Multiple Income Streams

“Why should you actively cultivate multiple sources of income?”

 

Multiple Incomes- Exactly what is Multiple Income Streams ?  Developing multiple income streams is a way to enhance your present income, help save for the future and provide an “insurance policy” to make sure that if the unthinkable happens you will still have income coming in from various sources.

Why everyone should develop multiple sources of Income for personal Safety

Everyone at one point in their lives look for ways to earn a living. We have compiled an ever growing list of ways to make money, some you know, some will shock you.

The best ways I believe are the “Passive Income” Ways. Invest the money, the time or the expertise and for the most part put it on auto pilot and let the money flow in. Even if you are modestly successful you could potentially provide yourself a decent steady income for the rest of your life.

How many Income Streams should you develop? I recommend developing as many as you can until you are confident that no matter what is thrown at you in life you know that you can always provide for you and your family.

Recently I have turned my efforts to just this, discovering as many possible ways to make money as I can.  Recent events have shown me that single sources of incomes for almost anyone can spell gloom and doom. Most people in America although in the recent past felt as though they were secure financially if they had a good paying job, a nice house and a decent savings in an IRA or a 401K etc. But the “Great Recession” that started in 2008 and has lasted through the present has dispelled this myth. Many of us followed all the advice of the so called “Financial Experts” and where did that get us? For many it was disastrous, for others it has postponed or perhaps even cancelled our Retirement plans.

The answer – Well everyone might have a different answer but for me the answer is to have as many different sources of incomes as possible, especially from the “Passive Income” sources. Now one note on “Passive Income” as you read on you will see that some familiar types of investments are included in the “Passive Income” category but use extreme caution here, that’s not to say they are not good passive sources of income but as most know these sources can disappear quickly. A good example is CD’s, they were relatively safe and providing a great source of income for many Americans. As many discovered though the CD rates can go from a great return of say 10% to 1% almost overnight. When we discuss CD’s later on we will explore strategies to help mitigate this radical loss of income.

Why should you actively cultivate multiple sources of income? As explained previously there are many unexpected pitfalls that just beyond your control. Will you wake up one morning with the value of your home cut in half? Will the next economic bubble burst and take you with it? Will the bank or financial institution you entrusted your life savings to suddenly be declared a Ponzi scheme? Who knows but you owe it to yourself to be prepared. Not so much by saving your way to retirement but by ensuring that you have multiple incomes for life.  Does this mean you should stop saving for Retirement and personal goals?, absolutely not.  Everything the “financial Experts” have taught are true for the most part it’s just that they have left out one of the most important aspects of ensuring your personal financial welfare – your income. Traditional wisdom teaches us to get a good education or to obtain a skill that will get us a great job and provide the income we need. But, Traditional Wisdom is only half the equation in today’s environment. You must go beyond the traditional good job and savings route.

I saw my father work his whole life and save every penny he could only to see it all disappear when my mother fell ill. Now of course he did the right thing and so will the majority of us when face with tragic  circumstances  , but what if he had cultivated multiple sources of income so that when tragedy fell he not only had the savings to cover the tragedy but the income to keep up his lifestyle?

The whole goal is to never have to worry about the loss of a source of income. After all when it comes to investing all the experts say the key to safety is DIVERSITY and why shouldn’t the same hold true with the most important aspect of your life, your income sources? The idea  is to have MULTIPLE sources of income coming in at all times. Doesn’t it make sense to help insure the safety of your family by simply taking the time to set up easy sources of income? No one is asking you to quit your job or to radically change your life just to take a little energy now and devote it to setting up Multiple Income Sources!

