Money Vs. Desired Things

Happy Thanksgiving:

   This is not a post on investing or budgeting, but its a different twist on how we view money. The theme of this post is: What do you need in your life that is more important than money? For example at a point in my life I collected comic books like a mad man. If I had a dollar in my pocket I already was thinking of my next  comic book purchase. Thinking back I believe I did it for two reasons,

1- I enjoyed reading those stories about heroes. 

2- I thought that I could collect something that could increase in value. 
   I was in eight grade when I first got into this hobby of collecting comic books. I would hear folk stories of people making money holding on to baseball cards, comics, and other collectibles. Now as an adult I find myself in a similar situation with buying and holding watches. So back to the original theme of this post, what do you find is way more important than saving money. Comment back to share what is that thing you can’t live without. Would you rather buy this important thing or would you rather save the money? I’ll go first and I hope to hear from some of you out there. 
RichUncle El loves – Watches and Footwear

   Fast forward to the present, if I have surplus money I tend to save it 90% of the time, but once in a while the other 10% of me is looking online, trying to find sweet deals on a cool watch. I guess it might be good for me once in a while as long as I don’t go overboard. Once in a while it’s recommended to spulge on yourself about 10% of your income on anything you desire. So in conclusion make it a habit to not fall prey to those desired things and get them only after you haved successfully saved for them.

PS: Watch Your Money! 

  

Car Values



      At least once a week I see an article or a write up on car values. First thing that comes to my mind is I could do a blog post on this topic. The purpose of this post is to spread the word on which cars hold their value better than most cars in the most common categories. I know what you’re thinking this list is going to be full of Honda’s and Toyota’s. That’s the same thing I thought when I first saw the list. Ask yourself a few questions before considering a new car,

-What cars do you like?
-Do you care if it holds its value?
-How long do you plan to keep your car?
The cars on this list have great resale values due to a few factors. The cars made the list by having high marks with: reliability, likeability with consumers, fuel efficiency, and affordability. All of the criteria listed were taken into consideration for all the vehicles in the # 1 position. The question of the day is, if the car you have been eyeing is not on this list would you reconsider your future purchase? I think I would definitely think twice and then do more research why my car is not on the list. Take a look at the list below and tell me if your car is on there or if you desire a different car not on the list.
2012 Kelley Blue Book  Best Resale Value:
-Subcompact Car: Honda Fit
-Compact Car: Honda Civic
-Mid-Sized Car: Toyota Camry
-Full Size Car: Nissan Maxima
-Hybrid Car: Honda Civic Hybrid
-Electric Car: Chevy Volt
-Top Green Car: Nissan Leaf
-Sports Car: Chevy Camaro
What a great list for the 2012 car segments. If you’re thinking of purchasing a new car, please consider these options as you will have a 50% return on your investment after three years of car use. 
I don’t know about you, but if I were to buy a car I would want half of what I paid back, it’s a win win. I agree with most of the cars on the list, but I am a bit ill at ease with the Volt and the Leaf as these two cars are built with new technologies, and if they malfunction for whatever reason this will affect their overall value. The picture above is the R8 that I mentioned on my bucket list post. 
Great resale value= another way to watch your money!
RichUncle EL

Financial Calculators

Hello,
I have a few money tips I would like to share with you. First and foremost these calculations are for your benefit. Please attempt to do them and you will have an actual number in mind for retirement. Since all of you are following my money watch blog, you are now fully aware how much your current net worth is. The calculations below are all based on current income, future income, and your Net worth. Do your best to estimate what your expenses are and what they will be in the future. If they happen to stay the same or even if they are expected to rise, it’s a rough estimate. Keep that in mind as things may change in the future.
Figures are examples: Enter your numbers to get actual figures for your scenario.
Step 1 -Income to Net Worth %- 50,000 / 60,000= .083 or 83% (The lower the percentage the better)
Step 2 -Savings to Income % – 300 / 1500 = 20% (The higher the better)
                                                                         40,000 / .04= 1,000,000
Step 3 -Retirement Expenses/Income Estimate- 50,000 / .04= 1,250,000 (This is the figure you have to accumulate to have 50K a year in income to live off of)
                                                                         60,000 / .04= 1,500,000 (For every increase or decrease in 10,000 dollars a year you will need 250 thousand of assets in retirement)
After completing all the calculations in every step you will understand what you must improve on based on the financial figures. If you’re net worth calculation in step one is over 1 that just means your income is greater than your net worth.  Thus you have to work on getting the percentage below one. This will get you one step closer to reaching the retirement number in step three.  I found these cool calculations by reading various financial articles/blogs and I have benefited from these calculations as I hope you will too. Every six months to a year run these again to see if you have improved.
By knowing where we are, we all can definitely see what is needed to accomplish our financial dreams!
As always do not forget to watch your money!
RichUncle El

