How to Make More Money: Stop Watching TV!

If you are like most people, you probably have a desire or a strong need to generate more income but you just don’t know where to start or how you will find the time in with juggling all of your responsibilities.  The question is always “how to make more money?”

You need to ask yourself,  what are you spending time on?
Have you seriously thought about it?  One of the biggest time killers is that black box that sits in your living room, bedroom, kitchen or den.  Know what I am referring to?  Yep, it’s your super sleek, shiny big flat screen TV!  You are proud of your big black box, you carefully wipe it down with all the rest of your possessions, and it may even be the “ooh and  ahh” focal point of your home when entertaining.  Heck, you probably spent a pretty penny on it, so why not get your money’s worth out of it right?  And you know what – there is nothing wrong with it.  The question you may need to ask yourself is this: how many hours a day do you find yourself zoning out in front of the television?  Is it only a couple of hours, or is it several hours in a day?  Do you use your television as a way to escape the things that aren’t working for you in your life?  If you do, you are not alone.  Most people nowadays use the television as a way to entertain themselves, as a babysitter, and as a way to escape from life’s problems.

According to statistics, the average time a person spends watching television in the United States is twenty eight hours a week.
Wow!  Those hours add up to a part time job!  It is a little alarming to realize just how much time is wasted on TV.  Would you like to be a lot more productive with your time and make more money in the process?  If the answer is yes, you may be thinking “how can I make more money?”  Stop watching so much television! Just think if you used those twenty eight hours differently.  The possibilities are endless and you can even add additional income for you and your family!

You might be able to figure out how to make more money if you stop watching so much TV!

So what are the different ways that you can use all this new found time to generate more income?
For starters sit down with a pen and paper and figure out just what it is that interests you.  What are you passionate about?  What have you always wanted to try but just haven’t had the time?  Do you enjoy writing or journalism?  What about sewing or knitting?  Do you have a passion for design?  Are you a great cook?  Why not come up with your own signature brand of homemade jam?  You can use your skills and maybe even make a lot of money in the process.  Have you thought of starting a side business?  You could try your hand at consulting, or a blog, even Etsy.  Are you musically inclined?  You could teach music lessons from your home.  Are you an expert in skin care and make-up?  You could teach other women how to properly take care of their skin as well as teaching them how to properly apply their make-up.  What about upgrading your education?  Take some classes or go back to school full time in a career field that interests you.  This will increase your level of knowledge and education and you will become a lot more marketable within your field.
If you are completely stuck about what to do, then  some research on the Internet is a click away then you can discover what is in high demand —what do people want to buy?  Then sit down and think of a way that you can produce what is in demand.  You may just come up with the next great invention and become very successful!

These are just a few ideas on how you can increase your income level simply by just cutting down the number of hours you spend in front of your television. Who knows – you may just happen to find that pot of gold!

Credits:freefrombroke.com

25 Traits Of The Not So Well To Do

Who hasn’t complained about money from time to time? I’ve had my share of gripes over the years for sure!  Some people follow up their gripes by doing something about it.  They save and work hard so they can have a better life later on.  They become the well to do.

Others are the not so well to do’s. They sacrifice their futures to live like kings and queens today, always with the latest “stuff” but at the same time complaining about money.

I’ve observed, over the years, that the not so well to do’s have some traits in common.  The following list are my observations.  These items aren’t bad per se, but when you see a good number of these traits in a person there’s a good chance they too are one of the not so well to do (read: poor)!

25 Traits Of The Not So Well To Do:

1) Big flat screen TV

I’d love to have one but I know we can use the money elsewhere right now.  But I’ve seen a lot of paycheck to paycheck households with a flat-screen TV.  They are the wave of the future but these were bought to have a cool tv not because tube TV’s were no longer available.

2) Premium cable channels

Who doesn’t love the shows on HBO or Showtime?  But the the ones who are most complaining about money tend to not only have one premium cable channel, they tend to have them all!  When you mention that it’s expensive they insist that it’s cheaper because of a package.  They might also have some sort of DVR to record all of the channels too.  Sorry, I can’t see spending over $100 a month to sit in front of the TV that much (thought there was a time that I did but I was also in credit card debt once too).

3) Eating out often

The not so well to do can’t get ahead because so much of their paychecks go to eating out often.  I’m not against a good meal but these people rely on other to cook for them rather than prepare food for themselves.

4) Leasing a car

A car lease can be useful but the not so well to do’s are perpetually leasing, enticed by the lower monthly payment.  Over time though a bought car would have saved them a whole lot!

