finances

Who Wants to Be a Millionaire? You Shouldn’t

January 29, 2016 By Alexa Mason 2 Comments

A lot of people claim that they would love to be a millionaire. After all, when the economy is shaky and your bank account is looking low, who wouldn’t like a little more financial security? However, becoming a millionaire might not be all you imagine, especially when it comes to your finances. Here are a few reasons you might want to reconsider becoming a millionaire:

Life is not about the money
It’s an arbitrary number
It fails to take into account other life goals
It won’t make you happy
It gives you the wrong focus
It’s a lifestyle trap

Taxes

Becoming a millionaire means that you’re in a different tax bracket, which means that you’ll end up paying more money in taxes. A lot of people don’t factor in the tax amount when they think about becoming a millionaire. Additionally, while the federal government has set tax brackets, the tax brackets for your specific state vary. Recently, many states have been raising the tack brackets for people who earn more than $1 million in a given year.

More Time Without Money

Having more money means spending more money on your finances. You’ll no longer be able to just your bills and balance your checkbook. With millions in the bank, you’ll have to spend more time budgeting your money, figuring out where to save or invest it, or learning how to manage it. With more money comes more responsibility.

Money Management

While having more money means spending more time managing it, it also means that there’s more maintenance required. While most people maintain their bank accounts by balancing their checkbook or depositing into their savings account, becoming a millionaire means having to do a lot more than that. If you don’t have a lot of knowledge about financial management, you’ll have to work with someone to better understand how to manage your money. Your yearly taxes will be more involved than before and you may have to consider how to invest, save, or donate your money.

Overspending

A lot of people who suddenly come into large amounts of money go out and start buying all the items they once coveted. However, doing so can often lead to overspending and before you know it, you’re no longer a millionaire. How many celebrities have you seen who go from having it all to having nothing because they have poor money management skills or buy too many luxury items? It’s easy to want to spend money when you have it, but letting money burn a hole in your pocket can lead you to financial ruin.

Moochers

If you read any story of someone who won the lottery, started a successful company, or hit millions for one reason or another you’ll almost always hear about how they’re inundated with long lost relatives or friends. Even close friends and family might start hitting you up for money, assuming that since you have millions in the bank you can “loan” some to them without any worries. While it may be nice to have that money in the bank, becoming a millionaire also means that you run the risk of being taken advantage of or people only wanting to associate with you because you suddenly have money.

Stress of Having Too Much Money

While living paycheck to paycheck or having no income is definitely more stressful than having millions in the bank, being a millionaire can also be very stressful. Not only do you have to manage your money more carefully, but you also have to figure out if you want to invest it in stocks or assets, whether you want to donate to receive tax write-offs, or how and where you want to save it.

Millionaire Status

People can become millionaires in a lot of different ways, but no matter how you come into the money you always have to figure out how to keep it. For instance, if you earned your money through a company you have to ensure that the company maintains its profits so you don’t lose that income. If you became a millionaire through winning the lottery or a similar means, you have to worry about not spending all of that money and saving some for your future.

Photo: Flickr: Pictures of Money

Money Lessons You Can Learn From Donald Trump

January 27, 2016 By Amanda Blankenship 4 Comments

Donald Trump has obviously been in the spotlight more often in recent months. Of course, he is known for his success in the business world, his show “The Apprentice,” and more recently his unorthodox presidential campaign. While he has a lot of valid (or crazy) points throughout his campaign, there are a few lessons we can take from Trump when it comes to money and money management.

Bankruptcy

If anything, Trump has taught those who look into different companies for investments to look beyond the headlines and deeper into the company. Although Trump has never personally filed for bankruptcy, plenty of his businesses have, even though he is one of the most successful people in America. This money lesson is a hard one. It is a reminder that sometimes failure is one of the steps along the path to greater success. It is a hard lesson to take, but it is sometimes necessary.

Love What You Do

You have to love what you do. If you are passionate about it, you are more likely to be successful. You shouldn’t just join any industry or invest in anything simply because it is a “hot” item or company. You should invest you time and money because you truly care about it. If you are not passionate about your investments or even your job, sometimes you can let the smallest things slip (because you don’t care). These things can lead to a loss of a job and even demotions — two things you definitely want to avoid if you are trying to get your finances set straight.

