Tag Archives: financial recovery

The Road For Investing Is Not Open To Everyone

Road Closed Sign
A lot of people think the road to saving and investing is closed to them. Let’s face it. When you start out “on your own,” you have freedom. Many of us experience true freedom for the first time at that moment, but the moment doesn’t last.

Credit card companies (and many others) come along and promise that you can go in a little debt and boost your “lifestyle.” Years pass. You get married. You have kids. Suddenly, you have just enough to scrape by – maybe not even that. And you arrive at “How can I save? How can I invest? I can barely get by.”

Let me open the door to saving just for you. You have to take your life back from these people. And you have to do what all great explorers do: start with baby steps.

Review your life. I mean your financial life. See where your money is actually going by looking at the last three months of your expenses.

See what could be eliminated. Then, start to look at where you could reduce expense. Don’t stop at regular spending (eating out, movies). Look at regular bills as well. Call the individual companies and tell them that your family has been slammed by the recession and you need their help in reducing the bill by 10 – 15%. You may be surprised to get their help, but be open-minded to ideas they have in reducing your bill. You have to pitch in, too.

When you get a bill reduced by 8% or 10% or 15% (good job), calculate that money and earmark that money for savings BEFORE you pay your first bill each month. Remember: If you are not actually saving that money, YOU ARE NOT SAVING.

Look at your paycheck. Look at the after-tax amount you get every time you get paid. If you have to do this, begin by saving only 1% off the top of your after tax pay each time you get paid. Each month after that, increase the amount you take OFF THE TOP and put in savings by another 1%. It will make transitioning into savings easier for you and your family, and chances are you will not miss the money that much.

The key to wealth-building is:

#1. Automatic savings month after month or paycheck after paycheck. You cannot look at this as optional.
#2. Eliminate or lower debt all the time. Focus on first reducing debt and then eliminating it (especially credit card debt).
#3. Purchasing assets systematically. This means regular investments in assets (assets – by our definition – are those things that pay a dividend or reproduce the source element of the asset).

The road is now open to you IF you will begin. Do as we say and you will grow more secure and you will grow wealth. This is not get rich quick, but it works.

If you want more tips on saving money (tricks) and boosting wealth (strategies), sign up for our FREE monthly e-saver at http://www.stickyasset.com/blog. You can also get our $4.95 “How To Survive Any Financial Crisis” at http://www.middleclassmoney.com.

You can do this. Don’t let anyone tell you that you can’t.

Good luck!

Loyd Ford
http://www.stickyasset.com/blog
http://www.middleclassmoney.com
http://www.squidoo.com/boostmywealth

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The Plan For Surviving The Great Recession

We are all hopeful that a depression has been avoided. Of course, the serious economists are still watchful of the possibility that the government cannot hold on and keep us away from still slipping into a modern version of the 1930’s style depression. If you are someone who likes to plan for the future, you shouldn’t be sounding the all clear to your friends and family either.

We continue to watch company earnings, unemployment, home sales and a variety of other factors in determining if we can truly “turn the corner.”

The truth has not changed. You must have a plan for surviving the “Great Recession.” This plan should include a reality view of the world YOU live in today.

You should have or work to build an emergency savings fund that includes 15 to 18 months of expenses in money market savings or certificates of deposit (or best in both). Now is NOT the time to pull back from a 401k unless you are carrying extra credit card debt and cannot afford to pay that debt off and push ahead in your 401k.

You must work to eliminate credit card debt and see these guys for who they are: The devil. That’s right – I said it. They are the devil. Your enemy. You should always treat them as such. Too many millions of Americans are still chasing their credit score when CASH IS KING.

Once you have secured your debt (eliminated or highly reduced it) and you have the proper emergency savings fund, work to steadily invest in mutual funds and diversify. We like no-load mutual funds. Look for low fees.

See your home for what it is: your home. Many millions of Americans refuse to see their home for what it is in terms of your wealth or poverty – your BIGGEST LIABILITY. Work to pay even small amounts extra in principle if you can because it will save you more than you realize in the life of the loan. In fact, if you steady-up on paying principle in addition to your monthly house “note,” you could knock YEARS and many, many thousands off of your debt. Homes are to live in. They are not speculative investment.

Invest in yourself. This means personal education. You can do it at the local community college or on-line. You can do some formal learning or training or teach yourself about saving and investing and work to generate passive income streams in addition to your “day jobs” to fund savings and investing.

People often only think to save when trouble comes. Steady and automatic savings will add up faster than you think.

You can do this. Develop wealth as a hobby. Be serious about it. Look to purchase things that begin to generate money on their own. This can be savings or mutual funds. It can – eventually be more.

Sign up for our FREE E-SAVER now at our main blog (www.stickyasset.com/blog). Good luck!

Loyd Ford
http://www.stickyasset.com/blog

Tools To Help You Boost Savings & Add Wealth

Everyone wants to get rich quick. Who wouldn’t like that? You sit back and relax, money just drops into your account. Hey, when you wake up, we thought it would be nice to provide you with a few sites to give you tools you can use to boost personal savings, develop your own plan for increasing wealth over time and giving your family more options later in life. This is one of the most important things you can do. Develop your plan and stick to it. You can do it.

http://moneycentral.msn.com/investor/calcs/n_expect/main.asp

http://www.walletpop.com/calculators/budgeting

http://www.mindyourfinances.com/calculators/home-budget

The true way to wealth: Time + focus + automatic savings + moving money from checking to savings = production of wealth. Get rich quick is for losers. We’re not saying it cannot happen, but it’s not the way to bet. Take it slow and easy as you do your research and develop your plan – and then stick to it.

Keep checking in here and at our main blog (www.stickyasset.com/blog) to give yourself an edge for your family. You can also sign up for our FREE monthly e-saver @ http://www.stickyasset.com/blog.

Thank you for reading – always.

Loyd Ford
http://www.stickyasset.com/blog

Why The Rich Get Richer, The Poor Get Poorer

You’d expect me to put in this blog all the advantages the rich get, right? They get the tax breaks you and I don’t know about. They have the ear of congress so they get the big bail out. They can afford to wait before selling an investment (what’s that?) without losing a ton of money because the market is weak this month, this year, this week.

Nope. I’m going to say something different. The rich wait to purchase things they want until they have built a pile of money. Don’t believe me? Try it.

Want a new car? Save up the actual payments until you can pay cash. You will save the loan and all that interest. That means they money goes to: You.

Pay yourself first every time you get paid and you will find that a strange person indeed is getting wealthier right before your eyes: You.

Do your own research on savings and where to get the best interest. Then, focus your efforts on getting as much money – regularly – out of your checking account into savings. You’ll find the person getting richer is: You.

Take an hour of your day and review how you got to where you are in your life. Someone I know says “You are the sum of all your choices.” Okay. Now, we’re going to choose to become wealthy. No, it won’t be overnight, but guess who it can happen to: You.

What you will need:

1. Pay down debt.
2. Emergency Savings Fund – Steady savings each payday.
3. 401k and/or an IRA (Roth if you qualify).
4. The ability to say no.

Get started today. Spend one hour a day working for yourself. Look for additional ways you can make money – money you can save.

Don’t get your value from the things you purchase and don’t get your value from your paycheck. That is NOT your money. Your money is in savings. Get this right and the new rich will be: You.

Congratulations – and good luck.

http://www.STICKYASSET.com