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Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
 
Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:24 PM
Original message
10 bucks for your personal financial wisdom
My nephew is graduating from college soon, he has asked family members to not send gifts, but instead "sound financial advice". Keep in mind, he lives in the USA and its the year 2007. We would like to be somewhat "creative" and would like to send him a "collection of wisdom".

I am offering to send 10 dollars to the first 8 people who send me a handwritten, one-page statement titled "my financial advice", by scanning and sending the handwritten page through e-mail.

So, the race is on. Please reply to this message and Ill send you a private message with the e-mail address to which you can send the scan.











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NMDemDist2 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:26 PM
Response to Original message
1. kick so I can find this tommorrow when I have more time n/t
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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:30 PM
Response to Reply #1
2. Financial Advisor Nr. 1 - Found
since youre from Arizona
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NMDemDist2 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:39 PM
Response to Reply #2
4. NM actually now, but that will be explained in my letter to your nephew n/t
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iamahaingttta Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:36 PM
Response to Original message
3. It's very simple...
... Stay out of debt!
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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:41 PM
Response to Reply #3
7. Hello iamahaingttta
thanks for the advice, are you willing to "expand on your thoughts" in a one-page, handwritten statement?
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depakid Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:40 PM
Response to Original message
5. You might want to put that $10 toward this book
Crash Proof: How to Profit From the Coming Economic Collapse

http://www.amazon.com/Crash-Proof-Economic-Collapse-Son...
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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:45 PM
Response to Reply #5
9. Thanks for the link, have you read the book?
If so, would you be willing and able to "summarize" in a handwritten, one-page form?
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depakid Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 07:42 PM
Response to Reply #9
29. Oh yeah, I've read it- and put some of it action
Edited on Sat Nov-17-07 07:43 PM by depakid
Made a bit of money, too. :)

You'll find it's sound advice, given the state of the US macroeconomy and the coming resource scarcities.

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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-19-07 02:24 AM
Response to Reply #5
45. Financial Advisor 8 - Found
Thanks for the link to "crash proof"
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AwakeAtLast Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:40 PM
Response to Original message
6. I can't scan
Maybe you can forwad the message or something? :shrug:

Pay off Student loans fast, pay off car debt, put as much money as possible into something interest bearing.

Those are things young people shoud focus on first and they are fairly easy to do.

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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:44 PM
Response to Reply #6
8. Financial Advisor Nr. 2 - Found
Hi WakeMeUp,

I see that your interest level is high.

Youre Nr. 2

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lumberjack_jeff Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:46 PM
Response to Original message
10. The next time a prince from Nigeria offers to send you $1m...
to deposit the royal treasure in your checking account, take it.

Oh, and if you're selling a car, be sure to accept any international offers to buy it. I hear that '84 Toyota corollas are highly sought after in Bolivia, and I'm sure that the cashiers check for twice its value is on the up and up.

Is that worth $10 or $20?

:sarcasm:
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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:48 PM
Response to Reply #10
13. Hi lumberjack_jeff, put it in writing?
Are you willing and able to "elaborate" and "handwrite" to fill one page?

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malaise Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:46 PM
Response to Original message
11. A few words for free
avoid all but one credit card (I don't own one, but he needs to establish credit) and buy an insurance policy overseas that will pay in Euros. He must postpone all but minimum shopping and pay off his student loan. Indeed if he can find an extra job to dedicate to his student loan, he'll be a happy free man in a few years. Postpone buying a car until he's repaid his student loan.
Buy a meal for a homeless person with my $10.00
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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:51 PM
Response to Reply #11
14. Financial Advisor Nr. 3 - $10 goes to a homeless person
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Tierra_y_Libertad Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:48 PM
Response to Original message
12. Never play poker, or shoot pool, with a guy named "Doc".
You can skip the $10.
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JNelson6563 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:57 PM
Response to Reply #12
19. Or "Lucky"
:toast:
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133724 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 03:10 PM
Response to Reply #12
21. Never eat at a place called "Mom's" or play poker with a man named after a city.
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canetoad Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:53 PM
Response to Original message
15. Why does the insistence on a hand written and scanned
document set my bs alarms a-ringing.
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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:56 PM
Response to Reply #15
17. because
its more interesting and creative than a typed page, and scanning is faster.