Negotiation

Whether you are negotiating the price on a house or a pay raise, do it in person. This is something Trump strongly believes in. Obviously in the age of technology in which we all live, this one is hard. Sending an email or having a phone call with someone seems so much easier, and it is. However, negotiating face-to-face can really change the results you receive.

You Have Control of Your Finances

If Trump has taught anyone anything about finances it is that you are in control. He is obviously financially independent, but it took a little while to get there. There is a lesson to take away here though. In America, once you’ve achieved financial independence, you really don’t have to answer to anyone. Trump is definitely proof of that.

Work Hard

Trump has often said that everyone he knew who was successful worked seven days a week. You may have to put in extra work to get the money and results that you are looking for. Working hard is something that you’ll hear from just about everyone, not just Trump. Continuing work a couple of extra days each week will likely lead to success in the workplace, raises and more money.

Use Your Resources

If Trump has done nothing else as an American, he has certainly used every resource available to him to get where he is today. He’s been able to successfully navigate the legal system and use each and every resource available to him (and every other American) to his advantage. Many other people can take advantage of the plethora of tools available to them. That means just utilizing small and simple things like 401(k) and tax deductions on investment accounts.

Luck

There’s no such thing as “luck” when it comes to your finances. You don’t get lucky. As Donald Trump has said time and time again, “The harder I work, the luckier I get.” Of course, it is the hard work getting him places and not the “luck.”

Photo: Flickr: Gage Skidmore

Give Thanks if You Have One or More of These Financial Things

January 26, 2016 By Alexa Mason 1 Comment

Everyone has had a period of time that they have felt bad about their current financial situation. However, it isn’t usually all that bad. Of course, it could be better, but always remember it could also be worse. There are a few things you may have that you should be deeply thankful for.

A Steady Job

One of the things many people can be thankful for is having a steady job. Regardless of whether it’s part time or full time job, a job where you receive a paycheck each week is something to be very thankful for. Considering that many people are without steady income, even a little bit helps.

Having Insurance

If you have any type of insurance – health, homeowners, renters, car, etc. – you should consider yourself lucky. Even if you’re insurance isn’t the best plan available, you’re still better off than a lot of people who don’t have insurance. For instance, just imagine how much money you might have to pay out of pocket if something happens.

Investment Fees are Lower

If you invest your money, you must be happy that investment fees are lower than they were ten or twenty years ago. Investing can be a great way to accrue more money – provided your investments pay off, that is. Investment has changed a lot over the years and a lot of the chances have made a more positive financial impact for investors.

Borrowing from Friends or Family

Do you have friends and family who have offered to lend you money in times of need? Not everyone has those opportunities, so be lucky if you have financially stable friends and family members you can rely on. In turn, they’re probably just as thankful if you’re someone who can offer to help them out.

Low Mortgage Rates

Anyone who is paying a mortgage, trying to refinance a house, or thinking of buying a house is probably happy to see that mortgage rates are incredibly low. Right now rates have dropped below 4% and economists expect that rates will remain low for the foreseeable future. Even the slightest dip in interest rates for mortgages is a financial relief.

Having a 401(k)

Those of you who work at a company that offers a savings plan are lucky, especially if your company offers a high percentage match. While this might be seen as money you’re not immediately seeing flow into your bank account, it will help you out once you retire. Considering the future of Social Security is up in the air, having a 401(k) to fall back on is a great thing to have. If your company offers a 401(k) plan that you’re not currently signed up for, you should look into it.

Scholarships, Sponsors, and Financial Assistance

Many people complain about certain state or federal programs that offer assistance to those with limited finances, and while some of these programs have their flaws, they also have some great advantages. For instance, financial aid or scholarships can help lighten a student’s tuition bill, financial assistance programs can help people have their medical bills or prescriptions covered, or sponsor programs can help children or adults achieve the school, career, or life goals they need to succeed. Anyone who has received help from these programs is almost always grateful for them.

