Christmas On A Budget

Ever asked yourself – How can I have a great Christmas on a budget? Christmas is notoriously a time when people spend tons of money and pile on the credit card debt to buy presents for all their family and friends. Often times tey do this without any plan to pay off debt. After the holiday lights dim, the new year rolls in and passes, and those credit card bills  starts coming due, they open up some depleted bank accounts and that’s never fun.

How much the average person spends on Christmas

Christmas is expensive! The average American spent $976 on Christmas gifts alone in 2019. This doesn’t include other things like travel, food, or any other fun for Christmas, like a tree! Sometimes people think that if they are buying cheap Christmas gifts, they are spending less, but the truth is, it all adds up fast.

Expenses to consider when creating your Christmas budget 

First things first, when creating your Christmas budget, you need to consider all of the expenses, not just the gifts. Things such as wrapping paper, boxes, bows can add up quickly. You can save money on these items by shopping at the Dollar Tree or Dollar General Stores for your gift wrapping items.

You also want to consider your travel expenses such as gas, accommodations, or airline tickets. You can save money on travel fair using sites like booking.com and making reservations in advance for cheaper rates.

If you are considering having a Christmas Dinner at your home, you will need to factor in the expense for all of the food you need to purchase. Keep this in mind when making your guest list because the more, the merrier, but the more people you have, the more expensive it will be. By creating a Christmas budget and savings plan, you can have a great holiday without racking up too much debt.

How to save money when you are planning Christmas on a budget

Now, let’s discuss how to save money for Christmas over the months before to make sure you get through the holidays financially sound!

1. Make a list of who you are buying gifts for and how much you need to save

First, make a list of who you plan to buy gifts for, and the maximum amount you are willing to spend on each person. I would also add any travel you may anticipate or expenses that may pop up, like food for a holiday meal. The total amount is what you are going to be saving for in between now and November.

Why November? Well, it gives you a few months to put some money away in savings. This is also typically when sale season starts, and it’s possible to find some really good deals if you haven’t snagged these items already. If you can spend less, that would be great but spending more is a big NO because that could totally ruin your budget.

Speaking of spending more, I always save an additional amount on top of what I say I am going to spend because stuff happens. I forget about a gift I need to buy for someone, or something ends up being more than I had originally estimated. Turkeys burn. Kids rip their tights right before the family portraits. Somebody might forget Grandma at home and have to spend additional gas money. It’s best to have extra money set aside than go over budget.

By putting money away as early as you can until Thanksgiving, you’ll be ready to go before the holiday rush starts. You’ll also be saving yourself from financial stress. No more wondering how much more you can afford to spend because that number has already been predetermined and saved by you.

2. Open up a designated Christmas savings account

Once you have decided what you will be saving from now until Christmas, you can decide how best to organize the funds so you don’t spend it. Some people use sinking funds as a way to prepare for the gift-giving season, so they don’t have to come up with a large amount of money at once. To do this, you can open up a savings account that you designate specifically for Christmas or holiday savings and name it accordingly. You could also consider automating your deposits.

You shouldn’t be able to easily transfer funds back and forth from it; otherwise, you might find that you are spending instead of saving the money you are trying to put away for the holidays. When the time comes to transfer the sinking funds into your checking, you won’t feel guilty, spending it all on gifts because that is your intent for this money! A great account type to save for Christmas is a Christmas Club Account.

3. Build saving for Christmas into your budget

Now that you know how much you need to save, you’ll want to incorporate this amount into your budget. How do you do that? Depending on how much you need in total to purchase your gifts, you’ll want to divide that dollar amount by the number of weeks you have between now and Thanksgiving.

This will give you a good idea of how much you should be putting away each week towards your gifts. You can then sum up that weekly amount to determine what your biweekly or monthly savings should be.

4. Plan your Christmas shopping ahead and shop smart

November is the beginning of the sale season. It’s also a time when you can easily get side-tracked with all the fancy advertisements. However, if you have a game plan, it’s much easier for you to stick to your guns.

I highly recommend you shop online and get your gift buying out of the way early. If you decide to go to a store, then plan ahead. Map out what days you’ll be shopping, what stores you’ll be visiting, and what you’ll be buying. Also, you’ll want to leave those credit cards at home and use only the money you have saved. Remember, the whole point is to avoid racking up any holiday debt whatsoever.

You also want to make sure you use any coupons or cashback apps, like Rakuten or Ibotta, to make sure you are getting the most bang for your buck when spending. My wife loves shopping at places like Kohls and Target because then she can save the instore rebates. These are usually given in the form of store credit or gift cards, and she can use them on a later purchase.

5. Stay motivated to save money for Christmas

As usual, it’s important to find any expenses in your budget you could cut or spend less on. This may be a good time to decide now on what cheap or free activities your family may be participating in this summer while school is out. Libraries always have great summer programming for both children and adults alike. If you’re single, it may be that you travel less or also find free things to do. Summer can either be a cheap or expensive season based upon your interest and dependent on where you live.

I’m also a firm believer that we can’t save what we don’t earn. So while running your numbers, see if it’s reasonable, or even needed, for you to pick up a side hustle for Christmas.

In order to successfully execute your plan, you are going to need to stay committed. It’s a good idea to get a savings partner for accountability, so you can keep tabs on each other and help each other succeed. Think of someone interested in joining you as you save for the holidays and plan weekly check-ins with them!

6. Get creative with your Christmas gift-giving

Enjoying making things? One creative way to save money on Christmas gifts is to make gifts yourself. It could be physical items like clothing or trinkets or home-baked goods like cookies and cakes. You may also think about giving experiences instead of things. I’ve had a lot of stuff given to me over the years, but experiences are what are remembered most. Create memories instead, and watch your money last.

Christmas on a budget: Alternatives to buying presents

There is nothing more precious than the gift of time or lending a helping hand. Rather than buying a gift, you can help a friend or a loved one in other ways. Maybe you have an older or disabled loved one that can’t get around very well. You can help them by doing household chores, gardening, or running errands for them.

A picture is worth a thousand words. You can pick up photo albums cheap at the Goodwill or Thrift Store and make a personalized photo album or scrapbook for your loved one. Shutterfly is an excellent site to create photo albums and gifts at a great price. They offer coupons and discounts, and it’s easy to upload your photos and order.

Do you have something one of your friends or relatives just raves about every time they see it? Can you part with it? Maybe you have a designer purse your cousin can’t afford, and she’d love to have. The gesture of giving up something you love to make someone happy is one of the greatest gifts of all.

