(L) Marie Joseph

The advice I would give young people “Quit your job, don’t work for anybody. You really can’t make any money working for someone else”

- Phil Ruffin, Billionaire

Wow. Is it that easy? Most rich people that give advice do not go into much detail of they became successful. You not only want to quit your job but it’s more or less quitting your job at the right time. Not all entrepreneurs are rich and not all working people are broke. There are a lot of ordinary people that have a six figure income and great wealth. It’s all about you and how you use your skills.

It took me 20 years to become somewhat wealthy. I do agree if you have a passion to make lots of money it may fit you to go the entrepreneurial route. But it’s not a guaranteed success, you have to be the best in your field. In all my years of reading and listening to financial material, I must say that there are  two ways to grow money, 1.)  is to become a business owner or 2.) is to  invest in the stock market over time and avoid consumer debt.  One is more slower than the other. The other may be more frustrasting and filled with mini failures. The choice is yours: slow and steady money (investing, saving, avoiding debt) or the fastrack lane (build a business and sell it.)

Either choice will not be an overnight success.

One is more boring than the other, it is filled with years of redundant activities. The other is more risky, you can lose your shirt and file bankruptcy if it’s not done right. This is what separates the millionaires from the middle class: risk. If you’re still undecided do both, get a job that pays well and invest in the stock market at the same time. There are plenty of stories of ordinary people that became millionaires via investing in great stocks over their working years.  

For most people that are trained to think outside the box and shake things up, they will be willing to take risks and make the effort and sacrifice to become an entrepreneur, songwriter, author, singer etc. For others, slow and steady may be more comfortable. Each one has it own disciple and rewards.

Slow and steady wealth is safe but boring. Fast Lane wealth is more risky. However, in the end, they both can make you satisfied.  It all depends on how fast you want success.

“TV is the path of least resistance from complete boredom.”

-Aaron Spelling

Most of us love our TV’s even when our favorite shows are not on we still have to have it on scanning hoping we find something that catch our attention.

What I do when I’m bored?

I spend time in bookstores because one idea from a book or magazine can make me money. I read the Wall Street Journal and Barron’s when I visit the library with my daughter. I read financial blogs. I read business books. Bottom line…I READ when I’m bored.

As Mark Cuban said a single idea in a book can make money for you. I remember reading Automatic Millionaire for the first time at Barnes & Noble bookstore and starting automatically saving money. I purchased the book and to this day still reference the advice. A $14 purchase turned my life around. I read Rich Dad, Poor Dad and started a side business and investing more in the stock market. I doubt if I would have learned this from T.V.

There are certain things in life we choose to do. We can watch T.V. or visit the personal finance section of a bookstore. After so many trips of going to the bookstore of reading the newspapers at libraries. I can now afford to watch T.V.

I remember the great motivator Les Brown once said “You should not watch T.V. until you have 3 months of expenses in the bank”

Whoa! such strong words, but so true.

Shane Robinson celebrated his Merrill Lynch job offer over lunch and cocktails at a trendy Manhattan restaurant. His bosses toasted him and asked what he planned to do with the $10,000 end-of-internship bonus. Robinson, then 24, in late 2007, said he would probably save it. “Why?” he recalls them asking. “Just go spend it — you’re going to make a lot more.”

As the economy started to spiral downward less than six months later, bonuses dried up, layoffs ensued and the young banker was told by his superiors that he might want to begin looking for other opportunities.

“It left a bad taste in my mouth,” Robinson says. “Why would I want to have my fate determined by things that are outside my control? If I’m going to fail, I would much rather fail because of my own doing.”

Not long after the recession hit, Robinson decided to ditch finance. He contacted A.J. Steigman, a former Merrill Lynch colleague who had quit to start a sneaker store, and the two hashed out plans to create an urban clothing website that was part social network, part e-commerce. For months, they slept on friends’ couches while fundraising in different cities. They spent countless hours online, building the core technology and a community around their streetwear blog. Finally, in 2010, the duo secured $265,000 from investors to make their startup Soletron a reality …………blah blah blah you know the rest

I saw this story on Huffington Post and it had me thinking of what’s the key difference between someone that grows and someone that stays stagnant. I’m sure they are plenty of us that came into a lump some of money a time or two in our lives. It’s up to us to figure out what to do with it.

