Moneymonk

What is Middle Class?

moneymonk33@gmail.com (Moneymonk) — Wed, 21 Jan 2009 02:20:00 PST

According to Diversity, Inc. magazine a group of people was ask what is Middle Class, these were the results after the survey:

Having a Bachelor's Degree

Making $75,000-99,999 a year

Living in the Suburb

A Homeowner

Having a Managerial position

I have met those standards with the exception on having a managerial position. However, I want to be upper Middle class, making beyond $100,000 a year, by accelerating my income and making my skills more valuable. But again I can be happy like Alan:

I never felt the need to advertise my wealth. Give me a nice bottle of wine and a good friend to talk to and I'm where I want to be"

- Alan Silver

I concur ! ....well more like a glass of Amaretto and a good friend, lol

The average 50 year old

moneymonk33@gmail.com (Moneymonk) — Tue, 20 Jan 2009 01:08:00 PST

The average 50 year old in America has less than $2,500 saved. Let's say you go to work when you are 25. (Most people go to work much earlier than that, but I will keep the math easy for you.) You went to work at 25 and you are now 50 years old, In 25 years you have been able to save only $2,500? $100 dollars a year is the best you can do? $8.33 a months is all you can manage to put away? You just couldn't seem to do much better than $2 dollars a week?

Dear Mr. and Mrs Average 50 year old , you are an idiot?

swiped from "People are Idiots and I can prove it" By Larry Winget

I Love this book!...talk about motivation, book review is coming soon.

Friday Quote

moneymonk33@gmail.com (Moneymonk) — Fri, 16 Jan 2009 07:16:00 PST

The wealthy enjoy an intangible benefit that often eludes the paycheck-to-paycheck worker: a sense of control over their lives. They feel secure in their jobs and less stressed about their futures.

- Dayana Yochim, Motley Fool

Krispy Kreme To Celebrate Inauguration

moneymonk33@gmail.com (Moneymonk) — Thu, 15 Jan 2009 12:53:00 PST

This means you ! Krispy Kreme wants to help celebrate the inauguration of your new President by giving you a free donut

Get real

moneymonk33@gmail.com (Moneymonk) — Wed, 14 Jan 2009 03:25:00 PST

Another reason people fail to stick to their budgeting plans: They go about it in the wrong way, focusing first on monthly fixed expenses, then lifestyle costs such as clothing and entertainment.

"People all the time tell me, 'I blew my budget on this one-time unexpected expense,'" Rick Kahler, (a certified financial planner) said. "What was it? 'My car broke down.'"

All cars break down. Car maintenance and repairs fall under the category of occasional annual expenses. You should budget for those before you allot funds for entertainment.

"As a society, we tend to go about it a little backwards," "Fixed expenses, lifestyle, and then we'll see if there's anything left for the future."

I have to admit, I was once like that, once my bills were paid the rest of my money was for ME. I never considered so called "emergencies" if something happens, I would just ask my parents for the money and give them a sob story.

I had to get real and take care of my own responsibilities and not play victim. Plus, playing the victim role is not cute.

Now I have the attitude of "what I'm going to do about it?"

A car breaking down is not necessary your fault, however it's your problem

From now on, I reply to my problems as "what I'm going to do about it?"

Flat tire- "what I'm going to do about it?"

Unexpected medical bill - "what I'm going to do about it?"

etc.

Stop playing victim! and do something.

Increasing your income, saving money, investing, and entrepreneurship

moneymonk33@gmail.com (Moneymonk) — Tue, 13 Jan 2009 07:29:00 PST

....are all factors of building wealth

Let's dissect:

Income (job)

Saving money (a set percentage from your paycheck going to a savings account)

Investing (a set percentage from your paycheck going to mutual funds, stocks, real estate)

Entrepreneurship (starting/building a business)

So to sum it up, you must keep increasing your income, it can be via promotions, changing jobs, bonuses, stock options

At the same time save a portion of your income, Mix it with investing in the stock market and start a side business that will eventually grown into a big business.

Job+Savings+Investing+A business = Moola!

