More DOLLAR$ AND $EN$E Blogs
- Til DEBT Do Us Part
- Bank On It
- Retirement Planning Starts Sooner Than You Thinků like NOW!
- Pay Yourself First
- Financial Storms
- A 'TAXING' TOPIC
- Free or Fee?
- Money Tips: Review Part Two
- Money Tips: Review Part One
- Is Money Important?
- Give Yourself Credit
- INVESTING - Make Money While You Sleep
- Hey Big Spender
- I'm not afraid of the Big Bad Money
- Need vs Want
- Shhh... Money Makes the World Go Around
- Quiz - What's your money style?
- Summer's here...NOW SHOW ME THE MONEY!
- Can Money Make You Happy?
- $AVE ME!
December 2008 Blogs
Money Tips: Review Part Two
DOLLAR$ and $EN$E, December 2008, by Brian Bogaert
REVIEW PART TWO
Here we go with the second part of our ‘Money Tips’ review!
Money Tip #5 stated that the money system is really just made up. Paper money (like a $10 bill) is really just a representation of $10 in value that you can use to trade for things of that cost. Every day, the value of a particular currency in a country changes based on what is going on in that country and the entire world. It’s just a ‘system’ that we all agree to and use. This sounds a bit strange but it’s important to understand because it gives you power over money. Once you under stand that it is a system, you can take advantage of it for your own gain.
Money Tip #6 explained what it was to be a ‘consumer’. A consumer Is someone who buys things. You will hear people say that ‘consumer spending’ is good for the country but it may not be good for you personally. Learning to control your WANTS and saving your money to ensure your NEEDS are taken care of first will give you more money in your life. It’s always your CHOICE and you determine whether you have lots of money or always seem to be short based on your spending habits. I get a LOT of girls who write in to me about this (how do I stop spending so much money??) You may want to read that article again and again (Feb/Mar 2008).
Money Tip #7 introduced a VERY important concept that most adults struggle with! We looked at credit cards and what they offer you but also what they cost if you don’t use them properly. Credit card Companies loan you money to buy things so you don’t have to carry cash around, and that can be convenient at times. What you must remember is that if you DON’T pay the full amount you borrow from them on time, the credit card companies will start to bill you BIG TIME interest charges (could be from 18-28%). If you continue with this trend and don’t pay them back, you could wind up paying twice as much (or more) for the things you bought!! Don’t be in a hurry to get a credit card and when you finally do, be sure to use it wisely. If you find you have no willpower, cut it up and STOP using it. Just use cash.
Money Tip #8 was about utilizing balance when it came to money. A lot of people don’t think, study it or worry too much about money until they don’t have any… then it suddenly becomes very important. Other people have lots of money and are always finding new ways to make it and save it. The thing is, they never seem to spend any and so never truly enjoy their money. Money is important because you can use it to get things you need (necessities) and things you want (fun) so learning some basics and paying attention to how you handle money is important. On the other hand, you don’t want to make money the most important thing in your life or be so obsessed with it that you lose friends and not have any fun. Just like Dr. Jay says: Balance is Key. Same goes for managing our money! Who remembers that we had one other Money column but it didn’t have a Money Tip associated with it? This was in April/May 2008 and we analyzed the idea of making your money work for you through investing. You can invest your money (loan it to someone) and charge them interest (extra money they have to pay you back), just like the credit card companies do with us! This is a VERY powerful concept that a lot of people use to make tons of money. The coolest thing about it is your money can work for you while you sleep, eat, relax and goof off. I personally am an INVESTOR and I am always on the lookout for new and exciting ways to make my money work for me. We’ll talk more about this idea in future issues. Remember, you are always investing in something; it could be your shoe collection or your future- the choice is yours!