortgage, transportation, food, utilities, etc... are paid out of our earnings. These are the things that eat up a large percentage of the money we bring home. Occasionally, depending on the financial situation, there might be some form of entertainment expense. In most cases, these obligations are met before any money is set aside for savings or investment.
To build a large amount of wealth, one needs to put one's money to work for them. The power of compound interest enables money to grow at a substantially faster rate than any single individual can earn. Fortunes have been created by consistently investing at a good rate of return over a long period of time. The more money that is “put to work” or the longer the period, the greater the chance of attaining financial prominence.
Unfortunately, when most are questioned about their pattern of saving, the typical response is that “I don't make enough to save” or “I will save if I have anything left over after I pay my bills”. As most are aware, there never is anything left over at the end of the month. This is the destructive force of paying everyone else first. The person actually earning the money is left out of the pay cycle. That person is not working for a particular company. Rather, they are working for their creditors. The reason they show up for work each day is to be able to pay their bills.
The concept of paying yourself first is a radical idea to most people, It is something that is not promoted too much within our culture. We are conditioned for the instant gratification that comes with spending. Credit is rather easy to get thus allowing us to actually spend more than we earn. The “buy now, pay later” is so the preferred way of purchasing. What an item truly costs when interest is added in is never factored in the decision. The main concern is how much the monthly payment is.
This mentality has put the large percentage of families into a financial bind. Because of this, the thought of setting money aside each month seems impossible. If one cannot pay all their obligations using 100% of their income, how could they do it with a smaller percentage? The answer is in the elimination of senseless spending. Paying yourself first obligates a portion of one's income to saving, income that normally would have been spend on something that is more for gratification as opposed to a necessity.
When people undertake this concept initially, they find that putting 3%-5% away is not difficult. It is best done to have it taken directly from the paycheck before it is received. People do not feel the tax crunch as much since they never see the money. The same holds true for investing. Money removed immediately from a paycheck and deposited into an investment account will not even be missed. Over time this fund will grow even if the monthly expenses remain the same. The power of compounding interest begins to take hold.
It is best to start this process as soon as possible. The longer one waits, the less they will ultimately be able to accumulate. There is a tremendous difference in the amount of money one has when invested over 20 years versus 30 years. Begin by having a portion of your paycheck diverted into an interest bearing account automatically. This will help get you into the habit of paying yourself first.
Dennis Harting is the Head Coach at Your Rich Life. He is an acclaimed speaker, trainer, and best-selling author. His books include Your Easiest Million and The Ultimate Procrastination Handbook. His programs and more information can be found at http://www.yourrichlifeinc.com
Article Source: http://EzineArticles.com/?expert=Dennis_Harting
Sunday, July 29, 2007
Smoking Is Costing You 18 Million Dollars
By Debby Banning
Article Word Count: 400
First lets think about what smoking does your life. It raises the cost of your health insurance and life insurance. Your quality of life is less than if you did not smoke. Walking from one place to another will make you out of breath. You can develop Asthma, Emphysema, Lung Cancer, and Throat Cancer. Smoking will lead to a slow agonizing death. You will live for years gasping for each breath and will probably have to carry around an oxygen tank.
If your home has white walls they will turn yellow because smokers usually smoke inside. All of the items in your house smell like an ashtray, your breath stinks, it makes your teeth yellow, and kissing you is like licking an ashtray. Even when you brush your teeth and use Listerine the smell and taste is still trying to escape your lungs.
Smokers are never courteous of other peoples’ lawns. Have you ever driven up to a stop light and looked on the road or median next to you? The next time you pull up to an intersection, take a look around. Cigarette butts litter the area. Cigarette smokers have caused fires throwing butts out the car window.
Statistics show that the majority of smokers are uneducated. http://tobaccodocuments.org reports, “Philip Morris' internal findings of higher smoking rates among lower socioeconomic classes, as well as its findings that this group also has a higher incidence of both poor mental and physical health, it continued to promote its deadly and addictive products heavily among these groups.”
