Milestones Realized in 2016

 

Milestones Realized in 2016

A Few Successes in the Previous Year

Increased Dividend Income from 4500 in 2015 to 5580. (Increase of 25%)

As I’ve said before and I’ll say it again, invest today so that you can grow dividends. These dividends will pay me for life as long as I hold them, and if a company decides not to pay dividends one day, then I will just sell the stock and buy a competitor’s. Saving money has benefits, but investing money to get free money is the ultimate benefit in my book. I predict if I continue on this pace I’ll be able to reach 10K in 3 years. Some of you might think 3 years is a long time, but believe me it goes fast. Imagine how many shares I can pick up with 10 thousand dollars of free compounding money. This year dividend payouts amounts were down for the majority of my index funds, and this hurt my goal of 6K in annual dividends. FYI almost all dividends are reinvested into tax deferred retirement accounts and I do not have access to this money. What milestones realized in 2016 made you smile?

I saved 27% of gross income. (With the employer Match)

Hey man this is just simple to do, automate automate till your blue in the face. Set up 401K or IRA money to be deducted immediately from every pay check. The opportunities are everywhere to save so take advantage today. Connect bank accounts with investment accounts to make the transition even smoother.

I was able to do various spending freezes throughout the Year

Spending freezes are fun for me, and I do them to challenge myself from time to time. We all should practice this and when you do, funnel the money towards the next best goal. If that is paying down debt or funding your next vacation, as long as you act and don’t let the funds roll over into the next month.

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Knowing Where Your Money Goes in 2017

 

Knowing Where Your Money Goes in 2017

“Do you know where your children are?” Even if you aren’t old enough to remember this famous TV slogan from the 60’s through the 80’s, the sentiment is easy to understand. It takes awareness to keep track of the important things in your life, and this includes your money. Without careful oversight, money tends to have a life of its own. Some people are slaves to their money, and to their spending habits. Many people fear taking a look at the balance of their checking account, because it might be low, empty, or overdrafted. In order to improve your financial status, you’ll have to keep careful track of your money. Here are three aspects of that process, as well as ways that it will improve your financial life

Keeping careful track of your money puts you in a great position to catch fraud before you are robbed blind. If your money is stolen – from your checking account, from your credit card, from your Paypal account – you can usually get it returned, if you catch it fast enough. If your money is stolen and you do not report it for days or weeks, your chances of getting your account restored are much slimmer. PPI claims history has borne this out. Payment protection insurance is a form of insurance that used to be sold to unwitting loan borrowers. Many of them didn’t notice the problem for months, because they didn’t regularly check their financial accounts for invalid charges. It would have been easier to recover the money, and less would have been taken, had they caught it sooner.

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Merry Christmas and Happy New Year

Merry Christmas and Happy New Year

It’s that time again where we celebrate the holidays and ring in the new year. What new blessings will 2017 bring to you? Well 2016, I must say was not so good to me famiy wise, as I lost a loved one. Hopefully 2017 will be another year full of financial cheer, as the markets have been up so far this past year. The markets are still doing ok given the travesty of the presidential results. I don’t know how people can vote in a reality TV star to hold the highest office in America, but I will leave the politcial talk for another day. Merry Christmas and Happy New Year to all of you happy savers.

This is the time where we really need to reflect if this past year really helped or hindered our financial lives. If it helped you great keep on the right path, and if it hindered you lets try to make positive changes to help you succeed. We really are the masters of how our financial life plays out.

Investing and saving is a product of how we manage our spending. If you over spend and have debt it will be hard to invest. But if you don’t over spend and give all your money to mastercard you will have surplus money to save.

We all need to re-evalute how we spend and if we could invest more in the new year. Investing is the end all be all to free anyone from a 9-to-5 and from getting back free time in the future. So in any way possible invest and be merry.

I want to wish you a Merry Christmas and a Happy New Year

Rich Uncle EL 

 

Finding Peace in a Financially Crazy World

 

Finding Peace in a Financially Crazy World

Ghandi was All About Finding Peace

I thought I can switch things up a bit and talk about a topic not many people discuss in this space. Personal finance can and should be about finding peace with your money in any way possible. When it all boils down to it, life is either about having peace or living in stress. I think 99% of people prefer peace. This is why I want to discuss how important it is finding peace in a financially crazy world.

Imagine how people feel living life paycheck to paycheck, do you think they live in peace? How would certain people feel if they did not have emergency savings? What about if people have high interest credit card debt that they can’t ever payoff? How about the new graduates who are burdened by 200 grand in student loan debt? These are all the financial worries that do not foster peace with finances. Lets begin to discuss how to find that peace we so desire.

Meditate once a week – prior to or after tackling a financial acitivity, for example when completing the monthly budget spreadsheet. With the myriad of reasons to stress out over budgets. this 1 mental exercise will relieve any negatives you might encounter. If you can meditate more often, I suggest you do it, and it will offer you the ability to tackle any financial problems you are having.