Another alternative to buying gifts on a Christmas budget is to shop secondhand. You can find fantastic deals on gorgeous jewelry, name-brand tools, musical instruments, electronics, and more at pawn shops, thrift stores, and online. You can save up to 50% off retail prices by shopping secondhand.

Summary

With these tips, you should be able to put a solid plan in place to avoid holiday debt and come out on the other side of the Christmas season with your financial goals intact. The goal is to stick to your plan, no matter what. If you need motivation to save money, leverage one of our completely free savings challenges to get the ball rolling!

Here’s to a happy and financially sound holiday season!

9 Simple Ways To Save On Groceries

If you are looking for ways to get the most out of your income, preparing meals at home will be your most cost-efficient way of eating. Not only does cooking at home save money, it is often healthier because the portions eaten are more nutrient dense and smaller.

But even shopping for groceries can be expensive, especially if you have poor shopping habits.

If you follow even a couple of these 9 simple tips for saving money on groceries, you can easily save hundreds or more a month just by making a few small changes in how you shop for food.

1. Buy in Bulk

Many items have a smaller unit cost when you buy it larger quantities. A 36 pack of toilet paper will cost less per roll than a 12 cost per roll.

When doing this it is also important to not unit price, there are times when you may have a coupon or the lower amount will be on sale and you might need to do.. MATH.. but it’s really easy just divide the new lower price by the number of units them do your comparison.

2. Buy Only What You Need

Some foods are perishable and if you buy more than you can eat while it is fresh, all the savings you could have realized won’t matter because they won’t go into making meals.

You should be able to use everything you buy in a meal or a snack. Items that have a shelf life should be bought to be used during their shelf life period, an easy way to combat this is using the next tip by having a plan.

See also: 10 Ways to Maximize Savings in 2020

3. Meal Plan

Planning your meals ahead of time will make a huge difference in your food budget. When you know what’s on the menu each day, there’s no opportunity to linger around in the kitchen wondering what’s for dinner, no last-minute trips to the grocery store, no desperate take-out orders, and less chance that you’ll buy something only to let it go to waste.

Before you set out to make a plan follow this route when making your plan.

  • Check what food you have on hand
  • See what sales and check for coupons at your store(s) you shop at
  • Try to focus on items that go with what you already have
  •  Narrow the list down with a focus of making meals under budget
  • Plan out your meals for the week based on those ingredients

And you’re all set, just make sure to stick to your list to avoid the temptation of unnecessary purchases.

Once you have created a shopping list, you should be able to do your shopping in a minimal amount of time each week and shopping with a list is an easy way to avoid those expensive unplanned purchases.

4. Make it Stretch

In other words, get creative. If you’ve already consumed a bulk of the items in your kitchen, think outside the box to see what you can do with what remains. And don’t forget about any leftovers hanging out in the fridge or freezer that are still fit for consumption.

We try to cook more rice and pasta than we need to aid in eating leftovers for lunch at work, a lot of leftovers pair well with different simple dishes like this and help make the meals last longer without being the exact same thing over and over.

5. Buy Fruits and Vegetables In Season

Have you ever noticed that produce items are more expensive at certain times of the year? That is because they are in season and are more plentiful making them less expensive.

Florida has a season for strawberries, blueberries and citrus fruit. They can be almost twice as expensive during the off-season. In season fruits and veggies will be more flavorful than greenhouse grown or others picked early and shipped long distance as well.

6. Make a Budget and Pay Cash

Make a plan that includes how much you want to spend on groceries and take that amount of cash to the store.

When you have reached the cash limit, your spending is done. Have the cashier scan your must have items first and reserve want items until you know you have the cash to cover them.

Buying online can be a great way to stick to a budget also, more on that later.

7. Cut Back on Mear OR Hit the Meat Market

If you can reduce the amount of meat you purchase, you will see your grocery bill go down. Make sure you use every ounce of meat and seafood purchases.

Several years ago, when I set out on a mission to slash food expenditures in half, meat was always problematic. We couldn’t get enough of it, but the price always made it among the most expensive items on our grocery receipt.

After countless hours perusing weekly ads and driving around town from grocer to grocer in search of the best deals, I came across a promotional flyer for a meat market — and the rest was history. While we’re conditioned to buy everything at the same big store, big chains won’t always have the lowest prices on everything. Small and niche grocers — like butchers — can often offer better deals on fresher products: They specialize in one thing, do it well, and sell it cheap.

Another benefit of meat markets: They often sell in massive quantities, so when a good deal pops up, you can buy in bulk and freeze the rest to use later, this is where I love having a chest freezer in the basement!

8. Prepare it From Scratch

For those of us who are strapped for time or occasionally stricken by the laziness bug, frozen family-sized dinners are a cost-efficient alternative to eating out. But once the food is scarfed down, thoughts about preservatives and long-term health effects always linger in the back of your mind.

As a rule, we pay extra for convenience. So if you want to save money (and eat healthier to boot), trade in some convenience for cash.

The next time you’re tempted to pick up a frozen lasagna or pasta dinner, bail out of that section as soon as possible and head for the fresh veggie, seafood, and meat sections. Home-cooked meals cost a fraction of a dinner out and still come in much cheaper and healthier than frozen dinners, especially once you factor in leftovers.

And if you’re extremely crunched for time, try making a dish that requires minimal preparation or attention and can be cooked on autopilot in a crockpot.

9. Shop Online

Wouldn’t it be grand if you could have your groceries delivered to your doorstep? Depending on where you live, grocery delivery services such as Safeway, PeaPod, FreshDirect, Walmart’s Grocery-to-Go, Stop and Shop, and even AmazonFresh make this possible.

And at first glance, even though prices are usually a bit higher online, you can actually end up spending less. This is because you won’t be wandering the aisles, adding the extra unplanned items to your cart. Plus, you’ll know exactly how much you’re about to spend before you get to the check out allowing you to adjust your cart to stay on budget.

Another major benefit is that you can take advantage of special pricing without traveling all over town. However, the service is accompanied by a delivery fee, and you miss out on the opportunity to hand-pick your own meats, produce, and veggies. But it still beats rolling down the grocery aisle and picking up every item that catches our eye.

Conclusion – Ways to Save Money on Groceries

Outside of housing costs and vehicles, buying groceries can be one of the biggest expenses many families have each month.

Keeping your grocery bill under control can be challenging especially if spenders get involved in the food shopping.

Even if you’re only able to add a couple of these tips to your grocery shopping, you should be able to save yourself a hundreds every month!

Saving money on groceries is just one of the ways that you can make your hard-earned dollar go farther, to invest in your future, spend more on the family, or put it all into building PASSIVE INCOME.

