Ten Things Better Than Money

Money does buy happiness, but happiness also creates wealth.

A recent Gallup poll, quoted in an American newspaper, found that "well-being rises with income at all levels of income, across countries."

In other words, as the article's title states, the poll proves that "Yes, Money Does Buy Happiness."

Except that it doesn't prove that at all.

What the study actually discovered was a "strong correlation" between each nation's real Gross Domestic Product per capita and the sense of "well-being" among the citizens from those nations.

Correlation isn't causation. The data could just as easily be interpreted the other way around … that happiness creates wealth.

What's most likely, though, is that happiness and wealth are part of a cycle, each one creating more of the other.

Assuming you want to create both wealth and happiness for yourself and those around you, you have two approaches … wait until you're wealthy to be happy, or become more happy now and thereby create more wealth.

I maintain that, in today's economy, it's easier to start with the happiness, because unlike wealth (which takes time to accumulate), you can increase the amount of happiness in your life within minutes, simply by taking more notice of things that make you happy.

With that in mind, here are ten things that can make you happy immediately, regardless of where you are in the cycle.

1. Life

It's easy to forget that the mere fact of conscious existence--that you are alive--is itself a miracle. As the old saying goes "every day above ground is a good day."

2. Health

Rather than thinking of illness as something bad that happens to you, start thinking of health as something good that's happening to you.

3. Purpose

There is nothing more conducive to long-term happiness than knowing that your actions are making the world a better place.

4. Friendship

Almost everyone has friends, although it's easy to lose track of them in the rush of events. Take a few minutes today  to reconnect with some of them.

5. Family

If you've got a good relationship with your family, rejoice! You're experiencing one of the deepest sources of happiness on the planet.

6. Self-reliance

Feeling secure that you can count on yourself to accomplish what you set out to accomplish creates a quiet but potent happiness.

7. Community

Having the support of a wider group makes you more aware that you're part of something greater than yourself.

8. Gratitude

Rather than focusing on what you don't have or what's out of reach, be thankful for the wonderful things already in your life.

9. Laughter

It is impossible to laugh and be miserable at the same time. Regular doses of laughter are more than medicine... it's the flavour of life.

10. Love

'Nuff said.

Create these ten things in your life and I guarantee that you'll either become more wealthy or, if not, you won't really care anyway because you'll already have what's important.

Source  :  http://www.inc.com/geoffrey-james/10-things-better-than-money.html

Some helpful tips for borrowers

Sometimes people get in over their heads.

They rack up so much debt that they're unable to make consistent interest and principal payments.

When you're late or unable to make payments, your credit rating suffers. This reduces creditworthiness, and ultimately, it inhibits your ability to access financing.

The good news is that there are things consumers with less than stellar credit can do to improve their standing among lenders and to rebuild their credit score.

In this article, we will look at techniques you can use to improve your stats.

Credit Score? What's That?

A credit score is the key to understanding how creditworthiness is evaluated by lending institutions, as a good credit score can unlock the vault to help obtain financing.

Your payment history, loans outstanding and a general indebtedness are statistically evaluated by the credit bureaus.

Based upon a compilation of that data, your profile is assigned a number between 300 and 850, with 300 being the least credit worthy and 850 being the most credit worthy.

It is this number that lending institutions use as a basis for determining whether you qualify for a mortgage or a quick escort out the lobby doors.

So, now that you understand how the score works, let's look at four tips that will help you raise a bad score and win favour with those stern-faced bankers.

Tip No.1 - Pay More Than the Minimum

If possible, always make payments over and above the minimum interest payment that is due. Credit agencies not only look at the amount of debt an individual has outstanding, but also the length of time it takes to pay off the debt.

Unfortunately, there's no calculation that can be used to measure exactly how much this will boost your score. There are a myriad of factors that go into computing a credit score, but accelerating payments and satisfying debts on a timely basis is recommended as a means of repairing credit by lending institutions and well-known credit counselling agencies.

Tip No.2 - Work Out a Plan

Most people don't realise that if they are behind on their debt payments and are going through some trying times, their lenders will often consider negotiating a revised payment plan or possibly forgiving a portion of the debt.

For lenders, negotiating is cheaper than either hiring a collection agency or risking that the individual might have their debts cleared in a bankruptcy proceeding.

If you need a reprieve, approach the lender and ask for more time to make payments. You can also present a revised payment structure. If you can develop a plan that works for you and makes sense for the lender, there is a good chance they will accept it.

If and when a deal is struck to forgive a portion of your debt, be sure that the major credit bureaus are aware of it and that they make the appropriate notations on your credit report. Less debt and timely payments equal a higher credit score.

You can check to see if the appropriate notations have been made by accessing your credit report, which will document your borrowing and any material changes made to these reports.