Apply it and keep repeating, you will then start to control your life, instead of life controlling you

Keep hustling and remain patient, it usually takes the average person 10 years to become wealthy!

How to Get a College Degree Debt-Free

moneymonk33@gmail.com (Moneymonk) — Mon, 12 Jan 2009 07:35:00 PST

Community College, State School and Living at home all can help

read more here

I worked and went a few summer semesters and paid cash. This also lessens the debt burden.

Rich Brother, Rich Sister: Book Review

moneymonk33@gmail.com (Moneymonk) — Mon, 12 Jan 2009 07:32:00 PST

This is not the typical book that Robert Kiyosaki portrays it's more like an autobiography of himself and his sister as they grew up in Hawaii. Robert talks about his failed marriage to his first wife and also being homeless for awhile. While his sister tested her faith in Buddhism. Robert took the path of capitalism.

Emi Kiyosaki also talks about the effects of her marriage and family as she took the road in religion and faith.

They both found happiness and God.

Both went after their calling which was against their parents will. However, both are successful in their own way. God, Money and Happiness all intertwine with the right balance can create success for anyone.

If you are looking for a book that is about capitalistic views mix with spirituality this book is for you.

Rich Brother, Rich Sister: Two Different paths to God, Money and Happiness By Emi Kiyosaki and Robert Kiyosaki

Friday Quote

moneymonk33@gmail.com (Moneymonk) — Fri, 09 Jan 2009 00:26:00 PST

�??Save your money, and one day it will save you�??

-old African proverb

Financial Fitness: Why Your Income Doesn't Matter

moneymonk33@gmail.com (Moneymonk) — Thu, 08 Jan 2009 03:08:00 PST

We have a bad tendency to think that how much we make determines to a large part our financial fitness. The reality: our income ranks low on the list of what makes us financially fit.

Raquel, a successful professional who recently lost her job (with a good severance), Raquel made a very good salary but she was living as if she made more than twice that. She owns a car that is more than half her former salary while her mortgage and housing costs were much more than she can comfortably afford (40% of her monthly income). This is all on top of five-figures of credit card debt.

source

I guess when your debts are massive, a good income has little effect.

I just want to play devil's advocate........

Income does not matter if you are debt free and in a good position financially. However, a good income can be a great lifesaver when you ARE in debt. So it does matter. It's the shovel that help you dig out of debt. The bigger the shovel the more you can get traction.

Just my .02 cents!

6 books that changed my thinking

moneymonk33@gmail.com (Moneymonk) — Wed, 07 Jan 2009 02:02:00 PST

I must have read over 200 books on money throughout my lifetime, A lot were good reads and some was plain lousy, but only a handful that I can say absolutely changed the way I think

Debt

Debt is Slavery, Michael Mihalik - he gives you various reasons why debt is toxic. Debt, for sure gets in the way of wealth building.

Financial Independence

Rich Dad, Poor Dad, Robert Kiyosaki - say what you want about him, but this book actually made me stop thinking like a wage earner and started thing like an independent contractor.

Automatic Wealth, Michael Masterson - another book that teaches you to think outside the box.

Motivation

You're Broke Because You Want To Be, Larry Winget- this guy does not sugarcoat anything, he wants you to stop acting like a victim and to stop blaming everything on other people, it is your fault that you are broke.

Retirement

Automatic Millionaire, David Bach - I knew to always pay myself first, but I did not know how much to contribute nor did I know what funds to put my money in until I read this book.

Lifestyle

The Millionaire Next Door, Thomas J. Stanley - Think Big, act small! no need to be "big hat and no cattle"

Do you have a list of any books that not just were good reads, but that actually changed your life or thoughts about money?

Six Financial New Year�??s Resolutions Everyone Should Keep

moneymonk33@gmail.com (Moneymonk) — Tue, 06 Jan 2009 02:55:00 PST

1. Start small. Don�??t make a resolution to save $10,000 dollars if you didn�??t even save $1,000 the year before. Start by trying to save an extra $100 or $200 a month and go from there.