I categorize income into three types

  • Active Income – Active income requires you to show up to work each day and actively participate to earn a salary or income.
  • Investment Income – Investment Income is a type of Passive Income with a few exceptions like that of Day Traders or active Stock Traders etc. Investment Income can require very little effort on your part but you can devote as little or as much effort into as you wish.
  • Passive Income – Passive Income requires very little effort on your part once you have set up your business or income system. Passive Income is the Holy Grail of the Multiple Income Sources. A great source of passive income has been made possible by the internet. There are a great number of people making thousands and even millions from things like Blogging, Niche Websites and posting how to or entertaining videos on You Tube. There is no reason why you can’t join in and be a part of it.

The Pitfalls of “ Financial Advisors”

First let me say there are a few great Financial Advisors. These are the exceptions however and while most talk a good talk for the most part they fail to deliver. Financial Advisors basically earn their money in one of two ways and even in both ways in most cases. The first way is they earn commissions from the Funds they steer you to invest in. Now usually they have some really good funds to invest in but I personally am not a big fan of Mutual Funds. Mutual Funds charge you to invest in their portfolios, there can be penalties for withdrawing money too soon, they have requirements that they must meet as directed by their charters such as they have to invest in certain percentages of a certain type of stock or have to hold so much in cash and so on. Mutual Funds rarely beat the overall market on a consistent basis.

The second way is that they charge a fee or percentage of your portfolio for actively managing your account.  This can be good as the more your account grows the more money they make.  But they can also earn a percentage of your portfolio even when your money drops, so either way they are making money off of yours.

Another way of Investing in Mutual Funds is to buy them directly from a Fund Company like Fidelity. Cut out the middle man so to speak. This can be good for those that don’t mind doing a little homework.

My favorite way to invest in the Stock Market is to buy the funds directly through a company like Charles Schwab. I only buy Dividend paying name brand stocks, that is they must pay a dividend and they must be  a company that has a long history of dividends and must be a name I recognize. Examples are Coca Cola, IBM, 3-M, Exxon Mobile, Proctor & Gamble etc.

I buy these stocks ( I recommend at least 15 to start and a goal of 30 stocks in differing sectors like Tech, Communications, Energy, Utilities, etc  for safe diversity ) and except for a quarterly review hold them forever. The only way I sell is if I believe that something major will negatively affect the company for a long time or if the products they sell are no longer relevant. An example of a company that has failed to adapt to modern technology for example would be Kodak – once a dominate force in cameras – that has now become obsolete and failed to quickly adapt.

 

 Some potential  Income Sources :

  1. Internet Store Sales
  2. Internet revenue from blogs of informational websites
  3. Dividend Stock Income
  4. Investing in Real Estate
  5. Part Time Jobs
  6. Consulting
  7. Turn your hobby into an income
  8. Trading Stocks
  9. Become a “Wheeler & Dealer” bargain, trade and sell for profit
  10. Open a business on the side of your regular job, example : a food or service  Franchise ( I do Not recommend retail businesses )
  11. Become a Real Estate agent on the side.
  12. Flip Houses
  13. Weekly or  monthly yard sales
  14. open an Ebay or Etsy business
  15. Become a Handyman
  16. Write and sell books/e-books
  17. Teach others how to do what you are an expert at.

 

 As you can see there are many ways to earn extra income but the important thing here is to develop the income sources now before you actually need them. By doing this now you give yourself peace of mind, it will serve as an insurance policy for you and you family and can help you save more money for your future through the extra income generated.

 

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Become a “Wheeler and Dealer”!

“So as you can see, there is literally no excuse for not having a passive or alternative income stream. “

Become a “Wheeler and Dealer” for Fun and Profit!

Looking back there are people that stand out in life as having that “Secret Sauce” we all desire. Sometimes because we are so focused on other aspects of life we fail to see what is right before our eyes. I have met two people in my lifetime that made a great impact on me when it came to their ability to generate income. These people and others like them have a talent that is generally not recognized as such. They have the ability to look at everyday situations and turn them into money making opportunities. They see opportunities that most of us just pass by. They instinctively know how to make money where we fail to see the value. Most of us ignore opportunities because we don’t realize we are seeing an opportunity. But there are a few people that see opportunities daily and jump on the chance of profiting from them.