In the state of Florida you can no longer smoke in restaurants, some parks, even near some public buildings.
Everyone makes small purchases and think it is only $3.00 dollars or $4.00 dollars and that isn’t going to make a difference in anything.
If you invested the money that you would have bought a pack of Camel non-filters (studies show that the lower socioeconomic population buy non filter cigarettes) everyday from the age of 16 to the age of 76 in a decent growth stock mutual fund with the average yearly return of 12%, you would have $18 million dollars to retire with. Not only will you have your health, money, a longer happier life, but you would retire with dignity and not have rely on social security to make ends meet every month. Small purchases add up and cost you literally a fortune in the long run.
www.DebbyBanning.com
Article Source: http://EzineArticles.com/?expert=Debby_Banning
Article Word Count: 400
First lets think about what smoking does your life. It raises the cost of your health insurance and life insurance. Your quality of life is less than if you did not smoke. Walking from one place to another will make you out of breath. You can develop Asthma, Emphysema, Lung Cancer, and Throat Cancer. Smoking will lead to a slow agonizing death. You will live for years gasping for each breath and will probably have to carry around an oxygen tank.
If your home has white walls they will turn yellow because smokers usually smoke inside. All of the items in your house smell like an ashtray, your breath stinks, it makes your teeth yellow, and kissing you is like licking an ashtray. Even when you brush your teeth and use Listerine the smell and taste is still trying to escape your lungs.
Smokers are never courteous of other peoples’ lawns. Have you ever driven up to a stop light and looked on the road or median next to you? The next time you pull up to an intersection, take a look around. Cigarette butts litter the area. Cigarette smokers have caused fires throwing butts out the car window.
Statistics show that the majority of smokers are uneducated. http://tobaccodocuments.org reports, “Philip Morris' internal findings of higher smoking rates among lower socioeconomic classes, as well as its findings that this group also has a higher incidence of both poor mental and physical health, it continued to promote its deadly and addictive products heavily among these groups.”
In the state of Florida you can no longer smoke in restaurants, some parks, even near some public buildings.
Everyone makes small purchases and think it is only $3.00 dollars or $4.00 dollars and that isn’t going to make a difference in anything.
If you invested the money that you would have bought a pack of Camel non-filters (studies show that the lower socioeconomic population buy non filter cigarettes) everyday from the age of 16 to the age of 76 in a decent growth stock mutual fund with the average yearly return of 12%, you would have $18 million dollars to retire with. Not only will you have your health, money, a longer happier life, but you would retire with dignity and not have rely on social security to make ends meet every month. Small purchases add up and cost you literally a fortune in the long run.
www.DebbyBanning.com
Article Source: http://EzineArticles.com/?expert=Debby_Banning
Money Saving Tips. Maximize Savings on Everyday Items!
By Cheryl Johnson
Article Word Count: 772
Frugal living is more than a lifestyle. It's a passion. Call Me Crazy! I love It!
Why, who wouldn't love getting paid to buy products that they use everyday?
Here's how I do it.
I purchase an item that has a rebate offer (either a store or manufacturer rebate) while it is on sale and use a coupon during purchase. That's it! Using this formula I almost always come out ahead. When all is done, I've gotten back more than I actually paid for the item.
Even when I do have to pay for the items like deodorant, shampoo, soap, toothpaste, and toothbrushes it's about 50 cents for a item that would cost up to $2 -$4 originally.
Am I the only one out there that gets excited about this? I doubt it! At least I hope not. That would make me "Crazy", wouldn't it? But a lot of folks just don't know how to combine money saving measures to maximize savings.
My local drugstore (which by the way is a national chain) often advertises items free after rebate. Hey, that cuts down on a lot of work for me. Easy Money! I e an also lucky enough to have a grocery store in my area that offers rebates and offers double coupons (sometimes even doubling $1 coupons as a special promotion). Needless to say, with six mouths to feed (myself, my husband, and four kids) I'm lovin' that idea!