2. Create a budget, the more detailed the better. How can you know how much you are saving if you don�??t even know how much you spend? Break down your expenses�??and be honest. If you know you are going to spend $6 on coffee a day, include that.

3. Get out of debt. If you can�??t get out of all of your debt this year at least bring it down and DO NOT add to it! Debt is a huge stressor. It limits everything. Live by this simple rule: if you don�??t have it, don�??t spend it.

4. Pay in cash. If you know you are going to have to fix your roof or buy a new dishwasher, start setting money aside and pay for that purchase in cash. This will stop you from using a credit card and adding to your debt (or making new debt as the case may be).

5. Start an emergency fund. If you have a job right now, count your blessings. The unemployment rate is out of control and I�??m betting there is not one person who is unemployed who doesn�??t wish they had saved more money. The ideal emergency fund will cover your living expenses for three to six months. If you can�??t put that much aside then start small. Put aside $100 from each paycheck. Your emergency fund will start to grow before you know it.

6. Make a long-term savings plan. You might not be able to start this plan now (getting out of debt should come first). But it doesn�??t hurt to start planning. Someday we will all have to retire. I know a lot of people lost their retirement savings in the Stock Market this year but if you invest wisely and you diversify and allocate you should be okay. At the very least, start a high-interest bank account for your long-term goals.

source: youngmoney.com

2009 Goals

moneymonk33@gmail.com (Moneymonk) — Mon, 05 Jan 2009 02:42:00 PST

Travel with family Internationally (Mexico, Cayman Island cruise)

Max out retirement

Continue to save 30% of my income (20% towards 401k in March 2009)*

Increase my salary by 5%

Increase my business sales by 10%

ESG baby!!---earn it, save it, grow it

*I stopped contributing to my 401k in Dec.08, I plan to recontribute starting in March

Friday Quote

moneymonk33@gmail.com (Moneymonk) — Fri, 02 Jan 2009 03:23:00 PST

The highways of life are full of flat squirrels who couldn't make up their minds!

-Unknown

Interesting conversation I had over the Christmas break

moneymonk33@gmail.com (Moneymonk) — Wed, 31 Dec 2008 03:17:00 PST

I was visiting my parents for Christmas and My father and his friend had an interesting conversation about money.

He said " all our generation know is to work until we're 65, retire and receive a check," he went on to say this generation will not have that. They quit work when they want and start businesses and retire when they well please, they do not have the comfort of a pension, so they are more hungry to make money. They have to go to college and require additional skills just to become middle class whereas in the past, one job and one skill was enough.

I have to agree, serials entrepreneurs is very common these days. A job and spousal income is not enough. No one just settle for one income stream.

It's also common to switch jobs every year or two. I remember when I was fresh out of college. My mother asked why I cannot hold a job. I was hopping from job to job every two years or less. I think I had 5 jobs within a 7 year period.

I tried to explain to her that times have changed and this is quite normal. At least every job I received it paid more than the previous one. Plus, I tend to get bored easily.

Gone are the days of working 30 years at one employer and getting a pension. These are the days of Entrepreneurs and hustlers.

All paid jobs absorb and degrade the mind

-Aristotle

Actually being stable may enable you to miss out on opportunities.
Not sure what generation is better, but what will always remain,
a no-debt, cash-heavy position is a goal most of us strive for.

Friday Quote

moneymonk33@gmail.com (Moneymonk) — Fri, 26 Dec 2008 02:00:00 PST

Reality is the leading cause of stress amongst those in touch with it.

- Jane Wagner

On Vacation

moneymonk33@gmail.com (Moneymonk) — Mon, 22 Dec 2008 14:23:00 PST

No posts this week.

Happy Holidays to all !!!

$100,000 income: No big deal anymore

moneymonk33@gmail.com (Moneymonk) — Mon, 22 Dec 2008 10:50:00 PST

One hundred thousand dollars. Since the 1980s, the magical "six-figure" salary has been a benchmark for financial success. Not too long ago, that income often meant two nice cars in the garage of a large house, fun family vacations and plenty of money left over to save for retirement and college tuition.