They are what I like to call “Wheeler and Dealers”!

The first person was a friend and coworker during my early years in the Navy. He and I became close friends, we not only interacted well at work but we regularly hung out after work and he and his wife would invite me over for dinner. It soon became clear to me that he had a special talent, although at the time I don’t think I understood. He was what I like to call a “Wheeler and a Dealer”. I don’t mean this is a derogatory manner but rather a genuinely positive way. I had great admiration for him and his ability to spot “opportunities” to make money and generate cash flow. Somehow he was always looking for and spotting that deal that would make him some money. He would buy a car and flip it for an instant profit, or make trades then later sell what he traded for a substantial profit. He did not wait for opportunities, he created them.  I have lost contact with him over the years but the last I heard from him he was doing very well and living a very comfortable life. I have no doubt that he is still “Wheeling and Dealing”.

The other person was a relative of mine through marriage. My wife and I were invited to his house for dinner as we happen to be in town for Easter. My first impression was of awe – a beautiful home and a beautiful hidden property of wooded, rolling hills, a small lake stocked with fish. My first thought was that this guy must have a really good job with a really great income. It turns out I was correct but not exactly for the reasons I was thing. When we went inside the first thing you noticed was that the entire home was furnished with expensive and elegant antiques. Not exactly my personal style. But I am sure that many would love to have the furnishings for themselves, especially those of you that are antique lovers.  I would guess that to go out and buy these items to furnish your home would cost you two or three million dollars. Yes, there was that many, and they were that nice. It was just literally amazing.  Later I asked his son what his father did for a living. It was his answer that floored me. He told me that his father had never held a job in his entire life! He was in his seventies at the time. After more questions I learned that he was an amazing person and made his entire living from finding deals and converting them to cash. He would trade or purchase items from people he knew or met and the trade or resale them to others for profits. He had a keen eye for bargains and knew how to turn them into profits. I later learned that the items furnishing his home were items he wanted to keep and decided not to resale or trade. He was sitting on at least a two or three million dollars in antique furnishings in his home. His home was something that I could only dream of at the time. The property and home was easily worth a million even though it was located in a rural area of Tennessee. It turns out I was correct in my original thought – This guy had a really great job, I just did not realize he worked as a “Wheeler and Dealer”.

I believe that each and every one of us has the ability to become a “Wheeler and Dealer” on some level. We may not be able to make our entire living from it but we can certainly obtain the level of alternative income streams from it with very little effort other than keeping our eyes and minds open to opportunities as they present themselves. It takes a different mindset. I may not be able to instinctively spot bargains and deals like my friend but with approaching every day with the will power to look for deals we can all find bargains to make money and who knows many even make a decent living.

So as you can see, there is literally no excuse for not having a passive or alternative income stream. I have only scratched the surface of potential income here. All you need is the ‘want to” and you are funding your retirement! Saying there is nothing I can do is just an excuse. Each and every one of us has the capability to create alternative Income streams! Make a commitment to yourself to start looking for everyday opportunities and acting upon them for profit and for fun. If you are able to successfully transform yourself you are almost guaranteed to never be without income.  Who knows maybe will ask you what your job is and you will reply – I am a “Wheeler and a Dealer”!

Thoughts or Comments? Have your own story to share ? We would love for you to share them with us !

The Robots are Coming – The Robots are coming !

“There is no doubt that robots are poised to eliminate many human jobs within the next decade. “

Perhaps we should have a Paul Revere type riding through out streets warning of the pending Robot Invasion. Why ? Let’s have a look into to near future, but be warned it might not be like you and others have imagined it to be.

I believe we are now entering an age that is witnessing the fusion of technology, artificial intelligence and robotics. Where will it lead? Many have speculated but circumstances always have a way of going in directions many people would never dream of.

