This is a quick post and I want to guage how many people respond, thus we can all be informed on a good question that most people are reserved to talk about.
What is the best financial decision you have ever made in your life?
That is the question and I will be adding to this post my response after all of you have answered and commented back. Let’s discuss and I will be doing a second part to this post in the future.
We all must learn at a point in our lives that for anyone to make money the first step you must take is to spend money. I’m sure you have heard of the quote: Without risk their is no reward.
When you find the right money equation, your income must always be greater than your expenses. The key lesson here is how to spend the left over funds; Invest it immediately. Whether you purchase a stock, bond, or a business. Asset purchases is the real proven definitive route that the rich make to increase their cash flow and net worth. Have you heard of anybody getting rich by not taking risks. Even if you do not invest right away, at least start paying yourself by transferring your left over money to savings. Implementing this last advice singlehandly will open up so many opportunities for you.
In my discussions with random people I keep hearing the same excuses: I am not ready to invest, It’s too risky to invest, or I do not know how to invest. The first step before any decision you make, is to take time and get informed by asking questions or reading how to guides/books/my blog. Ha Ha Ha. We’re all rookies at some point in the investing world, but the deciding factor between those that do and those that do not makes all the difference.
1-Income > Expenses = Surplus of Money
2-Surplus Money Invested=Assets + Time =More Assets
Money management’s foundation is based on one premise: live below your means & watch your money. As Dave Ramsey suggests in his excellent book, The Total Money Makeover; as being the most important emotional financial decision we all should make to get us out of the dangerous cycle of living paycheck to paycheck.
Get Informed. Read finance blogs. Invest or Save.Watch your Money!
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.
PS: Watch Your Money!
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,
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.