Black Friday-November Calendar Update

To all my financially smart shoppers:
Black Friday is around the corner!
There’s nothing better than to end the month and start the December holiday season with a few deals. I received inspiration for this post by finding on the internet a cool calendar that lists the best products to buy for every month. This list is a product of hundreds of hours of retail research done by financially smart shoppers. Every month I will post the categories that are supposedly on sale and it’s your responsibility to shop around for the best prices.  There are numerous reasons why these items are on sale, but I would assume that they are based on seasonal, cyclical, and historical purchasing patterns.  By all means you have the green light to spend your money on any item you desire, but these products listed below are most likely going to be cheaper in November than in May based on the research done. So if you’re in the market to buy a cool new Schwinn bike or a 42” Samsung Led TV now is the time.
November List:
·        Baby products
·        Bikes
·        Camcorders
·        Gas Grills
·        GPS navigators
·        Toys
·        TV’s 
Use this valuable information to make good buying decisions if you have the means to do so, and avoid buying on credit. If you do not have the means to purchase something in cash then it’s probably not worth the stress. Emotional shifts in how we perceive our needs and wants is how we can avoid getting into debt. By shopping financially smart you will save money. Look in early December for my next calendar update.
Always remember to watch your money!
RichUncle EL

Dividend Record Date

Hello World,

I wanted to share with you a new financial strategy that I am really excited about. I will implement this very soon in my own portfolio, and I wanted you all to do the same. The strategy involves dividend paying stocks and a little research with Record dividend dates. What are those you ask? They are simply dates listed for every dividend paying stock which notifies us the deadline date when we can invest prior to getting paid. The strategy is simple to follow once implemented, first find 3 stocks you have faith in. The second part is that they must begin the payday parade in January, February, and March. After this, then you can sit back and watch it grow while getting a paycheck every month of the year.

Dividend Check Paydays
Stock 1-Jan, April, July, October
Stock 2-Feb, May, August, November
Stock 3-March, June, September, December

That’s the strategy if you were to invest in three companies as listed above, payments will alternate every month within the three and you will get a check from one of the three companies. Most companies pay on a quarterly basis and 3 companies means 12 paychecks per year. Simple and Easy.

The options for dividend payments are simple:

-Reinvest for more shares
-Get an electronic funds transfer to your bank account or check mailed to you
-Do a combination of the two (Some companies offer this but not all)

If you have any questions on how to start this system comment back. As always remember it costs money in the short term to make money in the long term.

Another excellent way to Watch your Money!- RichUncle El

How Many Assets Have you Purchased YTD?

I know, I know! If you really know me by now you will already understand my obsession with amassing assets. If you don’t know me and are new to this Blog then you will get to know the real financial maniac I may be at times. I came up with this cool post by calculating year to date how many assets I have purchased. This goes hand in hand with the overall concept of this blog, tracking your money. If you want to share with the world what assets you have purchased this year, leave a comment. Now since it’s my big idea I will share with you what I have added to my treasure chest this year:

-100 Shares of a Utility Stock-
-50 Shares of a Risky Telecom Stock-
-50 Shares of various 401k Funds on a Monthly Basis-
-48 Shares of Various Mutual Fund Dividend Reinvestment’s in Roth IRA funds Quarterly-

Well this is my list and I hope to grow it in the new year. 2012, Here I come!

RichUncle EL

NetWorth

If I can stress one very important fact, and the foundation that this blog is based on, it is that everybody should track their Net Worth. Make a spreadsheet, journal, or even on a post it. Track it consistently so that you can improve on the bottom line. I started tracking mine about 4 years ago and I can now see an improvement in how I view money and the direction I want to take to reach my next financial goal. Granted all this tracking has me on edge more often than not, but it has always been my desire to eventually be financially stable, so that I won’t ever need to track my net worth and just let it grow, grow, and grow. Also this tracking will let you see how much of your income comes from Earned, Passive, and Portfolio Income sources. I think the ideal situation for most is to have a good stream of passive and portfolio income while sipping your fave drink on the beach somewhere or while sleeping in a villa in Tuscany. I am still far away from this reality but without the tracking of my Net Worth I would not be one step closer than I am after I started tracking my finances. Do yourself the pleasure of Watching Your Money!

Bucket List !

Hello I would like to share with the world my bucket list and hopefully this will lead me to actually achieve some of the items on my list. If I post out to the world then I think emotionally I would be more inclined to follow through with the list. So without further ado here it is:

-Visit Taj Mahal and the Great Wall of China within a week of each other.
-Establish my very own bank to compete with all these big to fail banks.
-Go on a hot air ballon ride/ then right after go sky diving.
-Go to Belgium, France and Germany and get lost for a week.
-Find a awesome looking rare thousand dollar bill so that I can show off to my friends.
-Buy a cool electric motorcycle and visit as many cities as I can in the U.S.
-Purchase an old school convertible muscle car in Black and drive it on Sundays in my neighborhood.
-Buy an Audi R8 and a Tesla Model S car to fully satisfy my car desires.
-Buy a cruise vacation to 15 members of my inner circle of family and friends.
-Start a educational foundation after I am debt free and able to live off my investments.

Well there you have it; let me know if you have any questions or if you have any ideas of your own cool and unique bucket list items. Share them with the world.

RichUncle El