There are several robots currently under development that are designed to replace humans in the work place . Everyone by now is familiar with Amazon’s hopes of delivering packages to your doorstep utilizing the use of drones. This technology is real and is ready to be implemented and I think most of us will experience it in out lifetimes along with a hot pizza being delivered or other items. Amazon has been building distribution centers in every state. While they have given up tax advantages by eliminating their exemptions. What eats up more costs than taxes? Shipping costs. By building distribution centers they can reduce shipping costs and improve delivery in the short term but dramatically reduce costs if they can deliver packages by drones. And this seems to be Amazon’s ultimate goal.

Other companies are also quietly introducing or supporting the development of Robots that will replace their own workers. We are all familiar with factory automation with devices that paint automobiles and weld components as they travel an assembly line but I am talking about much more advanced . Many restaurants, Applebees and Chili’s are examples,  are testing new systems that are designed to let patrons place their meal orders without having to wait for or interact with a waitress or waiter. In addition to placing your order you can also pay with a credit or debit card using the device. This will eliminate errors and employee costs by allowing the restaurants to only hire a couple of “runners” that will deliver the food to your table. Fast food restaurants are leading the charge with robotics however with many Wendy’s and McDonald’s utilizing Kiosks to place your order. Once the order is placed and paid for you can go to the counter to pick up your order. In addition enterprising robotic companies are also developing robotic machines that will cook and assemble hamburgers to order. With fast food workers demanding $15 per hour in wages it will make the machine the cost effective approach.

Robots are also under development for use in retail stores like Walmart, Target , Home Depot and most others. The robots will have the capability to interact with customers and act as store clerks. In many ways the robots will be improvement over the humans in that they will have instant access to knowledge bases and inventory counts being able to share the availability of products. They can also collect instant data and feedback for the stores as to what items people are requesting and what items are trending. The robots will have many other advantages over their human counter parts. They will not have to call in sick or request time off and in fact will be available for work 24 hours per day 365 days a year. Robots will not care if it is Sunday, a religious Holiday or a Birthday they will always be available for work making it cost effective for stores to remain open 24 hours a day and year round. Basically one Robot, because it does not need sleep or rest could in theory replace up to three employees during a 24 hour period. That is a total of 120 hours per week.  This is $93,600 a year in savings based on the $15 per hour that many fast food workers are currently demanding. This would mean if a robot cost less than $50,000 each it would pay for itself in less than a year. The second year would increase company profits. Who knows what the potential lifespan of a robot will be but ten years certainly sounds like a reasonable projection. The robot will never complain or cause malcontent with other workers, will never strike, demand raises or join unions. It will not require benefits like health insurance and retirement and the employer will not have to pay for workman compensation insurance or federal and state unemployment insurance, the employers mandated matching Medicare benefits tax or the matching social security taxes. In addition the employer will not have worry about equal pay issues or civil rights issues, and sexual harassment lawsuits. As you can see even small business will benefit greatly from replacing workers with robots as the savings will be tremendous.

What about the drawbacks of replacing human workers with Robots?

There will be very little disadvantage for the employers, at least at first. As one can quickly contemplate this scenario cannot be sustained, at least as our way of life exist today. As employers replace human employees with robots more and more people will be forced out of the work force. This in turn will create a “snowball” effect, the more people that lose their jobs the less people will have money to purchase goods and services from the very companies that laid them off. It will also quickly overwhelm the state and federal governments unemployment and welfare safety nets. With fewer and fewer workers to pay into these programs they will quickly overwhelm the system to where the government will have to terminate the programs. New jobs will be nonexistent as most  jobs created will for robots. I can envision governments actually collapsing under the burden of a calamity for which they were not prepared. Only a lucky few will still have jobs in just a few short years. Before the companies have realized what they have done it will be too late to turn back. They will have destroyed the very customer base they depend on by putting so many people out of work. Not only will this scenario play out in the United States but it be taking place world wide.

