Last night I caught the beginning of the getting-less-funny-as-the-years-go-by Saturday Night Live, but this one I thought it was pretty funny and alarmingly true at the same time.
Today in the news, a man from Los Angeles, California named Arthur Winston retired at the age of 100. He worked in the mass transit system since 1934! I did not even know they had a transit system in 1934. In his 70 plus years of working, he had only taken one sick day. I thought this was a nice story, but what really caught my attention was when they asked him what his secret was to staying alive and kicking for so long.
Per my previous post, it is very easy for us to obsess so much over finding bargain, that it may not be worth it if you factor in the time that it took to you to search and find that perfect bargain. If you are like me, you get very excited when you do get a rock-bottom deal whether in the store or on the internet. Nowadays, it is much easier for us to find bargains on the internet, because there is less overhead to factor in the pricing equation than a traditional brick and mortar retail store. A friend of mine at worked introduced me to some great websites that aggregate many of the best deals on the internet, and they are updated daily. Many of you may already be familiar with these websites, but for the rest of you, I will post the web addresses. I love sites that bring everything together into one website to search quickly and efficiently. So check these sites out! I don’t get any sort of kick-back for you clicking on these sites, it’s my little gift to you, tonight.
Like many of us trying to make a little revenue back from the knowledge that we share on our personal financial blogs, I have a few advertising links on this page, but hopefully they are not annoying enough to deter the real meaning of this website, which is to help educate young people about personal finance.
I am fairly picky about what advertisements that I choose to share on this website. So, I thought that I would talk about each one, because I truly do think that they add value to this website.
I do not know where these young people are, but they need to be knocked over the head with a frying pan. Pension plans are a thing of the past with big corporations. I am sure there are still some companies that offer them, but they are far and few between and declining as we speak.
If you are between the ages of 18 to 34 and you are in the working world, you need to be contributing to a 401k or IRA plan. You must control your own destiny when it comes to your retirement. If you start early, you WILL retire a millionaire. 40 years of compound interest is amazing. If you only saved $300 a month for 40 years, you will have a nest egg of $1,897,224. And that is being extremely conservative with your monthly saving!
When it is all said and done, there are only two kinds of investments — long-term and short-term.
Long-term investments should be money that you are not going to touch for more than 5 years. This category involves retirement planning and overall wealth building. This money does not need to be as liquid as short-term investments, meaning you can put the money in real estate or a start-up business.
Short-term investments should be money that you need to be more accessible and readily available for you to use at short-term notice. Short-term investments should be savings for things that are less than 5 years down the road. This might include saving for a car, a down payment on a house, car/house maintenance, or other high dollar personal items.
Many of you are coming out of college and diving into “the real world”. I was anxious to see just how real this “real world” was when everyone older than me talked about it like some kind of far off never-never land. Anyway, it’s real and it’s rough. Getting your first real, well-paying job is a huge adjustment. I sat through 4 hours of a benefits meeting, and I was LOST. Once they start talking about 401k contributions, health/life insurance, and short-term disability, your head will be spinning.
USA Today reported that in the month of January the average household spent $575.00 OVER their budget. This means that they spent way more money than they had coming in. Not only is America increasingly spending more money, they are saving less. Spending is only healthy for an economy when they are saving money at the same time. The article revealed that many economists are not worried about the spending deficit. I think they are idiots. Just because they are economists does not mean that they don’t go out and buy a 50″ plasma television on the 29% Best Buy credit card. When the average household is spending hundreds of dollars over budget every month, that worries me.
This morning, Good Morning America ran an interesting segment about the ferociousness of the young Indian generations (35 and under) that are passionate towards education and entrepreneurship. It is now common for young Indians to be well versed in English, technology, and business practices. With these three skills combined, it poses a great threat to young Americans whom they will be competing with for jobs in the near future.
Kirby On Finance writes a great article about the advantages of low-cost mutual funds versus high-cost funds. It is always good to see the numbers sometimes. Plus, this just furthers my belief that mutual funds are the BEST investment tool for the average joe investor.