Sip Posted October 20, 2005 Report Share Posted October 20, 2005 When you don't have, you spend all your time worrying about how to have. You have stress levels beyond belief at times to make ends meet ... what will happen tomorrow ... how will I survive ... etc. When you do have, then you spend all your time worrying about how to protect and keep what you have. You have even MORE stress now worrying not only about what you have and how to continue to have it, but also how not to lose what you do have. It's like you're damned if you do, and you're damned if you don't ... sometimes I just wish I was just a beach bum with nothing to lose. Quote Link to comment Share on other sites More sharing options...
Anahit Posted October 20, 2005 Report Share Posted October 20, 2005 sometimes I just wish I was just a beach bum with nothing to lose. But u'd still worry and be afraid to lose... THE BEACH & THE STATUS OF BEING A BUM Quote Link to comment Share on other sites More sharing options...
Takoush Posted October 20, 2005 Report Share Posted October 20, 2005 (edited) When you don't have, you spend all your time worrying about how to have. You have stress levels beyond belief at times to make ends meet ... what will happen tomorrow ... how will I survive ... etc. When you do have, then you spend all your time worrying about how to protect and keep what you have. You have even MORE stress now worrying not only about what you have and how to continue to have it, but also how not to lose what you do have. It's like you're damned if you do, and you're damned if you don't ... sometimes I just wish I was just a beach bum with nothing to lose. Sip: That's when the Bible comes in effect. Jesus says do not worry about tomorrow, although we are human and we do; but he says do not. Keep on working, pray to God, read one verse from the Bible every day, and leave your worries for tomorrow. For tomorrow you'll have a lot of other worries for the whole day to worry about. I find in life that by praying to Jesus made me to be a less worrisome and a more fulfilled and a happier person. If you didn't try it, try and pray every morning before you start your day. You'll see that things will happen for the better for you bro. A while back an older but a nice Italian co-worker gave me this Bible for Christmas for me to read and benefit God's words. It's very easy to read and I love to read this Bible. It's called "GOOD NEWS BIBLE" Today's English Version. It's the Old and the New Testaments combined. I also love my "Asdvadzachounch, NOR GEDAGARAN Hisous Kerisdosi" It's in Armenian of course, and it is printed by Aram Gatoghigos of Cilicia. From Antelias, Lebanon. Good luck to you. Edited October 20, 2005 by Anahid Takouhi Quote Link to comment Share on other sites More sharing options...
vava Posted October 20, 2005 Report Share Posted October 20, 2005 Anahid Takouhi, I think you've picked the wrong person to preach "bible" teachings... Sip is a scientist/academic above all else. Sipan, all I can say is just go out and "do" - life is too short to protect your 'haves' and worry about your 'have-nots'. When you realise what you really have (in intangibles, mean) like education, upbringing, ethics, intelligence etc. than you'll know that you really don't have a lot to worry about. If you respect your own integrity, you'll always make-it. Quote Link to comment Share on other sites More sharing options...
Maral Posted October 20, 2005 Report Share Posted October 20, 2005 I wonder how many of those poor praying,believing souls end up with major financial troubles,find themselves homeless,die in earthquakes or floods...I dunno....it would be nice if it all worked out like a fairy tale cheh? Sip,it sucks...it all sucks...hey you could always move home with your parents,that would just make things perfect,non? The second you start thinking about the ironies of life,have a strong drink and go to bed Quote Link to comment Share on other sites More sharing options...
DominO123 Posted October 20, 2005 Report Share Posted October 20, 2005 Sip, leave me your "haves" and you won't need to worry about them. Quote Link to comment Share on other sites More sharing options...
Sip Posted October 21, 2005 Author Report Share Posted October 21, 2005 The problem with the Bible is that the Lord hasn't really said much about 401K plans, setting insurance coverage levels of various kinds, running synthetic vs regular fluids in the transmission of your cars, whether to go into hi-tech stocks, medical or pharmaceuticals, or maybe just stick to good old blue chip deals. Also, as far as variable-rate interest loans and how to manage mortgages and other debt, I usually end up feeling "unsatisfied" with the Lord's advice on how to proceed. At the same time, I have a pretty good job now thankfully but I don't know when and how they'll kick me out (if) and what I would do if they did which they might. There are many things I would be very good at which makes things even more complicated. Would I stay here in the Midwest where it's like a very relaxed, clean, well maintained palace all over the place with very polite people but kind of boring as a whole (basically how I would envision Heaven to be like) or would I be more happy in a hot, action packed, dense hole like LA with the massive population and astronomical costs of life (kind of how I would envision Hell to be like but without the constant torment of course). Then there is the whole thing about what kind of balance should I strike between work and play ... either extreme doesn't interest me as much but I'm not sure where a good balance lies. Sometimes work actually feels like play and sometimes play starts to drag and vice versa. Basically, I think all these new opportunities and complexities we have added to our lives has created a sort of "choice" overload. It is almost impossible to enjoy any single decision because you end up being overwhelmed with all the alternatives and all the remaining possibilities. Quote Link to comment Share on other sites More sharing options...
Sip Posted October 21, 2005 Author Report Share Posted October 21, 2005 Sipan, all I can say is just go out and "do" - life is too short to protect your 'haves' and worry about your 'have-nots'. When you realise what you really have (in intangibles, mean) like education, upbringing, ethics, intelligence etc. than you'll know that you really don't have a lot to worry about. If you respect your own integrity, you'll always make-it. That's a good post. I don't care what Azat says about you vav. Sip,it sucks...it all sucks...hey you could always move home with your parents,that would just make things perfect,non? The second you start thinking about the ironies of life,have a strong drink and go to bed Don't get me wrong though. I'm not complaining about anything. Just venting some confusion and frustration! But instead of the strong drink, can I hit a 24hrs Dennys instead? Sip, leave me your "haves" and you won't need to worry about them. You just want my T-350 Vaio don't you? Quote Link to comment Share on other sites More sharing options...
Accelerated Posted October 21, 2005 Report Share Posted October 21, 2005 Just for you Sip Jan! - http://www.big-boys.com/articles/lawncatfight.html Quote Link to comment Share on other sites More sharing options...
Sip Posted October 21, 2005 Author Report Share Posted October 21, 2005 Jugs ... sometimes I wonder about you By the way, I was telling your goldfish in the hookah story to a friend of mine recently. That thing still cracks me up Quote Link to comment Share on other sites More sharing options...
Anahit Posted October 21, 2005 Report Share Posted October 21, 2005 Since i read Sip's post yesterday, i've been trying to find some ironies in MY life, but can't find any: seems like everything is functioning just fine, "in harmony" to be precise. No confusion or frustration. Sip, maybe u haven't found harmony among the things that your life ehhh.... how to say... "consists of" or i should say "functions ON/BY"... or even worse! "things" in your life "can't stand each other" and that's why confusion and frustration come along... Quote Link to comment Share on other sites More sharing options...