I am not a “Doom and Gloom”  type of person but I am just not sure we can stop this from occurring. It is playing out now at a somewhat slow pace but at some point it will take off and there will be a point of no return. A good example is the cell phone or smart phone. I can remember when only a select few had satellite phones, they were very expensive and were literally the size of a large brief case. Then, magically they were reduced in size and the cost came down. Now days you rarely see anyone without a smart phone. Almost overnight it seemed had one. And I’m afraid that’s what will happen with robots, Just a few companies are using them now but when the technology improves and the prices become more reasonable due to mass production the robots will replace workers extremely fast.

What I believe will take place with the companies using robots to replace workers is that there will be a company that produces a robot that is truly revolutionary. In the beginning only a few companies will take the plunge and replace almost all their workers with robots. A few companies will resist altogether but it will become quickly clear to them if they do not also adapt this new robot revolution they will not be able to compete against the companies that have gone to robots. In this competitive manner all companies will be forced into adapting robots. This is when it will be so rapid of a change it will seem to take place almost over night. They will either adapt to robots or most will simply go out of business.

Can the Robot Revolution be stopped?

Perhaps, but it would require legislation not only from our Congress but by governments all over the world so the likelihood of that happening are very remote. No country will be willing to risk letting others have the technological advantage over the others. In addition Big Corporations control most governments so they are not likely to try and stop it either. I believe the best we can hope for is that governments are recognizing the threats and start to prepare for a different type of society and start planning for how people can survive without jobs. It is a very difficult and complicated  subject to address so it must be started soon.

One thought that I had was that people be allowed to “own” robots. Corporations would be forced to hire these robots and pay them wages on behalf of their owners. These robots would become the their “proxy” workers that earn money for them and pay taxes out of their “salaries”. I am not entirely sure how this would all work out but it seems like a good starting point for addressing the problem. Still there would be a lot of questions to answer. Would everyone be assigned a robot at birth or at a certain age? Can you own more than one robot? Do all robots receive equal pay? I could go on and on but I believe you get the point.

Robotics in our everyday lives are here already

Robotics have been with us for a while now but few of us recognize them as such. Cars that drive themselves, planes that fly on auto-pilot, or drones that fly, spy and even kill human targets. Robots are being incorporated into our everyday lives.  Take the development of Siri,Ok Google, Pixby or Amazons Echo and IBM’s Watson they are all being incorporated into our lives and are taking on increasing attributes of humans to the point where we no longer recognize or think of them as robotics.

Another example is the Honda robot (Asimo) that is being developed. a humanoid robot that can do many amazing things just like its human companions. It can push a cart, carry a tray, it can assist humans by synchronizing with them by adjusting its movements and strength when interacting with the humans. It can walk, climb and descend stairs, and can avoid obstacles. It can even jump! It can also chart a route to follow, recognize moving objects ( like shaking hands) , distinguish sounds and can recognize faces and human gestures. While the Honda robot has not yet hit production parts of the robot have, a many developments have sprung from the robot to aid handicapped individuals such as a body support device, stride management assist which are both products that help support human mobility. While much of the robotic development we have seen to date is mostly products that serve a single function we are about ready to hit the next phases of development e=where we will have the multitasking humanoid types of robots that will actually perform complex human tasks and start to fill in human roles. When exactly the first robots will start rolling off the shelves is hard to predict but I think it is entirely possible to see them within the next five to ten years.

Another unknown area – Human Computer Implants

Did you know that the FDA has approved a computer chip for implant into the human brain? The ones that have been approved for now are more like the implants that are used for pet tracking only these chips will contain your medical history so that in medical emergencies doctors will instantly have access to your records. But other companies like Intel are working on actual computers that will be implanted and connected to your brain. You will be able to access the internet and make calculations all the while carrying on a conversation with your girlfriend or perhaps a work colleague. Intel is predicting to have these ready for implanting as early as 2020.

