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Archive for the ‘money advice’ Category

A thought-provoking question

When you see a man cruise by in his $65,000 BMW 550i, what do you assume about him?

Kiplinger’s Magazine editor Knight Kiplinger posed this question to a group of high school students. Their answer? “He’s rich.”

And a man who drives by in a ten-year-old Chevy? “He’s struggling.”

The BMW, however, is probably leased (perhaps for three years, no money down), so we can infer only that the driver earns enough to handle a $1,131 monthly lease payment. We know nothing about his net worth, which may be great … or may be almost nonexistent.

And the man in the old Impala? Maybe he is struggling financially, but there’s another possibility: His income is just as great as that of the dude in the Bimmer, but he’s not saddled with a lease payment — and he’s investing the money in mutual funds that are growing at 10% a year.

The message in all this: The biggest barrier to becoming rich is living like you’re rich before you are. Why? Because all that discretionary spending — the chic apartment, frequent travel and restaurant meals, consumer electronics, fancy clothes and cars — crowds out the saving that will enable you to be rich someday.”

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Trent Hamm, who blogs at “The Simple Dollar,” asked his Twitter followers to tweet their favorite money wisdom…in just 10 words or less. Remember, the tenetsistock_000007855481small of personal finance aren’t difficult; it’s sticking to them that’s difficult. Below are some of the popular responses:

Know what really matters.

Don’t spend money on other stuff.

Be content with what’s yours and you’ll always have plenty.

Don’t save at 2% when you’ve got debt at 10%.

Know what comes in, and what goes out.

Be mindful of how you spend money.

Don’t walk away from 401(k) match, regardless of debt situation.

Live below your means and save all you can.

If you try to get rich quickly, you will go broke fast.

Diversify. Minimize costs. Stay the course. I

f you can’t afford it, don’t buy it.

Save regularly and spend less than you earn.

Learn to love left-overs!

Change one money habit at a time.

Save and invest for the long term.

Working hard doesn’t mean you deserve anything you can’t afford.

Be thrifty but don’t forget to enjoy yourself. A penny saved is more than a penny earned.

What money advice would you share?

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