There is a reason why most of us are middle class. We either settle, don’t know how to make money or constantly around people that are no better than us. I just like many of you went to college, graduated, got married and bought a house. My thinking started shifting after I had our child. I wanted to grow my money and not just save and invest in retirement. I wanted to figure out a way to have enough money to take care of my child and perhaps my children’s children. I stayed in the library reading finance books, magazines and newspapers. I started attending conferences on business. I picked up pieces of advice that coordinated to my appetite for success and ignore advice that did not pertain to me. In actuality I simply did more than the average college grad. Don’t be afraid to take calculated risks.  This world does not care about you, that is your responsibility. Take care of your own personal economy.

Some people work a 9-5 and later learn from their jobs how to start a business others work a 9-5 to enjoy their lifestyle and pay bills. Do You. You can work a 9-5 and have a side business and use any existing monies from your paycheck and invest in yourself. If you’re not a risk taker, use the monies from your 9-5 and pay off all your debt either way you will live more comfortable!

When you own a credit card, one of the most important things is to keep it balanced. This means that you should use your credit wisely so that you do not end up in debt, which can become overwhelming, especially when you owe large amounts of money. Poor credit can also prevent you from being accepted for a loan, for buying a vehicle or home and even from getting a job, so it is absolutely mandatory to keep everything balanced by maintaining a good credit history.

One of the best ways to stay balanced with your credit is to only have one credit card at a time, especially if you are a new user. In essence, you will be more aware of your spending on only one card, and you will get to gradually build your credit and therefore, it will be easier to monitor and manage your spending.

While spending with your credit card, make it a habit to buy only what you absolutely need, and make sure you spend the smallest amount of money possible. Never be overly extravagant, and never spend beyond your means. For instance, if you have your heart set on buying a new pair of shoes, go for those that are reasonably priced but do not compromise on quality instead of buying a designer brand that carry a regular price that is high and that you know you cannot afford. Also, you should always be aware of your credit limit. Staying below 50 percent of your limit is the smartest way to use a credit card when you shop. It is actually recommended that you stay within 30 percent of your credit balance, for best results. It shows that you are a responsible and cautious credit card user.

When you pay your credit card balance each month, make sure you not only pay it on time but in amounts that are greater than the minimum. This will ensure that your balance will remain at a reasonable level and your credit score will be good, which is very important, as your score can affect your ability to make large purchases and even get a job. Creditors take a good look at how timely you are at paying off your bills as well as how much you pay, which will definitely benefit you in the long run, and your credit can improve, even if it is already good.

This is a guest article and contains one affliate link

I had the pleasure of interviewing Wealth Coach Anita R Johnson about Money and Women. Here is a transcript of the interview………..

Why don’t Americans save money?

America is the most powerful country in the world, yet we forget the lessons of the past.

The great depression of 1929 and Black October were lessons for us to learn to save for a rainy day. We forget money is a tool that should be used

What are the biggest obstacles and challenges that women face with money today?

Not having enough. Women earn .77 to a man’s $1.00. Learning how to negotiate a good salary is a requirement for women, whether you’re single or married.

Women are, by nature, the care-giver to everyone: children, husband, parents etc. So we as women tend to choose jobs and not occupations. There are some women who are CEOs, Presidents of major organizations, which require lots of time which demands working past 5:00 p.m.

How can we turn it around?

Education-Whatever amount we earn, we need to live below our means. Yes, easier said then done. Commercializing surrounds us, persuading us the need to compete with our neighbors.

When did you decide to take charge of your finances?

After divorce I found myself struggling financially. When a couple divorces, the woman loses 40% of her income (more if you have children)? This is what happened in my life. I struggled to provide for myself and two children. This is when I decided to begin to take control of my finances, first by finishing my undergraduate degree, working on educating myself with investments.

There is a study out that people with a high credit scores tend to be less social and more selfish do you agree?

Totally, example it is played out in our politics every day; the middle class are being attacked by raising their taxes, and benefits, while the wealthy don’t want to pay any taxes. We have been taught that people with the most money saved are known as tight or stingy. Those are stereotypes that if you save you will not have a life.

Can you actually save money and still have fun?

People need to know that living below you means doesn’t mean you can’t have any fun. A family can save for vacation, (paying cash) for the trip, college for the children and what the family feels they needs and want.

Once a person learns and is comfortable with living below their means they will be happy.

What can one expect from your workshop?

Fun, education and advice you can implement to your everyday life. If you are in the Sacramento area join me Wednesday January 25, 2012 11am at Esquire IMAX Theatre for my workshop Money, Lunch and A Movie.