Humans that choose to have the implants will have distinct advantages over those that choose not to have them. So will this force people to have the implants to remain competitive at school or work? I would predict if they are successful then it will almost certainly force most to have the implants. Employers will want only the brightest and best for the few positions that are not occupied by robots. If you want to be competitive you will not only have the implants but you will be forced to continually upgrade to the latest and greatest implants. Wow, what a future!

Summary

There is no doubt that robots are poised to eliminate many human jobs within the next decade. We as individuals and even as a nation and a world need to prepare for these developments in our evolution. Unless we start preparing now the change will occur so rapidly that when it reaches a critical mass it could very well cause widespread economic collapse. One only has to look at recent history to see how fast computers and cell phones were incorporated onto our daily lives. It just a few short years we reached the point in society that it would be very difficult to do without these important tools. (for those that were born afterwards it could be impossible!)  It seems that each time a new and revolutionary technological advancement is introduced it is accepted and incorporated by humans the quicker it becomes part of our daily lives. The robotic revolution is upon us and I believe it will happen very quickly and if we are not prepared the results could be catastrophic for our society. It doesn’t have to be though, with just a little preparation it could be humanities road to utopia. What does this all have to do with dividend Income Investing? I’m glad you asked. This is one of the many reasons I believe it is important to not only invest and develop income for the future but to develop multiple income streams as insurance for life’s unexpected turns and twists.

Just for Fun

As far as I know – as of yet no controls have been placed on robots. Even if we (the United States) had controls on robots the reality is you would have to impose controls literally on every single nation in the world. This not only very likely I will state it is impossible to do.

Issac Asimov, a famous science fiction author, published a short story that later became famous for it’s suggested “rules” for governing Robots behavior. His article publish in 1942, included the simple rules for robots. three were original and the fourth he added later on.

  1. A robot may not injure a human being or through inaction allow a human being to come to harm.
  2. A robot must obey the orders given to it by human beings, except where such orders would conflict with the the First Law.
  3. A robot must protect its own existence as long as such protection does not conflict with the First Law or Second Law.
  4. Asimov added this law later – The Fourth Law . A robot may not harm humanity, or, by inaction, allow humanity to come to harm.

This all sounds good and makes us warm and fuzzy when thinking about those cute little robots running around doesn’t it? Well maybe you forgot that the Military is developing its own prototypes of robots and I am very sure they will not be on the battlefield to tell jokes. They will have a primary purpose of destroying and killing so you can bet Issac Asimov’s Robotic Rules will not apply !  Sorry to ruin it for you, I know it was bad enough thinking about the possibility of losing your jobs. As someone that prides himself as a realist though I believe it is necessary to point out the bad and the good.

There is little doubt that if instituted correctly the robotic Revolution can have very positive impacts on society. It is our responsibility to make sure we move to limit the possible negative impacts.

Please consider following this blog to learn how you can create multiple income streams to provide for your family. From Dividend Income Investing to other forms of developing and producing income we are you best source.

Please share your thoughts or comments below – we would love to hear them !

Read- Wandering Security Robots Taking over America!

How Not to Spend Your Money !

“The objective is to accumulate a sufficient amount of investments so that it provides you with a very comfortable income stream “

My philosophy is “The best way to make money is not to spend the money you have”. This concept seems a little difficult for some to understand, at least in my own immediate family. When I try to explain this concept to them I get blank stares or looks of total confusion. I firmly believe though once you grasp this fundamental concept you can be on your way to financial Independence and Freedom. Notice I did not use terms such as  “Millionaire” , “Rich”, “Wealthy” and similar terms or phrases because that is not what my objectives are. The objective is to accumulate a sufficient amount of investments so that it provides you with a very comfortable income stream and is continually growing in size. Of course there is usually many ways of accomplishing goals and objectives but one area that I believe most people seem to ignore is also what I believe on of the most simple ways.  Not spending you money in the first place! In this article I am trying to give you ideas of how not to spend your money. When you don’t spend it you have more to invest and you can produce more income for yourself.  In a previous article I explained how much money each $1,000 dollars would produce in potential future income.