5) Buying a new car every few years

Maybe worse than the car leasers are those who insist on buying a car every few years.  Oh, the horror of not having an up to date vehicle that you take care of for the long haul.  You must have something new to show off.

6) TV in every room (with cable)

The not so well to do’s are so consumed with their TV shows that they have one in every room lest they miss something on TV!  Every bedroom and kid has one too!  There might even be a small one in the kitchen.  And to add to the expense they probably all have full premium cable channels.  I love TV but come on!

7) Latest cell phones

The not so well to do’s always have the latest cell phones.  It’s a miracle if their cell phones last for the 2-year contract.  These are people where you run into them every few months and somehow they have a new phone.  They’ll insist that it didn’t cost them anything but we know better.

8 ) Eat poorly

This goes hand in hand with eating out.  The NSWTD’s tend to eat like crap.  Soda is a staple as are fried foods and fast food in general.

9) Overweight/No Exercise

When you eat out all the time and don’t eat well what’s going to happen?  Yeah, you’re gonna put on a couple of pounds.  Or more!  These people scoff at exercise and moan that they don’t have time and it’s too expensive.  Of course it is – you’re spending too much time and money on your TV’s and shows!

10) Lots of new clothes

Oh, the not so well to do’s have to have the latest styles or the biggest name brands.  And in excess too!  A few pairs of shoes or sneakers?  Yeah, that would be optimistic.  More like enough shoes so that none of them ever have a chance of wearing out.

11) Tons of gifts for the holidays when you can’t afford it

Have you heard this story?  Person complains that they are up to their necks in credit card debt because they had to buy everyone gifts for the holidays.  Not just immediate family but all sorts of extended family too.  Uncle Joe’s wife’s sister Mary’s kid needed to get that new X-Box game because you promised it to him.  Wonder why he likes it when you come over for the holidays?

12) New computer every couple of years

Man, the not so well to do’s go through computers like my two year old goes through diapers!  There’s always some reason they needed a new one.  And no, these people don’t need their computer for work in any way.

13) Don’t take care of their stuff

These folks not only have lots of stuff but they don’t take care of it either.  Rather than take care of their stuff they let it fall into disarray.  Even if there’s something small that can be fixed they’d rather just go buy another then go through the trouble of fixing it.  Yeah, here’s one reason they go through so many cars, cell phones, and computers!

14) Tons of gadgets

Always with the newest gadgets the not so well to do’s have (that was a Yoda sentence, huh?).  Besides cell phones and such they also have whatever is the newest thing, paying full price for being the first to have it.

15) Doesn’t own a home

Nothing wrong with renting but I find that the not so well to do’s more often than not rent.  And they move pretty often too.  I guess their apartments aren’t ever big enough for all of their stuff!

16) No online high yield savings accounts

No ING Direct Savings for these people.  For whatever reason they don’t trust online banking, or so they claim.  Yet they seem to be able to use their computers to shop online without trust issues, hmm.

17) Doesn’t budget

No budget what-so-ever!  “Budgets? We don’t need no stinking budgets!” Spend and we’ll figure it out later.

18) Couldn’t tell you their monthly expenses

The NSWTD’s can’t keep track of their expenses.  There’s so many to keep track of too!  Think a budget might help?  They also have a tendency to miss payments on bills making the cost of their expenses even greater.

19) Doesn’t share finances with their spouse

There’s a tendency that one spouse takes care of all the finances while the other one has no clue.  Scary.

20) Hates job but won’t do anything about it

Do these people bitch about their jobs!  But ask them why they won’t leave or look for another one and they’ll give you a litany of excuses.

21) Little or no college education

I don’t want to rag on people who don’t like school.  It’s not for everyone and not everyone needs it.  But it seems a lot of the not so well to do’s have little or no college education.  Just saying.

22) No financial priorities

These are the people that tell you they could never save a down payment for a house but then you see all of the gadgets and new items they have.  Yeah, they could save up they just don’t make it a priority.

23) Quick to pick up tab and tip

It’s great going out with these people because they are quick to pick up the tab and/or leave a ridiculous tip.  It’s like they are trying to prove they have a lot so they become over generous.  Hey, I’ll pay my share and you don’t have to prove anything to me!

24) They don’t realize their situation

For all of the complaining about money they do, the not so well to do’s don’t realize why they are cash-strapped.  When you try to point out how they spend or how expensive some of their habits are they say it’s nonsense.

25) No personal responsibility

Someone or something is always out to get them and causes them to be broke.  The IRS hates them.  Their bosses won’t promote them.  Their family takes their money.  There’s always some outside influence that causes them to not have money.  It rare that they blame themselves for their situation.

