Black Friday: Being Financial Responsible Around the Holidays

I think the title says it all. I remember as a child being lavished with gifts and I can't say I have any complaints but my cherished times was family trips, vacations, any outings, dinners, reunions, and so on. The activities I had with my loved ones was more memorable then the Michael Jackson turntable or my 20th doll. It's great to surprise others but going broke over gifts is a scary thought, because after all you can't pay bills with PS3's and TV's (not before selling them for much less than you paid). Whether you celebrate gift giving holidays or not, spending within your means is always a good idea as a nest egg can keep you from hunger while things don't make you any happier or financially secure.

I will still shop this year and what I've learned is waiting until the last minute can really kill a budget. Start early like yesterday :). Plan out gifts for all those you are shopping for and set your limits and stop. Cyber Monday may provide many deals without the scavenger hunt aspect of Black Friday but also note there are very good sales in Jan. What's wrong with a Visa/MC gift card so the person can purchase what they please, when they please? Black Friday may provide good bargains but look at lower end stores because standing in line for a limited product, you may have to fight over isn't the most fun with a stomach full of turkey. How much is your time worth? How much time are you wasting  for these "bargains"? I'm not against black Friday I just use my time differently at this point in my life because you can replenish money but time can not be recovered.

Happy shopping out their and be safe

Obamacare: From A Financial & Social Standpoint

I'm writing this post in response to the many companies including Papa Johns who are fighting Obamacare and threatening to layoff workers or reduce hours. First I would like to explain my stance I'm a liberal, but also a capitalist. I believe business/corp. owners should reap the benefits of their hard work however the issues at hand is that there is social responsibility that many conservatives ignore. To live in such lavish absurdities while paying low wages and not providing proper benefits is a slap in the face to employees and consumers of any product. America is fighting change. Canada has a health care system for its population and we can compare them to the health care system of America and it's embarrassing. American has been built on theft of land, labor, and resources and when any CEO battles doing what is right for their employees to maximize profits it is taking huge steps backwards. I don't feel "handouts" (a catch phrase for conservatives) are right but let's look at corporations receiving tax breaks, bailouts, and not providing health care, among many other things.... these are where the real handouts are directed. Responsible companies take care of workers and have happy work environments. Is Google involved in this battle? Now go look at their stock price. You can be profitable and provide a value to your employees at the same time. Laying off employees to maintain a few upper executive lifestyles and to keep shareholders happy doesn't help America's Economy. 

Who wants to eat or shop anywhere that has disgruntled employees whom don't make enough to maintain their health care needs? Think of the service you receive from such places. The poor and rich has such a huge gap and the division is causing an US vs THEM mentality that only plays into the underhanded nature of politics targeting these mindsets. At some point we have to reach a middle ground to move forward. So many are concerned with the cost of this new Bill (as I was when this rolled out) but no one scrutinizes tax dollars given to war and the tax breaks that allows CEO's to build massive estates with mouts with the same intensity. I don't feel the rich should redistribute their wealth (See Bill Gates for an example) but what is wrong with rewarding those people that help aid in your success? A business doesn't normally survive with one person alone and you should take care of your team with fair wages and benefits.....in my opinion.  We as American's all need to come together regardless of views. "United we stand, Divided we fall" or as I like to say....Divided we FAIL. 

Getting Back In The Groove

I have fallen behind but I will post tomorrow. I can't emphasize enough how important taking care of yourself is, health is so important. Good day!

Website Flipping

This new concept is similar to flipping in the real estate market and just as with the real estate market the more research you do the better your chance for success. Basically a website domain is purchased, a site created, and the domain is sold. Some flippers build up traffic with SEO and advertising others may not. A lot of times there may be a value in the site being "move in ready". The domain name is usually catchy or easy to remember, niche based, and/or already designed. 

An investor can benefit on both ends. If you don't have any interest in maintaining a site and advertising you may enjoy building sites and can make as little as $100 per site and some people make thousands or more on sites that may take an hour or less to create. There can also be the opposite scenario in which you want to market a site but you have zero interest in the creation of it. 

