When I Finally Get My Time Machine...

One of the questions I am regularly asked during my presentations is: "Are YOU a millionaire?"

The answer is, most unfortunately, no.

But I would be. I could have been. IF I had made the decisions I advice high school and college-aged students to make - I would be a millionaire by now. If I could go back in time and change some of my financial decisions, some of the things I'd do differently include:

• Practicing the "pay myself first" concept by setting aside money every paycheck.


• Made conscience decisions relative to fast food purchases and unplanned expenses.


• Falling prey to advertising schemes.

There are other things too, but these are three things that are so easy to apply. These are three habits I could have developed that would have really empowered my life today. The good news - I have learned these skills and now practice what I preach!

With the upcoming school year - I am concerned about the next generation. It's at this time in their lives that credit card companies began to lure them with plastic money that appears to be "free" but will cost so much. I started Generation Millionaire to help educate and empower the up and coming generation to make smart choices on their own. I am passionate about helping them avoid the same costly mistakes that I and so many others have made.

Financial Advisor vs. Generation Millionaire

No offense to the Financial Advisors out there - but Generation Millionaire endeavors to be something different.

We don't want to tell someone how much they can or can't spend - we want to educate them to make their own sound choices...without our help. And specifically - we want to educate high school students and college students on how to avoid financial pitfalls. Why them? Because they have the best opportunity to become millionaires and secure their financial future if they act now.

Generation Millionaire is an education program that is designed to show students how to avoid credit card debt, pay themselves first, and live comfortably without the undo pressure of keeping up with the Joneses.

Early today, we posted on Facebook that we offer consultations for up and coming college students or recent college grads. We are committed to helping them find practical solutions that are applicable to any situation or financial situation. Please email generationmillionaire@gmail.com for more information or visit our website, http://www.generationmillionaire.com/.

Other People Get to Take a Vacation! Why Not Me?

When we talk about saving money, pay yourself first, and still encourage you to do the things you enjoy from a money-conscience perspective - it's easy to get frustrated, throw your hands up and say, "I hope I win the lottery."

We know that the Pay Yourself First Concept is sometimes daunting when very little is coming in and it's even more overwhelming to think about being able to do anything for yourself in the here and now. A friend recently shared her vacation planning strategy and we thought it was a great way to plan for and save for your plans...

Figure out when you want to take your trip and outline the costs. Where can you save? Could you pack a box of oatmeal for breakfast or book a hotel room in a hotel that serves free breakfast? Make lunch your big meal for the day and go lighter on the more expensive meal. Budget your spending money into increments...figure out your most cost effective / fuel-efficient means of transportation. What kind of portable snacks / lunch can you take with you so you can reduce food costs on the road?

Once you have figured out your budget...create an envelope for each travel day and figure out how much you need. You'll probably need more gas money on the first and last days. Then, start buying gift certificates. Buy gas cards and gift cards to common restaurants.

This method helps you save, plan, and feel like you're in control of your expenses of your trip.

Take the envelopes with you. Each day - hold on to your receipts and whatever is left at the end of the day can be rolled over to the next or saved for future use.

The Pay Yourself First Concept

Remember that first paycheck? You were handed an envelope that represented hours of hard work. Do you remember that feeling of pride...knowing that the sweat of your brow was represented in the enclosed check? Do you remember the sense on anticipation when you tore back the seal on that envelope and then.... Who the heck is FICA?

The government has no qualms about dipping into your income and taking their portion before you ever see it. When it comes to "the pay yourself first concept," you should feel no different.

Yesterday, we posted on our Facebook page about Pay Yourself First. We presented the ideal scenario as 15% of your salary tucked away to mature and grow in smart investments. We also presented the alternative - just tuck away something, even if it's only $10.

What does that look like in real numbers? Say you're a recent college graduate, working 40 hours a week at a $12.50 per hour job. Let's do the math...

40 hours x $12.50 = $500 per week
$500 per week x 52 weeks per year = $26,000

If you file taxes as single, without any dependents, unable to be claimed as someone else's dependent - you would qualify in the 15% tax bracket.

With that estimate in mind, your net income per paycheck would be roughly $425 or $1700 per month. That will make for a tight budget, but what if you deducted money for your future before you ever saw it?

Many companies offer a direct deposit option for their employees. If you had even 5% of your net salary ($21.25 per paycheck / $85 per month) moved to a savings account - what would that look like in a few years with a smart investment plan?

Don't rely on yourself to do this... Determine what you can realistically afford to do and have it automatically moved before you see it. Otherwise, the temptation to spend it may be too strong.

Generation Millionaire has a myriad of ideas around the Pay Yourself First concept. To learn more, contact Stephenie Rulli to schedule a consultation... generationmillionaire@gmail.com.

How Much Do You Spend on Entertainment?

A focus of Generation Millionaire's is to make our audience think before they spend. Today - we want to look at the cost of entertainment.

If you took the time, even for a month, to calculate every latte, lunch expense, drinks after work, etc., you might be surprised at how much money leaves your wallet on a regular basis.

We're talking about Conscious Spending. A reminder and disclaimer. We're not asking you to live off Ramen noodles and never go out / have fun. We're talking about smart, financially sound decisions while still enjoying life.

It's pretty simple...

First - what is your income?
Second - calculate your monthly living expenses. How much is left?

What percentage of what is left are you saving versus what you're spending in entertainment? If you have more going into entertainment than you do in savings, then you may want to make some conscious decisions to rethink those outgoing dollars and make them work for you first.

Practice the "Pay Yourself First" philosophy. You'll never regret it.