But times have changed. Not only has standard inflation steadily eroded the real value of a $100,000 income, the costs of housing, health insurance and college tuition have risen dramatically in recent years. Consider the rising costs of food, energy and the necessities of a middle-class life and that six-figure luxury quickly turns to six-figure mediocrity.

Do you agree? They say now $250,000 is the new $100,000.

Is this true or people just inflating their lifestyles?

I think if you keep your housing about 30% of your income, you can still have the luxuries that a six figure income can give.

But most people that make $100k have a mortgage payment over $2500 a month. This is what kills them.

Read the entire article here

Friday Quote

moneymonk33@gmail.com (Moneymonk) — Fri, 19 Dec 2008 02:01:00 PST

Making a lot of money is very different from having a lot of money

-Barbara Stanny

How Much Debt Should you have?

moneymonk33@gmail.com (Moneymonk) — Thu, 18 Dec 2008 14:28:00 PST

Visit msnbc.com for Breaking News, World News, and News about the Economy

Why can't you have the car and a nice retirement fund

moneymonk33@gmail.com (Moneymonk) — Tue, 16 Dec 2008 02:03:00 PST

I was reading a finance article the other day that said tried to explain the importance of compounding money "John Doe bought a $15,000 mustang and the payment was $284 a month for 5 years. If he would have invested that money in an index fund every month, he would have a bonus in his nest egg".

Blah humbug. Why can't he invest $284 a month in his retirement fund and have the Mustang?

These articles make you feel as if you cannot do both, only one or the other. A person that truly wants to be wealthy will think of a masterplan to do both.

I always devise or figured out a way to afford both. I try my best not to limit myself with either/or.

Just a thought.

If $150 is threatening your budget, you need a better income

moneymonk33@gmail.com (Moneymonk) — Mon, 15 Dec 2008 02:00:00 PST

I was listening to David Bach in an interview and he told the interviewer, that it costs about $5 a day for a cup of Starbucks coffee and if you drink a cup everyday, you are spending $150 a month. He further went on to say it tears away at your budget. hmmmmmmm I had to pause for awhile.

First of all, a cup of coffee is an added boost that gets you through the day. So I don't look at it as wasted money. We all have something that we like to spend money on.

I went on to say to myself... if $150 threatens your budget, then maybe you have an income problem, not a latte problem.

Not to brag or boast but I save, contribute to retirement and college savings and I am still able to eat out every now and then. If I could not do it all, I will try my best to make more money, not cut corners.

I don't want to curb eating out just to contribute my my kids' college plan. I want to find a way to do it all.

Sometimes you just have to make more money !

Stocks are cheaper but it's not a bargain

moneymonk33@gmail.com (Moneymonk) — Sat, 13 Dec 2008 02:27:00 PST

I'm tired of hearing that "the market is on sale" and it's the best time to buy is now. Blah humbug.

Yes stocks are low, however it's still going down. So it's not the bottom........yet.

I stopped contributing to my 401k. I plan to recontribute 20% in March.

Buy and hold is fading away, it's not going to gain much. I am still young, therefore I have a chance on making (some) money, but not much.

It's time for new rules: Conventional wisdom is dead. I plan to grow my business and rely on myself and not too much on the stock market.

Money takes on whatever meaning I assign to it

Friday Quote

moneymonk33@gmail.com (Moneymonk) — Fri, 12 Dec 2008 02:19:00 PST

The reality is that you can either make yourself very wealthy or you can make someone else very wealthy. The choice is yours!

-Keith B. Jones

Eight Interview Mistakes Women Need to Avoid

moneymonk33@gmail.com (Moneymonk) — Thu, 11 Dec 2008 02:22:00 PST

Being Too Chatty -Women tend to talk too much in interviews

Not Negotiating the Offer

Talking About What You Don't Know

Failing to Market Yourself

Issuing Disclaimers-Women frequently make the blunder of testifying against themselves

Worrying Too Much-The anxiety shows in the interview and projects a lack of confidence

Appearing Too Stiff

Dressing Inappropriately

as a women, I hate to say I agree with the list. I have made mistakes before on interviews.

read more at forbes.com