If you are looking for advanced website flipping training Click Here!

*There are risks with website flipping I have been burned before and it can happen be sure to research and take all the steps you can to protect your investment. 

Financial Rehab

Expanding  your Financial Thinking can seem like a impossible task, but it isn't at all. Grasping the ideas is difficult at first but once you get the basics, the rest comes more smoothly. Being knowledgeable about finances is valuing money and understanding; credit, debt, types of income, assets, liabilities, tax laws, and much more. Setting goals both long and short term will aid in you heading towards a future of financial freedom. Your goals can go from simply being able to pay your bills every month on time and having a little funds to do things you enjoy and having money remaining to save. It can go as far as those with goals and plans to become rich. Depending on your financial goals you may not need to know about everything but focusing in on your financial interests will help you achieve your goals more efficiently.

Figure out where you are financially and focus on one goal at a time. For instance if you have $10,000 in credit card debit don’t try to skip over managing your debt and go right to learning about acquiring assets first. It will just put 2 different sets of stress on you.

Watch where your dollars go, you may be spending too much on dining out, or purchasing electronics. Taking as little as $50 or $100 from your leisure spending and putting it towards paying off debts, or savings can really set you on the right track. Renting a 60 inch TV from rent a center may not be the best idea as far as money management. Instead of renting or putting things on a credit card and paying the minimum save for it then buy it, you know the old fashion way.

If you are already pretty tight financially think of ways to generate additional income if only $50 extra a month from selling on eBay, creating a website selling your art or something you enjoy doing, doing odd jobs on the side, or maybe even a part time job. 
Once you know where you stand set a short term goal it could be something like saving 3-6 months expenses in a savings account or money market just in case. It could be purchasing rental property or your first home. Whatever your short term goal is do two things set a plan in motion to achieve it and start taking those steps immediately.

After you have short term goals set think of your long term goals. What is your ultimate goal? Is it to retire at 50 maybe earlier? Do you want to own a hotel within 10 yrs? Whatever your goals set a plan to achieve it.

For all goals you set make sure you set a realist time frame. Then once you achieve it move on to your next goal. Remember to think outside the box because for most people working for someone will never get you where you want to be financially.

Use the library you pay taxes why not check out books for free.

If you can get a mentor that is great what better way to learn things then someone who is good at it. So if you know someone whom has good credit get tips from them. Someone whom is a landlord would be able to provide valuable information if you want to invest in rental property and so on.

The internet is a great place to research things. You can gain a wealth of information but keep in mind not everything is going to relate to you or your needs. Find what works for you and go with it. 

Mind, Body, and Soul

Although finances are important I feel it's vital we focus on a continuous search for knowledge, maintaining health, and being an overall good person. We can't forget about people in our search for financial wellness. As Suze Orman says so often "people first then money". It's so common we try to fix things without making changes to our mind but it's really hard to rehab finances, change to a healthy lifestyle, or most other goals without changing or at the least adjusting your outlook. If your car is continuously running out of gas and you find you have a gas leak you have to fix it first because no matter how much gas you put in this doesn't fix the issue and your money and efforts are being wasted. Let today be a productive, positive day focusing on today with the future goals being put in place now and not later.

Shoot for the Stars Today and Forever

Passive Income

I've started going into stock trading and how to get started in Forex but let's go back to the basics. 

First we will get into what passive income means. Passive income is when money is generated from a rental property, a business in which you are not actively involved, royalties from intellectual property, and/or dividends/interest. As with non-passive income, passive income is usually taxable; however it is often treated differently by the Internal Revenue Service (IRS) and it is taxed at a lower rate. Below are some types of passive income and you can click on the links for additional details on each.

Dividends- A distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders. Example you may own GE stock and receive a dividend of 3.22% (will vary) per share.

