Million Dollar Boy | Free Financial Advice

Maybe you are pushing 30, maybe even 40, and still financially unstable. You may wonder why you are going nowhere in your finances. It may just be about being very unlucky or it may be a combination of two or more of the following:

Mindless spending

If you do not have a set budget, you may end up spending more than you can earn. Loving luxury items can be very dangerous if you are not exactly wealthy. You cannot spend everything you have earned and more without saving or investing. You will end up living for the next paycheck.

Credit card abuse

What’s worse than spending too much on unnecessary things is spending money you do not actually have…yet. Remember that credit cards allow you to borrow money – money you have to pay for with interest. This means that the more you use your plastic, the more you end up in debt.

Wrong investments

It’s a great idea to invest in a house. Even if you do not have plenty of cash, you have at least the security of a home. However, there is a possibility of over-investing in a house. For example, you should not buy a house that is too big for what your family actually needs. Be wary of the bigger maintenance costs of a bigger home.

Mediocre job outlook

Maybe you are stuck in a position when you do not know if you will ever go up the ladder. This may be because you are not putting enough effort to show what you are truly capable of. Some people who earn little also put in minimal effort. This translates to being stuck in that position. However, if you know that you are working hard, maybe you just need to let that known to your boss – without bragging, of course.

While anyone can decide to become an entrepreneur, some skills and characteristics are needed to be truly successful. Though it may help to actually have these characteristics at hand already, you can also develop them through time and effort. Here are some of the top characteristics:

Self-confident

You must believe in yourself and in the service or product you are offering. If not, who else would? If prospective consumers can feel some hesitation on your part, they may not be willing to risk buying your product or service.

A people person

You must know how to deal with people: your consumers and the people you are working with. This is so that you can effectively pitch your sales while working in an amicable environment.

Calm and risk-tolerant

Business always has risks involved. You cannot be a successful entrepreneur if you panic at the least provocation. Even when things are doubly tough, you must not simply react on the situation but act on the problem in order to solve it.

Detail-oriented

To prevent risks from destroying what you have worked hard for, you can start your business with all sorts of results already in mind. You have to prepare a contingency plan for possible business disasters. Being detail-oriented helps you create that contingency plan.

Disciplined but balanced

You should realize that business is business. Though there should be a time to make light of things and to actually be emotionally responsive to your employees, you should also create boundaries. You must also assign business money to the running of the business. You cannot just “withdraw” from your business account as if it is loose change or your personal account.

Finding a roommate may just be the answer to your financial problems. That is, if you are struggling with house and utility bills though you are living in a pretty spacious home. Think of your house or apartment as an investment and advertise for a roommate.

Do you really need a roommate

If you are single and somehow financially challenged, it may be best for you to get a roommate. However, if you are living with family, it may not be advisable to get a roommate. You may have to think about your family’s privacy and, of course, of space issues. If you still have an extra room to spare, you may think of getting a tenant. The division of expenses would not be the same, however, as with a roommate.

Choosing your roommate

It is your choice if you want to limit your roommate choice to one belonging to your own gender. The number of roommates you can accept depends on the space you can offer. It may also help to have a background check performed on prospective roommates; be wary of the possibility of rooming in with a criminal. Interview not just one prospective roommate so that you can find someone compatible with your living conditions and willing to follow your house rules.

Problems that may arise

The trouble with sharing your home with a paying roommate is figuring out who spent what or who owes how much. This is a problem when expenses that benefit everyone in the house are involved.

Being organized about it

If you are the main leaseholder, you may also act as the house’s bookkeeper. Find a way to track your expenses. Everyone must be comfortable with this tracking system. It could be as simple as collecting all receipts for a month and then figuring out through calculations. However, this can be time-consuming. Using a computer spreadsheet can speed things up. You also need a hard copy of your accounts; make use of an accounting record book. Make use of a petty cash box and record every transaction involved.

