Remember These Quotes for a Rich Life

Some quotes become famous because they’re so darn clever. And, more often than not, quotes that become famous also tend to have some truth to them. That truth is what makes people understand, connect with, and repeat certain quotes while others fall by the wayside.

Below, you’ll find some popular and well-known quotes, all related to finances, that ARE true and that, if heeded, can help lead you to a better, more profitable lifestyle.   

Quote #1

Quote #1 comes from the legendary Jean Chatzsky, who said, “By definition, saving- for anything- requires us to not get things now so we can get bigger ones later.”

While the quote can be a little confusing the first time you read it, its meaning is actually quite simple. Saving is a form of sacrifice, and, like any sacrifice, it can be difficult. However, it WILL pay off in the end and you will become more financially stable. 

Quote #2

This second quote has long been a part of our vernacular. It’s the famous, “the early bird gets the worm.” This quote, though not directly about finances, certainly applies to money matters.

The person who invests in a smart idea before it becomes a huge and trendy investment that everyone is trying to get in on, the person who doesn’t wait to start saving for retirement, the one, in short, who acts first, is often the one who fares the best.

Quote #3

Our third quote comes from T.T. Munger, who said, “The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.”

This quote, like the first one, is all about the virtues of saving, and it couldn’t be more spot-on. Not only does saving immediately benefit you, but it also benefits you in the long-term, not just in terms of the money you will accrue but also in terms of what it teaches you!

Quote #4

Our final quote comes from Dave Ramsey, who said, “You must gain control over your money, or the lack of it will forever control you.” He’s definitely right too. When you don’t have money, you’re always thinking about how to get it and basing your life around what is going to make you more money. Plus, even if you have money, if you’re the type who spends it all at once, you’re still going to be controlled by that urge for more.

What Ramsey is advocating for is a better, freer life, one in which you have your finances under control and are not controlled and dictated by money and the desire for it.

As you can see, these quotes impart a lot of wisdom about life and money. Heed what they have to say, and you should find that you end up in a much better place financially speaking!

Related articles

• Why You Should Stop Spending Money to Impress People (thesimpledollar.com)

What You Need to Know About Borrowing Money

There comes a point in everyone’s life where they will need to borrow money to get something they need. However, making the choice to borrow money or get credit is never easy; it is, essentially, a choice to take on debt, and it’s scary. However, if you use your best judgment and common sense, you can make wise choices about whether or not to borrow and how to go about borrowing money.

Always Shop Around   

To begin with, any time you are going to borrow money, shop around for the best possible deal. You want to find a loan that you can actually afford to pay back. Thus, don’t just say “yes” to the first creditor who approves your loan. Try out several different lenders to see who is going to offer you the best deal.

And, if you’re getting turned down by everyone except the very high interest lenders, that’s a good indicator that your credit isn’t good and/or that you’re not making enough. When that’s the case, you may want to reconsider borrowing altogether, try borrowing less, or, even better yet, wait until you’ve improved your credit to borrow so that you can get a better interest rate.

Be Careful of Consumer Debt

There are all kinds of debt out there, but one of the worst types of debt you can accumulate is consumer debt. This type of debt is pretty much considered the ultimate in bad debt.

The main reason it’s so bad is because it’s generally used for something you don’t really need. And, while you may enjoy your purchase for awhile, you’ll end up paying on it for much longer than you get to enjoy it.

So, the next time there’s a purchase you don’t absolutely need, save up for it instead of financing it. In the long run, this will help you to avoid unnecessary consumer debt and stay in a better financial position in general.

Acquire Good Debt

While no one likes being in debt, some type of debt is considered “good” or “smart” debt. This is debt that actually gives you something in return for your money and that is worth your while. It’s also debt spent on something that appreciates in value, rather than depreciating.

So, you really shouldn’t have much pause about investing in something like a house or an education because, no matter what, they’ll give you something you can actually use and potentially even use to make more money in the future.

Obviously, you need to put a lot of thought in any situation you consider borrowing money. Putting in this type of thought and real consideration, following these tips, and seeking help from an investment adviser or other financial professional can help to ensure that you make the right decision every time.

How to Protect Your Retirement Funds

It’s extremely important to tread carefully when it comes to all matters related to your retirement. There are so many scams and cons out there that, if you aren’t careful, you can fall victim to and end up losing everything you’ve worked so hard for in the process.

One of the best things you can do to protect yourself and your funds is to choose a trustworthy financial advisor. Look for someone experienced and well-educated who will always put your best interests first. By reading online reviews, researching any potential candidates, and always making decisions carefully, you can find the perfect person to help you to make the most of your retirement funds and to avoid scams.

And, believe it or not, scams are increasingly common. Not only are there “investment advisors” who don’t know what they’re doing, who charge too-high fees, and/or who will sometimes outright steal your money, there are also investments that are scams from the start. Generally, anything that

promises huge benefits with very small investments is worth checking out a little further, as is anything that sounds too good to be true.

