The American Dream is work, work, and work. Husband works 7 days, wife works, children work. It is not true that we are working all the time because we have to pay our bills. I have seen only 10% of the people really retire with their savings. Now, the government is saying that the way our national debt is going, we will not be left with any money in our social security system. Why is it like this? It’s because we are spending more than what me are making. We are not saving. We are not letting our money work for us, but we are working for the money.

Note:
The opinions expressed in this post are those of the author,
and do not reflect in any way those of the site owners.
As regards the articles on MORTGAGE, be careful when taking decision
unless you want to become a SLAVE to your debt.

We all talk about our debts on TV, newspapers and all over. Why cannot we teach people how to save? Why can’t the government put limits on borrowings? In the late ’80s, savings and loan banks failed and millions of people and the government lost billions because over credit was given to people. We repeated the same mistake from 1998 to 2008 when the interest rates were low and people were given all kinds of money to buy homes which they could not afford and after that, the same things— banks failing, people going bankrupt, and then the government giving billions to bail them out. More deficits and giving free checks to the people so that they can spend and boost the economy. Why can’t the government come out with the policy that people should save money and that saved money will again bring prosperity to everyone?

Our aim of work should not be just to work and spend more. Our aim should be to work and save, save, save, so that saved money can work for us.

Work, work and work. You are working for money all the time. Why should you work for money? The SMART PART is to learn how to put your money to work for you. And when money will work for you, you will become richer.

You have learned the first three techniques.

First, is NOT spending if you don’t have money to spend.

If you cannot afford to pay cash for a car because you don’t have the money, but you have only half the money, then maybe buy a car which is 2 years old and has very low mileage and you can buy it at 40% of the value of a new car. Don’t start leasing and spending money if you don’t have other assets which are bringing you income.

Secondly, you are never going to use credit cards. If you have any, you will NOT use them! You can buy a few things on credit cards if you don’t get any discounts, but pay them before the deadline. This will help you in building your credit.

Thirdly, SAVINGS! Save at least 10% to 25 % of your paycheck every week. If you can save more, then SAVE IT! For example, some people get their tax refunds or bonuses at the end of the year. SAVE IT! Sometimes some family member dies and leaves you a small inheritance. SAVE IT! You won a small lotto or jackpot. SAVE IT! You won some lawsuit either by book, crook, or chance, man, save that money, whatever you got out of it.

Invest your savings in short term CD’s while you are looking to buy good investments. You can go on the internet or some financial magazines or newspaper to find out what kind of interest rates market funds are paying or charging if we have to borrow or invest money. Some local community banks always have a better rate to offer and put your money to work whosoever is offering you better interest rates.

By Ashok of http://becomerichinfiveyears.blogspot.com



Finding Money For Your House · New Special  Power Tools · Investments in Real Estate: Case Studies of People – Part 4 · Leveraging: Make Money With Other People’s Money · Advice To Young People: You Can Only Be Rich If You Invest Your Money Right · Investments in Real Estate – Part 3 · Investments in Real Estate: Personal Experiences – Part 2 ·