Get Your Own Coffee Machine
Fun facts for coffee addicts. FACT 1: Price of a fancy coffee machine that brews your own homemade Arabica: $350. A year's worth of premium grain pouches: $250. FACT 2: Buying $5 Starbucks lattes every workday for a year: $1,200. Need we say more?
do they agree?
Yes -
(100%, 6 votes)
No - (0%, 0 votes)
Credit Score: Once A Year Only!
Did you know that asking for your credit score one too many times every year could lower it? Repeated requests for this information is frowned upon by credit bureaus and they penalize you for it. Ask for it only once a year, not more - unless it is an absolute necessity.
do they agree?
Yes -
(80%, 4 votes)
No - (20%, 1 votes)
Do You Really Need A New Car?
A new car is a mass-produced consumer good that only decreases in value, doesn't build equity and creates a trail of additional bills to pay. In the long run, it will really set you back financially because you could save and grow the money you'd spend for it. Can't you keep your old wheels instead?
do they agree?
Yes -
(77%, 10 votes)
No - (23%, 3 votes)
Always Pay Yourself First
As soon as the paycheck arrives, save a chunk of it. Try not to focus on upcoming bills and expenses when you get paid. If you do, before you know it your money will be gone and you won't have saved a dime. Remember the law of abundance: fill your own glass instead of emptying it right away!
do they agree?
Yes -
(78%, 7 votes)
No - (22%, 2 votes)
Never Spend More Than 50% Of Your Credit Line
It's common knowledge that going over your card's credit line is bad for your credit score. But did you know that regularly spending more than half of your credit limit each month makes you look like a big spender? This can hurt your credit, so think about it when you hand over that plastic.
do they agree?
Yes -
(100%, 3 votes)
No - (0%, 0 votes)
The Stock Market's Most Important Lesson
Rookie stock market investors usually have the hardest time understanding when to lock and cash out their profits. Having the discipline not to expect a stock to go any higher when it is already in the green zone is key. Do your homework, set a target price and stick to it. Be thankful, not greedy.
do they agree?
Yes -
(100%, 2 votes)
No - (0%, 0 votes)
Fun Facts About Home Equity
If you think your home is your biggest asset, think again. Home equity is nothing more than paper value and is NOT real unless you actually sell your home and cash the profit. Adding home equity to your net worth calculation is pure illusion. This is why borrowing against it is a huge mistake.
do they agree?
Yes -
(83%, 5 votes)
No - (17%, 1 votes)
Automate Your Deposits, Not Your Withdrawals
Many find natural the idea of paying bills by automatic withdrawals. Yet the same people won't automate any transfer towards their savings account. It's impossible to save money efficiently with this mindset. Better to automate your deposits than your withdrawals (unless you're a complete air-head).
do they agree?
Yes -
(75%, 3 votes)
No - (25%, 1 votes)
Time And Compound Interests Can Do Wonders
Imagine you want to save a million dollars to retire at 65. Let's say your savings account yields 3% each month and you start with $0. You'll have to save $720 each month if you start at age 15, $1,350 if you start at age 30, $3,050 if you start at age 45. Time is your biggest asset, so don't delay!
do they agree?
Yes -
(86%, 6 votes)
No - (14%, 1 votes)
Boost Your Retirement Contributions
Every year the IRS increases contribution limits to retirement plans. This allows you to sock away more money. As of 2009, you can now transfer up to $16,500 yearly into tax-deferred plans like 401(k), 403(b) and 457. As a salaried worker, overlooking this advantage would be foolish. Max it out now!
do they agree?
Yes -
(75%, 3 votes)
No - (25%, 1 votes)
Timing The Market Is Impossible
There simply is no formula, software or human capable of telling when, where and what is the top or bottom of a market, be it for stocks, housing or anything. Most factors and events are beyond our control. Some people manage to do it sometimes, but usually by dumb luck no matter what they claim.
do they agree?
Yes -
(100%, 8 votes)
No - (0%, 0 votes)
When Can I Use My Home Equity?
NEVER. It vanishes the moment you borrow against it. Building home equity is great, but it isn't real until you sell your home and pocket the profits. Only a sudden and catastrophic job loss justifies such a last recourse move. Huge medical bills? That's what health insurance coverage is made for.
do they agree?
Yes -
(75%, 6 votes)
No - (25%, 2 votes)
It's Never A Bad Time To Invest
Smart investors know there's always money to be made regardless of the current market trends. Crisis times? Load up on cheap quality stocks or mutual funds, and wait for the storm to end. Prosperity times? Be strategic and look for equity that pays high dividends. There's no such thing as downtime!
do they agree?
Yes -
(100%, 3 votes)
No - (0%, 0 votes)
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.
do they agree?
Yes -
(100%, 2 votes)
No - (0%, 0 votes)
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.
do they agree?
Yes -
(67%, 2 votes)
No - (33%, 1 votes)
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!
do they agree?
Yes -
(67%, 2 votes)
No - (33%, 1 votes)
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.
do they agree?
Yes -
(86%, 6 votes)
No - (14%, 1 votes)
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.
do they agree?
Yes -
(80%, 4 votes)
No - (20%, 1 votes)
Add A New Faucet To Keep The Green Flowing
Imagine being an employee and being laid off from your sole W2 job. Imagine as a business owner seeing your company tank after a rough patch. Wouldn't you love having a plan B to fall back on and stay afloat? I thought so. Then don't settle for a single income stream. Find parallel ways to get paid.
do they agree?
Yes -
(60%, 3 votes)
No - (40%, 2 votes)
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.
do they agree?
Yes -
(50%, 1 votes)
No - (50%, 1 votes)
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