Takoush Posted October 21, 2005 Report Share Posted October 21, 2005 The problem with the Bible is that the Lord hasn't really said much about 401K plans, setting insurance coverage levels of various kinds, running synthetic vs regular fluids in the transmission of your cars, whether to go into hi-tech stocks, medical or pharmaceuticals, or maybe just stick to good old blue chip deals. Also, as far as variable-rate interest loans and how to manage mortgages and other debt, I usually end up feeling "unsatisfied" with the Lord's advice on how to proceed. Sip: Before Vava wrote her post, I was going to write another post myself about how to deal with finances, then I came home from school and I saw Vava's post. I then wrote to you an eight page Financial advise and action plan; but my computer didn't take it. I type pretty fast but nevertheless, I felt pretty crummy afterwards when I lost it all. So maybe I'll try it tomorrow again. It's a good plan. Quote Link to comment Share on other sites More sharing options...
Sip Posted October 21, 2005 Author Report Share Posted October 21, 2005 Much appreciated ... oh and I've had that happen before too. It's almost as if it only happens on my best posts too .. and then when I lose it, I can almost never recreate a post of the same quality so I just give up. Usually I have gotten into a habit of copying all I type before I prest the add reply button so in case it is lost, I can just paste it back. But I don't always remember to do it. Quote Link to comment Share on other sites More sharing options...
Sip Posted October 21, 2005 Author Report Share Posted October 21, 2005 Since i read Sip's post yesterday, i've been trying to find some ironies in MY life, but can't find any: seems like everything is functioning just fine, "in harmony" to be precise. See that's hard for me to believe... I mean are you satisfied with everything the way they are? Even if you don't have any worries, don't you worry that maybe you should be worried? Ok that sounded a bit neurotic which is probably the farthest thing from me but I mean just deciding what to watch on TV can sometimes be a huge project ... it sometimes takes me 15 minutes just to go through the listings of all channels and these are only SOME of all the channels I can potentially watch. Then there are books, magazines, technical articles, non technical articles, etc etc all the way to various forums. So how much of the day do I spend reading my 4x4 magazine, then try to catch up on new technical stuff, browse forums, and even when I browse the forum, do I read the new jokes thread or the genocide section and the list goes on and on and on. ... I really don't think there is really any way that anyone can be in harmoney with all these choices because finding the "best" (most optimized) way to do things isn't always possible. ... not unless one starts to ignore the fact that all these things are choices we make each and every day. Quote Link to comment Share on other sites More sharing options...
Sip Posted October 21, 2005 Author Report Share Posted October 21, 2005 Oh and Vava is a big hairly ugly guy by the way. PS: Only one of those 4 things is true Quote Link to comment Share on other sites More sharing options...
Takoush Posted October 21, 2005 Report Share Posted October 21, 2005 (edited) Much appreciated ... oh and I've had that happen before too. It's almost as if it only happens on my best posts too .. and then when I lose it, I can almost never recreate a post of the same quality so I just give up. Sip jan: The fololowing financial guidelines are for yourself or for anyone on this Forum who would like to benefit from it. For we know that financial burdens can create a great deal of stress, and a lot of stress can and would shorten your life. I hope and pray that following these guidelines will lengthen it for you. _____________________________GET A FINANCIAL LIFE___________________________________ Starting out Whether you're supporting yourself for the first time or have been caring for a family for years, good money management skills are important. Understanding that money is more than mere paper, and that it actually represents the sum of your life's efforts, is an important starting point toward cementing your relationship with your money. Learning how to manage your money is about decisions: knowing what you want to do, making a plan and sticking to it are essential steps. Failing to save/invest, and falling into the credit trap are two of the major stumbling blocks that trip up all too many of us. Many people fail to achieve any degree of financial comfort in their lives because of inflated expectations. However, if you adopt the attitude at the onset that you will always live a bit beneath your means, that you will pay yourself first and live, modestly, on the balance, you'll improve your chances dramatically. What it is about is just that - improving your chances by adopting a healthy attitude toward money and learning the few simple rules that will enable you to get what you want out of life. Where does it all go? It's a question we've all asked ourselves at one time or another - usually when looking at the contents of our wallet and realizing there's too much month left at the end of our money: "Where does it all go?" To most of us it seems that getting a handle on our finances is, at best, a daunting task, at worst, an impossible one. But it needn't be that way. How can you gain control over your finances? How can anyone? Is it really possible to be financially secure, even on a modest income? The answer is an emphatic "yes." Moreover, the formula is simple. However, it requires thought, planning, and discipline on your part. Keep the idea of simplicity foremost in your mind. managing your finances is not rocket science; it is knowing a few basic rules and applying them to your daily life. You'll find that the "knowing" part is easy. As for "applying" - well, that's another story. Applying is simple in theory, of course, but challenging in different degrees, depending on you, as an individual, in its application. Nobody ever achieved anything worthwhile without a plan, so unless you're going to hit the lottery or inherit a few million from a long-lost aunt, start preparing your personal financial blueprint now. Let's fact it, even if you were to come into a windfall tomorrow, you would have to make a plan for keeping it. Money, whether you have a little or a lot, needs to be managed. You are in a better position now than you will ever be at any other time in your life to begin taking the steps toward financial independence. And, remember, you can do it, even on a modest income. There are simple, easy-to-follow rules to be observed and, as with most of life's achievements, one of the greatest stumbling blocks to success is your own emotions. In this land of wealth and plenty, we suffer more from overindulgence than from want. We eat too much, we spend too much, we waste too much. How many of the irresistible "goodies" that we buy today - often on credit - will be in use a year from now...or even a few months from now? How much of the food we buy winds up spoiling and being thrown way? Think of 2-3 purchases that you have made recently (in the last week or so), and in each case answer the following questions abou the purchase: 1. Would you classify this item as a need or a want? Why? Item #1- Item #2- Item #3- 2. Is it something that will have value to you (or anyone) a year from now? Two years? Item #1- Item #2- Item #3- 3. Did you charge this purchase or pay cash? Item #1- Item #2- Item #3- 4. How much time - hours/minutes, etc. - would you have to work to earn the money to pay for this item? Was it worth the time expenditure? Item #1- Item #2- Item #3- 5. In reflecting on your purchase, would you rather now have the money, or the item purchased? Item #1- Item #2- Item #3- 6. Do these purchases reflect your personal values? Which, if any, was an "impulse" purchase? Item #1- Item #2- Item #3- When you begin to think of how hard you have to work for the dollars that you may casually spend on "impulse" purchases, are you not wasting time as well as money? Do you think that the average inhabitant of one of the world's underdeveloped countries could live well on what the average American earns? More likely, a number of those people might live exceedingly well on what that American wastes! "He is rich whose income is more than his expenses; and he is poor whose expenses exceed his income." - Jean de La Bruyere Think of your life's time as finite - because it is, after all, just that. We each are only allotted a certain number of precious years, days, minutes, seconds. Of this precious time, we must spend a large portion of it working to earn a living. Time, then, is money. Never forget it. Then ask yourself, "If I am wasteful in my spending habits, am I not trading a portion of these irreplaceable moments for things I may never use?" If you make this your faily mantra, you will soon find that your relationship with money takes on a new meaning. You