I am not asking for a name, address, birthdate, or SS Number.
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liberal hypnotist Donating Member (391 posts) Send PM | Profile | Ignore Sat Nov-17-07 02:54 PM
Response to Original message
16. Find a financial mentor.
Advertise in his university alumni magazine for a mentor who has achieved financial success. There are many successful people that really enjoy helping serious young people.
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JNelson6563 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 02:56 PM
Response to Original message
18. Here's my advice for free
In this day and age I am all about tangible assets. I went long on gold before it was at $400, now it's around $800. Precious stones are good too.

That way you can either flee the country with your valuable sewn into your clothes when the time comes or, if you can't make it out, you've got plenty of pretty shiney stuff to bribe our new Chinese overlords with.

Julie
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shireen Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 05:28 PM
Response to Reply #18
28. what's the point of having gold if no one can afford to buy it?
First of all, this looming disaster won't be confined to the US. It will be world-wide because so many countries have invested in us. Gold, diamonds, the dollar: all the same, except one's a metal, one's a mineral, and one's a worthless piece of paper.

Second, what practical use is gold? You can't eat it. You could make shiny tools out of it, but there are cheaper stronger metals to do the job.

The only things of any true value in rebuilding a society will be our intelligence, creativity, cooperation, honesty, generosity, and compassion. Angela, tell that to your nephew. It will make him a rich man, but not in the way he thinks. And keep the $10.
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JNelson6563 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Nov-18-07 05:48 AM
Response to Reply #28
30. It was mostly tongue in cheek
Mostly. :toast:

You know how it is said that "the poor will always be with us"? Guess what. So will the rich. They'll always covet the wealth of others and want more for themselves.

Besides, gold is far safer than paper money or stock.

But as I said, my post was mostly tongue in cheek. Oy.

Julie
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shireen Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Nov-18-07 06:20 PM
Response to Reply #30
40. sorry ...
there are ads on Air America Radio, from respected smart people like Thom Hartmann and Randi Rhodes, encouraging listeners buying gold. That's why I thought you were being serious. Part of me does not agree with it, the other part has no money to invest! So I'm kinda stuck with the rest of the masses, hoping that the little I have in retirement and savings in US dollars does not become compost!
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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 03:00 PM
Response to Original message
20. TO BE CONTINUED ON SUNDAY
Due to absence from the computer, this discussion will recess until Sunday.
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MissB Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 03:25 PM
Response to Original message
22. I'm not interested in the $10, but here is mine.
I'm far too lazy to dig out my scanner. :)

Financial independence is an excellent goal and certainly achievable for a young person fresh out of college. Now that he is leaving college and heading out into the "real" world, he'll be looking at starting his career and getting his own place. It is so easy to feel entitled to the comforts of home - furniture and all the other "stuff" that makes an apartment liveable. Then there is career clothing. Those shiny credit cards sure are tempting, eh?

I recommend Your Money or Your Life: Transforming Your Relationship With Money and Achieving Financial Independence http://www.amazon.com/Your-Money-Life-Transforming-Rela... Although it is technically more geared towards those who have already been working for a number of years, it is an excellent book for someone just starting out because they wouldn't have all those years of bad-money habits.

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hwmnbn Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 04:11 PM
Response to Original message
23. I'll need the $10 bucks upfront....
Before I give away my secret... :evilgrin:
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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-19-07 02:27 AM
Response to Reply #23
47. Financial Advisor 10 - Found
OK, hwmnbn, Im willing to take the risk ...
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flvegan Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 04:23 PM
Response to Original message
24. Here's an easy one:
Everyone requires credit of some kind. Even if it's not credit cards. Buying a home or car is difficult without a loan. Make your payments ON TIME and pay more than the minimum monthly amount due every month you can.

Most importantly: know your means and live within them. Know what you can afford, don't let someone convince you that you can afford more.
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Common Sense Party Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 04:29 PM
Response to Original message
25. Why handwritten?
Just curious.

My penmanship is awful, but I could fill a book with financial advice.

In fact, I am in the process of filling a book with financial advice.
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CK_John Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 05:19 PM
Response to Original message
26. This for free. His should buy, build or invest in rickshaws. He needs old fashion hand tools. An
augur with as many sized drill bits as possible, a good chisel, a good crosscut handsaw, a good knife and any tool that doesn't need electric. He needs to live within the distance he can carry a 5 gal bucket of potable water. He needs a sterno stove and cans of fuel and spend time at a rifle range and a good rifle with plenty of amno.