7 Myths About Passive Income

It always sounds so great doesn’t it, making enough money while relaxing on a beach somewhere?

Few concepts are more appealing than passive income. What’s better than making money without having to do anything?

You’ve probably seen headlines before that Amazon founder Jeff Bezos earns over $200,000 per second, it’s natural to wonder how you can start making money without working.

Even without crazy passive income numbers compared to Bezos, an additional source of income could be enough to let you leave the daily grind of the 9-to-5 workday so you could pursue entrepreneurial dreams, travel, or just sit on that relaxing beach somewhere.

Generating passive income isn’t as simple as some of these people and articles make it out to be. To get to a healthy level of steady cash flow requires a lot of up front work or money to invest.

If you’re serious about having passive income increase your quality of life, you simply can’t afford to fall for these seven passive income myths.

1. You can “set and forget” your income streams.

This might be the most dangerous myth associated with passive income.

Everyone likes the idea of not needing to do anything else after setting up a blog or online store. But, in reality its never so simple. Blog visitors will need new content to come or they won’t keep coming back. If you have a course or Youtube they may need support or want up to date content that is keeping up with the rapidly changing world. The internet itself is constantly changing as well.

If you aren’t doing anything to stay on top of these industry changes, customer expectations and other responsibilities found in any active business, your passive income will quickly fade away. Even when delegating responsibilities, you’ll need to check in with team members to ensure tasks are done up to your standards.

2. You can set it up quickly and kick back and relax.

It’s easy to assume that anyone can toss together a blog or another passive income source in a single weekend. To really build something that will last and have an impact on your customers and fans will require hard work, time, and research.

Take something as simple as starting a successful blog, this requires extensive research and planning to make a name for yourself out of the millions of blogs out there.

A short list of things to learn and get right for bloggers is they need to find the right niche, choose a web hosting platform and buy a domain name just to get started. After that, they still need to learn about browser caching, SEO, permalinks and more — and don’t forget about writing good content and uploading quality images!

Needless to say, you probably won’t be able get all this done successfully in just a weekends time, sorry.

3. One source of income is all you need.

Another dangerous myth of passive income is that you can generate all the money you need with a single source of revenue. This is kind of like putting all your money into one stock, it can go up and offer big gains while on the flip side it can hurt bad when it’s down or out.

As with stock market investments, it’s better to diversify your income sources, especially if you’re planning on having these passive income streams replace your job.

An example is with blogger bloggers who have relatively low web traffic may use everything from affiliate links or selling their own products to offering online courses and freelance writing services to generate extra income. Through diversifying your income streams, you’ll have a increase your chances of earning enough to support your needs.

4. Passive income is easy

Passive income is defined as income that is received on a regular basis with little effort required to maintain it. This definition causes many people to mistakenly believe that generating passive income is easy, which isn’t necessarily the case. Passive income is not easy to create, and like we learned earlier isn’t created overnight. Most of the work required to generate passive income is done upfront when you acquire or create an asset that produces passive income in the first place, like creating a business or blog, or buying stocks or an already running business.

5. You have to choose the right vehicle

There are many different methods or vehicles that someone can choose to generate passive income. Rental income from real estate, dividends from stocks, and royalties from music or book sales are just a few of my favorite examples.

The myth that causes many people to believe that their lack of financial success is due to the wrong choice of vehicle is the myth that they have to choose the perfect vehicle at the right time to have any success. In reality, there is no right or perfect vehicle. There are people out there generating generous amounts of passive income with each of the vehicles mentioned above and many many more not list, just as there are people generating little to no income using those same vehicles.

The vehicle you choose doesn’t matter nearly as much as the knowledge, skills, and dedication that you possess as you work to create passive income in whatever path you choose. Someone can introduce you to a specific vehicle that has the potential for creating passive income, but if you’re not equipped with the knowledge, skills, and dedication to make it work, you not likely to be successful.

6. Passive income is permanent

It certainly makes sense to define financial freedom as the point at which your passive income exceeds your expenses. This definition assumes that passive income is permanent. Unfortunately, passive income is not permanent. A source of passive income can dry up or disappear at any moment if not given a certain level of care or attention.

Remember to remain relevant, and up to date in the ever changing world or you won’t attract the attention of those necessary customers.

7. You need to make money (Passive Income).

From investing in the stock market to starting a small online business, many people assume that they need a lot of money to start earning passive income. This simply isn’t true. You can invest in the stock market with as little as a few dollars with most brokers offering fractional shares. For those looking to start their own blog, web hosting is often available at less than $8 per month.

Having additional savings that you can devote toward getting your blog or business idea off the ground can certainly be beneficial, especially early on. But, at the end of the day, what matters most is your willingness to put in the time to research your market idea or investment opportunity.

Doing the right background work will help you use your limited financial resources wisely so you can generate a great return on your initial investment.

Create passive income the right way.

Pursuing a dream of generating passive income isn’t always easy but it’s far from impossible.

Whether you’re trying to add stability to you financial life, find a better way of financing your retirement, or travel and life live on your terms, avoiding these common pitfalls and misconceptions will go a long way in helping you reach any of your goals.

Success is closer than you think!

An Updated 4% Rule

Michael Kitces, blogger and head of planning strategy at Buckingham Wealth Strategies, recently interviewed Bill Bengen, the “father” of the 4% rule, the “safe” withdrawal rate for retirement savings.

In the discussion, he stated he used 4.5% instead for his clients. In fact, with inflation as low as it is today, he told Kitces the safe withdrawal rate may be closer to 5%. But we wouldn’t know for sure for another 30 years based on how he conducted his research.

In the podcast, Bengen stated that at the time of his research, early 90’s, there were primarily two asset classes: large-cap stocks and intermediate government bonds, today of course there are many more investment opportunities.

He told Kitces his thoughts about today: “Right now, I would not be recommending 4.5% to clients as a starting point. Depending upon the inflation level and the level of the market, I might be up to 13%, which historically, there were periods of time when you could take withdrawals that high.”

“It’s not a great time to be taking high withdrawals now with the market so expensive, but it’s not awful either because inflation is very low. I think somewhere in 4.75%, 5% is probably going to be OK. We won’t know for 30 years, so I can safely say that in an interview.”

Where did the 4% rule even come from…

                 In the early 1990s Bill set out to really answer a question “What is a “safe” rate of withdrawal for a client to take from their investment assets in retirement that will last them 30 years?” He never set out to establish a rule of thumb but from his research the 4% withdrawal rate actually became a Rule of Thumb used by many financial professionals and clients even today.