Interest- The charge for the privilege of borrowing money, typically expressed as an annual percentage rate. Such as that on a savings account, CD, or money market. Example you may earn 1.2% (varies) interest on a money market annually.

Royalties- A payment to an owner for the use of; copyrighted works such as books, music, e-books, patents, or franchises.

Capital gains- An increase in the value of a capital asset such as an stock investment , art work, real estate, or any other property that gives it a higher value than the original purchase price.

Passive income ideas:

Blogging is way to create passive income most bloggers provide targeted information or links to information for free and there is advertising on the website that helps the owner/blogger to maintain the site and/or create cash flow. 

Although it has it's risks in my opinion owning rental property is one of the best forms of passive income because not only will someone else pay for your asset through rent you can have monthly cash flow as well.

There are also many tax write-offs that benefit Corporation owners as well those that invest in real estate in which they can build businesses and profit without having the hands on aspect a sole proprietary does. In other words pay someone else to do the work and you collect on the profits as the business owner/shareholder. 

How to get started 

Step 1 Save money daily to purchase assets such as real estate, stocks, bonds, or to invest in your current or potential business.

Step 2 Think of which option moves you is it real estate, trading, writing, or starting a business. Then focus

Step 3 Read as much about business and investing you can in the area you are interested in. 

Step 4 Research the option. Example if you want to invest in real estate look at areas you want to buy and compare a number of properties looking for the best deal.

Step 5 Set goals and/or write a business plan so you know what steps you need to take and how much you will need to invest to accomplish your goal/plan.

Step 6 Look to see what you need in your area if you need a business license, rental license, or anything else to prevent any fines or legal actions. 

Step 7 Speak to a tax specialist and lawyer to ensure you have the correct legal entity set up (C-Corp, LLC and so on), speak to real estate specialist if you are buying real estate. Always seek professional advise when possible, you can't always do everything yourself.

*Once you master one thing move on to the next remember you are not limited to one business or investment at a time. You can own multiple businesses and all the real estate you are capable of managing. Keep reinvesting.

*  Remember there is no exact science to create passive income. People create new ideas everyday. If you fail once do not let that stop you without failure there isn't success.

The Absolute Beginners Guide to Internet Wealth, Volume 2 (CET Edition) (Google Affiliate Ad)

Becoming an Investor: Building Wealth by Investing in Stocks, Bonds, and Mutual Funds (Google Affiliate Ad)

Rich Dads Guide to Investing By Kiyosaki, Robert T. (Google Affiliate Ad)

One of my favorite FREE resources

https://www.richdadworld.com

Stock Trading Practice

I will not get into strategies of trading stocks nor the different types of trading options. This "how to" will strictly show you a means to trading on the stock market with monopoly money to get your feet wet. What better way to practice, without a financial Risk :)

Step 1 Gain a little knowledge on trading, yahoo finance is a good free tool. You can look up quotes even add your personal portfolios if you have any.

Step 2 Go to http://www.virtualstockexchange.com there are others but this one works for me and is 100% free it also has info so you can research a stock or read news on companies.

Step 3 Set up a user name and log on

Step 4 Join a game or create your own. This is cool because you can trade with friends and see who can come out on top.

Step 5 Make your first trade by entering in the symbol of the stock, enter number of shares, and submit.

Step 6 Keep an eye on your portfolio(s) and manage profits and losses and you can move up in the ranks.

Step 7 Your comfort level will increase and after while you may see that you are trading like a day trader (minus the 30 minute time delay which is a huge negative. Real time is always the best case scenario but after practicing you may want to move into the market in real life or alter your current portfolio.

**There is a Risk to any investing including investing in the stock market. You are getting your feet wet with fake money using real stocks and quotes, but keep in mind just because you do well in this environment does not guarantee success with real money.  I highly recommend you get advice from a professional before jumping in, buy books about trading strategies, and/or take a class/seminar on trading.