College Expenses: Textbooks

Yesterday, on our Facebook page, we posted that the average college student spends $900 a year on text books.

We admit - that number made us cringe.

A textbook is revised every three to four years making it an expensive commodity for a book publisher. It has a limited shelf-life and factoring the costs of printing and distribution - it ain't cheap. Some colleges, such as the University of Phoenix, offer their students e-books as an alternative. When this program initially piloted, UoP students could plan to pay $60+ for electronic versions of these books. It was a slightly less expensive alternative, but not everyone can read a book on a screen!

So - that brings us to our question. Would you rather pay the cost of a "real" hard book or the slightly discounted price of an "e-book?" What are the benefits of each?

Hard Book Benefits
- Bought used, the price may be equitable to an e-book.
- Bought used from a brainy student who just finished the same class, you get the benefit of their prior experience via notes in the margins!

Hard Book Negatives
- Lugging them to and from class.
- Dorm space is only so big...those books are huge!
- Shipping costs, if applicable.
- Supply and demand factors.

E-Book Benefits
- Environmentally sound.
- Easier to search for key words.
- No worries about the bookstore running out.

E-Book Negatives
- If you have to print the whole thing to read it - the environmental factor has just been thrown out the window.
- Can't make notes in the margins.


What are other positives and negatives about hard-back text books verus e-text books? If you are a college student - which format would you prefer?

Fun vs. Financial Freedom Part 2

On Tuesday, we explored some scenarios that would enable one to save money while simultaneously allowing one to have fun and to "have a life."

The scenarios included:

• Going out with cocktails with the girls.
• Double date night with your best friend and his / her significant other.
• Formal dinner party with the boss and his wife.
• Planning a bridal shower for your sister.
• Going to a ballgame with the guys.

So - how'd you do? Did you think of any options to keep these events a minimal cost?

Here are our thoughts:

Going out for cocktails / going to a game

This can get pricey with cocktails averaging $7+ a drink plus tip. Before going out - consider these money saving (and safety-conscious) ideas:

• Designate a driver so that cab money isn't necessary. It's cheaper to pool together for a tank of gas than to pay a driver to drive everyone home.
• Limit yourself to one or two drinks and then switch to water or soda.
• Eat before you go out...this will save money on appetizers and junk food.

Double Date Night

Consider low-price alternatives to the traditional double date of dinner and a movie. How about the following:

• Research local events. Is there a cool art exhibition that everyone would enjoy? Or perhaps movie night in the park?
• Potluck! One couple provides salad and dessert, the other the main course.
• Start a couples book club. Meet up at a local bookstore for coffee and discussion.

Formal Dinner Party

Who wants to spend a bunch of money on a fancy-schmancy event with people you work with! Consider these ideas:

• Borrow or rent formal wear instead of buying. How often are you going to wear a $300 cocktail dress??
• Mom says you never go to a party empty-handed. But, don't feel like you have to break the bank on an expensive bottle of wine. Ask the store clerk for a nice bottle within your budget.
• Minimize the drinking so you can drive yourself home and not incur cab fares.

Bridal Shower

• Go potluck. Ask guests to bring a dish to help with the food.
• Go minimal on the decorations. No one is going to remember them.
• Make the cake yourself.

What other ideas do you have?

Fun vs. Financial Freedom

If you're a college student or just starting out - chances are good you've recently been burdened with student loans which are overwhelming if you are still job-hunting or have entered the workforce with an entry-level position. The size of those numbers are astronomical when you've gone from zero debt at Mom and Dad's to five figures or more in the span of a few years.

How are you going to make your finances work for you and still have a life? Is it asking too much to have your cake and eat it too?

Generation Millionaire is about teaching you strategies that give you informed options. We don't want you to sit at home every night staring at walls. We want you to go out and enjoy your life while still making smart financial decisions.

Here's a little quiz for you...pretend you got it out of Cosmo (you just saved $5). We'll give you a scenario and you tell us a way to make it more economically viable for your wallet.

• Going out for cocktails with the girls.


• Double date night with your best friend and his / her significant other.


• Formal dinner party with the boss and his wife.


• Planning a bridal shower for your sister.


• Going to a ballgame with the guys.

What kind of ways can you enjoy yourself without breaking the bank? We want to hear from you! Post your answers on www.facebook.com/generationmillionaire and look for our perspective on this in Thursday's blog.

The True Freedom of Credit Cards

Earlier today, we posted about the national average for credit card debt... $8000. We pulled this figure from MSN Money, but like everything - it's open for debate. Personally, I thought the figure was a little low and www.creditcard.com agrees with me. Per their site, the average credit card debt totals $15,788.

This was a really interesting site with some staggering numbers. We'll explore this more indepth in future blogs, but for now - let's talk numbers for the credit card companies.


CREDIT CARDS IN CIRCULATION

• Visa: 270.1 Million
• Mastercard: 203 Million
• American Express: 48.9 Million
• Discover: 54.4 Million

CREDIT PURCHASES / VOLUME

• Visa: $9 Billion
• Mastercard: $5.9 Billion
• American Express: $3.6 Billion
• Discover: $1.6 Billion

Those numbers are so staggering, the figures are virtually unrelatable to most Americans. But consider these numbers:

• 84% of students have credit cards.
• Half of America's undergrads have 4+ credit cards.
• Only 2% of undergraduates have no credit history.

Wow. So out of 10 college students, 8 are going to have credit cards and 4 are going to have 4 or more credit cards.

As we get ready to celebrate Independence Day - think about your credit situation. Are you independent (free of debt) or dependent?