 How the Rule came about….

                Bill arrived at the percentage by experimenting with portfolios of different allocations of stocks and bonds as well as market returns. He began taking it down to the percentage that allowed for a safe withdrawal for 30 years. The percentage was 4.15%, which is actually the worst-case scenario not what worked in the average scenario.

                 An important thing to note is that when Bill was doing his research in the early 1990s the economy was coming out of double-digit inflation environment and he was also working with only two asset classes.

 Is the 4% Rule still applicable…

                 In today’s investment world we have many investment options and opportunities. In conducting research for his new book in 2005 he actually revised his research and the 4% Percent Rule became the 4.5% Rule.

 Some things that stand out…

                 A Rule of Thumb is a great way to start the conversation and provide some guidance however it is not applicable to everyone or every situation. For example, some people may have pensions and require less while other live in states where they offer great municipal bonds if they are willing to take those on. While the market is higher do you need to take that “bonus” and take out the full 4.5+% and on the flip side while the market is down are you able to cut back for a little while to market recovers to limit losses to your overall portfolio and increasing the likelihood of you reaching 30 years or more into retirement.

Bengen concludes that the break-even point for portfolios and real withdrawal rates is the sum of the withdrawal and the inflation rates. In this case it would be 6%. As he notes, Bengen understood “when the numbers can serve as guides and when they should only be guidelines

I believe that the amount of any distribution from a portfolio depends on many factors including your overall investment goals and risk tolerance. The current market environment and inflation rates. This is why Goal – based financial planning is so important and testing for the “what ifs” in life. I truly believe that in today’s market and economic environment financial planning is more important than ever.

For another take on this check out one of my favorite YouTubers Graham Stephan’s who covers his take on the new insight to the 4% rule.

Where Did Money Come From? – A Brief History Of Money

Bartering And Commodity Money

In the beginning, people bartered, which the exchange of goods or services for other goods or services. For example, a fisherman may trade the days catch for a couple chickens, or farmer trades some of his produce for pelts from a trapper or blankets from someone else.

One major problem with the barter system was that there was no standardized rate of exchange. What would happen if the parties involved couldn’t agree that the goods or services being swapped were of equal value, or if the person in need of goods or services had nothing the person who had them wanted?  To solve this problem, humans developed what is called commodity.

A commodity is a basic item that’s used by almost everyone in a given society. In the past, things such as salt, tea, tobacco, cattle, and seeds were considered commodities and therefore, were at one point used as money. However, using commodities as money created difficulties. Consider this, lugging heavy bags of salt or hauling oxen around could prove practical or logistical nightmares.

Using commodities for trade led to other problems as well, as many were difficult to store and could also be highly perishable. Think about losing most of your money because it rained, or because your oxen died or ran off, sounds terrible. Also, when a commodity traded involved a service, disputes also arose if that service failed to live up to expectations (realistic or not).

The Properties Of Money

The mainstream economic definition of money was first proposed by William Stanley Jevons in 1875. According to Jevons, money has three primary properties:

  • store of value
  • medium of exchange
  • unit of account

When an asset serves as a store of value, this means you can reliably retrieve the value you paid for that asset. This disqualifies perishable assets like vegetables or oxen from serving as money. If your money can rot or die, it has a bad store of value. So for an asset to serve as a store of value, it must be durable.

However, durability is a necessary but not sufficient condition. To retrieve the value paid for an asset implies the ability to sell it to someone later at the asset’s original price. Thus, a second condition for an asset to serve as a store of value is that it must be consistently valued by others in the market.

A medium of exchange is the asset we use to directly settle transactions. This is the easiest hurdle to clear. You can use Gamestop rewards points to buy a game, so Gamestop points function as a medium of exchange. But of course, Gamestop points aren’t a great store of value—people know this instinctively and don’t store their savings into Gamestop points. This is not just because it’s impractical; people are aware that Gamestop might modify their program in a way that it devalues these points, also there’s not a stable market for selling saved up points. 

But as a medium of exchange to buy video games, Gamestop points work just fine.

A unit of account is the unit in which you denominate prices. This one is pretty simple: how do you quote the price of a home? Is the price denominated in USD, in Euros, or in shells? That’s your unit of account.

One of the greatest achievements of the introduction of money was increasing the speed at which business, whether mammoth-slaying or monument-building, could be done.

First Official Currency Is Minted 

In 600 B.C., Lydia’s King Alyattes minted the first official currency. These coins were made from electrum, a naturally occurring mixture of silver and gold, and the coins were stamped with pictures to show denominations. In the streets of Sardis, around 600 B.C., a clay jar may have cost two owls and a snake. Lydia’s currency helped the country increase both its internal and external trading systems, making it one of the richest empires in Asia Minor.

Transition to Paper Currency 

Around 700 B.C., the Chinese moved from coins to paper money. By the time Marco Polo–the Venetian merchant, explorer, and writer who travelled through Asia along the Silk Road between A.D. 1271 and 1295–visited China in approximately A.D. 1271, the emperor of China had a good handle on both the money supply and various denominations. In fact, in the place where modern American bills say, “In God We Trust,” the Chinese inscription at that time warned: “Those who are counterfeiting will be decapitated,” woah.

Parts of Europe were still using metal coins as their sole form of currency all the way up to the 16th century. This was helped by their colonial efforts; the acquisition of new territories via European conquest provided them with new sources of precious metals and enabled them to keep minting a greater quantity of coins.

Banks eventually started using paper banknotes for depositors and borrowers to carry around in place of metal coins. These notes could be taken to the bank at any time and exchanged for their face value in metal–usually silver or gold–coins. This paper money could be used to buy goods and services. In this way, it operated much like currency does today in the modern world. However, it was issued by banks and private institutions, not the government, which is now responsible for issuing currency in most countries.

The first paper currency issued by European governments was actually issued by colonial governments in North America. Because shipments between Europe and the North American colonies took so long, the colonists often ran out of cash as operations expanded. Instead of going back to a barter system, the colonial governments issued IOUs that traded as a currency. The first instance was in Canada, at that time a French colony. In 1685, soldiers were issued playing cards denominated and signed by the governor to use as cash instead of coins from France.

The Emergence of Currency Wars 

The shift to paper money in Europe increased the amount of international trade that could occur. Banks and the ruling classes started buying currencies from other nations and created the first currency market. The stability of a particular monarchy or government affected the value of the country’s currency, and thus, the ability for that country to trade on an increasingly international market.

