and do not want to push to get ahead in life

New member:

In a message dated 4/28/2005 10:31:17 P.M. Eastern Standard Time, X writes:
RE: "Successful people" . I really liked that one. Unfortunately I wanted to print the page out but I have know one to give it to, as I don't think I know anyone who would actually read it and take time to comprehend what is being said :(

Money Prof:

Something you want to keep in mind is if all your friends would think this is BS then you might need a different mix of friends. I'm NOT saying all your friends should agree with this "thinking", but at least X percent should.

One IMPORTANT point I'd like you to not forget as I've had trouble with people misunderstanding me on this point in the past:
There is nothing at all wrong with a person who says I don't agree with Money Prof's thinking on this Blog at all: I like to live simple and do not want to push to get ahead in life. I'm more than willing to move to a very low cost area, live in a shack that I built, cut my own firewood, grow a vegetable garden, sew my clothes etc, etc. If that person really does that, GREAT. They are just as good as the person that is the company president (maybe better???). BUT.............. the first day that person says ( or thinks) I wish I had a speed boat ( not a small row boat they worked on themselves) a new car, or a better house etc. then they become a LOSER.

Why not mix in some different excuses

Do you constantly use excuses???? I would have IF........

Here are some really good ones if you need a better collection. I find that most people over use the old stand by: "I didn't have time". Why not mix in some different excuses. :)

OR is it finally time to say to yourself : Excuses are____. Please fill in the blank.


From the book "Think and grow rich", by Napoleon Hill:

If I didn't have a wife and family . . . If I had enough 'pull' . . . If I had money . . . If I had a good education . . . If I could get a job . . . If I had good health . . . If I only had time . . . If times were better . . . If other people understood me . . . If conditions around me were only different . . . If I could live my life over again . . . If I did not fear what 'they' would say . . . If I had been given a chance . . . If I now had a chance . . . If other people didn't 'have it in for me' . . . If nothing happens to stop me . . . If I were only younger . . . If I could only do what I want . . . If I had been born rich . . . If I could meet 'the right people' . . . If I had the talent that some people have . . . If I dared to assert myself . . . If I only had embraced past opportunities . . . If people didn't get on my nerves . . . If I didn't have to keep house and look after the children . . . If I could save some money . . . If the boss only appreciated me . . . If I only had somebody to help me . . . If my family understood me . . . If I lived in a big city . . . If I could just get started . . . If I were only free . . . If I had the personality of some people . . . If I were not so fat . . . If my talents were known . . . If I could just get a 'break' . . . If I could only get out of debt . . . If I hadn't failed . . . If I only knew how . . . If I didn't have so many worries . . . If everybody didn't oppose me . . . If I could marry the right person . . . If people weren't so dumb . . . If my family were not so extravagant . . . If I were sure of myself . . . If luck were not against me . . . If I had not been born under the wrong star . . . If it were not true that 'what is to be will be' . . . If I did not have to work so hard . . . If I hadn't lost my money . . . If I lived in a different neighborhood . . . If I didn't have a 'past' . . . If I only had a business of my own . . . If other people would only listen to me . . .

If - and this is the greatest of them all - if I had the courage to see myself as I really am, I would find out what is wrong with me and correct it. Then I might have a chance to profit by my mistakes and learn something from the experience of others, for I know that there is something wrong with me, or I would now be where I would have been if I had spent more time analyzing my weaknesses and less time building alibis.

Albert Einstein put it very simply

By PAUL B. FARRELL.

Albert Einstein put it very simply:

"There is no greater power known to man than compounding interest." Compounding is more powerful than nuclear energy. A 25-year-old can put roughly $3,000 in an IRA every year and with ten percent average returns retire a millionaire at 65. Notice the explosive power: At 65, most of your million dollar retirement portfolio will be in the growth. For example, the 25-year-old will have invested only $120,000 over 40 years; the rest is compounded interest and appreciation!
Albert Einstein is credited with discovering the compound interest rule of 72. Referring to compound interest, Albert Einstein is quoted as saying: "It is the greatest mathematical discovery of all time"

The Rule of 72:
To be able to do compound interest problems in your head, the Rule of 72 gives you a lightning fast benchmark to determine how good (or not so good) a potential investment is likely to be.
The rule of 72 says that in order to find the number of years required to double your money at a given interest rate, you can just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years.
The rule of 72 is remarkably accurate, as long as the interest rate is less than twenty percent.
You can also run it backwards. If you want to double your money in six years, just divide 6 into 72 to find that it will require an interest rate of about 12 percent.
YES, you will be tested on The Rule of 72 in the future. Study now. :)

You provide the motivation 2.

This is a repeat from an earlier post with a few sentences added.

If you are reading your emails and posts at least twice a week for say 10 min each, stop here as I don't want to waste your time.

If your not, please re-read so you don't waste my time:

You provide the motivation.

New Member writes:
"I know I'm a little late with the offer but after talking to you I was hoping I could still get some help with you starting my retirement."

MONEY PROF responds:

Sure glad to help. All I ask is you provide the motivation. I'll be glad to provide the knowledge, experience, and the learning from my mistakes.Lets start with you getting caught up with this group. Read emails thoroughly and email me any questions. You'll need to double up on reading to catch up ASAP.

"You provide the motivation" means you read the posts timely, put some thought into it, not a quick skim over, be opened minded as it will require in some cases major "thinking process" changes etc, etc. And realizing that your success is my pay.

What I'm NOT willing to do is call or email you to ask you why you're behind on reading emails or posts.

