retirement

Money Management Tips For Your Finances

Money Management Tips For Your Finances

Money management for your financial dreams

Money management is so much more than a few simple math equations and then you’re done. Math does play a part in money management but also does discipline and emotion and goal setting. The simple rule of money management is to spend less money than you bring home and to invest the leftover money wisely. If everyone lived by this simple rule then there would be no financial issues in families.

I remember when I was young (a long time ago) some of the greatest advice that I received was, take $20.00 a week and put it into some investment that compounded interest and forget about it till you’re ready to retire. At the time I thought wow $20.00 is a lot of money, this is money that I play with I cannot do that. To this day I kick myself in the rear-end for not taking that advice to heart. If I would have followed this simple piece of knowledge at the time I would have over $50,000 plus interest in my nest egg.

Of course I was a lot like other young people in my generation, I did not listen to wise old men and I took every penny I made and wasted it on foolish items. Today I wish I would have listened to people that were wiser than I was at the time and not have followed my emotions and wasted my hard earned money on foolish items.

The past is the past and I need to only look at the future now since I am fifty plus years old and I want to retire in ten years.


Obstacles get in our way.

About twelve years ago I had a major setback in my financial situation that was a wake-up call for me. My wife at the time wanted to have a new life and asked me for a divorce. Going through a divorce is a life and financial changing experience that I wish on no one. If you are not psychologically, emotionally and financially prepared then it will be like getting hit over the head with a baseball bat. Divorce can put you in such a financial tailspin that it can ruin your life for many years.

This was a difficult time for me, but God had other plans for my life and he took me out of that situation and today I am able to help others that are in that same boat that I was in. Since that life changing curve ball that I was given, today I am writing and teaching others how to reset you’re financial goals and take steps to get you back on the right path to financial freedom. Let’s now take a look at a couple of steps that you can start with to get you started.

Be Content.

First you need to understand that you will not find happiness in materialism and spending money on things you do not need. You must stop believing that money buys happiness. I remember the days of bringing home $25,000 a year and how I wished I could bring home $50,000 a year, I would so much happier. Well when I did hit that goal of making $50,000 I was no happier than when I brought home $25,000.

 

You need to learn to be happy with what you are given each day, when you make more money and you are not content you will not find happiness. There are no shortcuts and secrets to be financially set. What you need to do is learn how to mentally be happy with what has been given to you and learn to live within your means.

Learn to say no.

Learn to say no, every parent has problems with saying no to their kids, especially when it comes to purchasing back to school items and when it comes to the holidays. Right now is the time of year when families are running around and purchasing items for their kids to go back to school and I am hearing horror stories of families spending hundreds of dollars for new clothes and equipment like tablets, computers and new cell phones to go back to school with This is absolutely crazy. There is no need to purchase these items and go deeper in debt just to make your kids happy. You need to learn to say no, our parents did and we survived and so will your kids.

And It is not just kids that we need to be saying no too, it is us adults also. Many of us want to purchase new adult toys even when there is nothing wrong with what we have now. We need to be looking at cutting expenses and not getting deeper into debt just because we want something new. If you have the cash and you really feel the need to purchase that item them go for it, but do not purchase the item on a credit card or use money that will be going for another bill, only purchase the item if you have spare money laying around.

Use technology to your financial advantage.

When it comes to saving for your retirement use technology to help you stay on track. Computerize you savings and retirement accounts, when you set up monthly payments to come out of your check to go directly into a 401k account or some other savings account you will not miss the money since you don’t see it come from your paycheck. I set my retirement account to come directly out of my earnings and I was amazed at how quickly that account grew over time.

Computerize your spending habits in order to keep track of where you are spending money. Using software like bill pay will help identify where you are spending your money. At the end of the month take your statement and look it over to see where you have wasted money. Take for example, how many times did you go to Starbucks to purchase coffee, how many times did you purchase fast food during the month, and etc. Software like bill pay can shine a light on where you may be wasting money.

Take action now!

Nobody cares about your money and your future more that you do, so don’t procrastinate on getting your retirement started or work to get out of debt. Another thing is; don’t make excuses and blame other for your financial situation. Your financial condition may not be entirely your fault, but stop complaining and fix your situation now. You have the brains and no-how, take your expertise and fix what needs fixing with your finances.

Passion

Make money management a passion, when you do this it will give you the motivation to keep working harder to save and get out of debt. A wise person once said “”I like entrepreneurs who decided to solve a pain point that affected them personally,” says Vasu Kulkarni, Courtside Ventures. “The conviction to solve a problem is always stronger when you are passionate about it, and generally that tends to stem from issues that you can relate to personally.”