It doesn’t help matters that most people who retire are considered “elderly,” making them favorite targets of scam artists. The good news is, though, that if you do find the right help, you can make wonderful investment choices that will benefit you both now and in the future. So, don’t take any chances; be serious about finding the right retirement help, and, if you ever have questions or concerns, voice them. You can never be too careful when it comes to protecting the retirement funds that you have worked so hard for.  #InvestmentAdvisors

Related articles

• This one bad assumption is a major threat to your retirement budget (businessinsider.com)

Getting Real About Retirement

A lot of people are curious about when they will actually retire. They want to know a number, an age that they can look forward to. Unfortunately, however, there’s no one “number” that’s accurate for everyone. When a person can retire is highly dependent upon how much money he or she has saved and the level of comfort and income the person requires to live out his older years. Plus, you also

have to keep in mind that many people are choosing to work longer, believing that it helps them to stay healthy, active, and engaged in their lives.

With that said, the “standard” age for retirement is around 65. However, as a result of the recession and a trend toward poor financial planning, average Americans have been retiring well beyond that age in recent years. In fact, a survey conducted by SunAmerica Financial Group reveals that the average person in today’s world won’t retire until the age of 69!

While some people hate the thought of working through most of their 60s, others embrace the idea. No matter how you feel about it, know that waiting does have some benefits. For one, it allows you to have a longer “planning period” for your retirement, which can be useful if you need to catch up in terms of savings. Those who retire later in life also have more years to contribute to their retirement accounts. Waiting can increase social security benefits as well.

Even if you’re planning on being one of those “late life” retirees, however, that doesn’t mean you can slack off on financial planning. To begin with, even though you may think you’ll retire later in life, that’s not always within your control. You could lose your job and have a hard time finding a new one due to your age, or you could fall ill or have to care for a sick spouse.  With so many uncertainties and possibilities, you can’t really just take your chances. You have to save and invest adequately so that, no matter what happens, you’ll be able to make it.

By all means, set a goal for when you want to retire, but don’t build your savings and investment plan solely based on the age at which you’ll retire. A good financial advisor can help you to come up with a foolproof retirement plan that works for you and that will continue to work for you, no matter what life throws your way.

Related articles

• Retirement planning for the pending retiree (jamaica-gleaner.com)

Ask Before You Lend

If you are doing well financially or even if you just appear to be, don’t be surprised if a friend or family member asks you to borrow money. Just remember, however, that you are never obligated to say yes for any reason. Whether or not you lend money is completely up to you. In fact, the decision to lend should never be one that you make without serious consideration. Asking yourself and the borrower a few key questions before you fork over any money is always smart and can help you to make the right decision.

How Am I Doing Financially?

Just because you happen to have more money than someone else doesn’t necessarily mean you’re doing great financially. Before you even think about lending money, take a look at your own

finances. Are all of your bills getting paid? Do you have enough money left over to invest in your savings and have a little fun too? Unless you can really, truly afford to give, without it causing any harm or inconvenience to you and your financial state, you really shouldn’t.

Have I Given Money to This Person Before?

There’s nothing wrong with helping someone out...until you find yourself doing it all the time. If you’re constantly giving money to the same person, that’s a pretty good sign he’s not learning from his mistakes or trying to truly get on his feet financially. In such cases, you’re actually enabling and supporting irresponsible financial habits by always bailing the person out. The decision of whether or not to give is always up to you, but if you don’t think the borrowing is likely to stop anytime soon, you might want to rethink your kindness.

When and How Will I Be Repaid?

Finally, no matter how kind you are, if you lend money, that means that you should get it back at some point. Make sure the borrower has a clear plan as to how and when he will repay you, and if you’re truly worried about the person following through on his end of the bargain, either get the terms in writing with the help of a lawyer or don’t lend in the first place. Remember the old saying- don’t lend it unless you’re willing to lose it!

If you can keep these tips in mind and use your own good judgment and common sense, you’ll be able to feel truly good about your good deed. 

Related articles

• Have you saved enough? Ask a financial planner - The Globe and Mail (thefinancialhub.ca)

When It Comes to Borrowing Money, the Bank isn't Your Only Option

In the past, it used to be that, if you wanted to borrow money, you went to your bank and asked for a loan. If the bank said yes, then you got the money, plain and simple. And, if it said no, you could go to another bank, but beyond that, you were out of options. Fortunately, in today’s world, when the bank says “no” to lending you money, you still have other options you can try, and a lot of them exist thanks to the internet.

There are, for example, many small business and personal lending sites, such as Kabbage, which

simply require users to fill out some information and can determine whether or not they are eligible for the loan- and, if so, transfer the money- in a matter of days, sometimes hours.

There are also many peer to peer or marketplace lending sites going strong these days, and what all of these options boil down to is this: you have a lot more opportunities to get the money you need! It’s wise to take advantage of these opportunities; just make sure you protect yourself as you do.

Peer to Peer/ Marketplace Lending

You’ve probably seen sites such as GoFundMe.com and Kickstarter.com. These sites allow users to solicit donations, of any amount, for various causes. These causes can range from “wants” like a big vacation to “needs,” such as the costs associated with medical bills. People from all over the world can contribute, a little bit a a time, to any cause they deem worthy. These sites are popular because, believe it or not, the campaigns often work, and people end up getting some or all of the money they need.

