Benefits of Financial management
Without proper money management our lives go haywire and we don't seem to be in control so to get the life of wealth me most learn money management.
Manage your own money
This is an opposite view to what financial experts advise. They tell you to get a financial advisor to help you do invest your money.
And why wouldn’t they? That’s the way they make money—by investing your money and taking a small portion of it.
Most financial advisors make money on fees charged to you. They’re not bad people, and many ofthem are very smart when it comes to investments.
Without getting too deeply into it the finincial market many financial advisors “beat the market.” Therefore, you’re basically paying for nothing and putting your trust/faith in an individual.
The trust part is very hard to follow—even if your finincial advisor is a family member or a friend. Remember, it’s your money, and no one will care about it as much as you. While almost98 percent of all moneymanagers are trustworthy, we worry about the 2 percent who aren’t.
Our personal opinion is that you should open your own investment account with a good firm and buy no-load (no sales fee) and low-expense mutual funds.
A surefire way to lose family and friends is to invest your money with them.
The trust part is very hard to follow—even if your finincial advisor is a family member or a friend. Remember, it’s your money, and no one will care about it as much as you. While almost98 percent of all moneymanagers are trustworthy, we worry about the 2 percent who aren’t.
Our personal opinion is that you should open your own investment account with a good firm and buy no-load (no sales fee) and low-expense mutual funds.
Avoid investing with family and friends (or loan them)
Earning money is always a boon but when you are rich your family takes undue advantage.
A surefire way to lose family and friends is to invest your money with them.
Well we donot say all of these transactions turn out badly, but some of them do. Most of the time, it’s not because of any impropriety. It just happens.
If you begin your adult life with this philosophy (and make it known to friends and family), then it will be very much easier to follow through with this throughout your adult happy life.
As a matter of fact, as you’ve made it known, people will be shy about approaching you on money matters. For those who get upset with you for managing your finances this way, they weren’t your friends in the first place. Keep that in mind, and it will be easier to deflect their monetary requests.
If you decide to loan money to a relative, then look at it as if you are giving it away. Your expectation should be to receive nothing in return.
If you decide to loan money to a relative, then look at it as if you are giving it away. Your expectation should be to receive nothing in return.
However, make sure you get the terms of the loan in writing. If the relative gets angry at that (or makes you feel bad about asking for a written agreement), then run in other direction. If in fact the loan gets repaid, you should look at that as a bonus. Of course, I am
We are not suggesting you don’t give a loan/gift to immediate relatives (like your child or parent). It’s important to help family members in need.
We are not suggesting you don’t give a loan/gift to immediate relatives (like your child or parent). It’s important to help family members in need.
Just understand that it is a gift, not a loan (no matter how you term it).Again, the expectation should be that you will not be receiving payment for it. That way, you will be pleasantly surprised if the loan is repaid.
The only people earning money from “Bad Money Making Ideas” are the people marketing and selling them. Just as you should avoid “great deals” and “small bargains,” you need to stay away from “get rich quick” schemes.
Stay away from "Bad Money Making Ideas"
The only people earning money from “Bad Money Making Ideas” are the people marketing and selling them. Just as you should avoid “great deals” and “small bargains,” you need to stay away from “get rich quick” schemes.
“Bad Money Making Ideas” schemes are investments that promise extremely high rates of return for a relatively small investment of time and money.
They look and sound too good to be true because they are.
They look and sound too good to be true because they are.
Some examples of these schemes include the following:
▪Advance fee fraud—Here, you are asked for small sums of up-front fees on the promise of making huge sums of money because of the fee payment.
▪“Work-at-home and make millions” promise—If it were that easy, everyone would be doing it. This usually requires a purchase of some product, marketing, or sales kit that will be a total waste of your money.
▪Infomercials—Avoid the ones that show people making tens of thousands of dollars using a real estate strategy.
▪Pyramid schemes—Your job is not to sell product but to get more people selling underneath you.
▪Ponzi schemes—These schemes offer investors guaranteed high returns with no risk.The problem is if you ever want to get your principal back, it has already been given to someone else.
▪Pitches that sell you their “secret formula” to success—Let’s face it: Nothing is a secret in our world anymore. If it were successful, people would already know about it.When you see anything that looks like a “Money Making Idea” , run (walk) away.
Remember,the good old-fashioned way of working hard and working “smart” is the best way to wealthy.
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