The traits I listed aren’t bad in of themselves. Hey, if I could always have a new car and the latest cell phone and eat out all the time at the nicest restaurants then that would be great.  But I can’t, and these people can’t either.  The not so well to do’s over-extend themselves and hold themselves back.  They try to live up to some imaginary ideal that is impossible for them to keep up with.  Some of it is keeping up with the Jones’.  Some of it is not wanting to know their limitations.  Whatever it is it keeps them back and they will always be struggling unless they change their ways.  They are the not so well to do and will remain that way unless they change.

If you are reading this and these traits resemble you then take a good hard look at your spending habits and ask yourself if there’s any way you could make a positive change!

What traits have you noticed about the not so well to do’s?

Credits: http://freefrombroke.com

Facebook billionaire's tax bill: Zero?

With a salary of only $1, founder Mark Zuckerberg may not owe Uncle Sam anything. And there are strategies that could keep him from ever paying income tax again.

  Next year Mark Zuckerberg’s base salary will receive a dramatic pay cut -- going from a base salary of $600,000 to just $1.

Which raises the question: Will he ever pay taxes again?

Zuckerberg’s salary cut is similar to moves by other tech titans. Google’s Eric Schmidt and Larry Page are paid annual salaries of just $1 apiece. Steve Jobs took just $1 in annual salary from 1997 until his death last year. Other members of the 1%/$1 club include Oracle’s Larry Ellison and Hewlett-Packard’s Meg Whitman.

Zuckerberg was paid a base salary of $500,000 in 2011 and is set to be paid a base of $600,000 this year. He got a cash bonus of $250,000 for the first half of 2011 and will likely receive a similar bonus for the second half.

Interestingly, he was alone among the top executives at Facebook who got no stock awards for 2011. The board -- which is controlled by Zuckerberg himself -- decided that he had enough stock to align his interests with the other shareholders, at 28.2% of the company.

Zuckerberg’s pay cut could reduce his income tax burden to nothing.

It’s possible that he might even be eligible for certain types of government aid for those with low incomes -- although it’s unlikely that he would seek to collect it. (Post continues below.)
In order to reduce his tax burden to zero, Zuckerberg would have to forego any future cash bonuses or additional stock awards. He would also have to stop employing certain Facebook services for personal use. Last year, for example, he had imputed income from the use of aircraft for personal use of about $692,679. He also received $90,850 in estate and financial planning from Facebook.

Can Zuckerberg really live without income?

He almost certainly can. There’s no evidence that he has an exceptionally expensive lifestyle. His biggest annual expense is probably all that flying around. The income he has already received and been paid will go a long way.

Of course, his past income will not really be enough to see him through all of his expenses for his entire life. For those he will need a line of credit, preferably one with a tax advantage, and income that can be earned tax-free.

People sometimes talk about the rich "living off the interest" of their wealth. But that’s not a tax-efficient way to live if you are really, really wealthy. It’s better to live off debt and muni bonds.

The best thing for Zuckerberg would be a home equity line of credit -- perhaps multiple home equity lines. By borrowing against the value of real estate he owns, the money he receives from the HELOC is debt rather than income, which means it isn’t taxed. Even better, the interest he pays on the HELOC can be used to offset other income he may earn.

Zuckerberg will also be able to access credit secured by his Facebook holdings -- which will amount to billions of dollars. These lines of credit will not be tax-advantaged -- no deduction for interest payments -- but they will supply him with spending money that will not be taxed.

When you have the net worth of Zuckerberg, you can live for a very, very long time on tax-free debt that you can use as income. Let’s say that Zuckerberg needs $2 million of spending power per year and lives an additional 60 years. That’s $120 million of spending. If he gets an interest rate of 4% and just rolls it over as new debt, he’ll eventually accumulate around $520,919,997. Some of that interest, of course, may be deductible against other income.

The might seem like a lot of debt. But for Zuckerberg -- who will likely be worth around $25 billion after the Facebook IPO -- it’s a drop in the bucket. What’s more, if Facebook continues to grow, Zuckerberg’s worth will grow along with his debt. Thus, his debt burden will be negligible compared with his net worth. The unimaginably rich really are different from the rest of us.

Zuckerberg could also use the money he has earned, some from his HELOC and some from other loans, to purchase income-producing, tax-exempt municipal bonds. The interest on the HELOC would be tax deductible -- producing a double tax advantage.

The interest on the other loans would not be -- but the income from coupon payments from the muni debt would be. He could even use the income from the munis to pay some of his interest expense, which would substantially reduce the lifetime accumulation of debt.