I'm very serious about this, he will not need to worry about the financial stuff as much as his personal fitness and the means to fight and survive in a MAD Max world.
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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-19-07 02:26 AM
Response to Reply #26
46. Financial Advisor 9 - Found
Thanks CK_John
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sarcasmo Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 05:21 PM
Response to Original message
27. Buy Euro's .
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Eurobabe Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Nov-18-07 02:33 PM
Response to Reply #27
31. HAHA!!!
:rofl:
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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Nov-18-07 02:35 PM
Response to Reply #31
32. Why are you laughing?
this is all real good advice ...

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Deja Q Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Nov-18-07 02:37 PM
Response to Reply #31
33. I don't think it's funny.
Edited on Sun Nov-18-07 02:37 PM by HypnoToad
As for Mr. Roper, HE is funny.
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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Nov-18-07 02:40 PM
Response to Reply #33
34. Who is Mr. Roper?
Im new here, I have alot to learn
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SoCalDem Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Nov-18-07 02:43 PM
Response to Original message
35. Here's some advice..free.. (sorry) I don't do scanning/handwriting anymore
Edited on Sun Nov-18-07 02:46 PM by SoCalDem
:evilgrin:

Most of these tips CAN be adjusted for a single person..one thing I would add, is to cut DOWN on the car thing and use that money saved to TRAVEL abroad while he's still footloose & fancy free.. The money saved is much better spent seeing the world, than to enrich auto makes & oil comapnies :)


http://journals.democraticunderground.com/SoCalDem/60


Prepare your family for the hard times ahead.

Posted by SoCalDem in General Discussion
Sat Mar 10th 2007, 08:06 AM

No one is immune from the hard landing ahead.

Even with a democratic congress, we will still have almost 2 years left of this mal-adminstration to screw things up even more than they have.

As a boomer, I have lived through many recessions, and they are no fun..

The mini-recession (was it really even a real recession) in the post-Clinton /early Bush years was NOTHING compared to what may be looming on the horizon.

Many people are in way over their heads and a few missed paychecks can send them right onto the streets.

We all think that our family budget is carved in stone and there's no room for "adjustments", but in most cases that's not entirely true.



Easy stuff first:

1. Learn to cook:

......a) Even with higher grocery prices, it's still cheaper (and better for you ) to cook , than to order in, nuke a frozen dinner, or use prepared mixes
......b) grow some fresh veggies if you have some yard space
......c) stock up on bargains at the store when you see them
......d) shop with a list, and stick to it
......e) buy store brands whenever possible
......f) use coupons if they are for things you already buy
......g) Cook several meals at the same time and package your own "frozen dinners" for the rest of the week


2. GET RID OF YOUR CREDIT CARDS

.......a) If you cannot pay them off, please consider filing bankruptcy (if you qualify, and can do it). The deck is stacked against consumers, and it's only going to get worse, folks. The sooner you get "out from under", the sooner you can start rebuilding your financial stability .
........b) Keep ONE credit card with the lowest interest rate possible, and use it once a month (to keep it active)..and pay it in full BEFORE the due date..(If you need to rent a car or reserve a hotel room, you will need a credit card to avoid paying a large cash deposit.
.........c) If your bank offers it, use the online bill-paying service. This eliminates the cost of writing/mailing checks, and it provides a detailed record of what (and where) you are spending your money. It saves on postage too and gas..and time.
........d) Ask your bank for a checking account that comes with over-draft protection (ours has $1k) so if you ever screw up, you will not be charged a bunch of bank fees...or keep a savings account where you have your checking, so you could transfer (online) between accounts.
.......e) Buy a shredder and USE IT. Shred all papers that have any identifying information on them.
.......f) Pay your bills EARLY and pay extra if you can.

