Money Advice Guide

If you received $50,000 as a gift (I wish that happens to me), what would you do with that money? Your decision on this will reflect on your financial future of who you become, and how you look at money.

a. save it in the bank

b. buy a nice house or a nice car

c. quit your job or take a long vacation

d. invest it and make it grow

Whatever your decide, it is up to you. Different people have different views on money, some believe that:

(a) It will be safe in the bank, as people want to save money in case something happens, like an emergency, or a sudden lay-off from work. They always want to expect the worst in the future, and thus they will not have a difficult time financially if a problem happens. Moreover, banks also give a minimal interest rate on savings accounts, which thus puts a smile on people’s face.

For most people, they will agree that this is the best decision to make. Your parents and friends will be proud of you that you chose to do this over something else that is stupid.

(b) a house and a car would be 2 of the most expensive things an average person purchases. with this sudden splurge of money, wouldnt people want to enjoy this money and reward themselves with something to make them happy? moreover, people can them show off to their friends on what they can do with so much money. this is one of the biggest problems of having too much money! a lot of people have financial problems of having little money, but many then also have problems of too much money. they will end up on spending it all, and fall back from losing the $50,000, missing the financial status they had in the past. maybe some of these people wont even have enough money to put gas in their new sportscar they just purchased, or wont be able to pay their monthly dues on the car.

(c) with this big amount of money, people might think that they dont really need to work anymore… temporarily. well yes, $50,000 is already more than the average salary of the person in a year, and now they just received it in one day! why should you continue to work for $10/hour where you got a load of money with you?

employees that earn a good $10/hourwill look back again and realize how small money theyre making. some will quit their jobs, and enjoy the money they have. after a while, they spend all their money (on vacations, fine-dine restaurants, road-trips, partying), and dont want to go back to their original lifestlye. $10.hour would be something small for them.

(d) this is where the “rich” people fall into. for employees, your monthly paycheck earns you a living, and your lifestyle reflects on that number that is written on that piece of paper you receive twice a month. create passive income, money that is put into your pocket whether you work or not. create an investment vehicle, that where you can put that $50,000 into, and make it more! it WILL be risky, and you WILL fail several times, but failing makes you a better investor. you may lose part of the money, but giving up will just leave you with (a), (b), and (c).

you can put that money that you received into real estate investing (my favorite), create businesses (food business, online business, general merchandise, joint ventures, etc.), or paper asset investing (stocks, bonds, mutual funds, collectibles, commodities, part-ownership of businesses, etc.). with good research and due diligence of the investment vehicle you may choose, you can minimize risk, and thus be happy with your decision with what you did with you money!

To sum it all up, your financial future WILL REFLECT ON YOUR ANSWER ABOVE. Just that simple decision will change EVERYTHING on how your future will be. Its just a matter of switching views that will change it; just a simple decision.

Chris Angeles is a young entrepreneur, very young one at the age of 20. He learns more from experiences in the business world and making mistakes rather than from learning everything from school and entering the corporate world. Well he has been doing real estate lately, specifically investing in an apartment building. Learn more about him and check his daily blog on his ventures at http://csa.typepad.com

Tags: business, entrepreneurship, financial, investing, money, real estate, rich, stocks, wealthybusiness, entrepreneurship, financial, investing, money, real estate, rich, stocks, wealthy

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Most people work hard all their lives only to “retire” poor then try to live off meagre savings or a small (rapidly disappearing) Government pension. They are forced to live out their twilight years struggling with constant money problems. Many of them have to buy only the cheapest food and are unable to enjoy the little pleasures of life like going to an occasional movie, eating out or taking short trips. They have to watch every cent they spend.

If only these people had saved, on a consistent basis, just a small percentage of their earnings and set it aside.

George Classon, in his marvelous book called “The Richest Man in Babylon” suggests that putting aside just “ten percent of what we earn and investing it”, is enough to make for a comfortable retirement.

Let me ask you a question. Are you saving a percentage of what you earn or are you like most people who spend everything? Alarmingly, there are new statistics which suggest that most people, in fact, are spending more than what they earn. The latest studies are saying people are currently spending 104% of their income.

It sounds impossible, doesn’t it? It’s not! The advent of credit cards has led to spiraling debt. Multiple credit cards and “store” cards allow people to buy now and pay later. I call this “payment by the twelfth”. I refer, of course to that famous Johnny Mathis song “The Twelfth of Never”. Many use the “roundabout” system of using one credit card to pay for another and so on. This is a recipe for disaster.

I recommend you purchase “The Richest Man in Babylon” and study it. The information it contains can make a positive impact on the way you handle your finances. At least if you read the book and understand it you can make a conscious choice to ignore its wisdom. You are then in a position to decide whether you want to be rich or poor because you will have the knowledge.

There is no better time than right NOW to start becoming responsible with money and investing for your future. What you keep putting off today will eventually return to haunt you when you have a diminished capacity to do anything about it. In other words, the longer you leave it the more difficult it will become. You cannot work forever. Eventually, the day will come when you will either want to retire or you will be forced to retire.

Rich or poor - get the knowledge!

[If you like this article and would like to use it on your own website or ezine you may do so ONLY if the article is not changed in any way and the final paragraph: “About the author”, with all links intact, is included.]

About the author: Gary Simpson is the author of eight books covering a diverse range of subjects such as self esteem, affirmations, self defense, finance and much more. His articles appear all over the web. Gary’s email address is budo@iinet.net.au. Click here to go to his Motivation & Self Esteem for Success website where you can receive his “Zenspirational Thoughts” plus an immediate FREE copy of his highly acclaimed, life-changing e-book “The Power of Choice.”

Tags: discipline, finance, investing, investment, knowledge, money, motivation, Poor, rich, self esteem, Wealthdiscipline, finance, investing, investment, knowledge, money, motivation, Poor, rich, self esteem, Wealth

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