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.
After reading the USA Today article about Ben Casnocha, I was intrigued to read about a man whom started a software company at such a young age. I found myself reading his personal blog every day. If you read the posts that Ben writes, you will soon find out that he is wise beyond his years, and he has a passion for knowledge and understanding the complicated issues of our society. The most refreshing part about Ben is his humble attitude that oozes out of everything he writes. I introduced myself to Ben through e-mail about a month ago, and recently I asked him to answer some interview questions for this website. He was kind enough to do so. Here is the full interview.
In my opinion, personal finance is 80% about the behavior and 20% about the numbers. However, this is one example of how looking at the numbers can cause a behavioral change. Everyone wants to increase their net worth, and many people try to come up with a 101 get rich quick schemes to boost their net worth. I am going to show you a 100% guaranteed method for increasing your net worth! There is NO start-up fee, and I do not run info-mercials at 4am on sunday morning.
Calculating Net Worth: Assets – Liabilities = Net Worth
Are you an expert at something? You may be able to start a professional consulting business by giving your expert advice. Some examples of successful consulting firms are business, financial, computer, advertising, and tax consulting. This is a service industry so start-up costs can be very low. There is no inventory and if you already have a computer and basic office software, then all you need is a budget for advertising and a web presence
$100 for web domain and web hosting package
$100 for printed business cards, brochures, and direct mailers
The entrepreneurial spirit lives inside all of us. You may not have found it yet, but it is there. I am confident about this statement, because the great country of the United States was founded upon the principles of freedom, democracy, and entrepreneurship. Most of you work for someone else, but you can still be an entrepreneur!
Answer these Questions:
- Have you ever daydreamed about being your own boss?
- Have you ever provided a service and collected a fee for it?
- Have you ever held a garage sale?
- Have you ever sold something on Ebay?
This blog is geared primarily toward twentysomethings, so my insurance recommendations will be answered based on the assumption that you are a college student, recent graduate, or similar young adult.
There are quite a few critcs of this book, but I think that you need to understand the overall message of this book, regardless of the validity of the research done. Read my review of this book that was posted on my personal website.
Here is a humorous list of reasons why you should NOT save for retirement. The sad thing is that I bet there are people out there who actually use these excuses.