Tip No.3 - Switch from Credit to Debit Cards

Credit card debt is no friend to your credit score. One of the best ways to avoid credit card debt is to pay the debt right away, through the use of a debit card.

Debit is different from credit. With a debit card, you deposit money into an account and then use the card to charge against the money. There is no credit bill to rack up, and you can only spend what you actually have.

It is important to note that credit reports don't typically factor debit card payments into the credit score equation. But by disciplining yourself and using a debit card to settle debts on the spot, (rather than racking up huge credit card balances) you will, by extension, have a better credit score.

Tip No.4 - Cut Up Those Store Cards

Many people are just one more card away from witnessing the tragic death of their wallets. The leather strains and stretches to hold in all that easy credit.

It's hard not to have an overstuffed wallet when every retailer you visit now has an in-house credit card they'd be ever-so-happy to sign you up for. While these cards often give bonus points, free merchandise or favourable rates, the bad news is that the more open accounts you have, the lower your credit score will be.

From a credit agency's perspective, the logic behind this is that you could theoretically tap all of these credit sources to the max at one time and rack up a huge amount of debt. In other words, credit agencies and lenders are worried about your potential for taking on high interest debt, as well as the likelihood that you probably maintain small balances on each of those cards.

If they don't have an outstanding balance the easiest solution is to simply call and cancel the cards.

If you have balances on numerous cards right now, one excellent solution is consolidating your debt.

A personal loan at 12% is still better than the 20%+ rates some cards charge. However, if consolidation doesn't sound attractive, consider paying off the debt that has the highest interest rate first, and close out your accounts one by one as you pay them down.

The goal should be to reduce your card count to one or two credit cards. It will make reviewing monthly statements and paying your bills much easier.

It will provide discipline as your overall credit limit will be lower, and finally it will keep your wallet from exploding in your pocket, which can be very messy.

Bottom Line

A low credit score is not the end of your financial world.

Discipline and responsibility can help rebuild even the lowliest of scores. Paying more than the minimum, reducing the number of cards in your wallet, negotiating a payment plan can all help boost your score and improve your odds of success the next time you need a loan.

Source: http://www.investopedia.com/articles/pf/07/credit-rebuilding.asp

Learning the Value of Money

When it comes to teaching teens about money, it is often viewed as a problem that is “too hard”. Yet , it is difficult to imagine a skill more important than proper money management in an era when credit card spending on ‘branded’ products is pitched directly at teens.

Schools may teach mathematics and accounting, but the practical aspects of managing an escalating mobile phone bill can seem completely at odds from these traditional topics.

Alongside this, with ‘hole-in-the wall’ banking and the increase in online transactions it seems that methods of monetary transaction have become more and more impersonal. This means that opportunities for teens to learn through personal interaction have diminished.

The task of bridging the gap between everyday money matters and a school’s curriculum falls to parents and, while talking with teenagers can be a difficult exercise at the best of times, finding interesting ways to pass on practical monetary advice is vital.

Some novel ways that you might be able to develop good budgeting and sensible money habits in your teenage children include:

Jobs for the Boys and Girls

Pocket money is a popular way that parents choose to introduce their children to managing money. This option expands on the idea.

First, draw up a contract between yourself and your teen. The contract should spell out what chores and behaviours will entitle them to their fortnightly pocket money, and detail what expenses their pocket money should cover i.e. school lunches etc.

Agreeing (and signing) the contract will also provide an introduction to workplace relations later in life. As an addendum to the contract, a list of jobs can be added to earn extra payment.

This might include washing windows, weeding the garden or cleaning the house gutters. Tasks would be priced according to their difficulty. Incentives could also be offered, such as bonus payments for completing three additional tasks.

The Banker and the Insurer

As a parent, it is likely that you’re often placed in the position of ‘banker’. Teens aren’t usually backwards in asking parents for money, so you will need a consistent strategy to deal with what can become endless requests.

If you have a formal pocket money agreement you can effectively operate as a banker. Taking this further, loans can be taken and interest can even accumulate (eg, instead of simply washing your car, polishing may also be required in order to access funds early). And, although it might not be something they choose, you can also offer your teen an ‘insurance policy’.

In this case, insurance could be offered as an optional part of the ‘pocket money agreement’. This would see jobs paid at a 5 per cent discount so that, in the event of illness or accident preventing them completing the contract, the base payment could still be paid.

Teens in Charge (for a week)

One of the best ways to learn is by taking responsibility. Putting teens in charge of the household budget for a week might seem like a risky option but there is nothing like necessity to spur on an education.

So, rather than them coming to you for money requests, they have to allocate funds for all household spending. This means they have to put aside money for all utilities during the period; budget for family meals; and other necessities.