The best way for Zuckerberg to meet large expenses -- for instance, if he wants to buy an island in the Caribbean -- would be to cash out some of his Facebook shares. He would pay only 15% in capital gains taxes on these.

Perhaps most bizarre, Zuckerberg might be eligible for an Earned Income Tax Credit if he keeps his personal income under $13,000. To be honest, that might be hard to do since a guy like Zuckerberg can produce that income by taking a company car home at night. And, in any case, it’s unlikely that Zuckerberg would find it worth the time to even file for an EITC that maxes out at just a few hundred dollars.

To be clear, I have no idea what kind of plans Zuckerberg has for his future income and taxes. He may not want to accumulate debt for his entire life. Perhaps he has plans to become a big spender and will need to derive income beyond what he can get from muni bonds. But it’s very likely that at least some of the $90,850 worth of financial advice Zuckerberg received went to minimizing tax exposure.
  
Story from CNBC.com.

Creating Wealth With What You Already Have

It is a known truth, and emphasized by our current economy, that people have a hard time saving money. Most of the time, most people spend all of their money. They get accustomed to spending a certian amount and varying from this is becomes very difficult. Every financial advisor and personal finance book will tell you the same thing—pay yourself first. It is the best tactic to securing your financial future. But, how do you do it? How can this be done without an insane amount of difficulty? Well, read on.


1. Make your savings automatic. In fact if you can, have it come right off of your paycheck so you don’t even see the money. In some cases your employer or bank can assist with this. Since you never see the money, you don’t even have to make a concious effort to put it away. By paying yourself first you limit your ability to spend that money on other things.


2. When paying your bills, don’t pay them first. Pay yourself first and deposit money into your savings account. Many of us historically have done the reverse and paid for everything else first. The problem with this is, we never seem to have anything left over to put into savings. Simply put, if you wait to pay your savings last, you probably won’t pay it.


3. When you spend, you can save money as well. Purchase items that grow in value. Extra money lying around? Invest it in the stock market. Invest it in paying off your mortgage early. Use it in ways that make you money. Pay off your debts and invest the rest.


When you save money, the key is to really save it. If you buy something on sale, what happens to the money you saved? You probably spent it on something else right?. Nothing really got ‘saved’. From now on, when you save $15 on groceries, put that $15 in your savings account. When you don’t buy a new pair of shoes because you know you need to save, put the cost of those shoes into your savings.


Bottom line is that saving money isn’t that hard. It is simply a habit that has to be learned, just like brushing your teeth. Psychologists say it takes 6 weeks to make an action a habit, so start paying yourself first today and in a little over a month, you will be doing it without a flinch

Culled from:  http://prairieecothrifter.com/2010/07/creating-wealth-with-what-you-already-have.html

Do you want to retire poor?

What a question? who wants to? the truth is that it is likely a lot of people would retire poor if they do not start to plan for their future now!!

If you are still in your 20s or 30s, then you would be in a better position to start to save for your retirement. It might be small sums now but if you actually save and give your money time to compound, then would you realize that you can actually have more by the time you retire. if you are into your 40s, then you are late on your retirement savings and would need to save larger sums to reach your financial goal.


Saving for your your future is very important and only you can be in charge of it. Take control now.

Cheers.

YOUR MONEY OR YOUR LIFE!!!!

How do you value your money in relation to your life? Well for some of us, life is not to be taken too seriously while to others money is a defining factor. One thing we all agree on, explicitly or implicitly is that ‘Money is something we choose to trade our life energy for’. When we work, we trade our life energy for the money we make.

It is worthy to note that whatever we earn at the end of the month, we have actually traded our life energy for it. For instance your monthly pay is N70, 000. In real value terms you have traded a month of your life for less than N70, 000 because you would pay your tax, buy office clothes, food for the home etc.

One thing is certain; you need to trade your energy/time for money as that ensures continuous survival but it really mustn’t be at your detriment. Ensuring that your lifestyle is proportionate to your money is really important so as to not be tempted into illegal acts.

As we all know, time is money. Endeavour to use yours well

Cheers.

How to manage your finances during tough economic times!!!!

 Knowing how to manage your personal finance can help alleviate pressures you would feel during tough economic time such as economic recession, general strike, natural disasters etc. Most importantly it will help you prepare for tomorrow’s challenges and help prevent making the same mistakes.

The very first thing that you need to know if you don’t already is to save, save and save. You must have a reserve fund to always fall back on. If you don’t, start one immediately. A reserve fund provides your future a safety net. There are a lot of rules about how much you need to save continuously but the generally acceptable one is that it should not be less that 10% of whatever you earn. What you must realize is that , there is never a period you can stop saving. It is a lifelong process that is very beneficial. Having too much money saved is not a problem; all you need to do is to take the excesses for investment or consumption.