will begin to understand that money is not merely paper; and will begin to see its tru significance in your life. In effect, it is your life! Living Beneath Your Means In the house of the wise are stores of choice food and oil, but a foolish man devours all he has. Proverbs, 21:20. Living within your means has always been considered the acceptable norm, but it is living beneath your means that is what's really required today. It is, actually, the only route to take if you want to enjoy a secure and comfortable standard of living throughout your lifetime. Therefore, don't just think of this as a good idea. It is much more than that; it is mandatory - and, believe it or not, it is easier to do than you might imagine. . Set your goals . Establish a budget . Cut back on expenses . Eliminate debt . Increase your savings (pay yourself first) . Begin an investment plan/add to your investments Simple, isn't it? Actually, it is simple, just not always that easy. However, these are the steps by which you will eventually achieve financial security, and with a little discipline and self awareness they are quite do-able. But before you can take any of these steps, take the time to find out where your money is going now, on a daily basis. Where are you now? Imagine yourself standing in front of that huge wall map at your local mall. You see the store you're looking for, but before you can take a step, you must establish your current location. Where are you now? Without that knowledge, your progress is limited at best. Unfortunately, when it comes to their financial lives, many people not only don't know where they're going, but have no idea where they are at the present moment. In fact, there are many people who deliberately avoid ever taking stock of their finances. They stumble through life not knowing how their money is spent, or even how much they are worth. This is more common than you might imagine; it is also not acceptable if you ever hope to construct a financial plan that you can live with. Finding out where you stand is essential to entails a few simple drills. The first step is to perform some self-analysis: Take the time to make a record of the money that passes through your hands each day. You can set up your own worksheets to do these analyses, using a pencil and a few sheets of ledger paper, or you can use the forms on the following pages. In either case, you must begin to pay careful attention - especially where cash is concerned - to your everyday, incidental expenses, as well as the big ones. And, most importantly, while you are at it, it's equally relevant to begin to develop an awareness of your attitudes toward spending and saving. ----------------------------------------INCOME/EXPENSE RECORD -----------------------Month 1----Month 2----Month 3----Budget--------Notes Income After-tax wages (1) After-tax wages (2) Allowance/gifts Dividends Interest Other: TOTALS Expenses HOUSING Home Mtg/Rent Property tax Telephone Heat (gas/oil) Electricity Furnishings & Equip. FOOD/GROCERIES Food at home Food away from home Non-food items CLOTHING/GROOMING Clothing & accessories Dry cleaning/repair Cosmetics/toiletries Barber/hairdresser TRANSPORTATION Car loan pmt/lease Car maintenance Auto insurance Fuel/oil Parking & tolls License/reg/fees Public transport (bus, cab) TOTALS Difference (-/+) Answer the following questions after you have completed your Income/Expenses Worksheet: 1. What is the net result at month's end - surplus/deficit? 2. If you show a surplus, did you: a. splurge b. save (short-term, long-term)/invest 3. Were there any unexpected/unplanned expenses? ______ If so, what were they? List these items below. Could they have been foreseen? Examine each expense item and decide whether it should be included in your new budget or lumped into the "emergency fund" category. (For example, maybe you incurred some extra car repair expenses. You might decide to allow a nominal amount for car repairs in your future budget to avoid being caught short, especially if you own an older car. Monies not needed for repairs can later be channeled toward a new-car fund). ------------------------------------Unexpected/Unplanned Expenses --------Date/Item-----------------Amount--------------------------Notes--------- --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- Change your spending habits, change your future What you do today can have a profound impact on what ytou'll be doing when you're in your 30's, 40's and into your 80's. And, don't kid yourself, the chances of living at least that long get better every day. So whether you wind up flipping burgers at your local McDonald's at age 65 or cruising the Caribbean (maybe in your own yacht) depends a lot on what you do with today's dollars. Whatever future you envision for yourself, there is no better time than today to begin laying the groundwork for your plan. Cutting expenses isn't really as difficult as you might think. Often it's the thought of having to cut back that keeps us from doing it, but you can start in simple ways that you won't even notice, and the rewards can be big. On the other hand, a little overspending here and there will go a long way toward preventing you from ever achieving your goals. It's all up to you. Beware of little expenses; a small leak will sink a great ship. - Benjamin Franklin If your money falls into three categories - (1) that which you need to spend (food-clothing-shelter-education). (2) that which you like to spend (hobbies, gifts, recreation, "extras") and (3) savings/investments, then the most obvious place to begin cutting back is in category #2. Here is where you can cut and trim little bits without dramatically changing your lifestyle. The important thing to decide at the outset is: How important are these "little" expenses in the overall scheme of my life? Think again about the question posed earlier: Are they worth the time I must give to working to achieve them? Adopt the habit of equating an expense with how much it means to you in terms of your time. For example, if you spend $20-$30 a month on magazines, and you earn $15 an hour, ask yourself if you're willing to work up to two hours each month for magazines. If you really love those magazines and read them thoroughly, the answer may be yes. However, if you merely buy, skim and toss, you may not think they're worth that amount of work time. You get the idea. Now, let's say you regularly eat out three times a week with your friends at a cost of $15 each time (obviously, not gourmet dining). How can you save here without significantly changing your lifestyle? Obviously, you can either lessen the frequency or you can decrease the dollar amount. If you cut down to two meals out a week, you can immediately lower that portion of your eating-out budget by a third. If you must eat out three times, you can change where you eat or what you eat, and in most cases you can easily trim $5-$10 a week from your budget. In either case, you can easily save without really feeling the pinch. Examine other areas of your budget where you regularly expend small dollar amounts. The key here is "regularly," because it is the small habits of your life that eventually wind up being the most significant. If you think this isn't so, try calculating the dollars these add up to in a week, a month, a year, or even several years. Are there ways of reducing these expenses? Here are some examples: ----------------------------Estimated -----------------------------Monthly--------------------$ to ----Expense Item----------Cost-----Frequency-----Reduce--------Notes Lunches in cafeteria (M-F)-$80.00------daily----------$40.00--Bring lunches from home Toll calls to parents, friends-------------------------------------Subscribe to special toll in CA.