They can also control the entertainment allowance (although you’d obviously still want to maintain a power of veto over what it was used for).

Money Markets

Investing is another valuable skill that teens could be encouraged to acquire. As a family you could play the stock market with an imaginary amount of money.

Together you could choose shares and watch how they grow or fall in value over a month or quarter. This could help teens learn the value and risks of investing. There are a number of these types of educational investment games that can be found on the internet.

The emphasis of all of these ideas is to actively encourage and provide support for teens to manage their money so that they can successfully do so in the future.

13 Great Motivational Quotes

1. Here is a list of 13 motivational quotes to inspire you:
2. 
   
3. 
   

"Cherish your visions and your dreams as they are the children of your soul, the blueprints of your ultimate achievements."

1. 
   Napoleon Hill

2. "The key to success is to focus our conscious mind on things we desire not things we fear."
3. 
   Brian Tracy

3. "Success is getting what you want. Happiness is wanting what you get."
4. 
   Dale Carnegie

4. "Obstacles are necessary for success because in selling, as in all careers of importance, victory comes only after many struggles and countless defeats."
5. 
   Og Mandino

5. "A real decision is measured by the fact that you've taken a new action. If there's no action, you haven't truly decided."
6. 
   Tony Robbins

6. "If you can't control your anger, you are as helpless as a city without walls waiting to be attacked."
7. 
   The Book of Proverbs

7. "A mediocre person tells. A good person explains. A superior person demonstrates. A great person inspires others to see for themselves."
8. 
   Harvey Mackay

8. "Freedom, privileges, options, must constantly be exercised, even at the risk of inconvenience."
9. 
   Jack Vance

9. "Take care of your body. It's the only place you have to live."
10. 
    Jim Rohn

10. "You can have everything in life you want, if you will just help other people get what they want."
11. 
    Zig Ziglar

11. "The number of times I succeed is in direct proportion to the number of times I can fail and keep on trying."
12. 
    Tom Hopkins

12. "You have everything you need to build something far bigger than yourself."
13. 
    Seth Godin

13. “If we don’t start, it’s certain we won’t arrive” 
14. 
    Zig Ziglar

Does money buy happiness?

Money does buy happiness, but happiness also creates wealth.

A recent Gallup poll, quoted in an American newspaper, found that "well-being rises with income at all levels of income, across countries."

In other words, as the article's title states, the poll proves that "Yes, Money Does Buy Happiness."

Except that it doesn't prove that at all.

What the study actually discovered was a "strong correlation" between each nation's real Gross Domestic Product per capita and the sense of "well-being" among the citizens from those nations.

Correlation isn't causation. The data could just as easily be interpreted the other way around … that happiness creates wealth.

What's most likely, though, is that happiness and wealth are part of a cycle, each one creating more of the other.

Assuming you want to create both wealth and happiness for yourself and those around you, you have two approaches … wait until you're wealthy to be happy, or become more happy now and thereby create more wealth.

I maintain that, in today's economy, it's easier to start with the happiness, because unlike wealth (which takes time to accumulate), you can increase the amount of happiness in your life within minutes, simply by taking more notice of things that make you happy.

With that in mind, here are ten things that can make you happy immediately, regardless of where you are in the cycle.

1. Life

It's easy to forget that the mere fact of conscious existence--that you are alive--is itself a miracle. As the old saying goes "every day above ground is a good day."

2. Health

Rather than thinking of illness as something bad that happens to you, start thinking of health as something good that's happening to you.

3. Purpose

There is nothing more conducive to long-term happiness than knowing that your actions are making the world a better place.

4. Friendship

Almost everyone has friends, although it's easy to lose track of them in the rush of events. Take a few minutes today  to reconnect with some of them.

5. Family

If you've got a good relationship with your family, rejoice! You're experiencing one of the deepest sources of happiness on the planet.

6. Self-reliance

Feeling secure that you can count on yourself to accomplish what you set out to accomplish creates a quiet but potent happiness.

7. Community

Having the support of a wider group makes you more aware that you're part of something greater than yourself.

8. Gratitude

Rather than focusing on what you don't have or what's out of reach, be thankful for the wonderful things already in your life.

9. Laughter

It is impossible to laugh and be miserable at the same time. Regular doses of laughter are more than medicine... it's the flavour of life.

10. Love

'Nuff said.

Create these ten things in your life and you'll either become more wealthy or, if not, you won't really care anyway because you'll already have what's important.

Set Your Financial Goals for 2023 Today

Research shows that financially successful people are people who set plans.

I recently conducted surveys with the self-made rich and found that the more financially successful you are, the greater the likelihood that you've set personal financial goals to help you achieve that success.

The data also shows that highly successful entrepreneurs are about three times as likely as ordinary people to write down their goals as a way of motivating themselves to keep achieving.

