I’m looking for collective participation unless you are a family of one.
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Thinking of investing your savings?
While increasing your savings is good, multiplying your money through smart investments feels great - there are lots of opportunities out there and you can be successful if you're arming yourself with the right information.
Where to start?
If you're going to try your luck on the stock market or trading options, first start by learning the basics and delay as much as possible buying real positions. One way of getting hands-on experience with the markets is through online trading - either forex or binary options are good learning grounds and most online brokers offer trial accounts free of charge (if you're wondering what are binary options, 24option.com has very good resources on it, besides offering a free practice account and a wealth of information about binary trading in general). Final warning for the very eager: binary options are exotic financial instruments; real trading involves substantial risk of monetary loss.
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Not much changed… but then again I have been living within my means for a very long time.
Cars…. Never buy new. Sorry… it does not make any sense to me to have a monthly car payment, huge insurance payment and on top of that have to keep up with dictated maintenance to keep the warranty in good standing.
Instead I buy used… but am careful on the “how used”. Always have a designated savings account to cover car repairs and start saving for the next used car. Drive my used cars until they can’t be smogged anymore. The last one was a 1989 Ford Taurus… he just passed smog last year but then was totaled by another car. (Parked on side of the road, parked car above me popped out of gear, rolled backwards and obliterated my front end). Financially…. no harm done. I bought the Taurus in 2000 for $1500 and still got $1300 from the other guys insurance company.
Credit Cards… they are a means to establish credit and get a high credit score. Meaning: I don’t ever use more than 10% of my credit card limit and then pay off. I really don’t need a credit card… but in the game of credit the revolving credit account, if handled right, brings in the highest score on your credit rating.
Loans… Unless it is a mortgage there is no need for them. Start paying to yourself and save up for large purchases.
I have been watching the “entitlement philosophy” for years and am shaking my head. The “I have to have it now….” attitude is what got us into this mess.
More than 10% of my net income goes into savings automatically. I have learned to live with the rest for a long time.
Of course I contribute to 401K but that doesn’t mean I am totally oblivious to what goes on on the financial market. I have cashed out IRA’s last year before the market crashed. The way I look at it: I can either pay taxes or watch my money disintegrate. I chose to pay the taxes and put the money in savings accounts and CD’s.
The 401K is only 2 years old… it is accumulating stocks at a cheap price and I am not worried about how much it is losing in dollar value..
I can wait it out, see it go up again and sell the stocks and move everything into money market accounts before the next 7 year crash).
Do we live any different? Yes… We spend more time at home and on the internet instead of going out and spending money.
Grocery shopping is done with a list and only once a week.
Do I really need to do this? No… but I am trying to have an extensive emergency fund and that fund is growing. Nobody is safe from losing their job… but I can at least make sure that my family will be able to pay the bills for a very long time… This way I can have the needed time to find a new job if I had to.
I propably won’t have to look for a new job. The way to secure my current one… is by taking on new duties and not being afraid to step out of my job and into somebody elses. The most valuable employee is the one that can do more than one job and isn’t afraid to take on new responsibilities…
But never think that you are safe… the only thing you can control is your own affairs. Be prepared for the unimaginable and you will sleep well at night knowing that you have the funds to cover a job loss.
We go out less often, work more overtime, and buy less. We cut back on excess like premium channels on cable, and keep our cars longer. A new car not only has a payment but requires higher insurance cost.
We continue to contribute to the 401k and other investments and in fact increased investments due to the drop in the market. When the market recovers, we will be glad we did.
Shop at COSTCO or Sam’s Club. Don’t eat out, cook on the grill. Go to the library and rent available DVD’s and Audio Books. Walk and hike on free trails in the area.
Since teachers often take off for spelling, the word is curb, not curve.