-------------------------25.00-----monthly-------$10.00--rate svc., put limit on time ----------------------------------------------------------------------spent on these calls (buy a ----------------------------------------------------------------------timer) ------------------------------------------------------------------------Skip the popcorn ($3) and ------------------------------------------------------------------------once a mo. replace movie Movie night out---------------40.00---1 X Weekly-----$10.00---w/video @home Dinner, drinks w/friends--$130.00--2-3 X Weekly----$20.00---Limit to twice weekly Snacks, drinks from vend. mach @ school/ work-------------------------$40.00---daily/5 days-----$30.00--Make/bring nutritious ------------------------------------------------------------------------snacks & drinks from home ------------------------------------------------------------------------(drink more water) Total Monthly Cost Reductions:--------------------$110.00 Now use the following worksheet to determine similar areas in your budget where you can pinch without hurting. Think about what is important to you. Learning to manage money properly is all about just that - setting values and goals and then following a program that adheres to your plan. Remember: ----------------------Discipline is remembering what you want. ------------------------------------------ David Campbell ---------------------------------"Pinch Without Hurting" Worksheet --------------------------------Estimated------------------------------$ to---------------Notes ------Expense Item---------Monthly Cost-------Frequency--------reduce ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Total Monthly Cost Reduction:________________________________________________________ So now what? this is the important part. Let's say you're able to cut $10 a week from your eating-out budget. Obviously, if you go out and spend the money on videos, it's not going to have any meaningful impact on your long-term nest-egg. So, for now, we'll assume you're saving that $10 somewhere - an interest-bearing "somewhere," we hope. (Asavings of only $10 a week, invested at 6% over the average working lifespan of 40 years will yield a whopping $86,000 at retirement. Put it in an IRA and realize the benefits of compounding without any tax penalty. Of course, inflation will take its toll, as will taxes when you withdraw, but you will still have a healthy amount to enjoy, all for the cost of a few drinks from the Coke machine.) Once you have gained an idea of where your money has been going, you can begin the task of planning your financial future. referring to the expense record that you have created and your "Pinch Without Hurting" workshets, you can start setting up your budget, the roadmap you will use to achieve your goals. Analyze Your Budget & Find the Leaks Just as in healthy dieting, where the formula for success is as simple as "eat less, exercise more," the formula for successfully managing your money can be distilled to a simple: "Spend less, save more". Of course, "earn more" will come into the picture, too, if you are not earning enough money to eke out a meager existence. But, assuming that's not the case, how much do you really need to sustain yourself and how many of the extra expenditures fall into the "frivolous" category? You might ask, "If the formula for successful money management is so basic, why is it then that the vast majority of us have such trouble living within our means?" The fact that the formula can be stated simply does not mean that it can be achieved simply. Emotions play a major part in our relationship with money - probably a much larger part than most of us realize. Failure to plan and to discipline after making a strategy will render your plan all but useless. As in other aspects of life, those who plan, organize and discipline themselves will get on better, be happier and more productive and, often, are richer - or at least more financially stable - than those who are unable to divorce their emotions from their money. As you analyze your spending habits, think carefully about how much your emotions play a part in your handling of money. Answering the following questions as honestly as possible will give you some insight in this regard. 1. Do you frequently shop the malls as a means of recreation (circle one)? Yes / No---------------How often? __________X per week / month 2. Do you regularly borrow money from friends or family when you find yourself short at the end of the week (month, 2 weeks) (circle one)? Yes / No 3. Do you often use your credit cart to buy items on impulse? If so, do you then pay the minimum payment or do you pay in full each month? Yes / No 4. Do you find yourself buying more than you set out to buy when you go shopping? ----------------Always/often----------------Sometimes-----------------Never 5. Do you regularly buy "designer" fashions, housewares, etc., at inflated prices, even though the same items are available at lower costs without the label?-------Yes / No Stifle the Impulse If you answered "yes" to one or more of the above questions, consider the situations they describe. How can you alter your attitudes/habits in these circumstances? Sometimes, for the more disciplined among us, the mere awareness of the role our emotions play in our spending is sufficient to bring about change. But for the chronic impulse buyer, it may require changing not just your attitude, but the circumstances themselves - such as finding other outlets (not of the "mall" type) for your moods. Think about your emotional state when you spend unnecessarily. What are you really dealing with? Loneliness, anger, fear, frustration? We all need "therapy" at one time or another. For some, it can be found in the refrigerator, for others, it's the mall. A brisk walk, a phone call to a friend, a bubble bath or a workout are just a few of the helpful therapies that can divert your attention from your problems of the moment and keep you from a budget-destroying buying binge. Just as "never shop the supermarket when you're hungry" is sage advice for the dieter, "leave your wallet at home" should be the slogan for emotional mall browsers. If you see something you must buy, go home, think about it a bit, and then return to the store, wallet in hand. If you honestly decide the purchase will enhance your life in a meaningful way, then make the purchase (cash only, please). It takes thought, awareness, time, and determination, but as you begin to see your once dim financial picture brightening, you will find it increasingly easier to control your spending without any rigid controls or devices. --------------------------You can have anything you want: --------------------------you just can't have everything you want --------------------------- John-Roger and Peter McWilliams At first glance, you might think the above statement sounds unbelievable, especially if you are a struggling student with perhaps only a part-time income, or an allowance, to tide you over during these lean, learning years. However, in this world, and in this country in particular, we have come a long way from times when all one could ever hope for was just enought to "get by." Sure, you may say, but that's still a long way from having anything I want! Read back, however, over that statement: equally important is the second part, "you just can't have everything." What, exactly, does that mean, then? It means that we all have choices - in fact, we must make choices! Nobody can have it all, and if you can't have it all, you must choose whatever is most important to you. Having thus chosen, your chances of achieving your heart's desire are immensely good - provided you are prepared to make sacrifices along the way. Choices Isn't it wonderful to live in a time and place when we all have choices? We also have the responsibility that comes with those choices. If we choose to live in a cardboard box and collect garbage for subsistence, we can do so. In fact, most metropolitan areas provide soup kitchens for the homeless, and often a place to sleep on the coldest nights. Of course, you want more than that! This merely points out that one can survive, and with little effort, and even less responsibility, if they so desire. Think, then, about how very much more you can have in your life, as an educated individual living in a free society. The choices are awesome! And so is the responsibility! In stating that you can have anything you want, this does not mean that your chosen "anything" will be handed to you on a platter, silver or otherwise. What it means is that if you set meaningful goals - goals that are important to you - and apply your resources toward those goals, your chances of success are excellent - all of which brings us to the next step in charting your trip to financial independence: setting goals. ---------------------------------No wind favors him who has no destined port. - Montaigne What do you Want? Set your goals. Financial security is a subjective thing. the most imortant step toward it is to translate it into your own terms to give it meaning. One person's desired lifestyle may well be another's idea of poverty level. What do you want out of life? What, specifically, are your personal financial goals? What will you do to reach them? An easy way to get a handle on your goals is to organize and prioritize them. For starters, classify your needs vs. your wants - with needs, of course, taking precedence. (Be careful to distinguish between the two: Owning the world's largest collection of CD's or videos may be exciting to you, but should not be construed as a need.) As you think about each goal, try to anticipate the expenses involved. -------Have no desires and you will be the richest man in the world. - Miguel de Cervantes Beyond distinguishing between what you need and what you want, you need to establish the "when" factor. Is this something you can do without for a few years, months, weeks? Near-term needs obviously take precedence over those goals for which you have years to plan and save, such as retirement. Choose specific goals that are meaningful to you; you will then be able to get excited about them, and will be more determined to reach them. For example, instead of "Own my own home," you might write something like: "I want to save enough money for a ____% down payment on a two-family house in New York State before I reach the age of 30." Or, for "retirement," how about: "I want to retire by age 55 with enough money to buy a home in New Mexico and travel to Switzerland to ski each winter." 