You’re Debt Free

If you’re debt free, you’re one of the lucky few. So many people are swimming in school, medical, or credit card debt. Debt can be hard to get rid of, especially if you don’t have the funds to pay off those bills each month. Being debt free – or at least having a steady plan for paying off your debt without floundering – is one less thing for you to worry about.

Photo: Flickr: Cindi Albright

Negotiating to Better Your Finances

January 26, 2016 By Alexa Mason 1 Comment

A lot of people become nervous when it comes to talking about money, sometimes to the point of avoiding any and all conversations that revolve around money. But there are certain times when it’s necessary to talk about money, especially when it relates to negotiating for a better deal or rate on a service or product. But not everyone knows when they should and shouldn’t negotiate, so here are a few different items you should always try to discuss in order to better your financial situation:

Negotiating Salary

There are a lot of mixed messages about negotiating salary amounts at a job. Some financial advisors or job coaches recommend it while others advise against it. However, trying to negotiate for a higher salary or a yearly raise is something you should at least attempt. There are several ways to negotiate for a higher salary or a yearly raise.

Negotiate Work Benefits

If negotiating for a higher salary or raise isn’t an option, you should consider negotiating for better benefits instead. Benefits and compensation packages can include anything from better healthcare coverage to free memberships at gyms or clubs. You may even ask for more paid vacation time or find out that you have discounts on certain products or businesses. Benefits and compensation packages usually account for 30% of an employee’s wage, after all.

Haggle Car Price

Haggling over the price of a new or used car is nothing new, but you may be surprised by how many people are reluctant to negotiate the sales price. Sometimes haggling over the price of a new car can work out in your favor. When it comes to used cars, it’s always best to try and lower the sales price. People often try and sell their cars for more than they are truly worth, so it’s in your best interest to try and negotiate down to a lower price.

Mortgage Rate Haggling

Mortgage rates are another area where you should attempt to negotiate prices. Before you decide on a mortgage, you should shop around and make sure you know what each lender has to offer. There are a lot of associated costs and fees with a mortgage and it’s important to talk to your lender or broker and see if you can negotiate to a lower price or waive the fees entirely. The Federal Trade Commission provides some tips on negotiating mortgage terms, loans, and fees here.

Rent Payment Negotiation

If you rent an apartment or house instead of own, think about trying to negotiate your monthly or yearly rent or any associated costs. If you’re a good tenant who has stayed in the same place for awhile and always paid on time, you may be able to negotiate a deal where your rent isn’t raised. Or, you may be able to negotiate a deal where your landlord covers utilities as part of the rent instead of making you pay for them separately.

Haggling Cable and Internet Fees

Negotiating for lower cable and internet fees and charges is perhaps one of the easiest deals to make, but one people rarely take advantage of. You can often haggle for lower prices if you mention better competitor prices or threaten to cancel your membership. Additionally, some cable and internet companies like to tack on fees in the hopes that no one peruses their bill carefully enough to notice.

Membership Price Negotiation

Sometimes it can be pretty easy to negotiate a lower subscription or membership price, whether it’s for a yearly paper or magazine subscription or a club membership. These businesses are often eager to get new customers and negotiating a lower fee could be as simple as telling them about cheaper competitor rates or threatening to cancel your membership.

Photo: Flickr: GotCredit

11 Steve Jobs Money Tips Everyone Should Follow

August 12, 2013 By Danielle Warchol 4 Comments

Steve Jobs is often associated with ingenuity and the man himself has often been called a genius. While most people recognize Steve Jobs for his contribution to the technological field, much of his advice can also be taken into consideration when it comes to financial matters, just as Bill Gates and Warren Buffet. Jobs gave plenty of advice on starting your own business and what to watch out for when it comes to investments and loans, and here are a few pieces of advice you should consider when it comes to your own finances:

Losing Money Can Be a Learning Experience

It’s well-known that Jobs has, at one time or another, lost money because some of his products didn’t take off. But Jobs was not only ambitious, but pragmatic, and believed that losing money was a learning experience. No one enjoys losing money, but when it happens, you should figure out how to avoid falling into a similar situation. Use the situation as a learning experience to try to avoid such problems in the future.

