Carnival of Personal Finance Goals
Teaching Kids to Save, Start Early
May 17, 2009 by admin · Leave a Comment
Teaching kids to save is a process that should start early. It takes children a while to understand the concept of how to use money and the purpose of saving it. It is smart to introduce the concept of saving to your child when he is around five years of age (or thereabouts). Make his allowance connected to helping around the house, doing chores, etc. In that way he understands the value of money and that it must be earned.
Doing this helps your child as he grows to understand that he sometimes must choose between instant gratification, such as buying a chocolate bar, or saving his allowance to buy something bigger, such as a toy he has his eye on.
As your child ages you can tell him a little about the household budget and explain about how money must go to pay bills while other money is for spending on household needs and yet other money must be saved for future considerations.
Only you and your child can decide when it is the best time for him to open a savings account at the bank. Bear in mind that your child may make mistakes with his money but you are there to assist him and guide him in terms of making smart financial choices.
Other Suggestions
When it comes to teaching kids to save, what other advice is worth knowing? Here are some suggestions that can help you in teaching your children about personal finance:
-As previously mentioned, don’t just give an allowance to your child; make work in the home a prerequisite. This shows your child the value of earning money. Tell your child how much he can earn and what he needs to do to earn it. Also let his know what items he is allowed to spend his allowance on and if he wants a little extra what he needs to do to earn that.
-Teach your children that budgeting is important and that they cannot simply have everything they want.
-Help your kids to separate the needs in life from the wants. Let them know that sometimes when money is tight, the wants such as money for entertainment or new clothes, must be put aside for the absolute necessities.
Unemployed, Reinventing Yourself For A New Start
May 17, 2009 by admin · Leave a Comment
Out of work? Whether you saw the lay off coming or whether it caught you by surprise, if you are unemployed, reinventing yourself is always an option.
What does it mean to reinvent yourself you wonder? Here is where you need to put your creative imagination and your ingenuity to work. Now that you are out of your comfort zone what do you want to do? Think about your long-term goals and zero in on your priorities. It is now time to re-evaluate where you want to take your future and then begin to take steps to get on the right path.
Look closely at what your passions in life are- past and present. The same goes for your strengths. What really propels you to get out of bed in the morning? What puts a smile on your face? Figure out if that “what” in your life can be something that can be turned into an occupational pursuit for you.
Once you know what direction you want to go in for your reinvention, seek out others who are already doing the job that you want. Find out what their experiences are. Do they enjoy the work? What do you need to do in order to break into the field? Financially can you afford to keep yourself afloat why you put the reinvention process into play?
Figure out why you want to head in a different direction. It helps to sit down and write out your own personal mission statement. Just as companies can have them, so can you. This will help you to remain clear on your purpose, especially in the days to come.
It is essential that you carefully review your past work experiences as well as your personal experiences and figure out what skills and/or talents of yours can be transferred into the new profession that you wish to go into it. Figure out how what you have to offer that can help in this new employment area. You must know what you bring to the new occupation but you also must be able to explain what you can offer as well.
Once you begin searching for a new job in your new reinvented field, make sure you remember how important networking is. Get in touch with those you know and spread the word about how you are in the process of reinventing yourself. See what others have to offer you in terms of advice, leads, etc. If you are unemployed then reinventing yourself can be a step in the right direction for you!
Saying Goodbye to Credit Cards for Good
May 17, 2009 by admin · Leave a Comment
Saying goodbye to credit cards is a way to manage your debts and/or reduce your debts. If you tend to be the kind of person who uses your credit cards for any random purchase and not just for necessities or emergencies, then you might find yourself dealing with the down side of credit card woes before you know it.
Zero Percent Credit Card
One option is to transfer your debt to a credit card with a zero percent interest rate. This has a negative side however. While the offers you receive in the mail might seem welcome, it is important that you check the fine print first. Very often the card that claims to be a zero percent card is only such for a relatively short period of time. Once the introductory period is over the rate can climb to a number that will make you shudder.
Budget and Save Effectively
Saying goodbye to credit cards is possible if you learn how to budget your money effectively and save for big purchases. If you wish to buy a new computer, a new appliance or a new couch for your living room then start saving your money. Whether you save it in your bank account, under your mattress, in an orange juice container in your refrigerator or in a piggy bank, just save your money and watch it grow!
Say No to Impulse Buying
With that said, avoid impulse shopping as this is one way to cause your money to become out of your control. How can you say goodbye to your credit cards if you decide to buy on a whim? If you know that there is a certain store that offers too many temptations then steer clear of it.
Stopping spending completely is not realistic but training yourself to create a budget that works for you and your family and takes into consideration all of your debts and household expenses is doable. Just make sure that you leave a little room for some fun in your budget. Doing these things can help in saying goodbye to your credit cards for good!
Money Saving Habits , Pay Yourself First
May 15, 2009 by admin · Leave a Comment
What if I asked a few questions? Are you saving money? If so, how much are you saving? Saving money is one of those tasks that are so much easier said than done. Saving money is a necessary requirement for building wealth. Don’t misunderstand; saving money is not the same thing as investing. Saving money is only really effective when you are saving it for a purpose. So how do you save money ?
Pay Yourself First
As a young man I had a conversation with and older wiser and I might add wealthy man who told me I should pay myself first. I thought that was an interesting concept but I did not come anywhere close to doing as he had said. Whether you get paid on the first of the month, weekly , or twice a month, make the fiorst check you write to yourself. Before anyone out there start howling about how they barley have enough money to pay the bills they have , let alone pay themselves, stop it. If you can only afford 5% of you gross income, write that check first. We will talk about how to increase the amounts later.
Put Your Savings In A Safe Place
Im not only talking about keeping in a bank or safety deposit box, I am referring to keeping it away from you, If you have never saved money before this process will not be easy for you. An account that requires a waiting period to make a withdrawal will help deter you from robbing the piggy bank.
How Much Money To Save
Financial experts often recommend having enough money in an emergency fund to cover at least 3 to 6 months worth of household expenses). Sound impossible? It really is not once you commit to the savings plan. Remember this is a savings account, reserved for unforeseen expenses, job loss, and so on. Unemployment is going to reach 10% this year. How many of those people do you think wished they had saved money?