1. List below some short-term goals (1-2 years) that are meaningful and important to you. Be specific. a. ______________________________________________________________________________ ______________________________________________________________________________ b. ______________________________________________________________________________ ______________________________________________________________________________ c. ______________________________________________________________________________ ______________________________________________________________________________ 2. What are some medium-term (within 5 years) goals that you want/need to achieve? a. ______________________________________________________________________________ _______________________________________________________________________________ b. _______________________________________________________________________________ _______________________________________________________________________________ c. _ _______________________________________________________________________________ _______________________________________________________________________________ 3. Finally, what are some long-term (more than 5 years) goals that you want/need to achieve? a. ________________________________________________________________________________ ________________________________________________________________________________ b. ________________________________________________________________________________ ________________________________________________________________________________ c. ________________________________________________________________________________ ________________________________________________________________________________ As you reflect on your goals, try to think abou the costs involved, and the feasibility of your time frames. Now you have goals you can put a future price on - goals that can be translated into a plan for saving and investing that you can start immediately. Transfer these goals to the following Goals Worksheet. Indicate the estimated cost, time frame, progress already made, and required installments. Note: Planning for purchases in this way isn't nearly as exciting as the "instant gratification" route that so many of us have become accustomed to these days. However, be assured that the planning process is likely to grow on you. As you prioritize your goals, you're likely to find that they change. You'll undoubtedly have to rethink some of them. Are some less important than you initially anticipated? Can you wait a bit longer for some item? Imagine if you had already committed future income toward one of these goals by borrowing to get what you wanted, only to find it wasn't really that important! You're far less likely to make this mistake if you are planning and saving for things you've carefully considered, rather than impulse buying on credit. And the "fun" part will come with the satisfaction of knowing you're living your goals, rather than living with the payments! _______________________GOALS WORKSHEET__________________________ -----------------------Estimated------When--------Savings--------Balance--------Monthly _________________ Cost_____Needed______To Date_____Needed_____Deposit Short-Term Goals: ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Medium-Term Goals: ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Long-Term Goals: ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Finding Your Net Worth Many people put off or never perform this simple exercise, yet it provides invaluable informations about your financial status - and the bottom line may surprise you. Essentially your net worth is a basic statement of what you have less what you owe. The process is easy enough, but takes some digging. To start with, you'll look in your pockets, wallet or purse, or maybe the cookie jar or a piggy bank, etc., to find your current cash value. Be thorough. This is an exercise you should perform once a year, so that you have a gauge of the success of your money-management efforts. To be sure you have an accurate representation of where you stand, you must take the time and make every effort to determine each item's value. This will assure that next year you will achieve an accurate representation of the growth you have achieved. If you have difficulty determining values - such as the current value of your 401-K or your pension plan - try contacting your personnel office at work. Many such plans also have Websites these days where you can sign in and gain an instant picture of your account's current worth. Your current bank statement will usually give you the value of all of your holdings with that institution - checking, savings, outstanding loans, etc. Likewise, the most recent statement from your mutual fund dealer or broker will give you a current value of those holdings. Go through your checkbook and paid-bills files to be sure you include all debts. Fill in each item carefully, using exact values wherever possible, and estimating as precisely as possible where needed. While you should perform this task at least annually, there is nothing to say you can't do it more frequently - especially if your savings and investment efforts are bearing fruit and it will make you feel motivated to see the changes. For that matter, even if your efforts are not as successful as you would like right now, often this kind of financial status check will spur you to do better. You may keep a worksheet similar to the following one, with additinal columns for subsequent regular updates. If your bottom line is not all you would like it to be, don't be disheartened; it will improve if you apply the principles set forth on these pages. You amy even find yourself in negative territory, as many young people going to college and paying off their education loans often do - not to mention young marrieds with children, and many others whose financial situation is not yet secure. It is most important that you perform this preliminary exercise so you can see your starting point. This first balance sheet will be your basis for all future comparisons. Using it as a guide, you will periodically modify your financial behaviour and/or your goals to match your changing financial picture. Watching your progress can be the biggest kick of all, and it will start you in a lifelong habit of financial awareness. ---------------------------------YOUR PERSONAL BALANCE SHEET------------------------------ ______________________________(Net Worth Statement)___________________________ Assets___________________________________________________Amount_____________ Cash on Hand ---------------------------------------------------------------------------------------------------------- Checking Account Balance ---------------------------------------------------------------------------------------------------------- Savings Accounts ---------------------------------------------------------------------------------------------------------- CDs ---------------------------------------------------------------------------------------------------------- Savings Bonds ---------------------------------------------------------------------------------------------------------- Stocks, Mutual Funds (market value) ---------------------------------------------------------------------------------------------------------- Personal Property (market value of jewelry, car, furniture, etc.) ---------------------------------------------------------------------------------------------------------- Real Estate ---------------------------------------------------------------------------------------------------------- Other ---------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------- ____________________________________________________________________________ ____________________________________________Total Assets____________________ Liabilities____________________________________________________Amount__________ Credit Card Debt ---------------------------------------------------------------------------------------------------------- Home Mortgage ---------------------------------------------------------------------------------------------------------- Education Loans ---------------------------------------------------------------------------------------------------------- Personal Loans ---------------------------------------------------------------------------------------------------------- Other Debt ---------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------- ____________________________________________________________________________ ___________________________________________ Total Liabilities__________________ -------------------------Net Worth: (Total Assets minus Total Liabilitiues)___________________ Answer the following questoins after you complete your net worth evaluation: 1. Are your assets greater, equal to or less than your liabilities? ______________________________________________________________________________ 2. Did this surprise you? ______________________________________________________________________________ 3. In what ways do you expect/want to see improvement over the next year? ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ In 5 years - ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ In 10 years - ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ 4. What are your plans for accomplishing these changes in your balance sheet? ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Taming the Plastic Tiger ------------------------If money be not thy servant, it will be thy master. - (Old proverb)---------- Many college students, and even high school students, are now using credit cards regularly. We seem to have forgotten that credit should be considered as a cusion in emergencies - a powerful financial tool that can make it possible to go to college, buy your first car or even your first home. Unfortunately, there are unprincipled marketers out there who would have us believe credit is a means of having non-essentials now and paying later. Consider the following questions with respect to your handling of credit: 1. How many credit cards are you carrying in your wallet/purse right now? List them. ______________________________________________________________________________ ______________________________________________________________________________ 2. Do you use your credit card(s) regularly to buy non essentials? ______________________________________________________________________________ ______________________________________________________________________________ 3. Do you pay cards off each month or merely make the minimum payment? ______________________________________________________________________________ ______________________________________________________________________________ 4. Take a look at your latest credit card statement. What is the interest rate? Were you aware that you are paying that much interest? ______________________________________________________________________________ ______________________________________________________________________________ 5. What portion of your income are you regularly paying out to cover credit card debt? Do you think this is excessive? ______________________________________________________________________________ ______________________________________________________________________________ 6. Using the minimum payment shown on your monthly credit card statement, how long do you think it will take you to pay off your debt? ______________________________________________________________________________ ______________________________________________________________________________ Looking at your answers to the above questions, do you think your use of credit is: ______In the safe zone ______Could stand improvement ______Out of control Credit card marketers can be an unscrupulous bunch. they have become extremely creative in their efforts to increase their bottom lines (while decreasing yours!). Some of the tactics they employ are downright deceptive, but evidently they are paying off in big ways, as more and more consumers pay out future income in heeding their call. According to Paul Richard, Director of NCFE (National Center for Financial Education), in some cases the combined interest charges and fees exceed 30%! Banks and credit card companies spend millions of dollars annually promoting teaser rates, contests and the like, to entice unknowing consumers. Obey the golden rules of credit use, which are: . Never charge more than you can pay back at the end of the month . Don't buy what you don't need, or if you do, don't use plastic to purchase it . Pay off your card balance monthly, and early if at all possible (to avoid those tricky late charges) If you are seriously in debt, your first step toward financial fredom - before you can embark on any savings or investment plans - must be to rid yourself of the plastic curse. If you do not take control of credit, every step forward that you take in your financial plan will be diminished by the charges that you are now paying to your creditors. It makes little sense to think about putting money away in banks, CD's or stocks and mutual funds at much lower (and taxable) returns when the credit card companies are taking an average 18.3% in interest away from you. Here are some ways of regaining control of your credit if you have let it get out of hand: 1. Destroy Your Credit Cards If this is impossible for some reason, then throw away (or lock away) all but one credit card - the one, of course, with the lowest interest rate. use that one card ONLY when absolutely necessary. You be the judge as to when that is (NEVER would be a good time to use it). 2. Consolidate If possible, consider transferring the balances on all your other cards to the above-mentioned card - the one with the lowest interest rate. This is a good tactic only if you have the discipline to stay with your plan of not using the other cards. (Warning: Be wary of the low "teaser" rate offers many banks use to entice you to switch to their card. While the savings are tempting, you must be nimble enough to switch out before the rate expires. Also, many of these offers now stipulate that if you transfer out of the new card within a 12-month period you will be charged the regular card rate retroactively. Always read the fine print carefully!) 3. Always Pay More Than the Minimum If you pay only the minimum amount that your creditor has predetermined, you are usually paying only slightly more than the interest that has accrued for the month. Your creditors like it that way. The longer it takes you to pay off the debt, the more interest they earn. And while they line their pockets with your cash, you will have less in yours. If you have consolidated all of your credit cards into one, you should now have enough money to pay a larger-than-minimum monthly payment. If the minimum your credit card requires is $50, try doubling it to $100. (They may not like this but, hey, they'll get used to it.) There are many ways (as suggested earlier) to come up with this extra cash each month without suffering. In the long run, you will clean up your debt faster and could save hundreds of dollars in interest. 4. Allocate Savings to Pay off Debt Not only does it not make sense to put money into savings when you are in debt, it is equally self-defeating to hold already existing savings balances if you owe money to creditors. If you have some savings put away for that proverbial "rainy day," consider that rainy day to be here - use at least part of these savings, if not all, to help clean up the debt mess! Think of it this way: If you are holding savings aside at 5%-8% for some unforeseen emergency, use it to pay your 18%-20% emergency now! If the emergency materializes later down the road, you will (1) be in a better position to meet it with the money you have saved in interest, or (2) you can borrow the money again if absolutely necessary. By that time you will be so conditioned to your newly liberated-from-debt status that you may find a way to avoid borrowing the funds altogether. And if you can't, you will folow a policy of: a) borrowing as little as possible c) seeking the most advantageous terms, and c) paying back as swiftly as possible. 5. Borrow from Yourself This should be a last resort, but if necessary there are some advantageous ways to do this, foremost being borrowing from a 401K plan if you have one. In most cases, interest rates on these loans are far lower than your average credit card - and, instead of paying an outrageous rate of interest to a bank or credit card company, you'll pay a modest rate to yourself! It's true - the interest paid on a 401K loan goes directly back into your account. There are drawbacks, to this, too, so before you consider this kind of a loan be sure to consult your employee benefits department and possibly an accountant as well. Another means of borrowing from yourself is to take a loan against a life insurance policy that has cash value. Again, the interest rate is generally lower. Consult your insurance agent as to the feasibility of this as well as the drawbacks. Often, whether you borrow from a 401K plan or an insurance policy, the drawbacks may be a small price to pay to get out of debt - providing you are taking steps to avoid all future credit card debt as already discussed! Tax Deferred Savings Your 401-K Plan - Max it if you can! A 401(k) is a type of retirement plan that allows employees to save and invest for their own retirement. You authorize your employer to deduct a certain dollar amount from each paycheck before taxes are deducted, and to invest that money as you direct, choosing from the investment options offered through your company's plan. Taking full advantage of your employer's company-sponsored retirement plan should be your top choice of long-term