Get help even if you have to pay for it. Having someone guide you who is an expert in the field of finance and more knowledgeable than you will help you avoid stressful situations with money issues. That guidance is worth more than people think, and all you have to do is find someone that charges by the hour. Doing this will help you avoid spending too much on this financial service. A financial mistake can cost you thousands so why not pay hundreds to avoid them.

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What is the Secret to Becoming Rich?

What is the Secret to Becoming Rich

Careers in Finance

Everybody wants to become rich. Have you ever pondered why this is so? To finally buy that big house, to finally get that new model year car, or to finally keep up with the Joneses I suppose? The answers and the reasoning behind why 99% of all people who want to be wealthy will amaze you. What is the secret to becoming rich you ask? If I knew it I would already be rich, they say in subliminal talks with people who don’t save. If I had to answer this question today or tomorrow, I will continue to say the secret to becoming rich is investing yesterday. If you didn’t invest yesterday, invest today and tomorrow to play the game.

The person with the highest annual income who doesn’t invest will never be rich. Why can’t the dude who works in Wall Street making a million dollars a year be rich? Because he makes a lot and spends more than a lot. The high earner only feels rich, when in reality is not even close to any riches. This is the secret within the secret that people will never openly discuss. They spend more than they earn, and that is no way for anyone to become rich.

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3 Tips For Conservative Investing

3 Tips For Conservative Investing

3 Tips For Conservative Investing

We recently posted an article suggesting that boring investing is the way to go, and for those concerned with generating savings and avoiding significant losses, that’s certainly true. Generally, a boring, methodical approach is the “safest” way to put away money (though it should be noted that investment is inherently risky no matter how boring it may be). But what does that mean when you get into the details?

In the previous article we provided a helpful list of tips that ultimately amount to “boring” investing. We’re going to follow up here with a few more detailed explanations of how to handle an investment portfolio in a more conservative, risk-averse manner.

1. Abandon Your Emotion

You may have heard before that it’s wise to check your emotions at the door when you enter an investment situation. We came across a full psychological examination of emotion for investors that boiled down to one crucial point. That point was that research suggests that investors are often driven by their emotions to make poor investing choices. This can mean a number of different things, but it primarily comes down to two tendencies. The first is to allow recent gains or losses to dictate activity, and the second is favoring (or ignoring) stocks and companies based on personal preferences for products or services. The conservative investor should ignore all of these things and instead make decisions based solely on market outlook. See Below for the 3 Tips For Conservative Investing

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Boring Investing is the Way to Go

Boring Investing is the Way to Go

Boring Investing is the Way to Go

Did you know that boring investing is probably the best way to invest money? Slow and steady aka long term consistent investing has been proven to realize the best year over year returns. In contrast, people who time the market, buy and sell, look for the hot stock, generally earn 7% less than those who do boring investing like investing in index funds. That is why I say boring investing is the way to go, because it allows a stress free money life. Boring investing is a set it and forget it, with proper allocation long term strategy.

In a recent study done by fidelity’s 401K division, the accounts that performed the best over a span of a decade were the accounts of clients who passed away or forget about the accounts. Just let that sink in my readers. If you don’t touch your investments, move them, time them, guess what you will grow them.

I must admit I am guilty of trying to outsmart the markets too, as in the past I bought and sold funds, based on trying to own the fund with highest paying dividend amounts. If 1 fund paid more than the other fund, I would be pissed that I lost out on the opportunity to get more dividend income. I know for a fact I missed out on a lot of gains because I tried this foolish game of timing funds and would divert some money to go places that didn’t serve me best as far as capital appreciation goes.

Now going forward I am going to do more of the boring investing and instead will just increase the total investing contributions year after year until I can retire. Who wins the race at the end of the tortoise and the hare story?

You guessed it the slow and steady tortoise because that’s usually how it goes as you keep a steady pace. If you rush rush rush out the gate, you will feel burnt out and you might fall short. The markets are no different, and I think that story is a classic example of stock market newbies, who think about get rich quick schemes that rarely work.

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Personal Finance Myths We Need to Ignore

 

Personal Finance Myths we need to ignore

Personal Finance Myths We Need to Ignore

Hello friends it’s the 4th quarter of 2016, and as I get through a tough patch in my life, the blog has suffered without fresh new content. It is hard to find the right balance when you lose a loved one.(Miss you Mom) But I know it’s a part of life and we need to have the strength to move on. Let’s jump back into the topic at hand personal finance myths we need to ignore.

I hear random talks like this all the time and it is unbelievable people still can’t see the big personal finance picture. Why must some of us live with our heads in the sand per say?

If others have done well with money, you can do it to. People of various income levels are doing amazing things, like reaching financial freedom, paying off the mortgage, living a debt free life. These are only a few examples. Let’s not fall victim to the defeatist mentality of some people and please don’t listen to the personal finance myths we need to ignore.

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