How Do I Become A Millionaire?

It has been a while since I talked about the original mission of Generation Millionaire. To teach and encourage you to use the time you have to make your retirement more secure.

So what is one of the pieces of the puzzle? "Time + Regular Investing" into a diversified portfolio = Long term success

The sooner you start investing in a 401k or IRA the more $$ you have for retirement.
If you invest $60 a week starting at age 18 for 50 years with an 8% return = $1.9 Million
If you invest $60 a week starting at age 25 for 42 years with an 8% return = $1 Million
By waiting 7 years to invest a mere $60 a week - you give up almost one million dollars.

Where am I going to get $60 a week or $8.50 a day ?? It is so easy with simple changes you won"t notice in the long run.....
Pack your lunch instead of eating out -
Go to the library for movies, cds, books and games -
Plan your route to avoid extra driving -
Go to a matinee
Drink water vs ordering soda, coffee, tea etc.
Buy used books for classes
Don't use your charge card

Little changes that will not affect your quality of life TODAY will pay off big TOMORROW.
This information can change your entire generation - WILL YOU BE A MILLIONAIRE?

Save any amount you can - less is better than none. I challenge you to write down every time you spend a penny - you will be amazed at the way money trickles out of our wallets.

Always check with a financial expert prior to making any investment decisions. Play with the financial calculator under the calculator link tab at the top of the page.

Stay tuned.......

Financial Friday - What Happened?

What should have been a fun filled shopping spree for some turned to disaster at 2 stores and I am sure there were many scraps at others. My questions to all of you is......Are things that important to you? If you were the first one at a store waiting to get in for a great deal and people started to push or try to get in front of you - what would you do? It is the same question as when someone takes a parking spot you were waiting for. How do you react?
Who do you want to be?

I have been up half the night thinking about the 34 year old WalMart Worker who was trampled to death by an over zealous crowd - drugged by the idea of a good deal. First off my sympathy to the family. My heart goes out to your family and I am sorry for our society and what we have become.

So who's fault is it?

The media for over hyping the deals on Friday and ignoring Thanksgiving and all the reasons for the holidays in December. As well as continuing to encourage the culture of things.

The stores for only having a few of the special priced items to lure thousands of consumers to their stores in the middle of the night and creating a sense of panic to get to the few cherished prizes on sale. Not having a system to organize the mass crowds waiting to get for the handful of bargains.

The shoppers for letting their emotions take over any sense of reason. To literally put themselves and others at risk to save a few dollars on something they could live without.

I have told my kids their entire lives it only takes a second to change your life and that of others. Stay alert or leave when a situation could easily turn out badly. I called it the Princess Diana moment. Had she just walked upstairs to a suite in the hotel she was at - she may still be alive. She seemed to have gotten caught in the energy of all the people around trying to "protect" her and ended up in a horrible situation. Stay aware of your energy - and decisions.

I just ask that all of you decide what type of society you want to live in and be the role models that we so desperately need. Constantly review your actions and ask yourself is this what I value?

Enjoy shopping for your holiday gifts, make it a family event and put thought into what others would really enjoy or need. It should be a wonderful heart felt time of the year. Please stay safe and embrace those you care about.

Stay tuned......

Time for Gratitude!

I love Thanksgiving - it is probably my favorite holiday. No big hype, kinda gets lots between Halloween and all the December holidays. It is not about what football game is on or if the turkey is dry.

For me, it is a time to remember and be thankful. We take for granted all our rights, freedoms, and choices. We forget not everyone in the world has access to good medical care, food, water, and the basic necessities. I volunteer for a group called Cardiostart - they go around the world and teach very basic open heart surgery to third world countries. I have a connection to this group for 2 reasons -

1. If i didn't live in this country I would have died 35 years ago.
2. I am trained as a ECG/Monitor Tech from when I was much younger

When I realized kids and adults were dying from a medical procedure we have been doing for 50 years - I was disheartened, outraged and sad. And decided to use my time and energy to assist them. My point in telling you all this - is we very fortunate to live in the United States. When you have everything at your finger tips it is easy to realize not everyone has the same options.
I love Thanksgiving - for me it is a day to reflect and think about what I will do in the upcoming year to help others that are less fortunate.

We wish you and your family a very healthy, safe and happy Thanksgiving!

Stay tuned.........

Beware of Black Friday!!

Wow, I thought after the election the onslaught of targeted commercials would come to end. I was mistaken. The marketers are in an all out battle for your business. It will be survival of the most creative marketers. My thoughts to you.........

There will be amazing deals this year. Yahoo has what they feel are the 10 ten best deals. However, most people believe that the deals will get better closer to Christmas. Friday stores will have door busters to try and get you into the store in hopes you will buy other things.

