From Rags To Riches... To Rags Again
Pro athletes often flaunt their glamorous lifestyles and taste for conspicuous consumption. It may be tantalizing for normal folks to imitate them in some way. Just DON'T do it. 60% of NBA players go broke within 5 years after retiring. Worse: 80% of NFL players go bankrupt 2 years after retiring.
How Much Did the Joneses Sold Their House For?
Wondering how much your neighbor paid for his home or how much it sold for? No need to ask him directly: this is free public information! Just get the street address & visit your county's assessor office or website. Real estate sites like Redfin.com also disclose past sale prices on their listings.
Drop It Like It's Hot, Part 2
Don't get lured into buying stocks that "look cheap" because of a low or decreasing share price. They may be over-valued even at that low price. Contrary to popular belief, it's usually a much better idea to buy a stock that shows a steady rising trend, even though it looks already expensive!
Drop It Like It's Hot, Part 1
What looks like a bargain on the stock market may not always be one. Just because the "ACME" company's stock was sky-high and starts a dropping trend doesn't mean it's wise to buy it now. Down in price does not always mean cheaper, because you don't know how far down it's going to drop!
Bottled Water: An (Unfortunate) American Favorite
...that cost consumers billions a year and creates tons of nasty, environment-unfriendly trash in the form of empty plastic bottles. Faucet water is closely regulated by municipalities, more than 1,000 times cheaper and flows directly in your kitchen. Buy a filter, save the planet (and your wallet)!
Look No Further For Yummy Groceries On The Cheap
Expensive grocery bills? Buy your grocery store's generic products and cut 27% off your bill on average. Generics are just as good as their brand name equivalents but have lower overhead thanks to lower advertising costs and cheaper packaging (and you don't eat that package anyway... do you???)
Slower Drivers Instantly Save Hundreds of Dollars
As your speed increases, your aerodynamic drag increases in an exponential fashion. Driving 60 mph versus 75 mph will reduce fuel consumption by about 16%. If you clock in 10,000 miles a year at 20 mpg, driving slower will save you about $250/year in gas + lots of speeding tickets and engine wear.
Unplug And Save Two Months Worth of Electricity
If you're already used to switching off your lights, A/C or heater when you leave home, try going the extra mile. Did you know your domestic electronics drain your bank account even when they are off or in standby mode? Unplugging them could save you $100 per year on average (Source: SCE).
The Most Expensive Fragrance In The World
Which one is it? Chanel N°5? Wrong. It's the smell of a brand new car! Depreciation is a new car owner's worst enemy. According to AAA, most new vehicles lose an astounding 65% of their original sticker value after 5 years. How about considering a used car instead and let someone else take the hit?
Understanding The Power Of Leverage
The most powerful financial tool after compounding, leverage means using debt to magnify future gains. But it only works if the acquisitions appreciate in value over time, and losses get magnified too. For example, 15% down on a home are lost if the housing market plunges 15%. Leverage can bury you!
The Time Value Of Money, Part 2
The other essential facet of this concept is "cost of opportunity". If you have $100 in your pocket now instead of expecting it, you can invest it so it works for you. Imagine you find an investment yielding 20%. It represents a 20% opportunity cost. Not having the $100 now actually costs you $120!
The Time Value Of Money, Part 1
This fundamental concept (that seriously should be taught in Junior High) revolves around the fact that $1 in your pocket right now is more valuable than $1 tomorrow, or in a year. Because of inflation, and because the person (or business) owing you could go bust or disappear before paying you back.
Statistics Give A New Meaning To Neighborhood Watch
Drivers beware! The closer you are to home, the more attentive you should be at the wheel. 50% of traffic accidents occur within a 5 miles radius of one's home. It climbs up to 75% within a 15 miles radius! Of course that's because we drive and run most errands around home. So keep your eyes open.
Add A New Faucet To Keep The Green Flowing
Imagine being an employee and being laid off from your sole W2 job. Imagine owning a business and seeing it fall apart after a rough patch. Wouldn't you love having a plan B to fall back on and stay afloat? I thought so. So don't settle for a single income stream. Find parallel ways to get paid.
Broke Does Not Mean Poor
Many people confuse "being broke" with "being poor" when in fact these are 2 different things. Being broke merely is a temporary situation made of financial hardships that will be overcome with focus and due diligence. Being poor is more like a mindset of resignation causing an ill-fated lifestyle.
Saving Money Won't Make You Rich, But...
...you really don't have a choice. If you long to strike it rich, you must have some savings in order to leverage your assets into much riskier investments. Zero down is a myth. Be it for investment property, aggressive funds or stocks, a patent or to start a business: upfront cash makes it happen.
Cash Is Always King
Many bogus financial gurus claim that cash is trash or other similar nonsense, just because it sounds provocative and trendy. Don't listen to their garbage. Only cash can soundly leverage your expenses, retirement or equity investments. As surprising as it may sound you also need some to buy a home!
The Law Of Diminishing Returns, Part 2
Saving money is great. But being a penny-pincher is counter productive. Many time-consuming tasks like house keeping or ironing loads of clothes can be delegated cheaply. You could work on lucrative personal projects instead of spending a full day doing it. Be cost-effective: use your time wisely.
The Law Of Diminishing Returns, Part 1
When broke or in debt it makes sense to sweat to earn an extra $1, since in this situation $1 makes a difference. When you've got $10,000 in the bank, the perspective changes. Toiling for that extra $1 becomes senseless, and as you get wealthier your working time leverages and becomes more valuable.
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