How to Begin Trading Forex

Example Platform

I really want to get into some trading ideas, I don't plan on getting to the advanced levels often as there are many advanced level training tools, I can provide examples upon request. This is for beginning traders of Forex (The foreign exchange market). I must admit I haven't traded currency in awhile it takes much due diligence on the part of the trader and you will not get rich quick but you can make profits if you do the proper research. Also note outside of educating yourself more about trading I recommend everyone try a free account for at least a month before jumping in.

With the decrease in the U.S Dollar investing in currency is a way to capitalize on the rise and fall of different currencies. The Forex market is a 24 hour 7 day a week market where foreign currency can be traded. This article will review how a beginner can start trading foreign currency.

Step 1 Look for a platform to trade Forex I prefer http://www.forex.com I do not recommend going into trading with real money immediately, many have a great 30 day practice account. Everything is real time, and based on real trading including profit and loss except it’s not real money. 

Step 2 Once you are signed up research a few currencies you are interested in. I was drawn to XAU/USD (XAU is Gold and I’m sure you know the 2^nd is the US Dollar). XAU/USD is the rise or fall of gold in relation to the dollar. 

Step 3 Compare the spread ( the difference between buy and sell). The cost to buy is always higher than the cost to sell because when you first order a contract the pips (pip is 1/100^th of 1%) have already been added. When a contract starts you are in the negative, don’t panic that is normal. 

Step 4 Start doing contracts; whether you prefer stop orders (buys once currency RISES to level you set), limit orders (Buys once currency FALLS below market price to the level you set), or market order (buys at current market price) you have the choice. 

 Step 5 : Make sure to manage risk by setting stops and limits. Limits sell when you hit a profit point you set. Stops sell when you hit the maximum loss you are willing to take. Set goals before the trade, and don't be greedy. 

*Just as with Stocks you can gain revenue from increase in value or the decrease in value with shorting. 

* You can trade on your schedule by watching the opening of your favored currencies 

* Remember you don’t have to trade every currency someone whom masters just one can become very successful 

*You have much more leverage in many cases it’s 200:1 (but as low as 50:1) depending on amount you have invested so imagine you have a $10,000 account you can have contracts of up to $2,000,000, now that’s what I call leverage. 

*No matter how knowledgeable you are there is always a chance of a loss in fact everyone will lose money but the key is to manage losses and never invest more than you are willing to lose. Set up a stop loss to manage Risk and start small. Happy trading.

How to.....follow the $

In the upcoming weeks I plan to post some of my how to articles I created in my ehow.com days many of which generated some residual income. All are financial based and good beginner starting points for different trading options.

You Can't Take It With You.......

But you don't have to live like you can't!!!

It's obviously more to being financially secure than setting and meeting goals, budgeting, and even saving money. But I certainly like to talk about spending vs. saving, so lets do it.

It's  many people that make over $100,000 a year and should be able to live a comfortable life and save that do not and there are people that make under $50,000 and are able to live comfortably and save....the real question is why?

I feel some people make a certain amount of money and then allocate nearly each penny to a bill... New Iphone/Android once or twice a year, other gadgets like ipads, computers, luxury car, overpriced clothing, a home at the top of their price range that is fully furnished with huge TVs and expensive furniture. This is a personal choice but it really affects more of us than we realize. How many times have someone whom drives a car that's nicer than yours, lives in a beautiful home, and/or makes more than you... asked you for money? Most people even high earners that are poor savers have pride and would avoid asking even in dire need. For many the items that they possess are a cover-up to show financial success in it's most shallow sense. Luxuries and excess doesn't equate to success nor financial security.

Spending above your means is not a uncommon problem. And honestly frugality isn't the answer for everyone but what does spending over saving really do? If you lose a job or a business fails without you having any savings how long would you be capable of paying a mortgage/rent, car loan, and other living expenses? So many don't think of these things until something serious happens. Having your net worth in your closet doesn't do much good when it comes time to eat. Some people are spenders others are savers but it's not impossible to change from a spender to a saver.