3. Examine your "extras".

.......a) Do you really "need" that cell phone package? Are your calls on it, the yak-yak killing-time calls or is it truly for "emergencies" like people tell themselves? Could you get by with a prepaid cheapo-phone that "lives in the car", and a cheaper "frill-free" land line for the yak-yak calls? (People managed this way for over 100 years)
.......b) Cut the cable bill by going to the bare-bones package and have friends tape the HBO stuff for you.
.......c) Take your lunch to work. Even $4-5 a day ends up being close to a Benjamin a month.
.......d) Send kids to school with a lunch too, It's better for them than what they get in the cafeteria. let them make their own, and they might accept it more.
........e) Shop the sales at upscale department stores, and you can often find better clothing/accessories than at Walmart/KMart/Target..and there is no stigma for shopping at resale shops/flea markets/yard sales.
.......f) PAY OFF YOUR VEHICLES (if you can) and figure out exactly what those extra cars are costing you. You have to consider insurance, gasoline, repairs, tires, finance charges.. the whole enchilada
.......g) Take a hard look at the secondary income job (usually the wife's). What are you actually getting to KEEP from that job, after the daycare costs, lunches at work, extra car expenses, extra costs associated with the job, and any income tax implications. Now figure out if it's actually worth the trouble. remember that you only get to spend what's left over, and often that part-time job ends up costing the family money in the long run.
......h) Start saying "We cannot afford that" to your kids. SHOW them the family budget and make them a part of the financial team.
......i) Cancel magazine subscriptions.. (Most probably don't even get read..or when family asks what you want for your birthday/xmas/etc , let THEM subscribe to your favorite magazine as your gift
.....j) When you eat out, go early and use coupons for meals if you get them

4. Maintain your appliances, cars & equipment. An annual "check-up" is cheaper than a complete breakdown.

5. Network and barter casually

.....a) Everyone has a special skill, so trade services within your group. (be careful how you do this, because the IRS is "interested" in bartering .)..
......b) When you buy something pricey, show them cash and ask for a cash discount
......c) Shop in your community, with privately owned businesses, if you can. Often they deliver free and are eager to please you
......d) Ask your friends for referrals for things you need done (if you cannot do them yourself).
......e) If you have young kids, set up an "exchange" with other families..for clothes & toys.
......f) Set up or join a babysitting co-op (It's easy, fun and it's FREE babysitting (as in no money paid..just your time)

6. Consider "shared-housing" . If you are an empty-nester with a big house, you could "rent a room" to a single who cannot afford the high cost of an apartment..or you could incorporate a parent/grandparent into your home (cue fingernails on a chalkboard here)..but if it's the difference between losing your home or keeping it, you may need to consider this

7. Energy use can be cut down

....a) Obviously the new lightbulbs help, but there are other things you can do.
.....b) Do laundry & dishes at off-peak times
.....c) Close off registers in unused rooms
.....d) Set the turn-off timers on tvs incase you fall asleep
....e) Replace washers in faucets so they don't drip
.....f) Plan your shopping /errands in a circular trip.
.....g) Make sure your car has a locking gas cap




I've droned on long enough, but let me tell you, that when a REAL recession hits, and hits hard, many families will be hit hard. Most young folks have never experienced wage-freezes or 15% mortgage loans .. But when WE endured those things, there were no killer health care premiums or $25K cars or all the distractions we have today.

Start now and if it doesn't come to pass, you might only end up with a savings account & some good habits.. Wait too long, and you might be homeless and broke.

Discuss (298 comments) | Recommend (79 votes) | Remove from Journal | Edit intro

J
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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Nov-18-07 02:47 PM
Response to Reply #35
36. Financial Advisor 4 - Found!
Youre the greatest, SoCalDem!
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SoCalDem Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Nov-18-07 02:53 PM
Response to Reply #36
38. One I forgot was life insurance.. I know that people pooh-pooh
whole life insurance, but as a young 20-soemthing, your cost for life insurance will NEVER be cheaper, and if you can lock in a LOW low rate, do it NOW..When you are a 40-something with maybe diabetes or heart disease..AND a wife & kids & house, no insurance company will touch you with a ten foot pole..
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HCE SuiGeneris Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Nov-18-07 02:47 PM
Response to Original message
37. Does "Get a haircut, get a job" count?
Wishing your nephew well in any case.
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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Nov-18-07 02:53 PM
Response to Reply #37
39. Financial Advisor Nr. 5 - Found
As long as you can put that in handwriting,

(but honestly, compared to Financial Advisor Nr. 4, you spare on words)

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RainDog Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Nov-18-07 06:34 PM
Response to Original message
41. A penny saved is a penny earned
Edited on Sun Nov-18-07 06:35 PM by RainDog
...but since the guy writing that called himself "Poor Richard," how sound is that advice? Instead, remember Ben Franklin, the real "Poor Richard" who was not poor at all, who learned a trade (printing) that could sustain him all his life, who gave his energy to the cause of freedom, independence and happiness, who made friends with the wild and wooly outcasts known as The Lunar Men, all of whom, including Franklin, went on to figure out ways in which the earth was composed.

