Some of the best advice I ever received was take your time and build your wealth slowly. I once had an opportunity to buy five cars and was in the position to do so, but when the man told me the deal was only good for that day I automatically new I needed to slow down. I talked him in to giving me an extra day so I could have my friend look at the cars, I told him he was my business partner but he was actually my mechanic. After my friend looked at the vehicles he told me that I would have to rebuild the engines on two of the cars and another needed a transmission, this would have caused me to lose over $4500 and what I thought was a great investment opportunity would have turned into a nightmare. You see, you must take your time, do your research on any investment and build your wealth slowly, rushing into an investment may be a costly decision.
I personally have a Financial Advisor that I meet with three times a year. I also call him for advice on any investment as long it is within his realm and he has time to talk. I also speak with Dr. Allen who has her masters in finance and teaches Finance at Texas State University. I recently had a very nice conversation about my retirement plan with Dr. Davis who also has a masters in Finance and teaches at Texas State University. I explained my retirement plan to her and she gave me some excellent advice. There are countless magazines , web sites, bloggers and people who have been in our shoes who love to talk about how to make money, all you have to do is ask.
Start Small and keep it Simple
I started with investing with $1000 and opened an on-line trading account with Chase. Its free to open and you only pay fees when you buy or sell your mutual funds or stocks. You can even purchase certain mutual funds for free with a minimum purchase. I like to hang on to my mutual funds for at least six months so I can give my investment time to grow and only look to see how its doing one time a month. By only looking one time a month you take the stress out of it and just have faith in your decision that you researched so diligently. Remember to only invest what you are comfortable with or you will be a nervous wreck. For some pros and cons of investing in mutual funds click here.
In this blog Jean Chatzky had the pleasure of visiting the Fincon. Fincon is the country’s premier conference for financial bloggers. While he was there he discovered that there are more than 400 financial bloggers here in the U.S. After he returned he came up with a list of the best and little known sites that can help you save more money, invest more wisely and get ready for retirement. To look at Jean Chatzky’s blog yourself click here. His blog contains priceless information on everything from the stock market to being more money savvy.
Mr. Chatzky’s first pick for best blog to read to help you get ready for retirement is called SquaredAway. It is written by Kimberly Blanton, who happens to be a veteran in finance and is also a great economics reporter. He gives solid advice about what current and future retirees should do to prepare for retirement and how to handle the roller coaster ride that investing in the stock market will take you on. Mr. Chatzky’s second blog of choice is Johnny Moneyseed. This is a married couple that are retired and are in their 30’s. They give awesome advice on how to live on a frugal budget and how to save big bucks by down sizing.
Advice on Finance, Budgeting, Saving and Investing
In the blogs he recommends you can find unique advice on taxes and low maintenance investing which is ideal for most of us because we are not day traders. They offer clear practical advice that is easy to understand and apply in the real world of trading. He also recommends a few blogs to help a person understand the value of living frugally and how to retire on a regular salary at an early age. I really like the blogs on the phycology of money, which helps use explain why we spend money on things we know are bad for us. Remember money cannot buy happiness but it can reduce a lot of stress come hard times, so please take the time to read these blogs and give it your best effort to apply these things in your life.
Did you know that saving money is the exact same as making money? Lets say you purchase a car and the price is $10,000. If you are a good negotiator or shop around you could probably find the exact same car for $9000. You just saved or made yourself $1000. I like to use the words saved and made interchangeably when it comes to money, because saving money is the exact same thing as making money only you did not have to clock in to do it. A wise investor knows the value of waiting for a good deal to come around, wait until the item is on sale or even couponing. Never buy on the same day or be pushed into a deal, remember this is your hard earned money and only buy on your terms, when you are sure you have gotten the best deal possible. The more money we save, the more we can invest for our future.
Additional ways to help you save money
Never buy a new car, always buy a car 2 years old this keeps what your paying for the car close to the real value of the car. Eat out sparingly, we all love to go out to eat at our favorite restaurant but limit it as much as possible. Do your own lawn work and fix the things around the house that you are capable of fixing. With YouTube at our disposal their is no excuse not to know how to install a ceiling fan or replace a sink. Don’t pay for what is free, there are many trial offers out there today and one should take advantage of the services that you can get for free for a limited time, all you have to do is shop around. Remember every dollar saved is a dollar made and it will all add up come time to retire.
The does and don’ts of Credit Cards
When it comes to credit cards there is many things to consider but here are a few tips. Never get a credit card that has an annual membership fee. Unless you have no choice and you are building your credit then after one year of solid payment history cancel it and apply for another one with no annual membership fee. The biggest rule to remember is your credit cards should just be used for emergency’s only, that’s why its important to have adequate savings. Credit card companies love people who pay the minimum payment every month and stay with a continuous balance with them but strive to keep your balances to a minimum or even paid off completely. If you have your cards maxed out and no available credit on your credit cards it says something about your lack of financial responsibility and this will impact your credit rating negatively. The more responsible you appear to be able to handle your credit the better the credit card offers will be and come time to buy a house or car your interest rate will be lower as well. For more tips on credit cards visit this site.