Make a list of who you are buying for and how much you are going to spend. (hopefully, in cash). When you buy for that person - stop and move on to the next. No adding another gift because it is a great deal.

Spend more on one gift than another person gets a less expensive gift. Stay on your budget.

No impulse buys - that is the marketers whole goal in life.

I received one of those emails that friends and family fill in things about themselves. One of the questions was - Favorite Christmas or Holiday gift. Ready - most people do not remember!! Next question what do you want for the holidays this year? 100% said - family to be healthy or spend more time with friends and family. It has nothing to do with things.

Depending on the person's financial situation - you may want to get practical gifts - money is tight everywhere. Items they may need through the winter, stamps to pay bills, gift card for groceries may relieve some stress.

If getting gift cards check to be sure the store isn't closing. There are 100's of stores closing - you do not want your gift to be useless. So buyer beware.

Lastly, if you go battle the crowds in search of amazing deals - have fun.

Picture from Etsy.

Stay tuned............

Some more credit facts

I have been thinking alot about when I was in college and how life worked in the 80's. I went to school about 4 hours from my childhood home. There were no cell phones, email, instant messaging, or other forms of instant communication. My mom would write me a letter and tell me when she was going to call so I would be home to answer the phone. Long distance was expensive and we always made the calls quick and not during peak hours.

I had a checking account - no debit or credit cards. I ate in the school cafeteria no other options existed on a meal plan. I would grab extra fruit or bagels to have food in my room. I waited for boxes to arrive from home or family members for home cooked treats and hopefully a few dollars.

Every time I spent money it was literally a very conscience decision. From splitting a pizza with my roommate, going to a dance club, what personal items I purchased, to how I bought my books for my classes. I can still remember what it felt like to ponder these purchases - because to have 1 item meant I didn't have another. It was not a bad feeling it was one of being responsibly and respecting my limits. It also help me really prioritize what was important to me. I still make my financial decisions with the same awareness. I live under my financial means and really enjoy everything I choose to spend my money on.

Here are some financial tips for high school and college students... from the Credit Abuse Resistance Education Program.

1. Create a realistic budget.

2. Open a savings account.

3. Look for ways to save money. We have discussed this time and time again.

4. Use cash, debit card or checking out instead of credit.

5. Avoid credit card debt.

6. Pay your bills on time.

7. Pay debt off as quickly as possible.

8. Minimize student loan debt.

9. Avoid - impulse shopping, expensive behaviors like gambling and drugs, opening multiple charge accounts, pawn shops, car loans longer than three years, rent to own and payday establishments. Do not open credit cards to get free stuff. Those cards HURT your credit.

10. Remember the consequences of abusing credit cards and other consumer debt. Don't lose out on a job, student loans, admission to graduate school, apartment or car loans because of too much credit card or other consumer debt. Today everyone is pulling credit reports and suing them to make decisions about your future.

I don't know when this changed but when I was in college my parents weren't concerned that I worked third shift in a hospital on weekends and part time at the Medical bookstore while going to school and having a social life. I was able to manage all that and keep my student loans to a manageable amount. I am not suggesting everyone should work 2 jobs but I am asking why is not possible to work at least 1 part time job to cover your extra expenses or keep your loans to a minimum. This parent attitude (in my thinking) does not help you learn to manage your time, finances and choices. My kids are very active in college activities, work part time, take student loans, and perform well in their classes. They are accountable for their life and choices. As parents we assist with expenses (our choice) and support their choices. Isn't that what college is all about - learning to make responsible decisions and learn to live on your own?

Stay tuned............

RSS Feed

I know have a RSS feed on the blog. If you go to the bottom of the blog under Subscribe To:
Click on Posts - you can then receive notification when I add to the blog. I use igoogle and when I pull up my home page it lists the most recent posts.

It is an easy way to stay current on what we are doing at Generation Millionaire. We have more and more presentations and ideas for you in 2009. We will also have some guest writers soon. As always, look forward to your comments and emails. Continue to invite your friends to view the blog and sign up for the RSS feed.

Thanks and have a safe and fun weekend.

Stay tuned.......

Financial Friday - Ramblings

Today I am going to hit numerous and varied topics - so go with my ramblings so I can clear my mind and get back to the post on credit! Regarding the current economic situation I am going to link to some articles - from Marketplace and CNN Money.

First, the financial picture this week is more of the same. Volatility, uncertainty, low consumer confidence, layoffs, more store closings, pension concerns are a few of the issues facing us.