The competition between countries often led to currency wars, where competing countries would try to change the value of the competitor’s currency by driving it up and making the enemy’s goods too expensive, by driving it down and reducing the enemy’s buying power (and ability to pay for a war), or by eliminating the currency completely.

Mobile Payments 

The 21st century has given rise to two novel forms of currency: mobile payments and virtual currency. Mobile payments are money rendered for a product or service through a portable electronic device, such as a cell phone, smartphone, or a tablet device. Mobile payment technology can also be used to send money to friends or family members, in app through banks, Google Pay, Apple Pay, Square Cash, and Zelle being a few over very many options.

Virtual Currency 

Bitcoin​ quickly established itself as the standard for virtual currencies. Virtual currencies have no physical bills or coins. A major appeal of virtual currency is the promise of lower transaction fees compared to traditional online payment, also virtual currencies are operated by a decentralized authority, unlike normal currencies issued and backed my the government.

The Bottom Line 

With many advances, money continues to have very real and permanent effect on how individuals and businesses alike interact for goods and services.

Buying Turnkey Real Estate For Passive Income

One of the more popular and time-tested ways of create passive income through buy and hold real estate investing. It’s a pretty simply concept, buy a house at favorable terms, rent it out, reap the rewards. 

However, there is a lot of work that goes into this entire process from identifying a property to making the property “rent ready.” There are sometimes major renovations to be performed, repairs that are required, or even tenants to evict. 

The idea of a “turnkey” property solves these headaches. They can be an excellent way for beginners to get into real estate investing for just this reason. 

But the focus of this article isn’t just about why a turnkey property might work for you. Rather, it’s to discuss the idea of investing in a property that may be thousands of miles away from you. 

The focus of this article is why turnkey investing and investing in properties hundreds and thousands of miles away might work for you. It’s a strange thought. You may have even heard it said that you shouldn’t invest in a property more than 30 minutes or so away from you. 

In recent years, some advancements have been made in how properties are found, vetted, and purchased–and turnkey properties are one of these ways. If you haven’t considered investing in an out-of-state property before, you may find that it’s a great way to get a better ROI and achieve better diversification. 

What is a Turnkey Property?

A “turnkey” property is simply a property that is ready to rent. You won’t need to make any repairs or perform any renovations in order to make the property move-in ready. It’s been prepared to the point that all you need to do is show up and “turn the key.” 

Sometimes, a tenant may even already be living in the building, making consistent payments. 

Essentially, the property is ready to go with little-to-no work required on the actual property itself before renting it out.

They often appeal to the busy professional who wants to purchase rental property but feels they don’t have the time and expertise to make it happen.

This is what appealed to me in the military and lead me to buying two turnkey properties in Alabama as my first rentals, that I still own after 6 and 7 years each. I’ve had a great experience with my rentals and property managers as well.

Turnkey properties are relatively new to the investing scene. In fact, if you looked into such a property just a few years ago, you’d discover that finding a trustworthy platform was very difficult. 

Fortunately, as turnkeys have gained popularity, more online platforms are available to provide quality opportunities that make buying a property relatively painless–even if you’re buying from across the country. 

Why Turnkey Properties Are a Bad Idea

Any time you outsource work and effort to someone else, you give up control and end up paying more. That’s a given for any other investment.

When you buy a turnkey property, the original property usually been renovated and then sold to you. So you’re most likely buying it at the top of the market value and paying some fees on top of it.

If the tenant is already in place, then you’re inheriting that tenant and have not done the screening yourself.

If you’re trying to squeeze the maximum returns out of the property, you would rather “force appreciation” or add value yourself by doing the renovations yourself. However, that means managing construction and rehab from afar, which might go counter to the reason you’re looking a turnkey property in the first place.

Lower returns generally to be expected for the premium you pay to be hands off and purely pay for an investment with minimal hassle.

Why Turnkey Properties Are a Good Idea

Needless to say, a big advantage of buying a turnkey property is simply what I mentioned above: they’re prepared and ready to rent out, with no major renovation or repairs necessary. Once you invest, you’re able to receive income very quickly. 

Some platforms, like  Roofstock, also mitigate your risk by offering a 30-day refund guarantee. Not only that, but if you buy a vacant home, they guarantee that a tenant will sign a new lease within 45 days, or they’ll cover your rent for up to a year. Not bad at all. 

Those advantages apply to any turnkey property. But why consider buying one long-distance?

Well, there are a couple of reasons why this is a good idea. First, it allows you to take advantage of housing markets in different parts of the country. 

For example, if you live in a large city on the coast, you may find that the market in the midwest is doing considerably better, with better income-to-rent ratios. This would allow for a greater ROI than investing locally. 

Some may offer greater rents and lower expenses such as taxes, greatly increasing your cashflow. Others may offer rapid growth and appreciation, it all depends on what your investing goals are. It is important to do you own due diligence, run your own numbers, and not take their word for it and use their pro forma at face value. More on this later.

Second, it allows for great diversification. Markets can fluctuate heavily based on environmental conditions. If all your rental properties are located in a single geographical area, and that area is hit by a natural disaster, you may find yourself in a tough spot. 

On the other hand, if you owned properties in Missouri, California, and Pennsylvania, something that affects one local market will leave the others untouched. This is a great way to diversify. 

See also: How to Passively Invest in Real Estate

The Importance of Due Diligence 

As is the case when investing in any type of real estate, the most important thing is to perform the proper due diligence. 

This is always important with any investment property, but much more so when buying out of state. After all, you may never see the property in person. And if you do, it may be months between visits. It’s vital to learn as much as you can about the area, the market, and the people involved in the deal. 

If you’re eying a certain market, there are a few things you can do to verify the local conditions. Online tools like Rent Range make this very simple. 

When it comes to a specific property, it may also be best to get a full appraisal done by a third party. This will ensure that the value claimed by the sponsor is accurate. While online platforms like Roofstock offer trustworthy appraisals, you can never be too safe. 

Lastly, and this is probably the biggest one, you should speak directly with the property manager. Many platforms will connect you with preferred property managers that have been thoroughly vetted, but don’t take their word for it. 

Again, speak with them directly, and ask them questions. How long have they been in the business? What similar properties have they managed? What’s their communication style? More than that, you can also get a feel for who they are and how it will be to work with them. After all, they will be your point of contact with the property. It’s crucial to get this part right. For more on choosing a good property manager, be sure to read this article

Here Are Some Turnkey Companies to Help You Get Started

There are a good number of companies out that are more than happy to help the busy professional. Here are the ones I know of that have solid reputations:

If you’re considering investing in a turnkey property, be sure to check these out and see if any might work best for you. 