Never Lose Money You Borrow

Jobs suggested that it’s never a good idea to lose money that you borrow from a friend or investor. Losing the money you borrow from someone not only puts you in a worse financial situation, but it means that people are less likely to loan you money in the future. While sometimes this situation is unavoidable, you should always do your best to borrow money only when you know you’ll be able to eventually pay it back.

Learn From Others

Learning from others and their experiences is another great tip to keep in mind. You never know which of your acquaintances may have had the same money troubles you’re currently suffering from. They may have advice to give you to ease your struggle. On the other hand, someone else may have a strong financial background and can point you in the right direction as you work to get out of debt or make a big investment.

Focus is Important

Jobs also often stated that having focus is important no matter what goal you’re trying to achieve. If you want to save money, you need focus. You can’t just decide to save on a whim, putting money into the bank one day and then forgetting to do so for the next couple weeks. Trying to achieve any monetary goal, whether it’s climbing out of debt or putting money aside for an emergency fund requires a strong, focused plan.

Persistence is Also Important

Additionally, persistence is also important. It can be hard to save money or climb out of debt, but you need to force yourself to follow whatever financial plan you’ve outlined. Persistence will not only help you reach your end goal, but it will make you feel better about yourself in the long run.

Push Yourself Toward Your Goals

Job has also commented that it’s important to push yourself towards your goals. He never would have created so many Apple products if he had not pushed himself to find the best computer design. If you have a certain financial goal in mind, push yourself towards achieving it. It may take hard work and sacrifice, but the final outcome will be more than worth it.

Look at the Positive

You also always need to look at the positive side of things. For instance, you might need to start cutting expenses in order to stay within your budget or start paying off debt. But instead of focusing on the negative aspects, instead focus on the positive aspects. Your financial situation could always be worse, and cutting out those daily trips to the coffee shop might not be the worst thing you have to endure.

Less Is More

Jobs was always a proponent of “less is more”. His Apple products are sleek and minimalistic and hew often stated that it was better to focus on one thing and ignore the 1,000 other requests being thrown at him. When it comes to making financial decisions, sometimes less is more. For instance, instead of trying to set aside money in ten different accounts, pool your money into one big savings. Instead of trying to create a complicated savings plan or a complicated plan to get out of debt, chip away at one area first before moving onto another.

Own Your Mistakes

Owning your mistakes is another tip Jobs has often given to people seeking advice. Failure is not always something to be ashamed about. Sometimes you need to own up to your mistakes so you can learn from them. For instance, if you’ve made poor spending decisions or have spent your entire savings account, don’t blame anyone else for this fact. Take ownership of your mistake and find a solution to fix the problem.

Make Tough Decisions

Lastly, Jobs has always advocated for making tough decisions. Success doesn’t come overnight and sometimes tough decisions are the only ones that matter in the end. Most financial decisions are tough decisions, but they’re usually necessary decisions. Don’t be afraid to make them.

Time is More Valuable than Money

It may seem somewhat ironic coming from someone who helped produce gadgets that everyone thought that they must have, but Jobs was clear that what is most important doesn’t cost anything. As he said, “My favorite things in life don’t cost any money. It’s really clear that the most precious resource we all have is time.” In this sense, money is nothing more than a resource toward other means. If you think that money in itself will make you happy, you have the equation all wrong.

10 Legitimate Reasons Not to Get Your Finances in Order

March 24, 2013 By Jeffrey Strain 3 Comments

When it comes to putting in the time and effort to get personal finances in order, I have heard a lot of supposedly good reasons why people haven’t started. There is no doubt that there are a lot of sacrifices that need to be made and it’s not an easy process for many. That being said, here are the top 10 legitimate reasons I’ve heard for not getting one’s finances in order:

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The truth is that if you think you have a legitimate reason for working on getting your finances in better shape, your “legitimate reason” is likely nothing more than an excuse. While that excuse may make you feel better not taking the needed steps, in the end it’s nothing more than an excuse. Nobody said it was going to be easy, but that doesn’t mean is shouldn’t be done. If you haven’t started, today is the day to begin.

On a side note, if you came to this post due to the title with the hope of finding a legitimate reason not to get your finances in order, it’s a pretty telling sign that you know that you really should be…