As the editor of www.simpledebtfreeliving.com, I'm always looking for new ways to save money. Visit us and follow one of the e-mail links to share your ideas or just let us know how excited you get about frugal living! Let me know I'm not the only one. Then we can put my family's worries to rest. They think I'm really crazy.
Here are a couple other ways that I save on items we use everyday:
1. Always use items that are reusable rather than throw away
For example: Reusable coffee filters, cups and plates, and my favorite pet peeve -
The great sandwich bag conspiracy
The major manufacturers of sandwich bags would lead us to believe that it takes rocket science to keep a sandwich fresh. Ask yourself this, How long do you need to keep that sandwich fresh anyway? It's not like it's going to the moon. It's just going to the office or school for a few hours.
The most practical way to approach this is to purchase reusable sandwich size containers. This is also very environmentally friendly reducing a great deal of waste. If however, these have trouble finding there way back home ( which is likely if you have children), you can save substantially if you purchase the plain old pleated sandwich bag that cost a mere fraction of the razzle dazzle zipper kind. Your mother used these for years and years with great success. I have used both methods for years and have never received a complaint of a stale sandwich!
You'll find that doing these little things like, using real cups and plates instead of paper or plastic throw away, and recycling containers for storage or even to use in craft projects, can save a lot of money. Each by itself may seem minor, but when put together amount to tremendous savings over time.
2. Don't buy it if you won't use it. Things like small kitchen appliances, repair tools, and gardening tools are good examples. We know they'll make our life easier if we just had the opportunity to use them.
There are 101+ small countertop kitchen appliances available to chop it, grind it, mix it, open it, bake it, grill it..well you get the message.
Simplify your life and narrow it down to a couple you just can't live without. For me it's my blender and my food processor. Although, I'm seriously considering a bread maker. Not quite sure if it's worth the money yet. Especially when I'm so close to a bread outlet. But, you can't beat the taste of fresh baked bread. I'm not counting the coffer maker it's kind of standard equipment these days. I wouldn?t dare ask you to give that up! What am I crazy? Well , maybe..
It's little things like the example above that identify frugal living.
3. Always get the best value for your money. Shop around. If this is a major purchase you will want to know what to look for. Research and compare products on the internet or in sale flyers. There's nothing more challenging to the retailer than an informed consumer. That's what you want to be. An informed consumer knows when it's a good value! Informed Consumer - More Savings
Cheryl Johnson mother of four helping myself and others become and stay debt free. Publisher of Simple Debt Free Living at http://www.simpledebtfreeliving.com - a self-help plan, ideas, and resources for personal budgeting, debt management, frugal living, and extra income opportunities. Money saving tips help balance your budget and maximize everyday savings.
Article Source: http://EzineArticles.com/?expert=Cheryl_Johnson
Article Word Count: 772
Frugal living is more than a lifestyle. It's a passion. Call Me Crazy! I love It!
Why, who wouldn't love getting paid to buy products that they use everyday?
Here's how I do it.
I purchase an item that has a rebate offer (either a store or manufacturer rebate) while it is on sale and use a coupon during purchase. That's it! Using this formula I almost always come out ahead. When all is done, I've gotten back more than I actually paid for the item.
Even when I do have to pay for the items like deodorant, shampoo, soap, toothpaste, and toothbrushes it's about 50 cents for a item that would cost up to $2 -$4 originally.
Am I the only one out there that gets excited about this? I doubt it! At least I hope not. That would make me "Crazy", wouldn't it? But a lot of folks just don't know how to combine money saving measures to maximize savings.
My local drugstore (which by the way is a national chain) often advertises items free after rebate. Hey, that cuts down on a lot of work for me. Easy Money! I e an also lucky enough to have a grocery store in my area that offers rebates and offers double coupons (sometimes even doubling $1 coupons as a special promotion). Needless to say, with six mouths to feed (myself, my husband, and four kids) I'm lovin' that idea!
As the editor of www.simpledebtfreeliving.com, I'm always looking for new ways to save money. Visit us and follow one of the e-mail links to share your ideas or just let us know how excited you get about frugal living! Let me know I'm not the only one. Then we can put my family's worries to rest. They think I'm really crazy.