Peer to peer or marketplace lending sites work in a similar way. The only difference is that the people behind the campaigns promise to pay the money back. So, instead of the funding counting as a donation, it counts as a loan and sometimes even as an investment.

Other sites, such as the aforementioned Kabbage, function more like direct lenders, but it’s individuals or businesses backing the loan, not a traditional bank.

Staying Safe

While these types of sites have opened up opportunities where there weren’t any before, they have also opened the door for clever scam artists. To protect yourself, never use a site that requires any kind of a deposit or fee to request a loan. When you’re in need of money, legitimate sites know that the last thing you need to be doing is spending it.

Also, thoroughly research any site you are thinking of using and check to see that it exists with the Better Business Bureau and that it is in good standing with it. Also, never deal with “payday loan” type sites that function by taking a large amount from your paycheck each pay period as “payback” and which typically charge extremely high interest rates. Finally, don’t provide any identifying information, such as your bank account numbers, without knowing, for sure, that you have been approved for a loan, what those loan terms are, and that the site is legitimate and trustworthy.

Getting Approved

Just because you find a legitimate lending site doesn’t necessarily mean you will get approved for a loan. In fact, if a site accepts absolutely anyone’s loan request, regardless of credit history or other factors, that’s a pretty big red flag that it cannot be trusted.

In general, most lending sites will not approve your request if you have a very low (below 640 or so) credit score, if you have bankruptcies in your recent past, or if you have a ton of debt. These factors don’t make a loan impossible, however. They just mean that you may have to do some work on your credit before you stand a chance of getting approved.

Know where you stand by checking out your credit score ahead of time and then working, for at least a few months, to improve it, if necessary. Once you stand a good chance of getting approved, compare interest rates and other terms and conditions from site to site to the find the best and most viable deal for your lending needs. 

Related articles

• Peer-to-peer lender Ratesetter bullish on 2015 prospects (standard.co.uk)

Tips for Becoming a Smart Investor

Chances are, someone- whether it’s a parent, a friend, a work colleague, or a financial advisor- has encouraged you to invest your money. You might choose to invest via stocks and bonds, through savings accounts, through an IRA account, or through some combination of these and other investment options. Whether you’ve heeded the advice you’ve been given or haven’t yet gotten around to investing, you should

know that, no matter where you are in the process, there are a few “golden rules” to follow when it comes to investing.

See the Big Picture

All too often, when investing, people tend to get caught up in the small details. Some people just can’t stop nitpicking data points, which aren’t really all that important in the grand scheme of things. Others carefully examine the strengths and weaknesses of a particular stock or a specific type of investment. Then you have those who are so worried about losing money in the short-term that they refuse to see the bigger picture.

In fact, though, the bigger picture is what it’s all about. You are never going to find an investment option that is 100% foolproof or that hasn’t undergone some bad times in its past. Instead of narrowing in on the immediate risk or what could go wrong, try to think about how your investment will affect you in the long-term. If you’re having trouble seeing the big picture, a company that provides investment services can be of great use to you.

Have Specific Goals in Mind

It’s hard to invest and save when you don’t know why, exactly, you’re doing it. If you’re just investing because other people have told you to, then you’re likely going to lose momentum and give up long before you should.

If you have very specific goals in mind, however, such as retiring with a certain amount of money, paying a child’s college tuition, or even taking a dream vacation without incurring financial loss, you’ll be a lot more likely to stick to your saving and investment goals. Again, however, just make sure those goals are inline with the “big picture” discussed above.

Invest at the Right Time

When you first start investing, it can be tempting to jump headfirst into a bunch of investments. In truth, though, you really shouldn’t invest all at once.

Stocks and other types of investments go up and down in terms of their risk and value. Thus, learning how to strike when the iron is hot is of the utmost importance. However, you can’t spend too much time analyzing or you risk, as mentioned, not seeing the bigger picture. For this reason, it is imperative to hire a financial advisor to help you to know when to make what investments. In fact, the right financial advisor can help you with investing in general so that you always make decisions that will ultimately benefit you.

Related articles

• What New IRS Rules Mean for Your Retirement Account (money.usnews.com)

Understanding Your Assets

Did you know that almost everyone (including you!) has some kind of assets? If you’re not sure what those assets are or even if you have any, however, you could be missing out on potential financial benefits. Obviously, the first step to getting the benefits you deserve is to figure out what your assets are. Most assets can be grouped into one of two categories: physical assets and financial assets.

Physical assets are objects or things of value that you actually possess, such as a very expensive piece of

jewelry. If you can hold it in your hand and it has value, it’s a physical asset. Financial assets, on the other hand, are money in any form. Whether it’s a savings account or a retirement fund, if it involves money, it’s likely a financial asset.

Knowing what your assets are and their type, however, won’t do you any good if you don’t know what to do with those assets or how to make them work for you. That’s where the help of an asset management firm can really come in handy. An asset management firm, such as Platinum Financial Associates of Naperville, can show you exactly how to determine your assets and how to put them to work for you!

Related articles

• Understanding Assets (susanslewisltd.blogspot.com)
• Everyone Has (or can have) Assets (pfinvest.blogspot.com)