Conclusion

If investing out of state appeals to you, a turnkey property is a great way to get started. Not only does it result in less stress upfront for the busy professional, but this kind of investment was made to “set and forget”–at least, as much as you can with a real estate investment (and as long as you have a good property manager). 

So long as you do your due diligence well, you’ll find that investing in other markets offers a very good way to protect your streams of PASSIVE INCOME through diversification. The more reliable your streams of income, the easier and shorter your road to financial independence will become. 

Can Your Family Live On One Salary?

Many couples are presented early in their lives together with the difficult decision of cutting back to only one salary for their family, particularly if there is a new baby on the way and one parent would like to stay home and raise their child. Take a second and think of all the financial challenges that couples should think through before making this important decision.

The decision to go to a single salary might look seemingly doable on paper, but making ends meet between paychecks could be more difficult in practice. You as a couple need to assess how this decision will affect your long-term goals: With this lowering of income and increase in expenses, will that impede your ability to meet investing goals for retirement and college? How about your spouse’s plans for re-entering the workforce in whatever time frame, if any, you come up with?

Below are some of the areas to think about as you do your analysis.

Be Realistic About Budgeting

Running a basic budget is a great first step when determining whether living on one salary is financially feasible. A great way to see if works before the real deal is to do a trial run for a few months to make sure the budget on paper is manage­able in real life, and give you time to tweak it some before showtime.

It’s also important to pad your anticipated expenses to make room for the extra costs of taking care of a new baby, such as health-care expenses, diapers, and clothes, as well as furniture and other gear. The Web is full of calculators, such as babycen­ter.com, that can help you get you really good estimates to get started.

Related: 7 Tips to Organize Your Finances

Make Sure You Have a Safety Net

Two-earner couples have more financial safeguards than do couples living on a single salary: If one spouse should lose his job or become disabled, there’s still another income coming in the door. Because they’re usually more financially fragile, single-income couples need to take additional steps to build a financial safety net. Key components include the following.

A Comfortable Emergency Fund

Conventional wisdom holds that you should have three to six months’ worth of living expenses in cash to tide you through unanticipated expenses or job loss, single-income couples may consider moving that figure closer to a year’s worth of living expenses.

Disability Insurance

Fully one third of people entering the workforce today will become disabled within their lifetimes, according to the Social Security Administration. That statistic accentuates the importance of purchasing disability coverage for the spouse who’s employed outside the home. Many employers offer cost-effective coverage, but be sure to factor this expense into your after-baby-arrives budget.

Life Insurance for Both Partners

It might seem obvious that you’d want to purchase a life insurance policy for the spouse who’s earning a salary. But don’t stop there. Should the nonearning spouse die, hiring an outside provider to pick up child-care responsibilities would be costly indeed. This is yet another set of costs to factor.

Gauge the Impact on Long-Term Financial Goals

In addition to testing the short-term viability of your budget with a single income and troubleshooting unexpected events, it’s also crucial that you consider the impact on long-term financial goals, especially retirement and college savings. A recent T. Rowe Price study found that younger savers who stop retirement-plan contributions for even a short period of time can face a serious financial impact because of lost compounding potential, though ratcheting up their future contribution rates can help make up for the lost savings.

If you haven’t run the numbers recently on whether, how, and when you might able to retire, use a retirement calculator, such as the one on Morningstar Investment Research Center, to see how a reduced retirement-plan contribution rate affects your ability to reach your long-term goals. Many such calculators use a static contribution rate; a financial advisor can help you customize your contribution assumptions based on your own expectations about salary increases and if/when your spouse plans to return to the workforce.

Think Through the Career Impact

More difficult to quantify, but equally worth thinking about, is the long-term career impact your spouse could face by pressing pause on her job. Consider staying on the job, part time or in a different role , in some fields that are difficult to re-enter later on. Another option my wife took was to further her education while home for a year with our son.

Quick Tips To Maintain A High Credit Score

Your credit score acts as a key determining factor to some of the most important and impactful purchases you’ll make think buying a home or car. Bad credit can affect how much you pay for some services including insurance, and some employers consider credit histories when making job offers. What all goes into calculating a credit score and how can you raise your score? Let’s dive deeper.

FICO scores are the most commonly used scores by lenders as they attempt to gauge a borrower’s risk and reliability.

Your FICO score is comprised of three scores, one from each of the credit bureaus—TransUnion, Equifax, and Experian. The score from each agency ranges from 300 to 850 points—the higher your score, the lower the risk you are to a lender.

A lot is taken into account including your payment history, how much you owe, length of credit history, and any new credit inquiries. Different lenders have different approaches when using FICO scores. For example, Mortgage lenders will most likely look at all three FICO scores when evaluating your creditworthi­ness, but some automobile lenders may only use one to qualify you for an auto loan. For more information about the ins and outs of FICO scores, go to myfico.com and visit their Education section.

Conducting a Checkup

Whether you’re actively in the market for credit or not, it’s helpful to know your current credit situation. For starters, every year you can obtain a free credit report from the three major credit bureaus at annualcreditre­port.com—the only authorized source for consumers to obtain free credit reports. But keep in mind that this site doesn’t provide actual FICO scores—you’ll have to pay to see those. At myfico.com, you can buy two (TransUnion and Equifax) of your three FICO scores for $19.95 each. Note that other sites may provide generic credit scores but those are not the scores that lenders typically use.

As you evaluate your scores, keep in mind that lenders have varying standards when it comes to what constitutes a good credit score. The general rule of thumb is that a credit score above 720 is considered excellent, which puts you in a very good place when securing loans and other types of credit. On the other hand, a score below 620 is considered subpar and will tend to translate to higher interest rates on loans.

Tips for Boosting Your Score

It might seem obvious that the best way to maintain a high credit score is to pay your bills on time. But some aspects of credit scoring are counterintuitive. Here are five tips for raising your score.

Stick With the Majors

Having at least one major credit card, such as Visa or MasterCard, and paying your bills promptly will have a bigger impact than will good behavior with department store and gas cards. At the same time, having too many credit cards can work against you. You might be tempted to overextend your credit, and new credit inquiries, which are typically initiated when you apply for a new card can lower your credit score. Too many inquiries can mean that you’re taking on too much debt or are in some financial trouble and need additional credit to get above water.

Limit High Balances

The best way to improve your credit score is to pay down your revolving (or credit card) debt, because hav­ing a high balance/credit limit ratio doesn’t bode well for your credit score. If you have a card that is close to being maxed out, consider transferring part of the balance to other cards. That’s because it’s generally better to have smaller balances on a few cards than a big balance just on one. Also keep your charges to 30% or less of a card’s limit; 10% is ideal. If you’re having trouble sticking to the limits, set up email or text alerts with credit card companies to let you know when you’re approaching a limit you’ve set.

