Money has always been a top source of stress for most people. If not addressed, debt and worrying about money can lead to serious physical, emotional and even relationship problems.
How to solve money problems then? There are tons of financial advice that people probably already heard or read about. In fact, most of these advices are simply common sense yet one the greatest mysteries about life is that no one really follows them. It looks so easy to do but for most people, it is very difficult to follow.Continue reading Common Sense Financial Advice That People Don’t Follow
People who have a 9-5 job are familiar with the highs and lows of the financial tide on a monthly basis. First, you start off feeling rather ‘rich’ after getting your salary. Then as you use it up, you start feeling poorer and poorer, your wallet getting emptier as the days go by until it gets filled up again when you receive your salary. Continue reading Ways to Reduce Your Monthly Expenses
You have been working very hard all your life. Yet, you found yourself in the same financial situation over and over again. Your income is barely enough to cover your basic needs. You are trapped in the rat race. You often wonder, what is it that you have been doing wrong? How come there are some people who are getting richer and richer by the day while you who had been working very hard is getting nowhere?
Most people dream of winning the lottery. However, did you know that according to several studies, 70% of lottery winners ended up broke within 5 years of winning? Similar studies also showed that the higher the amount of winnings, the higher the probability of getting bankrupt. Most lottery winners found themselves in even worse financial situation than before they became rich. So, where did it all go wrong?
According to statistics, out of every 100 persons aged 65, 96% are either dead or dead broke, 3% are comfortable and only 1% are wealthy. Because of this, many retirees continue to work long after their retirement age. Others are dependent on their social security payments, which are never enough; while some depend on their children’s money or support for their day-to-day expenses like food, utilities, transportation and maintenance drugs. Most problem arises when there is an unexpected medical emergency.
To live beyond your means simply means that you are spending more than what you can afford. Statistics show that a great majority of employees nowadays are living from paycheck to paycheck without any kind of financial cushion. While we all deserve to spend our hard earned income, spending beyond our earnings and racking up debt in the process is a recipe for financial disaster.
To live beyond your means is to spend more than you earn.
Modern technology has allowed us to do much more than when we didn’t have our electronic gadgets and devices. These devices have become a necessity in our daily lives and we have many options to choose from for a ton of other gadgets that we can use in our homes and at work.
I have read the book Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money — That the Poor and Middle Class Do Not! written by Robert T. Kiyosaki. I heard of this book before and this should be on your list of books to buy and read.
This book shows us a solution to getting out of the Rat Race, which Kiyosaki defines as a situation where people “work for the owners of their company, for the government paying taxes, and for the bank paying off mortgage and credit cards.” This scenario sums up most of our parents’ and our lifestyle in our 9-5 jobs and Kiyosaki proposes that we learn and practice investing as a solution to get out of this trap, retire early and live wealthier lives. Continue reading Thoughts After Reading Rich Dad, Poor Dad