Tell your nephew that it is his generation that will create a better world, in a way that is comparable to walking on the moon, by learning to give and take from the earth equitably in ways that can sustain the entire world, not just the first one, via new approaches to energy.

Financial advice for now: get in on the ground floor of the move to make sustainable living possible. It's not just for granolas anymore. ;-)

Don't date any woman who only likes you for your money, and make sure you have a dog or cat to keep you honest.

no ten bucks needed. give it to your nephew and tell him I'll collect, with interest, when he's set.
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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-19-07 02:21 AM
Response to Reply #41
43. Financial Advisor 6 - Found
thanks Raindog
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Common Sense Party Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-19-07 02:08 AM
Response to Original message
42. Here's a brief summary of the parts of my book that would
pertain to your nephew. It's pretty basic, common sense stuff.

Private mail me an e-mail address and I can send this, and a couple other things I've collected over the years.
---------------------------------------------------------------------------------------------------

Get a written budget. Know how much comes in, how much goes out. Dont just track the obvious, necessary stuff (like rent, utilities and groceries). Also keep tabs on the little stuff: coffee, snacks, sodas, alcohol. A little spending here and there adds up.

Organize all your financial information. Have it in one place, easy to find. Get a binder and put together your investment statements, life insurance policies, copy of a will, and passwords for accounts. Have a list of beneficiaries for all accounts and policies. Then, keep this someplace safe, where it wont be destroyed in a fire or natural disaster.

Be frugal. Spend no more than you earn! This is the number one key to wealth. The financially struggling people spend more than they earn. Read The Millionaire Next Door: the wealthy get and stay that way by living within their means. Their outgo is never more than their income. If that means they cut coupons, pack a lunch, drive a beat-up (paid-for) car, and shop at thrift stores, so be it. They do not use credit to fund a lifestyle they cannot afford.

Tithe ten per cent of your income. If you are religious, its easy: give 10% of your income to your religious group. If not, practice the art of consistent charity, and have 10% automatically bankdrafted out of your account to go to one or two of your favorite charities that make the world a better place. Give to the universe, and the universe will give back to you. Call it karma, call it what you will, but when you give, you get. It works.

Get an emergency fund. The first step is to have $1000 saved up in a safe, liquid, easily-accessible account, like a separate money market fund that you can write checks on. This should NOT be commingled with your regular bank account. This is your Murphy Fund (because if something can go wrong, it will). It is ONLY to be used in case of an emergency. Christmas shopping is not an emergency. A weekend vacation is not an emergency. The alternator in your car conking out is an emergency. Thats what this fund is for. Under no circumstances should you ever use a credit card as an emergency fund.

Make sure you have adequate insurancehome, auto, life, health and disability. Again, you never know what life will bring your way. Be prepared for the worst, even if its unlikely that it will happen. If youre young and you have no dependents, you may not need any life insurance, because no one will suffer financially if your income is lost (perhaps get a small $10,000 policy to cover your funeral). But once you are married and also once you have children, you definitely should get an inexpensive term life policy that will pay your spouse 5 to 10 times your annual salary should you die. Also, make sure you have adequate health, auto and disability insurance.

Have a 72-hour kit, ready to go, in case of a natural disaster. Pack up three days worth of stuff you might need if everything were to go horribly wrong in a hurry. Have enough food, water, clothing (include gloves, hat and sturdy shoes), cash, matches, blankets, etc., ready so that you can grab it and be ready to go at a moments notice.

Start food storage. Bit by bit, store up some non-perishable food items that you could use if you temporarily were out of work, or were unable to get to the store for a period of time. Also have some drinking water available.