Comb Through Your Credit Report

When you receive your credit report, scrutinize it for any erroneous information, such as improperly reported late payments or accounts that don’t belong to you. Also bear in mind that identity theft can swiftly hack away at your credit score. For example, identity thieves can use your card to make purchases and then redirect your bill so that you do not receive your bill in time, or they can deplete bank ac­counts leaving you with no means of paying the bills. If you do spot something like this, cancel all credit cards and alert your card issuer if you notice any fraudulent activity related to your credit cards. Then, file a police report in the community and a complaint with the Federal Trade Commission. Also call the toll-free fraud number at any one of the three major credit reporting agencies to place a fraud alert on all three of your reports. Doing so will ensure that all potential lenders speak with you directly and require you to answer a series of security questions before authorizing a new line of credit.

Keep Up Good Habits

If a history of making late payments with a credit card company has adversely affected your credit score, make it a priority to keep paying your bills on time go­ing forward. Delinquencies on payments remain on your credit report for seven years, though some bankrupt­cies and unpaid tax liens can remain on your record for 15 years. So even though rebuilding your credit history might not be fun, it’s possible to undo black marks on your record.

Maintain Old Relationships

Although those in credit-improvement mode might reflexively embark on an account-closing spree, it’s usually wise to hang on to your oldest credit card accounts. That’s because the length of your credit history is an important factor in your credit score, so closing old accounts can actually hurt your credit rating by making you look like a much newer borrower than you are. Moreover, closing an unused account without paying down your debt increases your utiliza­tion ratio, which is the amount of your total debt divided by your total available credit, and that too can be a negative for your credit rating.

7 Tips to Organize Your Finances

Having well-organized finances is beneficial for a number of reasons. Not only does being organized mean you can enjoy financial independence and have no need to take on any type of debt unnecessarily, it gives you peace of mind and ensures you can have positive thoughts and feelings about money, and use your organized state to save and plan for a bright and exciting future.

Leaving money worries behind means knowing that you have things under control. You can free up valuable time and energy so that you can get on with actually living!

One of the great things about financial planning is that you can be organized, successful, and maximize your money whatever you earn, leaving you to enjoy life and focus on the things you enjoy. Here are seven tips for successfully organizing your finances.

Know Your Disposable Income

Income – write down all the ways you earn income each month – whether that be salary, investments, rent etc…. – whatever comes in goes here.

Expenses – All the things that you HAVE TO spend money on each month – otherwise known as your fixed outgoings. These can be such things as bills, rent/mortgage, fees, insurance etc…..

To lower expenses read: 10 Ways to Maximize Savings in 2020

Once you have taken away your expenses from your income then you know what you have left to spend on entertainment / holidays / extras etc…. (this is your disposable income)

If you can understand your position each month you can start to tweak things to match what you want from life and what you need. For instance, you may decide that you need to spend less each month on entertainment as you simply don’t have the funds. Or you may want to start saving more as you have more disposable income than you first thought.

A budget will help you to start to be more in control of what you spend your money on, and be more aware of it.

Make Savings Non-Negotiable

Many people who don’t have savings will use the excuse that they don’t have the money to do so, yet will actually be spending their disposable income on things they don’t really need. If you’re serious about organizing your finances, making savings a fixed, non-negotiable expense similar to your mortgage or other regular bills is worth doing. This ensures you’re always saving and putting money away – even if you don’t have a specific savings goal – and means you’re covered for unexpected expenses or life events, such as needing to undertake emergency home repairs or being made redundant.

Having the equivalent of six months’ income saved is often cited as a good starting point, and means you’re well covered for whatever life throws at you from a financial perspective. If you don’t need the money for emergencies, you’ll at least have a good safety net if you want to leave your job to start a business or take an extended break.

Pay All Your Bills on Time

One of the easiest ways to lose money is to not pay a bill that is subject to a late payment charge if you’re as much as a day late with it.

Considering how easy it is to set up direct debits today, there is no reason for this to happen to you. By setting up your direct debit you can ensure you choose a day that best suits you and easy track within your budget planning to never miss a payment.

Plan to Avoid Bank Charges

One often self-inflicted financial problem is not having enough money in the bank to cover a direct debit payment, which gives the double problem of a bank charge as well as a potential late payment fee, ouch!

An additional bank charge too many people accept and consider a part of life is interest and other charges related to an overdraft. While an overdraft is a useful and sometimes necessary safety net, it should be used as just that, a just in case measure.

If you find yourself using your overdraft as essentially a credit facility, try using the savings you amass through budgeting to ensure you’re living with your bank balance as zero as much as possible.

Maintain a Great Credit Report

If you pay all your bills on time and do your best to avoid bank charges, then you’re probably already doing a great job of maintaining a great credit report and score. While this may not help you save money on a day-to-day basis, it does mean you will be offered better interest rates should you apply for a personal loan or another form of credit.

Ensuring your finances are in order every step of the way will make it easier for you to get loans, mortgages, etc. and usually with more preferential rates.

Take Advantage of Technology

A great way you can take advantage of technology is to use online banking services and online account management for credit cards and any other personal finance or credit products you use.

This means everything will be kept in one place, and if you ‘go paperless’ you save yourself the stress of managing statements and keeping them stored safely at home.

Prioritise Debt Repayments

Prioritize debts and pay these off as quickly as you can – as the interest they create will simply grow if you don’t.

Make as many cutbacks as you can now to pay off your debts as quickly as you can.

Debt usually has the highest interest rate (just look at your credit card and you may be shocked at what its costing you if not paid back each month).

The key to managing debt is to work out the interest rates and pay off what’s costing the most each month, that way you aren’t wasting money on interest when you could actually be paying off the debt.

Focusing on clearing your debts will:

  • Make you feel better
  • Give you a feeling of control back over your finances
  • Help prevent damage to your credit score beyond any already incurred
  • Reward you with a large chunk of your income when you have paid them off in full and now have the disposable finances to use as you please

There are many ways to go about tackling your debts, two very popular methods are the debt avalanche and debt snowball.

Read also: Debt Snowball VS Debt Avalanche: Choosing the Right Strategy for You.

Organizing Your Finances

By being organized with your finances, you can break out of the debt cycle, ensure you don’t live a pay check to pay check, and have the confidence to live the life you want, maybe that includes PASSIVE INCOME. Remember to take a proactive approach to dealing with your finances, to set budgets and goals relative to your personal circumstances.

