When it comes to money, what do teens have that Warren Buffett does not?
October 28, 2009
What does football and finances have in common?
October 6, 2009
OK, I admit it. I like football. This season has been especially exciting to watch. Although I don’t understand all the strategies just yet, I enjoy watching the carefully planned plays. Sometimes they work, sometimes they don’t, but nevertheless, very fun stuff to watch.
As I’m watching the games, it occurs to me that football and finances have a lot in common. (I admit, sometimes it’s hard for me to turn my ‘work’ brain off, even in the middle of an exciting game). The plays are carefully planned, the teams spend countless hours practicing and strategizing, there is an experienced coach that guides the team
to victory and they never give up. Their goal is specific, understood by all and there is serious motivation to win. Do you see where I am going with this?
Your money matters, your financial roadmap, requires the same mindset as those big, bad, burly football players. If you don’t have a specific plan in place, if you don’t practice and don’t have someone guiding you, you will probably not end up where you want to. When it’s time to send your kids to college, go on that vacation or retire, where are those funds coming from? What if you lost your job unexpectedly? Do you have reserves to fall back on?
Imagine those football players running onto the field with no plan, no plays. It would almost be painful to watch. Complete chaos. Is that what we enjoy watching? Doubtful.So, is your financial picture complete chaos? If so, don’t panic. It’s never too late to get things in order.
Start by having a plan. Write down specific goals, what action steps are necessary to achieve those goals and by when. If lifestyle changes must occur, define what those changes are and commit to that change. Sit down and pull all your bills out for the last month. Determine your fixed expenses and compare that to what you actually spend every month. Sometimes this alone can be a real eye opener. Where does all that extra money go? The local coffee house? Lunch out? Those shoes you had to have?
Here’s an interesting statistic: If you saved $4 per day (one coffee) for 5 days per week for 52 weeks and invested that money at 10%, do you know how much you would have after 40 years? Some would say about $80,000, $90,000 even $100,000. Nope, you would have $553,396. Wow. Compounding interest, your new best friend.
As we wind down this year and welcome the New Year, I encourage you to spend some time and make a plan. You deserve this. If you need some help, seek guidance. Taking action is the most important step you can take. I wish you the best.
The Race is on!
July 1, 2009
It’s 2:00 am and it’s starting. The mind madness. You awaken for no good reason and suddenly the brain goes on overdrive. Every item on your to-do list, all the worries of the world and the health of your loved ones, seem to race at lightening speed through every cell. “My gosh, please stop, I just need to sleep,” you say to yourself as you try to reason with your brain. Why is it that these issues always seem worse at night? There must be some scientific reason for it.
If it makes you feel better, you aren’t alone. In fact, it may even bring a smile if you think about the thousands of others laying with you, at the exact same time, contemplating the similar issues. Ahh, life.
I’m not a psychologist and I don’t claim to have the magical answer to this dilemma. I, too, struggle with the mind madness game. But, I can tell you what helps me. Faith and control. I know what you’re going to say…”But if you have faith, you realize you aren’t in control.” Yes, faith that a higher source is guiding you is fundamental. But, I also believe that God (or your higher source) takes care of those who help themselves.
So, what am I getting at? Rather than panic and get caught up in the media crazed doom and gloom, I suggest you step back, take a breath, and realize there is much that you can do to take control of your life. Take each item that you feel challenged by and break it into smaller pieces. Take small steps towards the resolution to your problem.
Here’s an example. Let’s say you or your spouse just lost a job. It’s scary, no doubt. But, if you get caught in the panic and fear, you can’t be productive in moving forward. Whether it’s looking for a new job or venturing out into the world of entrepreneurship, your mind needs to be open, clear and panic free. This mindset doesn’t always come easily, I’ll give you that. But, being proactive vs. reactive puts you in a place of empowerment and strength, rather than that of a victim.
Another example would be money issues. In this economic climate, many have watched their 401K dwindle, credit card debt increase or cash flow tighten. Again, no doubt, this can be a scary time. I’m not suggesting you put your head in the sand and “imagine all is well.” I’m suggesting you step back and look at what you can do to make things different. Are there spending habits that can change? Can you forgo dinner out for now? Can you come up with clever ways to bring in additional income?
Let’s even turn this around and make it an opportunity for growth. Personally, I think this is a great opportunity to teach our kids the importance of managing, respecting and saving money. What better time to show them what happens if they don’t learn to manage their money. Teach them the importance of staying out of credit card debt, having a savings account in place and creating healthy lifestyle choices.
This seems to come full circle, as much of our mind madness at 2:00 am, comes from our worry for our kids and their future. We want them healthy, happy and at peace. Part of that peace is knowing they can take care of themselves financially when they enter the world on their own. Be proactive and teach them, guide them and give them the gift of money smarts.
3 key questions to ask yourself when looking at mutual funds
June 4, 2009
httpv://www.youtube.com/watch?v=Kxho-28uND8
Fun with mutual funds!
May 27, 2009
httpv://www.youtube.com/watch?v=PgzsF31j2rc
The Bulls vs. the Bears!
April 15, 2009
httpv://www.youtube.com/watch?v=uUwJH6KC5pU
Money Minute-Teen $$$ allocation
February 18, 2009
httpv://www.youtube.com/watch?v=xymgvSN7KG0
Teen Checking Account – Part Four
January 25, 2009
Choosing The Right Account For Your Teen
So, you’ve taken into consideration all of the benefits of opening a checking account for your teen. You’ve decided that she is disciplined enough to bear the responsibility. Both you and your teen are ready -- she to begin learning a life-skill that will direct her future, and you to be there for support.
How do you know where to start? Read on…
What’s the right account for your teen?
Since checking account features vary, it’s important that you compare the various products within a bank as well as the products offered by different banks. Take your time deciding. Be aware that different banks might use different names for the same type of checking account.
For example, the bank you use for your own accounts might call a checking account that has no special features, “basic checking,” while the credit union down the street calls the same account “regular checking.” Although they go by different names, both accounts appear to provide the same level of service. Look deeper.
What’s important are the features associated with the type of account. Be sure you know what they are, and that you and your teen understand them. Also, as your teen’s needs change, many banks allow you to change the type of account you have free of charge.
Ask the banks what their policy is for changing the type of account. And check to see if a bank has checking accounts geared toward teens or students. As you decide, compare features of the different products to be sure you choose the right account for your teen.
Managing a checking account can be a first successful step forward to a bright financial future as your teen learns how to manage money. With you by her side, she will grow as you show her how to make the right choices about money. Even when she doesn’t, be there to teach her how to learn from her mistakes.
Money Minute for Kids-S&P500? Not a car race!
January 21, 2009
httpv://au.youtube.com/watch?v=7spY4OyJSMg
Money Minute for Kids- What's the Dow?
January 14, 2009
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