So with the mindset of not spending money let’s see some potential ways to achieve our goals.

Areas to Save Money ( Apply the Golden Rule of Investing)

  • Alcohol – Drinking alcohol can cost you in many ways but just the basic cost is worth avoiding it. If you must drink, then try to buy it yourself and mix your own drinks, you will save 90% of the cost. Easily save $500 per year.
  • Cigarettes – I will not lecture anyone here but just pointing out not only are you hurting your health but you are hurting your future income. I was surprised to learn of cigarettes going for $5.00 a pack. If you smoke a pack a day that’s about $2,000 a year to invest.
  • Fancy Coffee – Did you realize you can make your own coffee at home for about $8 per month versus $120 – $150 per month for the coffee bar brands? Add on another $1,400 in savings !
  • Expensive Vacations – Vacations are important in my opinion but you should look at ways of vacationing that is more affordable. Instead a $5,000 vacation look for ways to cut it in half – Another $2,500 to invest !
  • Prestigious Automobiles – Do you really have to have an expensive or prestigious automobile? In today’s market there is little difference in the quality of cars. What you are really paying for is the honor of sporting a name. Is driving that name brand vehicle really worth the cost of your future income? I would say that only you can answer that question but for me, the answer is a resounding no! Purchase a car with a monthly payment of $300 per month versus $ 600 per month and you will have another $3,600 to invest !
  • Expensive Makeup – I’m certainly no expert on makeup but I have noticed that some of the department store makeup is 10 times the cost of the makeup in other stores. I have yet to see a pretty woman and say to myself “I bet she is wearing the more expensive makeup”. In other words ladies – I don’t believe men know the difference! Let’s cut back $20 per month for a yearly savings of $240
  • Expensive hair-styling – A haircut is a haircut – Why pay more for a product? Is a $100 haircut really better than a $`15 haircut? Probably not. Even at two cuts per year – $170 saved !
  • Fast Food and Expensive Restaurants – Eat out less often and you can easily save $50 per week which amounts to $2,500 per year saved.
  • Telephone – Why pay $ 800 for the privilege of owning an I-phone when you can get a nice phone free instead? Saving $800 would pay you $128 per month in retirement! $800 saved.
  • Cable TV – I remember when they first introduced cable TV – It was billed as Ad free – Not so much any longer, now you are paying to watch ads. Out of thirty minutes of programming they are squeezing in as much as 15 minutes of advertising! All trying to talk you into spending money on things you don’t need. Dumping cable could add as much as $16 per month in retirement income each month! $1,800
  • Designer Clothes and Shoes, Accessories. Many people justify the exuberant prices by saying that they represent higher quality – but in most cases, they don’t! You are paying for the “privilege” of sporting a popular name. The amount saved here varies widely with each individual but I know most could save $500 here and not even notice it.
  • Designer Bottled Water – Did you realize in many cases you are paying 3 times or more for water than gasoline? – Insanity! easily save $260 per year!

These are just a few of many possible areas to cut back or eliminate spending but it amounts to over $16,000 per year in savings ! This could be a big boost to your Income Portfolio !

The point I am trying to make here is that there are plenty of ways that we waste money that we could be investing for our future. Just by eliminating a couple of items from above could put you well on your way to investing for a more than comfortable retirement!  Take a moment and read them again. Now decide which ones you can eliminate and make a pledge to yourself to start investing that money each month instead. Your future self will be eternally grateful that you did!

You may also want to go back to review even necessary items like home and car insurance. I recently reviewed my own Home Owners policy and car Insurance policy. I found that they had slowly crept up in price over the years and after some investigation and a couple of quotes I was able to reduce my homeowners policy by $600 per year and my car insurance by $400 per year for a total sayings of $1,000 per year ! Amazing is the fact that I did not give up a single thing to save this money except for a few moments of my time.  It didn’t take one thing away from my lifestyle and certainly my friends could care less about what insurance company I have. I would recommend you make this part of an annual review of your expenses so that you can be sure you are not overpaying.