investment options. If you're lucky enough to work for a company that matches your contributions (usually between 50 cents and $1.00 on every dollar you contribute), so much the better! Be sure to optimize this by contributing at least the maximum amount your company will match. Not only will you defer any income taxes that the money earns until you withdraw from the plan, but you can actually lower the amount you pay each pay period in current taxes, and possibly take home more money than you would without the 401K deduction. Here's how: ___________________401(k) Contributions versus Taxable Savings______________________ ____________________________Pre-tax 401(k) Plan_______Post-tax (regular) Savings_ Gross annual Salary-------------------------------$45,000.00----------------------------$45,000.00 ___________________________________________________________________________ 6% 401(k) pre-tax contribution--------------------(2,700.00)--------------------------------------- ___________________________________________________________________________ Taxable pay-----------------------------------------42,300.00------------------------------45,000.00 ___________________________________________________________________________ Less Federal Income Taxes (20%)*--------------8,460.00------------------------------ 9,000.00 ___________________________________________________________________________ 6% of Gross Income in Regular Savings------------- -- -------------------------------- 2,700.00 ___________________________________________________________________________ After-tax net-----------------------------------------33,840.00-----------------------------33,300.00 ___________________________________________________________________________ Difference in annual "take-home" pay--------------540.00---------------------------------------- ___________________________________________________________________________ ____________________________________________________________________________ *(Source - I.R.S. 2000 Tax Table) ___________________________________________________________________________ Deduct that $540 you saved in taxes from your original $2700 investment, and your 401(k) contribution has only cost you $2160. That's like getting an "instant" 25% return on your money! Where else could you find an investment with a yield like that? The same holds true for an IRA investment (maximum of $2000 per year). So if you don't have an employee sponsored retirment plan, that is an appealing alternative. There are different types of IRAs for diffeent situations, and each has its own set of rules and restrictions. Roth IRAs, for example, are established with nondedutible contributions, at any age. You get no tax break on your current earnings, but the earnings you accrue on this type of IRA are entirely tax free! With a traditional IRA, you pay no taxes on the amount you contribute and taxes on any interest earned are deferred until you retire or take the money for other reasons. An Education IRA is another tax advantaged investment which is relatively new. This type of IRA is set up to pay for education expenses of a designated beneficiary. It can be established for any child under the age of 18, to be used to pay qualified education expenses, so it is usually of shorter duration than the traditional IRA. Contributions of up to $500 a year are not tax deductible, but the amounts deposited in the account grow tax free until withdrawn. To learn more about the various individual retirment arrangments (IRAs), consult IRS Publication 590, available from the IRS website, www.irs.gov, or consult your tax advisor. Your company's employee benefits department can advise you about your 401(k) and other retirement options. There are legal limits that the IRS sets stipulating how much money you can have deducted from your paycheck and invested during each pay period (after all, the government needs some of your tax money!). There are also limits set by your company as well as the IRS stating how much of a match the company can contribute. Plans vary, so consult your employer's benefits coordinator. The list of investment options offered by 401K plans is varied, and should enable you to choose something within your level of risk tolerance level as well as in keeping with your investment goals. Although the menu of investment options for any given company-sponsored investment plan is not usually lengthy, you'll find that the choices will give you a sufficiently wide range of investment goals (usually mutual funds) to meet. Remember that investing in your company's 401(K) or other retirement plan is only a part of a prudent retirement saving plan. It is still important to have personal, shorter term savings in addition to your retirement nest egg. A parting thought: It's good to have money, and the things that money can buy; it's good, too, to check up once in awhile, and be sure you haven't lost the things money can't buy. - George Horace Lorimer _____________________________THE RULE OF 72________________________________ ______________HOW LONG WILL IT TAKE TO DOUBLE YOUR INVESTMENT?___________________ Using the Rule of 72, you can quickly determine how long it will take to double your money in a given investment. Divide 72 by the rate of return of the following investment vehicles and find out the number of years it will take to double your investment. Keep in mind that, obviously, there is a risk/reward factor at play here: You will generally find that the higher the rate of return, the greater the risk involved in that investment. ______Type of Investment___________Rate (%) of Return________Years to Double________ Savings Account-----------------------------------------------2.5%-------------------------28.80--------- ________________________________________________________________________________ Money Mkt-----------------------------------------------------6.0%-------------------------12.00--------- ________________________________________________________________________________ Certificate of Deposit (C.D.)---------------------------------6.5%-------------------------11.08--------- ________________________________________________________________________________ Treas Note-----------------------------------------------------7.5%--------------------------9.60--------- ________________________________________________________________________________ Common Stocks---------------------------------------------10.0%--------------------------7.20---------- ________________________________________________________________________________ High-risk "growth" stock------------------------------------30.00%-------------------------2.40---------- ________________________________________________________________________________ (Note: Do not assume that the rates shown are the rates you will receive on any of these types of invesmtnets. The figures shown are exemplary of the possible returns in a given group, but are subject to change, depending on economic and market conditions.) by Barbara L. LaPointe Edited by Anahid Takouhi Edited October 23, 2005 by Anahid Takouhi Quote Link to comment Share on other sites More sharing options...
vava Posted October 21, 2005 Report Share Posted October 21, 2005 Oh and Vava is a big hairly ugly guy by the way. PS: Only one of those 4 things is true HAHAHA ROTFL! Quote Link to comment Share on other sites More sharing options...
Takoush Posted October 21, 2005 Report Share Posted October 21, 2005 (edited) Sip: I still have a bit more to do Re. the financial planning. I'll finish them by tomorrow. Take care. Anahid Edited October 22, 2005 by Anahid Takouhi Quote Link to comment Share on other sites More sharing options...
Azat Posted October 22, 2005 Report Share Posted October 22, 2005 Sipan jan, I wonder about all those things myself. The more successful I have become the MUCH more stress I have developed in my life. The more you earn the more debt you have(I have never been in as much debt as I am now) and the more you need your job and such to make sure you dont loose the things that you "own"(in my case the bank owns everything I have. ) The only advice i can give you for the retirement planning is go with SAFE investments. At one point I lost about 70% of my 401K/IRA value because I was in too many high growth/risky investments. You care very young and the power of compounding will be very powerful for you in 20-30 years. With all that said it is also most important to enjoy your life as Vava said. I make sure I do at least 2 vacations a year, I buy the toys and things that make me happy. After all who cares if you have millions in the bank if you die from stress or from any reason without enjoying your life when you really can rather than waiting till you retire when you cant enjoy much. Quote Link to comment Share on other sites More sharing options...
Harut Posted October 22, 2005 Report Share Posted October 22, 2005 i say, commit suicide, get over with it... that's what i did... Quote Link to comment Share on other sites More sharing options...
