The following is a guest post by Jonny of financewand.com
It is very important that you take the finest investment decisions for yourself as well as your family so that you can secure your present as well as your future. Forget what you have done in the past (if it is bleak) and concentrate on your future personal finance plans. There are baby steps that you may take towards a better financial future.
Here are few tips to create a better future for yourself and your family in terms of your personal finance:
Create and define financial goals: Find out what your financial objectives are this year and define them clearly because your goal would be to meet these objectives. Do not get tempted with the general ideas, instead focus on the hard core goals that you have. This way, you can keep your focus and work your way towards reaching those goals. Continue reading
Well I was planning on spacing out these blog update posts more, but it looks like it will a more regular feature here. In the short time of running this blog I’ve just met too many great bloggers and discovered so many awesome blogs. I’d love to give props to all my new blogging friends. Since I’m only posting about 3 times per week for now, I’m sure you’d like some great content to read in between.
I’m also still working at improving the design at Modest Money. Today I installed a Facebook widget in my sidebar. Please show your support and click the ‘Like’ button. Thanks! Continue reading
Say you are out walking and you happen to find $100 cash laying on the sidewalk, what would you do with that tax-free present from the heavens? And don’t give me some bs that you would take that money to the police or actually claim it in your taxes.
I was faced with that scenario as a young child about 6 years old. On my way to the local corner store to buy the small amount of candy that I could afford, I noticed a few bills rolled together on the ground. I don’t recall the exact amount, but I think it was about $60. At that age I’m pretty sure that I had never had any paper money, let alone a full day’s wages at minimum wage.
So obviously I was bursting with excitement. I had hit the jackpot! It’s a wonder that I didn’t take that money into the corner store and buy the biggest bag of candy possible. Somehow I had the sense to bring that money home to ask my mom what to do with it. Thinking back, I think it must’ve been my sister that prevented that massive junk-food binge. Secretly I think she was hoping she might get a cut of the cash.
If there’s anything positive that can be taken from the recent mortgage crisis, it is the light it shed on how so many people were living beyond their means. Countless people were getting approved for mortgages they couldn’t actually afford. Mortgages were basically being handed out like candy on Halloween, even if you couldn’t put any money into a down payment. That was just scratching the surface though.
If they committed to a mortgage they couldn’t afford, what are the chances they might have also had a vehicle they couldn’t afford. I know I personally made this mistake due to a little bit of chicken counting before eggs were hatched. I love my car, but what was I thinking spending so much?! Luckily that wasn’t a crippling mistake and my car is pretty much paid off now. Still it is a regret I live with.
Those people getting unrealistic mortgages probably made similar financial decisions on a daily basis…everything from food expenses to entertainment to clothing to vacations. You name it and there are bound to people finding ways to waste their money on it. Too many people simply were not educated enough to properly manage their money. Plus we have turned into a consumer society, where we are constantly reminded of what we do not have and how great our lives might be if we had those possessions. Greed and ignorance has taken over our lives.