Here are a couple other ways that I save on items we use everyday:
1. Always use items that are reusable rather than throw away
For example: Reusable coffee filters, cups and plates, and my favorite pet peeve -
The great sandwich bag conspiracy
The major manufacturers of sandwich bags would lead us to believe that it takes rocket science to keep a sandwich fresh. Ask yourself this, How long do you need to keep that sandwich fresh anyway? It's not like it's going to the moon. It's just going to the office or school for a few hours.
The most practical way to approach this is to purchase reusable sandwich size containers. This is also very environmentally friendly reducing a great deal of waste. If however, these have trouble finding there way back home ( which is likely if you have children), you can save substantially if you purchase the plain old pleated sandwich bag that cost a mere fraction of the razzle dazzle zipper kind. Your mother used these for years and years with great success. I have used both methods for years and have never received a complaint of a stale sandwich!
You'll find that doing these little things like, using real cups and plates instead of paper or plastic throw away, and recycling containers for storage or even to use in craft projects, can save a lot of money. Each by itself may seem minor, but when put together amount to tremendous savings over time.
2. Don't buy it if you won't use it. Things like small kitchen appliances, repair tools, and gardening tools are good examples. We know they'll make our life easier if we just had the opportunity to use them.
There are 101+ small countertop kitchen appliances available to chop it, grind it, mix it, open it, bake it, grill it..well you get the message.
Simplify your life and narrow it down to a couple you just can't live without. For me it's my blender and my food processor. Although, I'm seriously considering a bread maker. Not quite sure if it's worth the money yet. Especially when I'm so close to a bread outlet. But, you can't beat the taste of fresh baked bread. I'm not counting the coffer maker it's kind of standard equipment these days. I wouldn?t dare ask you to give that up! What am I crazy? Well , maybe..
It's little things like the example above that identify frugal living.
3. Always get the best value for your money. Shop around. If this is a major purchase you will want to know what to look for. Research and compare products on the internet or in sale flyers. There's nothing more challenging to the retailer than an informed consumer. That's what you want to be. An informed consumer knows when it's a good value! Informed Consumer - More Savings
Cheryl Johnson mother of four helping myself and others become and stay debt free. Publisher of Simple Debt Free Living at http://www.simpledebtfreeliving.com - a self-help plan, ideas, and resources for personal budgeting, debt management, frugal living, and extra income opportunities. Money saving tips help balance your budget and maximize everyday savings.
Article Source: http://EzineArticles.com/?expert=Cheryl_Johnson
Consumers 'Underestimate' Debt Levels After Leaving University
By Abbi Rouse
Article Word Count: 515
Students are underestimating the level of debt they will leave university with, according to the publication of a recent report.
Released today, findings from the Association of Investment Companies (AIC) indicates that prospective undergraduates believe they are set to owe less than £8,000 after completing higher education, with parents estimating this figure to be around the £10,000 mark. However, as the firm revealed the actual level of post-graduation debt is £13,252, both students and parents alike were warned that they could face a “painful shortfall”, which consequently could impact upon their finances and ability to make loan repayments in later life. Despite the potential underestimations, both parents and students believe that university debt is increasing with each group reporting that the money now owed after university has increased by £2,975 and £1,679 respectively since the 2006 study.
Commenting on the research, Daniel Godfrey, director general for AIC, said: “Whilst it’s important to remember the many positives of a university education, it is a concern that so many parents and students still underestimate the true level of graduate debt. Unless parents and students start to really comprehend the financial implications of going to university, the shortfalls faced by tomorrow’s students could put them in serious financial difficulties right at the start of their working lives.
The study also indicated that to avoid debt management problems in later life, a third of prospective undergraduates are set to live away from home in order to save money, a move which according to AIC is a “financially prudent decision”. Meanwhile, just over a quarter (27 per cent) of would-be students were reported to be in favour of taking out loans to pay their way through university. However, this figure fell to 12 per cent when parents were asked the same question.