The choice is yours alone – I can’t talk you into making wise choices; only you can do that for yourself. Decide now to make this philosophy part of your life. Take action now for your future self, for your children and for your family.

If you do decide to take action on making cuts to your everyday expenses please consider:

  • Keep a diary and write down every penny you spend for a couple of months to become aware of just where you are spending ( Especially pay attention to the discretionary spending)
  • Set a goal – (IE I will cut $200 per month in spending)
  • Take action at cutting expenses
  • Dedicate those savings to your Investing account
  • Review your spending on a periodic basis – say annually in the same month every year so you remember – A suggestion is to perform the review each year when you do your taxes.

My message – It is easier to not spend money than it is to save money.

have your own ways to save money ? How about sharing them with us. We love to hear your comments !

 

 

Time to Have “The Talk” with your Children!

“I will not quit until I am satisfied they at least have a grasp of the basics and the knowledge of creating an income stream from their investments”

“Let me tell you about the birds and the bees and a thing called Love”

No, not “That Talk”,  I am  talking about the “Financial Talk”.

As a society we put emphasis on all types of social issues that we have our schools address to our children. I don’t want to give the impression that a lot of these issues are not important but I believe educating our children about Finances should be one of our top priorities. Many children can go all the way through college and not learn even the basic of Financial skills. It is my opinion as to why so many people struggle to make ends meet, they have never been taught even the basics of managing their finances.

I know I was never taught anything in High School about Personal Finances or Investing basics. My parents never mentioned the subject or even shared their on personal finance history with me.Yet, many parents have a talk with their children about sex and other personal matters but never think that one of the basic life skills in today’s society is even important enough to bring up. I suspect in my own parents case it was because they themselves were clueless. This can be backed up by the evidence left after their passing when we discovered that even though they made very good money for most of their working lives, they have very little to show for it.

My first taste at learning about personal finance was through a college elective course appropriately named Personal Finance. But even this course was basic information. It gave no details about investing and how to achieve your financial goals.

At the risk of sounding like a “Conspiracy Theorist” maybe our society which is controlled by big business and big banks has a motive to keep the masses ignorant of their finances and how to manage them. I really do not understand why our schools do not place more emphasis on this subject than they do. In today’s world this subject is no less important than Art, History, or Government. How can anyone make it through life without the basic skills of developing a Budget, knowing the true cost of loans or credit cards or having a plan to save for emergency needs or their retirement.

Almost every thing I know about Personal Financing was self taught. I purchased books and read articles. For some reason it fascinated me so I could not (and still can’t) get enough information. I love the idea of investing and learning better ways to actually put it into practice. The entire journey has lead me to Dividend Income Investing. I know that not every one will be as enthused with Investing and Finances as I am but I also know that it is important to teach our children about the basics. I know if I had known even a fraction of what I know now I could have avoided some very costly mistakes early in my life and I suspect that many of you would say the same about your own lives.

As for myself, I have dedicated my self to make sure my children at least have the basic knowledge of investing. It is a struggle sometimes because they have do desire to learn this “boring” subject but I will not quit until I am satisfied they at least have a grasp of the basics and the knowledge of creating an income stream from their investments to help enhance their lives.

We cannot teach our children about every possible situation that might arise in their financial lives but we can make it much easier on them by giving them the basic tools and knowledge they need to thrive in the financial world. Until the schools start realizing and putting more emphasis on the subject I believe it is the parents responsibility to teach them as much as possible.

Don’t have the knowledge yourself ? Then consider signing up to follow us here and maybe even having your children subscribe. We promise to leave the Birds and the Bees to you and the schools and we will concentrate on Investing and Finances !

Comments or thoughts ? I would enjoy to read them. Please comment below.