Let's look at it this way if a person does make $100,000 a yr and saves $1,000 for emergencies and personally invests $5,000 in a retirement fund and spends every other penny every year, and another person makes $40,000 and saves $4,000 for emergencies, and invests $4,000 in retirement, personal trading funds are $2,000 every year. Who is most likely to play the lottery frequently? All jokes aside and speaking from experience people who are careless with their money and don't respect it think something magically has to happen to "fix" their financial issues. Now I can go into sending habits in details, living expenses, and so on but the key is pointing out differences in savers vs. spenders. If you so choose to think about this more in depth about half of the income (generalization) is going to taxes and living expenses..rent or mortgage. The person that makes $40,000 has about $20,000 after the largest 2 expenses and can choose to put money in savings after the other bills and expenses are paid, or just blow it on "things" like a decent percent of the population. Most people that don't save aren't unintelligent or struggling so bad they can't.... they simply choose not to.

You make the choice saver or spender?

Budgeting 101

I've learned over time through trial and error that it is important to be your own CFO and CEO of your finances and if you are not capable hire someone to assist or seek advice. For the longest if you asked how my money was spent in a month I would most likely be able to account for 80% and wouldn't have included items I purchased on my credit card. I work on a cash system now and this causes me to put a lot more thought in what I purchase. I log bills and pay them on time, I keep track of spending and created a budget for all of my living expenses. A lot of what I do is on paper or my phone, but there are many options. The key isn't creating a budget, that is the easy part. The struggle and most important thing is sticking to a budget you create. Managing how money is spent is vital with a business and bookkeepers and accountants help with this but note your personal finances are your business and you are responsible for it's success or failures. Sometimes outside help can do wonders and for as little as $100. It's not about how much you make and more about how much you keep. 

Here are some links I use or friends recommended as helpful if you are looking for some budgeting tools, here you go :)

https://www.mint.com/ - A great phone, tablet, or PC tool

http://www.kiplinger.com/tools/budget/ - If you are looking for something on the low tech side this is a good start

https://play.google.com/store/apps/details?id=com.mapeapps.budgettracker- An android app that is pretty straight forward and easy to use.

There are many others I certainly recommend doing a search to find something that suits your personal needs. 

Long Term Goals

Financial Freedom!

Being a positive role model
See the world
Spend my time how I choose
Buy investment real estate
Start and build a successful corporation (real estate, financial, or service based)
Retire before 45

Some of these goals also star as motivations.... to be continued

Short Term Goals

1 Buy new growth stocks
2 Study for GMAT
3 Increase retirement investments to minimum 11%
4 Purchase home
5 Finish reading Investing in Fixer-Uppers
6 Take GMAT
7 Finish reading Real Estate Ownership, Investment and Due  Diligence 101
8 Start blog(s)
9 Promote Blogs
10 Save additional $1,000 min. just for early 2013 trading
11 Donate more time and money to charity

Changes to meet these goals:
Researching stocks
Read the full GMAT study guide and/or take test prep
Redo budget
Review my living needs
Look up homes and locations to move to
Save money
Read books as often as possible but every weekday
Research additional charities
Research volunteer opportunities to give more time to charity

Gaining Financial Knowledge With Time Constraints

I know personally it is hard to find time to read with work, and honestly in the technology age it's hard to turn of the phone, computer, and TV to focus long enough to read anything. My solution was no computers at home unless it's work, business, or investment related,  I turned off the cable, and limit how much time I spend randomly playing angry birds and words with friends. This may not be an option for everyone but so far it has worked for me. Other steps I took was reading books I enjoy while reading finance books. Example for every hour I spend educating myself I gain an hour of personal read time. I also invested in audiobooks to listen to while driving or cleaning and that really has double my productivity. Just some thoughts and ideas. All I know is intelligent and rich people read and I would like to maintain entry in one and gain entry into the other. Enjoy reading everyone!

Reading is fundamental