Run your household like a business. During economic growth you will distribute profits while during economic downturn, you adjust accordingly by reducing you expenses to ensure you survive the period. There will be a freeze on employment, reduction in allowances or even layoffs. Once they have adjusted and have freed up more money, companies can invest in undervalued assets and thereby preparing for the future.

It's time to take charge of your finances.

WHERE DID THE MONEY GO?

Have you ever asked yourself this question? I guess we all have, at one point in time. We brought a fat envelope stuffed with N500 or N1,000 bills home and kept it in one of the drawers at home, maybe the bedside locker.

We have a general idea of what we want the money to accomplish, but don't exactly have a written list. Possibly the money came unexpectedly, or is even our dear pay packet.

Then the party begins. Wifey needs this, the mechanic is at the gate, he needs money to replace this component in your old reliable jalopy. Your sons shoe is undersize, your daughters school bags is worn out. On and on it goes...

A few days later, you peek into the much depleted envelope. Four miserable notes stares back at you. You hold back a scream...

WHERE DID THE MONEY GO?

To make matters more interesting, there are still items in your mental To Do list yet to be attended to. Possibly you came to the envelope to get money when you stumbled on a near empty envelope. The money is virtually gone, there are things waiting to be done. The month is still young. If it is your salary, your take home pay has abandoned you midway home. You need to figure out how to make it to the next pay day.

The crux of the matter is that you are not in control of your cash flow. You are simply going with the flow. You don't have a working budget (you may have a beautiful document left somewhere in the house, you don't know where) or spending plan. You are responding to external stimulus. You are not acting, you are reacting, and emotions has a lot to do with your spending.

 

We all have different levels of discipline when it come to handling money, hence there is no formula that fits all. Since I tend to be weak and emotional in that area, I police myself by making sure that the money departs immediately to their husband's houses before they get to me. I marry them off. I issue post dated cheques to my stockbroker and funds manager at the beginning of the year for the amount I have earmarked for each. Since I don't want EFCC to arrest me for issuing dud cheques, I transfer the money to another account by standing order (where I issue the cheques from). Same with school fees, I have a school fees account, and a savings account. So the moment my salary hits my account, they start heading off in different directions immediately (to their husband's houses) without saying goodbye. That way, I am paying school fees, saving and investing without lifting a finger. I only call my stock broker to tell him which stock to buy. The money is already in may stockbroking account. When it is time to pay school fees, I simply head for the school fees account and withdraw the amount needed, I don't rack my brain and start running helter skelter to figure out where the money is coming from.

Same thing with other expenses, I pick everything for the month. Hence a few days after payday, I am left only with money for discretionary spending. If you come and tell me you father is in hospital overdue for discharge, and you need to borrow money to help settle the bills, there is nothing much I can do. It is true pay day was a few days ago, but the voucher has been closed and the cash all gone to their various places of assignment.

If you are much more disciplined than I am, you can have the money sitting in your salary account, and disburse it according to budget. You only go to the bank with a list of what you need the money for, based on your budget, with no room for impulse.

If London bridge is falling down, repair it with money earmarked for such purposes. If it is important enough, you must have started putting money aside for it. Of course once in a while, unforeseen emergencies come calling without notice. Sometimes the scale can be such that it wipes up your reserves. This is understandable. However, if it happens every month, then there is a problem with your financial planning.

The crux of the matter is control, gaining control of your spending. Imagine your economy is like an airplane, you have to make your way to the cockpit, remove it from auto pilot and take over the controls, whatever it takes. It will not happen overnight. It you are thousands of miles off course, it will take a while and some doing to get back on course, but you can do it.

Having a short term and long term goal helps in galvanizing focus. Most people complain that they don't have money to start a business, workers inclusive. The easiest and cheapest source of funds for a business start up is personal savings. The interest rate is 0%. Maybe you want to build a house, go back to school or whatever. Having a focus helps move you along the road to financial discipline, if you can come to the understanding that a dripping tap can fill a bucket. If you can gather all the money that has been dripping out of your hands in one place, you will be amazed how much it amounts to in one year.

So where did the money go? Witch rats from your village did not spirit it away. Chances are that nobody in your flat or house is stealing it. If you religiously itemize every amount you collect from that envelope, you will see clearly where it went. It will simply add up, though you may not see what it has achieved. It simply grew wings and flew away because you did not send it on any specific assignment. You allowed them to loiter away. Look at money as your servants, and give them assignments before you leave home, you will see that you will get results.

 If you allow them to roam free, you will continue wondering where the money went...