Overall, the majority of parents were said to be willing to make “significant sacrifices” to their financial habits to help their children attend higher education. Some 59 per cent said they would forgo buying a new car with just over half of respondents claiming that they are prepared to sacrifice their annual holiday abroad. Figures from the investment company also showed that 36 per cent of parents would give up retiring early to fund their offspring’s university education, although this proportion fell to 29 per cent among those between the ages of 55 and 64.
Last month, research carried out by Lloyds TSB indicated that some one out ten consumers aged 18 to 24 are relinquishing university to save up money to help them get on to the property ladder. The study also revealed that about a fifth of Britons in their 20s have chosen a job which makes more money but which they do not enjoy instead of their preferred career path in an attempt to be able to meet property deposit and secured loans repayment responsibilities. Meanwhile, one in six respondents were reported to be juggling two jobs in a bid to afford mortgage costs. However, mortgage sales director Alison Burns claimed that such consumers may not have to adopt “extreme measures” as a number of potential first-time buyers are said to be misguided about the housing sector.
Abbi Rouse writes for AllAboutLoans.co.uk, an online loans comparison site, visit us today for information on all loan topics including cheap loans applications and loans sourcing from all leading UK providers.
Article Source: http://EzineArticles.com/?expert=Abbi_Rouse
Article Word Count: 515
Students are underestimating the level of debt they will leave university with, according to the publication of a recent report.
Released today, findings from the Association of Investment Companies (AIC) indicates that prospective undergraduates believe they are set to owe less than £8,000 after completing higher education, with parents estimating this figure to be around the £10,000 mark. However, as the firm revealed the actual level of post-graduation debt is £13,252, both students and parents alike were warned that they could face a “painful shortfall”, which consequently could impact upon their finances and ability to make loan repayments in later life. Despite the potential underestimations, both parents and students believe that university debt is increasing with each group reporting that the money now owed after university has increased by £2,975 and £1,679 respectively since the 2006 study.
Commenting on the research, Daniel Godfrey, director general for AIC, said: “Whilst it’s important to remember the many positives of a university education, it is a concern that so many parents and students still underestimate the true level of graduate debt. Unless parents and students start to really comprehend the financial implications of going to university, the shortfalls faced by tomorrow’s students could put them in serious financial difficulties right at the start of their working lives.
The study also indicated that to avoid debt management problems in later life, a third of prospective undergraduates are set to live away from home in order to save money, a move which according to AIC is a “financially prudent decision”. Meanwhile, just over a quarter (27 per cent) of would-be students were reported to be in favour of taking out loans to pay their way through university. However, this figure fell to 12 per cent when parents were asked the same question.
Overall, the majority of parents were said to be willing to make “significant sacrifices” to their financial habits to help their children attend higher education. Some 59 per cent said they would forgo buying a new car with just over half of respondents claiming that they are prepared to sacrifice their annual holiday abroad. Figures from the investment company also showed that 36 per cent of parents would give up retiring early to fund their offspring’s university education, although this proportion fell to 29 per cent among those between the ages of 55 and 64.
Last month, research carried out by Lloyds TSB indicated that some one out ten consumers aged 18 to 24 are relinquishing university to save up money to help them get on to the property ladder. The study also revealed that about a fifth of Britons in their 20s have chosen a job which makes more money but which they do not enjoy instead of their preferred career path in an attempt to be able to meet property deposit and secured loans repayment responsibilities. Meanwhile, one in six respondents were reported to be juggling two jobs in a bid to afford mortgage costs. However, mortgage sales director Alison Burns claimed that such consumers may not have to adopt “extreme measures” as a number of potential first-time buyers are said to be misguided about the housing sector.
Abbi Rouse writes for AllAboutLoans.co.uk, an online loans comparison site, visit us today for information on all loan topics including cheap loans applications and loans sourcing from all leading UK providers.
Article Source: http://EzineArticles.com/?expert=Abbi_Rouse
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