Saturday, December 15, 2007

New Years Resolutions

Most people make New Years Resolutions regarding getting in physical shape, or being more organized, well you should make a New Years Resolution, to get your finances more organized and in shape. No more living paycheck to paycheck, and worry about having enough money to pay each bill, or to time your spending so that you don't overdraft the account.

Set up a budget, see if you are going to have any money left over after all of your expenses weekly or monthly, and instead of getting a smile on your face because now you have a few more bucks to blow down on Chippewa Street, or some other local watering hole, set that money aside, and let that money make money for you.

As I posted before, there are investment vehicles for people that don't have high upfront costs to get started with them, Charles Schwab, T. Rowe Price, TIAA Cref...OR if you don't want to start investing in mutual funds, set up one of those online savings accounts I discussed, you can then make over 4% (ING is about 4.2%, and Virtual Bank is 4.6%) RISK FREE. Instead of blowing it on one night of partying, make it last, and make it make money for you.

It might be tough to start saving at first, considering it may not have been something you were that religious about before, but once you start saving, start seeing that bank balance get larger and larger based on your deposits, and then you see the interest payments adding on top of that, it will be a good feeling knowing that you are getting your finances in order, and you are saving for something larger...whatever it is you decided you are putting that cash away for...

Albert Einstein said it best, when he said that he thought that compound interest was the 8th wonder of the world, so at the start of 2008, start that interest compounding for you.

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