50 Personal Finance Quotes To Live By

Money is something that tends to command and control everything in life. Everyone needs money to survive in one way or another. We work to earn money and spend money to survive. It’s a seemingly endless cycle. The pursuit of money can lead to greed and selfishness and honestly tends to be the root of most of life’s problems, but then ends up being the solution to a lot of it, too.

Whether or not we want it, money is something that needs to be used more wisely and cautiously in life. People use it to get what they want, and often times they don’t care so much about anything else. Money can make people into selfish and greedy humans that only care about themselves. So we have to fix that the best way we can.

Use these money quotes about finance and wealth guide you in the right direction when you’re looking to make your own decisions about your finances. Use them as life lessons to help you choose the right path when you’re looking for wealth and prosperity.

1. Waste of money.

“Too many people spend money they earned…to buy things they don’t want…to impress people that they don’t like.” — Will Rogers

2. Don’t revolve your life around money.

“A wise person should have money in their head, but not in their heart.” — Jonathan Swift

3. Don’t be greedy.

“Wealth consists not in having great possessions, but in having few wants.” — Epictetus

4. Very true.

“Money often costs too much.” — Ralph Waldo Emerson

5. If only that’s how easy it was.

“Every day is a bank account, and time is our currency. No one is rich, no one is poor, we’ve got 24 hours each.” — Christopher Rice

6. Handle it in the best way possible.

“It’s how you deal with failure that determines how you achieve success.” — David Feherty

7. We need to stay frugal to help with everything else.

“Frugality includes all the other virtues.” — Cicero

8. Why waste money like that?

“I love money. I love everything about it. I bought some pretty good stuff. Got me a $300 pair of socks. Got a fur sink. An electric dog polisher. A gasoline powdered turtleneck sweater. And, of course, I bought some dumb stuff too.” — Steve Martin

9. The best thing to spend money on.

“An investment in knowledge pays the best interest.” — Benjamin Franklin

10. Greed ruins a lot of stuff.

“I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy.” — Warren Buffett

11. Money has always been an issue.

“Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty-pound ought and six, result misery.” — Charles Dickens

12. It doesn’t mean it’s a bad thing.

“Opportunity is missed by most people because it is dressed in overalls and looks like work.” — Thomas Edison

13. Follow your path.

“What we really want to do is what we are really meant to do. When we do what we are meant to do, money comes to us, doors open for us, we feel useful, and the work we do feels like play to us.” — Julia Cameron

14. It’s not always promising.

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for ten years.” — Warren Buffett

15. Sad, but true.

“A nickel ain’t worth a dime anymore.” — Yogi Berra

16. I don’t know, it does tend to help sometimes.

“Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it makes one.” — Benjamin Franklin

17. Take care of your money and time.

“Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time.” — Johann

18. Either way, education is pretty good.

“Formal education will make you a living; self-education will make you a fortune.” — Jim Rohn

19. Money has a lot of power.

“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” — Ayn Rand

20. Spend money wisely.

“Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you can make, so you can give money back and have money to invest. You can’t win until you do this.” — Dave Ramsey

21. Don’t be greedy with your cravings.

“It is not the man who has too little, but the man who craves more, that is poor.” — Seneca

22. True, that feels unfair.

“It’s not the employer who pays the wages. Employers only handle the money. It’s the customer who pays the wages.” — Henry Ford

23. Don’t lose it all.

“He who loses money loses much; He who loses a friend, loses much more; He who loses faith, loses all.” — Eleanor Roosevelt

24. Put in the work.

“Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort.” — Franklin D. Roosevelt

25. Don’t let money rule your life.

“Empty pockets never held anyone back. Only empty heads and empty hearts can do that.” — Norman Vincent Peale

26. Money is good.

“It’s good to have money and the things that money can buy, but it’s good, too, to check up once in a while and make sure that you haven’t lost the things that money can’t buy.” — George Lorimer

27. Money shouldn’t be a goal.

“You can only become truly accomplished at something you love. Don’t make money your goal. Instead, pursue the things you love doing, and then do them so well that people can’t take their eyes off you.” — Maya Angelou

28. Be successful.

“Buy when everyone else is selling and hold until everyone else is buying. That’s not just a catchy slogan. It’s the very essence of successful investing.” — J. Paul Getty

29. Also true.

“If all the economists were laid end to end, they’d never reach a conclusion.” — George Bernard Shaw

30. Don’t rely on money being your out.

“If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability.” — Henry Ford

31. That’s very true…

“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” — Robert G. Allen

32. A classic choice.

“I made my money the old-fashioned way. I was very nice to wealthy relative right before he died.” — Malcolm Forbes

33. There’s a difference.

“Innovation distinguishes between a leader and a follower.” — Steve Jobs

34. Scary thought.

“The real measure of your wealth is how much you’d be worth if you lost all your money.” — Unknown

35. Deep and accurate.

“Money is a terrible master but an excellent servant.” — P.T. Barnum

36. Saving is better than spending.

“Try to save something while your salary is small; it’s impossible to save after you begin to earn more.” — Jack Benny

37. Unfortunately.

“Wealth is the ability to fully experience life.” — Henry David Thoreau

38. Act better.

“The individual investor should act consistently as an investor and not as a speculator.” — Ben Graham

39. Luck isn’t everything.

“I’m a great believer in luck, and I find the harder I work the more I have of it.” — Thomas Jefferson

40. Don’t let money control you.

“You must gain control over your money or the lack of it will forever control you.” — Dave Ramsey

41. It shouldn’t be so enticing.

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” — Paul Samuelson

42. Don’t go into debt.

“Every time you borrow money, you’re robbing your future self.” — Nathan W. Morris

43. Funny how that works out.

“Rich people have small TVs and big libraries, and poor people have small libraries and big TVs.” — Zig Ziglar

44. It’s a risky business.

“Never spend your money before you have it.” — Thomas Jefferson

45. Funny how that works out.

“The stock market is filled with individuals who know the price of everything, but the value of nothing.” — Phillip Fisher

46. Enjoy it, but don’t be greedy.

“Wealth is not his that has it, but his that enjoys it.” — Benjamin Franklin

47. Work hard and earn your money.

“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” — Robert Kiyosaki

48. One step closer to the right way.

“I have not failed. I’ve just found 10,000 ways that won’t work — Thomas A. Edison

49. Value your time and talents.

“If you don’t value your time, neither will others. Stop giving away your time and talents. Value what you know and start charging for it.” — Kim Garst

50. Education means everything.

“The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.” — T.T. Munger