You provide the motivation.

YES!!!!!! He did the right thing.

Member:

RIMS AND TIRES.
HAHA, I know that was a shot at me. Just so you know, I did the right thing and did not buy the wheels for my truck. I am going to take that $2,500 and do something else with it. Any suggestions?

(see 4/21 post)


Money Prof:

That's GREAT, really glad to hear that.

Since you're already putting enough per month in IRA, suggest putting it ALL plus your bank money that won't be used in next 3 months into the rainy day acct. Open another acct with your broker.

Any money you might use in less that 3 months keep in MM, money that you might use in a few months put into 3- 6 month CDs, ONLY money your 100% sure you won't use in the next few years put into laddered CDs.
Divide evenly over 1-5 yr CDs to save for a house, business etc.

Good use of tax refund

Member Writes:

In a message dated 4/20/2005 1:33:07 P.M. Eastern Standard Time, x writes:
I just wanted to let you know that I mailed the check out yesterday. I had already emailed the broker about it so hopefully it will get taken care of quick :)

I did 400 IRA, 1000 rainy day as you suggested. Thanks so much.


Money Prof:

Good "sense of urgency" as you had your refund back just after a lot of people were just filing.

I'll bet there is some correlation on average between the date taxes were complete and the persons financial condition. What do you members think??

Good move on saving that money!!! Most people would have said "I'm rich, take me to the designer sunglasses, lets buy 2 more pairs. And while we're shopping anyway lets go look at the shoes. Then on the way home lets hit the bars and buy the bar a few rounds. :)

I use sunglasses as an example a lot, but I also need to be an equal opportunity basher: : )

Just found out that a new member bought new tires and rims( big bucks) for his truck............... but here is the kicker: the tires & rims weren't worn out, he just wanted better looking ones. :(
I'm hoping that he's new, hasn't read all the posts yet and why he bought new rims is he didn't compute what that money would be worth in 35 years of having it invested.

Yes, I have the "extra cost optional'' 9-spoke 18-in. x 8-in. front, cast aluminum with polished finish, non-faceted, with Michelin Pilot performance radial tires on my new car.......... but that is AFTER I had plenty of retirement money. : )

BTW: at a later date we'll discuss why you don't want to get a tax refund.

Rich Dad Poor Dad

From the book "Rich Dad Poor Dad" by Robert T. Kiyosaki:

Robert Kiyosaki a financier, author and teacher says "that the main reason people struggle financially is because they have spent years in school but learned nothing about money. The result is that people learn to work for money...but never learn to have money work for them.

Think about this:
Rich dad says, "If you stop working today, an asset puts money in your pocket and a liability takes money from your pocket. Too often people call liabilities assets. It's important to know the difference between the two.

This book is recommended by one of our members. I mentioned her in the "it never ceases to amaze me" post. She needs the least help financially and not only reads these posts timely, but reads books on the subject to learn even more.

Admit the problem to yourself

Before you can fix anything, you've got to understand your problem. That means self-analysis, says Carlo DiClemente, co-author of Changing for Good and a professor of psychology at the University of Maryland's Baltimore County campus.
Start by examining your basic beliefs. DiClemente suggests asking yourself whether you're conservative or compulsive and understanding the downsides to both.
Compulsive personalities may find themselves falling for the first sales pitch, while a conservative person may fail to take on enough risk in their investments to guarantee a solid retirement.

Think about every angle of your financial life: home, debt, savings, investments and credit cards. Then, make a list of the bad habits you've fallen into with each.

Where do you waste your money???

Calculate what your bad habits cost you. If you carry only as much credit card debt as the average American family, or $9,500 according to Cardweb.com, you're shelling out $1,400 every year in interest and fees.

Hold it............... Did you spend 5 or 10 minutes thinking this over, or did you "skim" it over?? If you skimmed it please reread the 3/3/05 post: Pay now or pay later.

ONLY IF you decide to not read that post: then skim over the 3/23/05 post quickly, call a friend that agrees with you ( real easy as 95% will), and both of you go out to buy yourself more designer sunglasses. :)

Successful people page 1

Successful people page 2

Rules for lending money and gambling.

Money Prof advice:

NEVER lend an amount of money that you're not willing to lose at the time you place the loan.


NEVER bet an amount of money that you're not willing to lose at the time you place the bet.

Buying a car

Member asks:


In a message dated 4/8/2005 6:28:25 P.M. Eastern Standard Time, X writes:

Please give me advice on buying a car. The car I have now has over 100,000 miles on it.


Money Prof:

I'd like to see you with a short time on loan, so when you buy the next car it will be worth some money. What most people do is buy a car that is too expensive for their income, so then they get a 4-5 yr loan on a USED car. By the time the loan is paid the car is worthless. Or might even owe on loan and car has no value. In your case I'd suggest a 1 1/2 yr old 2004 car, the heavy depreciation is off, but you still have time on the warranty. ( but NOT an expensive car at this time)

So try to have this work out that if you buy a 1-2 yr old car, the loan is 2 yrs. A new car no more than 3 yr. You might ask "what do I do if I can't afford payments that high"? Then take the bus while you're saving for a bigger down payment.

I have a friend that owns a car dealership so email me if you need help on this.

Why save now for retirement?

If retirement is thirty or more years away, it can be difficult to make saving for it a budgeting priority. This chart will help explain why starting young is one of the best strategies you can employ for your retirement savings.

The example below shows the effect compounding has on retirement savings.