Do you know that there is such a thing as feminist economics? This is not just a movement but an actual area of study and a recognized new branch of economics. Though the thoughts behind it are undoubtedly female, feminist economics welcome the involvement of men.

From the feminist economics point of view

Basically, feminist economics is looking at economics with feminism in mind. The founders of this new branch of study believe that it is high time that other points of view are listened to when it comes to economics. They think that only the white male population of society is represented. This is because most economists are white and male. Feminist economists claim that what they are actually pitching is the realistic, hands-on application of economics. They believe that traditional economics tend to be too abstract.

Breaking away from economics myths

Feminist economics want to erase some of the implications brought about by traditional economics. In traditional economics, work at home is not regarded as economically productive. So, women who actually have to do the rearing of children and taking care of the home are considered unproductive and dependent on their partners. Feminist economists believe that unpaid work by both men and women should also be recognized.

Major teachings

The major teachings of feminist economics focus on counteracting the traditional myths. Feminist economists are fighting for better education for women. If women have to find work that can be considered traditionally productive, they must be equipped with good education. Feminist economics are also aiming for women’s equality with men in terms of employment.

When you are a college student, you have a lot in your mind. Your parents could be supporting you financially or you may be working on the side. Either way, you are starting out as an adult. You are learning how to think of money as something to budget not just an allowance to spend until the next one.

College debt

College tuition is enough to get you in a lot of debt. You may have enrolled into college with student loans. If you add poor spending skills and credit card abuse to the brew, you know that you have gotten yourself deeper in debt. Using plastic to spend without the supervision of your parents may sound like fun. However, you will be spending years of your working life paying for debts instead of saving for your future. That is not a fun thought.

Growing into financial awareness

Financial experts believe that you should have started being aware about handling finances at a very young age. If your parents are not initiating the talk with you, ask them for advice on how to budget. They have more experience in handling money and distributing the amount to several expenses. Use a spending diary to see where you are spending so much. Because you are going to college to get an education, prioritize college-related expenses and absolute necessities. If you are tight on your budget, forget about partying allowance.

It’s not just an adult thing…

If you do well with your budgeting, you will have money for fun things without the guilt attached. You will have money to spend for watching movies, shopping and other fun, wholesome activities which a healthy, well-balanced college student should be enjoying from time to time.

Inflation is regarded with fear. Though certainly not the stuff for horror movies, you would appreciate its effects better if you are a serious investor. Some people only get to appreciate the relevance of inflation when they are already hit directly by its effects. Others recognize inflation only through rising prices and the devaluation of their dollar. However, not everyone is pondering about the long-term effects of inflation on their investments and savings.

Recognizing the primary victims

If you have a hefty savings account that only generates a low interest rate, you may be one of the primary victims of inflation. Being a millionaire now may be a big deal. However, come decades later, you may actually be poor because of inflation. The same goes for retired people and their pension. Creditors also suffer from the effects of evil inflation. What they may have lent years ago may be several times the worth of what they get paid for now.

Why people are making a fuss

Those who are aware of what inflation means will definitely make a fuss. How can you not, when there is a possibility of a future where your savings are worth less while commodities are priced higher? In fact, people should really make a fuss and start looking for possible ways to escape the cruel effects of inflation.

Escaping the effects

Some people try to escape inflation by making investments on stocks, bonds, and gold. These items can supposedly hedge the effects of inflation. These investments have certain risks attached to them, of course. However, it is better to invest than to settle for the decreasing value of your savings account.

When you first started your business, you are aware of the possibility of risks. You may have even gone into your venture facing those risks head on. That is actually a good thing. You need to know what you are up against so that you can manage their possible effects on your business.

If, on the other hand, you went ahead with your business with only the positive possibilities in mind, you may actually be putting your business in danger. Such is the time when positive thinking can be considered too much.

Knowing the risks

If you know the risks, you can prevent possible losses. For example, if you are going into the food business, you must anticipate the possibility of a competitor setting up a restaurant near you. If that competitor is offering similar dishes, you have to make sure people know that you have the better product or that you are offering entertainment as an extra.