Anahit Posted October 22, 2005 Report Share Posted October 22, 2005 See that's hard for me to believe... U see, THAT is something u don’t believe but ACHIEVE. It is always hard to believe in things one doesn’t feel/see/understand. I even don’t remember how I have achieved it myself. I think it’s thanks to my grandmother-my educator. U kind of realize it when u are at that point already, not when u are going towards it or when u want it, like love: one feels it when IN love, not when falling in love, or when searching for it: when u realize, u are already deeply in it, and there no way out I mean are you satisfied with everything the way they are? Yes! (in MY life, of course!) Even if you don't have any worries, don't you worry that maybe you should be worried? NO. cause “If u can solve your problem, then what is the need of worrying? If u can not solve it, then what is the use of worrying?” this was posted in this forum, maybe u didn’t pay attention? on the other hand, since I can remember myself, I have always had in my mind and heart, that: “ …KHAGHEROV LI AYS KYANKUM, TE VOR KHAGHD TANUL TAS, ZVART YEGHIR! YEV ARDPISOV, BAKHTID VRA KKHNDAS…” As for making choices, that’s one of the best things in life, I think, and that’s why I really love life: cause I get to chose what to do! It is also the reason why I get angry when people blame others when something goes wrong (in individual’s lives): THEY had the choice, should have thought little bit longer and better what and how to do… but thinking is a very difficult thing; one gets a headache ‘cause of it (I guess that’s why many people don’t like using their brains much ha ha ha) the TV programs, as u wrote this is how I deal with it: 1st of all, decide what u like watching (by the way, different days, different mood wants different things, so in my life I do my best ALWAYS to keep the “want”-ings (they are not always forcibly the “needs”) of my mind and heart in harmony, do both what they want, not just what I must, or should). There are 3 things I am mostly interested watching on TV; news, intellectual-educational programs, and the movies So, after I have checked all the MAIN news hours of all the channels, I decide which one is kind of the best: the 1st one to tell, tells a lot, tells things I am interested to know (concerning the policies of certain regions, countries), is quite candid etc. so out of some 60 + channels I have chosen only 3 for the news. And they have the news on different hours too, so it’s just great! Unfortunately, where are live they don’t have much intellectual-educational programs in last 2 years they started having some, but I don’t enjoy them: kind of boring, and … “fake”. For the movies… I don’t want to waist time with the channels with it, as they also put too much advertisements all the time when showing the film, so I just buy the movies I want and watch them when too tired to do anything more useful. I am not interested in sports (what a shame!), so it doesn’t take time from me. With books and magazines, I read what I need for my studies and am interested in at home, and read what I am just interested in, but has nothing to do with my studies, on the road; when traveling or going somewhere or just in a park… As for forums… just read what u feel like reading! For me they are like havening a dinner: one day I feeling like “jokes” another day like “international” the other day like “culture”… Oh, Sip, I feel like your heart and mind have fights very often… Quote Link to comment Share on other sites More sharing options...
Takoush Posted October 22, 2005 Report Share Posted October 22, 2005 (edited) Sipan jan, I wonder about all those things myself. The more successful I have become the MUCH more stress I have developed in my life. The more you earn the more debt you have(I have never been in as much debt as I am now) and the more you need your job and such to make sure you dont loose the things that you "own"(in my case the bank owns everything I have. ) The only advice i can give you for the retirement planning is go with SAFE investments. At one point I lost about 70% of my 401K/IRA value because I was in too many high growth/risky investments. You care very young and the power of compounding will be very powerful for you in 20-30 years. With all that said it is also most important to enjoy your life as Vava said. I make sure I do at least 2 vacations a year, I buy the toys and things that make me happy. After all who cares if you have millions in the bank if you die from stress or from any reason without enjoying your life when you really can rather than waiting till you retire when you cant enjoy much. Azat: If you are in total debt than why not let Sip try to follow the effective financial guidelines. He will or perhaps also you will benefit from it if you try to follow it and give it a chance. The guidelines are there to be followed, you know. You see, I wasn't finished with my writings yet. Follow it from here on and see what I still have to write. I will now let you know about people like yourselves as well as many more like yourself who's financial state is out of control, and how to regain control. Give me a little more time and I will yet have to finish it; it's a lot of formula and it takes time to type it. Try it you may benefit from it, especially now that you have undue stress, and you and I know too much stress is a killer. Yes one should enjoy life while you're living it; but in the back of your mind you will always have the stress of uncertainty and of fear of loss of job, as well as not knowing from day to day where you are and where you're going. And what you have at the back of your mind that you're worrying about can and will multiply in life to create a bigger stress and hazard for your health and longevity of your life. I hope you will also try and benefit from those guidelines. Edited October 22, 2005 by Anahid Takouhi Quote Link to comment Share on other sites More sharing options...
Takoush Posted October 22, 2005 Report Share Posted October 22, 2005 i say, commit suicide, get over with it... that's what i did... No, That's not what you did, because you're still here on the HyeForum and chit chatting with Sip or whoever. Quote Link to comment Share on other sites More sharing options...
Azat Posted October 22, 2005 Report Share Posted October 22, 2005 if I may clarifie one thing. I am in 100% control of my financil situation. my total debt including my mortgage is only 1.5 times my annual salary. i dont have any secon mortgages. no interest only loans no unmanegible credit card debt or any bad loans. I invest wisely, i am putting money in my 401k and invest in an ira on top of that. And have liquid savings to sustaine my lifestyle for 6 months without any income... Now my problem. I have a very expansive lifestyle and spend WAY too much money. based on my income i should be able to save about 3 times as much as i do.. but i dont. Quote Link to comment Share on other sites More sharing options...
Takoush Posted October 22, 2005 Report Share Posted October 22, 2005 (edited) if I may clarifie one thing. I am in 100% control of my financil situation. my total debt including my mortgage is only 1.5 times my annual salary. i dont have any secon mortgages. no interest only loans no unmanegible credit card debt or any bad loans. I invest wisely, i am putting money in my 401k and invest in an ira on top of that. And have liquid savings to sustaine my lifestyle for 6 months without any income... Now my problem. I have a very expansive lifestyle and spend WAY too much money. based on my income i should be able to save about 3 times as much as i do.. but i dont. Azat: You sound like the wealthy Hollywood actors. They really live it up the good life. Investing in the 401K plan is ultimately important, but at least you have some more savings too; because if your lifestyle is what you say it is, then 6 months savings with that isn't so bad. Can you imagine if you didn't have that good of a lifestyle, then you'll have a lot more savings towards your retirement and also when you're out of a job. Instead, you'll lengthen that 6 mos for several times more than that. But you said earlier that you'd like to live it up now that you're young. Well, that's what you believe in, I respect that. Edited October 22, 2005 by Anahid Takouhi Quote Link to comment Share on other sites More sharing options...
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