Work hard. I shouldnt have to say it, but I will. Be productive. If youre an employee, find out exactly what your employer expects from you in your position, and then do MORE. Employers tend to reward employees who go the extra mile, especially if they are innovative, creative, problem-solvers with great attitudes. The more valuable you are to your employer, the more you will earnand if your employer doesnt appreciate your talents, some other employer will. Get the education and training you need. Always seek to improve your skill set.

Stay out of debt. This cannot be stressed too strongly. STAY OUT OF DEBT. If you are already in debt, GET OUT OF DEBT. If you are not in debt, dont go into debt. Never buy anything on credit. If you dont have the cash for it, you cant afford it. Save up until you do. Dont be fooled by 6 months same as cash or 0% interest for 12 months. Thats all a lie. Credit card companies are NOT your friends. They want you to be their slave. Refuse. Remain free. Do not be saddled with interest payments for years to come. Never go into debt for anything that depreciates in value. Buy only used cars, and pay cash for them.

Get a trusted advisor. Eventually, youll want some help with your finances. Get some professional advice and guidance. Shop around, ask for referrals from wealthy people you trust. Find someone who has your best interest in mind.

Plan your retirement goals, and the steps to get you there. Figure out when youd like to retire, and how much money youd like to have. Figure out how to get from where you are now, to where you want to be in retirement. Calculate how much you need to save each month, and what rate of return you need to earn, to be able to have the nest egg you need when you are retired.

Try to save and invest 10% of your salary. Pay your retirement one-tenth of all you earn.

Start investing in company retirement plan, get full match. If your employer is offering a matching contribution on any portion of your pay that you put into the retirement plan, take it. Put in enough to get the whole match. If you dont participate in the plan, you are leaving FREE MONEY sitting on the table. Keep the money in a retirement plan until retirement. This is NOT short-term money.

Start a Roth IRA. Its after-tax money you put in, so you dont get a deduction now, but if you play by the governments rules, you could have a huge bucket full of money at retirement that you can withdraw INCOME TAX FREE.

Invest wisely. You work hard for your money. Get your money working hard for you. Let compound interest work for you (investing), rather than against you (debt).

Start early. The younger you get started, the more time you have to let compounding work for you. A 20-year old can become very wealthy by only investing $100 a month. A 50-year old that is beginning to invest will have to invest $2000 a month to get similar results in a much shorter time.

Diversify. Dont put all your eggs in one basketdont put all your money in one investment, or in one type of investment. Spread your money out among funds that invest in large growth companies, large value (dividend-paying) companies), small and medium-sized stocks, international stocks, real estate, and maybe a little in bonds.

Stick with your choices. Dont jump around, moving money from fund to fund. Some funds will go down from time to time. Thats okaytheyre meant to. The market moves in cycles. Keep investing in those funds, in good times and bad.

Control your emotions; dont let your emotions control you. Dont get fearful, and get scared out of the market when it gets bumpy or drops. Conversely, dont get greedy when the market soars. Keep your head and stick to your plan.

Dont pay attention to the news. The media says its ALWAYS a bad time to invest. The apocalypse is always just around the corner. Learn to love bear markets. Youve got a long time to go until you retire. Youre investing money every couple of weeks. You want the market to go down, because youll buy more shares when theyre on sale. Those shares will be worth a whole lot more forty years from now. Its all about accumulating as many shares as you can.

Dont try to chase whats hot. Youll almost always be too late.

Dont bother with individual stocks, unless its just play money. Nobody is smart enough to know which company to buy, exactly when, and also know precisely when to sell it. One stock can easily go to zero if the company goes out of business. A fund thats invested in 100+ stocks can only go to zero if all 100 companies go out of business.

Invest systematically. Week after week, or paycheck after paycheck, keep investing regularly. Make it automatic. When you have money going automatically either out of your paycheck into a 401(k) or out of your bank account into a Roth IRA, you wont notice it. You wont miss it. You wont be tempted to (or able to) spend it. Thats how wealth is built over time.
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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-19-07 02:22 AM
Response to Reply #42
44. Financial Advisor 7 - Found
Thanks Common Sense Party!
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Angela Shelley Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-19-07 02:29 AM
Response to Original message
48. 10 Financial Advisors have been found !!
Thanks for your support.
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greguganus Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-21-07 11:10 AM
Response to Original message
49. Don't get married, don't have a gf/bf, don't have kids. n/t
Edited on Wed Nov-21-07 11:11 AM by greguganus
n/t
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