Preventing disaster caused by risks

Knowing the possibility of competitors can help you plan your business setup better. Think about the area you are putting up your restaurant in. Observe the businesses that are already set up there. If you think that your restaurant can survive the competition or do not have an almost exact duplicate in the area, you may go on with your plans of putting up a business there.

Managing the effects

If competition cannot be prevented, you can face the other business head-on without sacrificing fair play. Make sure that your restaurant is well-managed: with clean surroundings, delicious food, and polite employees. This way, you may earn a loyal following. However, you must also keep things interesting by constantly adding fresh touches to your service.

Gold is a popular investment because of its ability to escape the effects of inflation. It can be viewed not just an investment but as a luxury item as well. With the glint of gold added to your collection and even to your evening attire, you achieve a perceived status of wealth.

Benefits of investment

Again, gold is a good investment piece because it can maintain or improve its value even when in the middle of inflation. It is also considered a universal currency. You can also easily buy gold bullions from a dealer or a bank if you are a beginning investor.  Some people, however, think of gold not as an investment but as a form of insurance. With gold, you insure yourself from the possibility of future inflation.

Possible problems with the investment

As with any investment, gold is not perfect. The price of gold also changes as with inflation. What if the future of gold is not really as bright as it is today? Its saving grace, however, is its ability to have endured centuries of inflation. If you are dealing with gold bullions, you will also encounter the problem with storage costs. You may think of hiding them inside your house or burying them somewhere, but that is not really being safe, isn’t it?

Alternative ways of investing in gold

You may invest in physical gold, such as bullions or coins. You may also opt for a digital gold investment. This way, you enjoy the investment power of gold without having to worry about storage. Yet another way of investing in gold is owning stocks from gold mining companies.

Knowing that you need to make investments is being ahead of the financial literacy curve. Some conscientious people make it a point to allot a significant portion of their earnings into their savings account. These people know that they need to save money for the future. However, they may not be making the most of their money if they rely on low interest savings accounts for extra money. Most of their dollars have come from their own sweat.

Why invest?

While saving can put aside money for the rainy days, investing can multiply the value of your savings. If you invest, you may be earning much more money than what you are actually working hard for every day.

Do your research

Though investment is a good thing, you have to be careful about choosing your investments. There are plenty of scam artists out there. Research about the company you are planning to invest in; request for their prospectus. Find out about the feasibility of the investment; the company may be sincere but it may not have done its part in researching.

Know how much you can invest

How much money do you have? What you have right now will decide what you can invest in. You do not have to have tons of money to make investments; there are plenty investment opportunities that require very little. Spend only your disposable income in the investment.

Know the best time to start

The best time to invest is as soon as you have an investment you can afford. It is advisable to start early so that you will soon reap the rewards of your investment.

While experienced businesspersons and well-informed part-time investors are bombarded with information about good investments, not all of them may have thought of the possibility of over-investing. Yes, it’s possible to invest more than what is necessary. It may have been all right if it is just a matter of over-investing time and effort. However, over-investing money into what is supposed to be an asset can turn that asset into a liability.

What is over-investment?

Over-investment refers to spending money to maintain an asset to the point of exceeding the marketable price of that asset. For example, you bought a house as an investment. You rented it out but the repairs, maintenance, and improvements may have exceeded the market value of similar houses in your area. This means that you have over-invested in your house.

The possible effects of over-investment

As mentioned earlier, over-investment can turn an asset into a liability. So, it further affects your financial situation by tipping what should have been a balance. It can also be very frustrating to realize that what you have been investing on may actually incur losses for you. Over-investment can make you very attached to a home or a car, or any other investment. It will be more difficult to sell the investment because you have put more into it than the amount you will be getting after the sale.

Preventing over-investment

The best way to prevent over-investment is to resist impulsive improvements and buys. If you have profits, reserve them for possible repairs instead of immediately using the money for improvements.