The basic principles still apply - start saving now (especially with the market so low), Time is on your side. Make wise decisions with your money - give up the impulse buys and don't be drawn in by the marketing, the best things in life are free - stop think what is your favorite childhood memory? I will wager it isn't something you received but something you did with someone. Remember that when you start to pull out your wallet.

Next, I found a comment on the blog that I want to respond do. Here is the question:
Josh said...
My girlfriend is in pharmacy school and is receiving student loans. Her loan covers her tuition and gives her about $1,200.00 every quarter. What could she do with her money that would benefit her after pharmacy school?

Josh, thanks for the question. There are a few factors to consider. Is there any chance she will need any of the money sooner? If so, put that portion in a savings account hopefully returning some interest - so she can get to it in an emergency. Next, depending on how many years she has until she graduates - I would think about keeping it safe - she could put it in a CD that may secure a higher interest rate than the savings account - but not take on any additional risk. If she is not going to need the money for 5 years or longer she could look into a conservative mutual fund - something that has a mix of stocks and bonds. Many firms offer asset allocation funds that go from lower risk to higher risk. The more stock in the fund the more risk you assume. So she could look at a fund that has 20 -40% stock and the rest in bonds - if she wants to assume more risk and have the opportunity for a higher return. As always, check with a financial professional prior to making any decisions. Smart about Money is a good unbiased educational resource.

Lastly, I can not encourage you enough to really look at your values and where you place your time and money. Our family had a tragic loss 5 months ago - my cousin Joe was 34 years old and killed in an automobile/motorcycle accident. He had his helmet on, had the right of way and the person turned right in front of him. The driver was charged with vehicular manslaughter yesterday. This whole situation is tragic. You don't know what is going to happen from one second to the next - so spend time with the people you love, be kind, give back, laugh, learn, have fun, embrace the world around you and realize that money and things can never replace the time and energy you give to others. Have a safe and awe inspiring day!

Stay tuned........

Are You Kidding Me - Make A Wish Come True......

I saw a commercial from Sears right before I went to bed last night that really bothered me. Apparently, it haunted me because I am back up and writing a post on it at 3:40 am.

The ad basically states "Make a wish come true" for the holidays. Purchase a gift you can not afford to make someone else "really happy" now. Credit terms 12 months same as cash.

Here is what you need to understand - if you can not afford it now - Don't buy it.

The way 12 months same as cash works is - if you pay the entire amount back prior to the 12 month window - you pay no interest, however if you can not pay it ALL back - all the interest over the past 12 months is added to your amount due. It is normally at a very high interest rate. The wish becomes your nightmare.

Please be careful over the holidays. Do not go into debt for a gift or an impulse purchase for yourself. We just had a contest on creative low cost gifts. Go back through the posts get some ideas. Things will not bring you happiness no matter how much the marketers what you to believe that.

Stay tuned...........

Ways to Ruin Your Credit......

What is all the talk about credit? It seems to be all the buzz. So what can you do to protect yourself from making some common mistakes that could take you years to undo.

Top 10 Mistakes

1. Accept all the preapproved credit card offers you receive and open in store credit cards to save 10% on a purchase.

2. Buy everything you want on credit- spend more than you make or can pay each month.

3. Pay your bills late or miss a payment if money is tight.

4. Let your accounts go to collection. Ignore creditors.

5. Close credit cards account soon after opening them.

6. Max out your credit cards - use every bit of credit given to you.

7. Co-sign for other people to get credit or let others use your cards.

8. Mismanaging student loan money.

9. Not having a budget.

10. Not getting and reviewing your free credit report every year.

In the next few posts I will discuss what a credit score is , what is credit and ways to establish and maintain good credit. By being responsible with your credit - it can lower interest rates on loans, give you opportunity for home or car ownership, obtain employment, and on a personal note it makes you a more desirable partner, less stressed out when the phone rings or the mail arrives, and a feeling of self respect.

Stay tuned......

University of Cincinnati and Ohio State University Presentations

Exciting news.... I will be presenting at the University of Cincinnati on January 27, 2009 for the Business School and at The Ohio State University on February 9th, 2009.

Generation Millionaire is spreading. We have young adults all over the country and quite a few countries around the world reading and responding to the blog. Please continue to share the blog with your friends. Knowledge is power and creates financial and mental freedom - which ultimately creates options!

I want to thank both schools for offering this opportunity to their students. The information can change their lives by understanding the basic principles of time over money, paying oneself first, debt is a trap, living under ones financial means instead of above, asset allocation, compounding and the rule of 72, and the biggest investment mistakes.

I have quite a few pending presentations I will continue to share the schools and organizations as they become definite.

I have not forgotten we will discuss credit mistakes.........

Stay tuned....................