Finance

Gifts That Keeps On Giving

It’s safe to say that Christmas is going to look a whole lot different this year. With COVID-19 affecting all aspects of our lives, from limiting how many family members we can see to impacting how much we can afford to spend, it’s a given that we’ll all have to adapt to a ‘new normal’ this Christmas.

A reader reached out to me last week in regards of Christmas spending. One thing we have to keep in mind this is not normal timing. Covid-19 took the whole year away from us. With countless of life lost and many still in the hospital. We are all searching for something different this  Christmas. Love and kindness is very important right now. We can be together while social distancing, call as often as possible voice and video. And a little encouragement goes a long way now these days.

Giving is a wonderful thing, putting smile on other people faces is the reason why the earth keep rotating. In time like this it’s hard not to give out a little in your savings/investments. Infact people who started this journey with me should be rejoicing right now as they can safely buy much of what’s in their shopping list with Dividends.

While thier stocks grows in value touching the dividends to bring joy to thier love ones won’t change the outcome of the upcoming ones. All one need to do is figure out how much exactly you are going to spend try not to go overboard nor rely on credit cards. It’s really good to cheer others but first and foremost don’t put a burden on yourself.

The best gift to give is a gift that keeps on giving. A gift with value, for instance help with tuition fees. Help with debt or create account for the little ones both saving and investments. For anyone looking to make someone happy remember not to touch the capital because once you do that you change the whole game.

If you dicide to open investments account for kids or grandkids, it’s a wise move because if you invest that money in an index fund I always go with the S&P 500 which can easily bring back a return of 10% annually if not more. Now let’s say you open that account with $5000 that’s $500 annually. Plus compounds interest, it’s safe to say an investment like that will bring great rewards in about 10 to 25 years.

Money doesn’t grow on trees but parents and grandparents can set a great foundation for their kids and grandkids. Remember the earlier you do this the more they can rip from it, of course that little ride on car sure looks good but for how long they going to use it? 

One other beneficial gift is college funding accounts, they are great it’s like paying for school before they get expensive. I call them boomerang because regardless if the kid go in state or out of state the money will apply. And if the kids decide not to go to college you’ll get your money back.

Don’t go overboard on your savings this year trying to get the perfect gift. There’s no reason why the festive season can’t still be joyful! Spend responsibly!

Finance

Savings  your own way

If you feel overwhelmed about how to save money, you’re not alone. While some may think saving money is relatively straightforward, one in five Americans have nothing saved at all. Especially in 2020 during this pandemic year with COVID-19. I would imagine it’s harder for many to start savings now.

Many might ask “how do I start that saving thing? The answers to that question is always complicated. The first thing to saving is coming up with an objective as to why you want to start saving for. Once you have that goal set in place then you have to start working on reaching your goal.

As I tell people it’s better to pay off debt as they carry higher interest than what your savings will bring. You can also set up a plan on how you going to do this. The first thing I did was giving myself 5 years to achieve the payment on my school loans. And try not to carry credit cards balance to the next month.

Trust me everybody living paycheck to paycheck, things are pretty tight you don’t see how that savings thing going to happen. Relax yourself a little, human were meant to be challenge. Tell yourself you dare it to do what you want to do. Like challenge yourself to put $25 away from every paycheck with the goal of doubling it next paycheck.

Now you probably already asking yourself how would that be possible. Because you always come short on the bills. Well it takes a little sacrifices. For instance if your phone bill is $69.00 a month switch to a different carrier they have good deals.
Talk to other people find out what service they are using and how much it cost them.

Also cut back on all the streaming services, it’s nice to have options but at what cost? Look back a little when was the last time you use all these services for more than 45 minutes in a single week. Be mindful of how you spending your hard earnings.
If you burn $150 in electricity. Start managing the way you consume energy don’t leave the  lights on if their not needed. Open the shades let some sunlight in.

You like it cool well while you at work keep the AC at 77. Unplug telelphone chargers when their not in use. Try to open the fridge as less as possible. All those little things will contribute towards doubleling that $25 dollars saving, stay focus and carry on.

Remember my motto “is not to spend your working hours money in minutes”.

Finance

Money and Us

What defines us as a person? Most of us will have different answer to that question because we all come from different background of ducation level, surrounding, and way of life.

2020 has been one hell of year. 2020 is the year people find out what they are made of and what they can over come. 2020 has been a year of self discovery, trying new things and finding new hobbies. As the world continues its battle to contain the  spread of the coronavirus pandemic, we have find it very hard to remember a time before COVID-19 and social distancing wasn’t top of mind.

The lives of many people around the globe has come to a complete screeching halt earlier this year, with the virus forcing most to stay at home, order necessities online and avoid physical interaction to help further prevent its spread.
We are all searching for a little bit of sunshine or a rainbow at the end of this. Right now happiness, joy, laughter and the peace of mind is all we are searching for these days.

There are time of sorrow and moment of darkness that we have no power over. But to get through those situations we need something to aim for. It could be a hobby an academic achievement or something else. We ofen find ourselves searching for this things all in the wrong places.

According to the Web in Google search Happiness is a state, not a trait; in other words, it isn’t a long-lasting, permanent feature or personality trait, but a more fleeting, changeable state. Therefore, it is safe to say money doesn’t buy happiness, while we often spend our lifetime chasing it, even taking chances sometimes that involves high risk even death.

For it we spend more time with coworkers than our love ones. We trade 40 hours a week if not more, in return to tax taken off, social security and medicaid all while getting little back. In action the importance we give money have a lot of similarities with blood. It enable leisure, pleasure and it’s a way of life.

The real thing is money don’t buy happiness but it facilitate it. I’ve never seen someone crying on a speed boat or heading to Dubai in a private jet, while they might not be happy which one will you rather be, the one above or the one punching the clock?
Like the song says “we are not happy where we are. There is greener grass in the neighbors yard a bigger house and a faster car.” Human nature we were made for this and will spend our lifetime chansing it one way or another. Weather it’s through hard work or hardly working, we gotta make a living and regardless of our income we always want the best, specially what we can’t afford.