_______________________________________

Anita Renee’ Johnson, is a Wealth Management Coach, with Anita R. Johnson & Associates for over 13 years. She’s the Founder of Money Wisdom for Women in Sacramento, Ca

1. Set financial goals , and track your progress. Spend less than you earn and save the difference
2.  Pay as you go, and stay out of debt
3.  Pay your mortgage off early and be a real homeowner
4.  Be a wise with insurance as insurers are with their risks
5.  Avoid special-offer interest rates and free meals from financial firms
6.  Invest in index funds, allocate your assets, and periodically rebalance
7.  Remain calm during bad times and market volatility
8.  Avoid people with scare stories, market-beating returns, and sophisticated products
9.  Build a small team of advisers you trust–and pay for their advice
10.  Face money problems as they arise , get the facts, and take action
11.  Plan retirement well in advance, so you’re prepared

This is a small excerpt from the book The Smartest Money Book You’ll Ever Read by Daniel R. Solin and I must say it’s a keeper!

 I have did all of these and I have a nice stash in return. May only goal now is to pay off my home before our daughter gets to college. The hardest thing is to stay focus because of course I like nice things so the only way I can have my cake and eat it too is to earn more money and not settle for average.

I must say that Ramit Sethi is one of my favorite personal finance bloggers he gives clear concrete advice and tips when it comes to personal finance and careers. I have been following his blog for 6 years now and was never disappointed by the advice that he shares on his blog. He is funny, hip and not boring like most middle age personal finance columnists.

During this time when people are going through long term unemployment and dealing with lower wages options, Ramit is like a breath of fresh air for young job seekers.  Here is a great video he has on career searching and sending out resumes called “ The Game Being Played Around You”

Enjoy!

Whenever I talk about saving money or investing money, I tend to hear ” I will start saving money after I do …..” I will start saving once my debts are paid” and so on

It seems that people are waiting for the perfect time to save a portion of their income. They are people that have been at their jobs for 5 years and have nothing to show that they were disciple. They accumulated stuff but no savings. Regardless of how much you make, SAVE something.

I started saving 5% of my income then I increase it to 10% and then 30%. The best way to save is automatically. I started by having $50 taken out my account on payday. Once it became comfortable, I continue to increase it. I didn’t have a chance to spend it was gone before I received my check. I never waited for the perfect time..never! Study shows that 64% of Americans Don’t Have $1000 in Savings. That’s more than half of us. Rise above average! We waste 10-15% of our income anyway, we cannot track where that money went. We might as well jack money from ourselves and save some. 

Start 2012 by doing something you never did before.

In order to get something you never had, do something you never did

Start automatically saving. ING is a good resource for automatic saving. I started saving very little and before I knew I had $600 in the bank and it only got better after that. Saving is good when you lose your job, it’s good when you need to fix your car, it’s good when you miss a paycheck. You will never go wrong by saving. When you don’t have cash you have headaches and misery. It doesn’t matter if you’re in debt or owe family members, start saving money for yourself. It’s a great motivator. No more excuses in 2012. You are not getting any younger!

I been on both ends of the spectrum and I must say that savings always took care of me.  Start with your next paycheck!

Save your money and one day it will save you

-African Proverb 

Rich is paying your bills and getting to the end of the month and still be able to go in a store and buy whatever without having to check your check book to see if you have the money to cover it

-Jim

I so agree!

Rich is not being tense on payday. Rich is having cash after your monthly obligations are paid. After your expenses, anything extra becomes your wealth. When you get back from a nice vacation and not being welcome to a bunch of debt and bills.

We all know Rich can be relative. If you make $100,000 and your peers make $50,000 or less a year well you are rich.  If you make $100,000 and your peers make $250,000 you will feel poor. It is simply a state of mind. You will never feel rich when you compare to people that have a higher income than you.

We as Americans tend to compare ourselves with neighbors, peers and friends

There‘s no single cutoff point that defines “rich” …technically

It’s up to you to define it for yourself. It’s never an exact amount of money. It’s when your assets (what you own) is much higher than your debts (what you owe). I want to not worry about bills and who I owe debt to. I want to a little freedom, a little cushion, a little less stress. I don’t want to ever run out of money. I don’t want to be average either. I wanted enough cash to not be living paycheck to paycheck. I took all my risks in my 20s: college, struggling, dead end jobs, failed businesses, not owning a car etc. Once I reached 30, I wanted a different world each risk educated me and taught me the path of prosperity. So it was all worth it!