If you goal is to build for your retirement or get you and your family out of debt, take time right now to light the passion in your home with your family to be as passionate about this as you are. The larger the support group you have the stronger you will be to break your goal.

 

Posted by Tom in Finance
Ways To Have A Passive Income

Ways To Have A Passive Income

Passive Income

Passive income is not just a dream it can be reality if you put you put your heart, mind and soul into it. Let’s first take a look at what passive income is; Google calls passive income as income that is a result from cash flow received on a regular basis requiring minimal work or effort by the person receiving the income. Most of us want to break away from the corporate world and free up time to spend with family and friends but at the same time we want to be the bread winner for our family.   This is where passive income comes in. When an income stream takes little to no effort to maintain this is passive income. It is important to note that once you have your passive income coming in it does not mean that you will not have to maintain it and keep a close eye on it so the stream does not run dry.

First thing first, do you have the heart to make it happen?

Earning a passive income does not happen overnight, it takes time, hard work, discouragement, tears and long hours. One thing I have learnt over the years is – if it was easy everyone would be doing it. You just need to ask if yourself if you can handle the tough road ahead? Usually if the road is tough and difficult it greatly reduces the competition. For me, it is worth the time and effort!

What are some passive income streams?

Investing – Investing has been one of the leading ways for making passive income. The issue with investing is that you first have to have capital to invest. Investing can also be dangerous if you don’t know what you are doing. Dividend stock has been a popular investment tool for many people. They provide a recurring cash flow and when the dividend is reinvested it can compound to a healthy return over time.



Writing – writing articles and submitting them to places like HubPages, Squidoo, Quora, InfoBarrl and so on. There are several places to submit your articles and in due time they will reward you with some passive income. Again you will not get rich from these articles but they will help produce a few hundred dollars a month for a bunch of articles you have written and submitted.

Become a proofreader – Proofreading jobs are flexible and can supplement income. Proofreading can be fun and it does not have to be something that you do full time. There are all sorts of proofreading work out on the web, just take a little time and do some research and find a niche that you are comfortable working in.

Rental income – When we are talking about rental income this does not have to be purchasing property and being a landlord. Renting items that you such as a room in your home, at one time I rented my basement to a person that needed a place to live. He ended up paying us $300 a month to live in my basement for two years. Another time I had a three car garage and was only using two spaces so I rented the other space for $175 a month. That gave me another $2,100 a year income on a space that I did not need. If you can afford to have rental property this is a great source of passive income. My wife and I love having that extra source of income coming in every month, plus the great tax benefits from rental property are a nice perk.

Start a blog – One of the most aggressive and successful passive income generating tool is a blog. If you put in the time, do your research, and can write good articles that will get picked up by search engines you can generate a full time income that will carry on for years. Regardless of the niche you pick, if you have clear knowledge of SEO (search engine optimization), social medial marketing your blog could provide several streams of income.

Self-publish a book – This may not sound fun or interesting but in reality it can produce some nice passive income. Many people that are into blogging love the idea of selling ebooks online, through guest posting, and on their own blogs. The concept sounds hard but in reality it is fairly easy and can add an extra few hundred dollars a month to your revenue stream. Now we are not talking about writing a novel, we are talking about writing a 50 to 80 page ebook that can be sold on Amazon or iBooks.

Dropshipping business – This is a new concept for many people. Dropshipping is a business that you sell products from a supplier and have the item shipped to the customer without have to have any sort of inventory. This is a great passive income producer and believe it or not it has been in existence since 1999. Big name companies like Amazon and Sears use droppshipping and some estimates state that up to 33% of online sales through ecommerce use droppshipping.

Affiliate marketing – Last but not least is affiliate marketing for making a passive income. With affiliate marketing you earn commission for sales or leads that you have linked on your website or in your content of your blog. Another affiliate tool is display ads and banner ads that you receive a commission for every time someone clicks on the ad. This is a great way to produce incomes while you are on vacation or lying in bed sleeping.

Conclusion

These are just a few thoughts for passive income that you can put into action and start generating income for yourself. Like I mentioned in the beginning of this article, each of these idea’s take time and effort upfront in order to benefit from the rewards for a lifetime. The rewards will more than exceed the time and work that you put into any of these ideas.

Related Links:

Passive income streams

Want to be a millionaire

17 Passive income ideas

 

Posted by Tom in Business