As the saying goes, "Nothing measured, nothing managed." If you don't set down your financial goals in plain black-and-white, how do you expect to reach them?

Take 10 or 15 minutes to answer these six simple goal-setting questions and you can set a fresh new course for wealth-building in the new year:

1. "Where do I want to be in 2023?"

Remember 2003? If you're like me, it seems like just yesterday. The next 10 years will fly by even faster, so now's the time to figure out exactly what you want for yourself and your family when you get there. Whatever net worth goal you choose, staying mindful of that specific number is guaranteed to help you make smarter choices about your partners, customers, and projects in the coming months. Bet on it. 

Take out a lined sheet of paper. On the very top line, write "2023" followed by the net worth number you want to attain on January 1, 2023. 

2. "What are my annual income goals for the next five years?"

With your net worth goal set for 2023, it's not so hard to figure out how much money you'll need to start socking away in the next five years if you really want to get there. Ask yourself what income you'll need to achieve in each of the next five years to put yourself in position to reach your 2023 goal. 

On the line below "2023," write "2017" and then on the next four lines below, list down to 2013. Beside each year, write down your target annual income for that year, and your target average monthly income for the year. 

3. "What are my monthly goals for 2013?"

Now you've got your work for the next 12 months. A set of interim income goals for each month will help you be clear about your priorities right away. That's because now you can see, maybe for the first time ever, the direct cause-and-effect relationship between what you choose to do this month and what you're building toward 10 years from now.  

On the next 12 lines down the page, starting with "D" for December, count down the initials of the next twelve months: "D, N, O, S, A, J, J, M, A, M, F, J." Then put your magic monthly number next to each initial.
4. "Where can I post my goals so I don't lose sight of them?"

Some of you are lucky enough to attain your dreams without giving much thought to your goals, but most know that the obligations of daily life will always conspire to distract you from the prize. So if you really want to achieve the 18 important benchmarks you've just committed to paper, make sure you don't put them away, and forget about them. 

What do you have posted on the wall at eye level above your workstation? Whatever it is, even if it's a picture of your family, move it nine inches to the left, and fill that empty space with your goal sheet! 

5. "How can I keep raising my game throughout 2013?"

Here's a New Year's resolution that might prove to be the most valuable one you've ever made. Resolve to celebrate every great new deal you close this year by redoing this 10-minute exercise. Every time your business takes a leap forward, every time you find that you've exceeded your monthly goal, create a new map of your goals, for next month and the next decade. 

Write "Resolve, Review, and Revise" at the bottom of your sheet. Each time you write up a new goal sheet, keep lifting your vision of what you can achieve in the coming months. There's no telling just how happy 2013 will be!

6. "Do I have a financial coach or money mentor?"

If you do, that's great, just make sure that you keep in regular contact with your coach or mentor.  Monthly or fortnightly sessions are ideal and will keep you on track to reach your goals.

If you don't have a financial coach or money mentor, take the first step by booking a free introductory session now at Money for Life Coaching

Source  :  http://www.inc.com/lewis-schiff/set-financial-goals-to-achieve-success.html?cid=em01015week03

Tips on using your credit cards

Credit Cards - sure, you're familiar with these magic plastic cards – it’s money readily available, but how much is it costing you?

You use them for all types of household and family items … groceries, petrol, dinners out and more.

You get the statements every month. But how well do you really know your credit cards? 

Credit card companies are in trouble.

Since more and more people are defaulting on their debts, they're making everyone pay for it by changing their terms, making carrying debt more costly.

The more you know about our credit cards, the more control you'll have over your debt. Here's what you need to know:

• How many cards do you have? You should only have two credit cards in your wallet at any given time. These two cards should be the cards you have with the best terms—lowest fees, largest limits and maybe even points!
• What are your interest rates and fees? If you don't pay your credit card balance in full each month, you'll want to pay extra attention to the APR, which stands for annual percentage rate. Finance charges on your credit card statement each month can be high so check out the rate … the lower, the better. 
• Do you pay your credit card bill at least five days before it's due? If not, you should. Until a new regulation comes into place next year, credit card due dates can be due at specific TIMES! So if your bill is due the 15th, it may be due the 15th at 8:00 AM! Be careful … it may cost you with late payment fees etc.
• Are you paying off the right card? The best (and fastest) way to pay off credit cards is to throw the most money at your balance with the highest interest rate while you pay the minimum on all your other cards.

If you are having money or credit card problems, go to moneyforlife.com.au for some solutions.

As this is my last blog for the year I'd like to wish you a great Christmas and New Year.

Using Credit Cards to Your Advantage: A Beginner’s Guide

Credit Card Spenders vs. Credit Card Haters

There seem to be two dominant attitudes regarding the use of credit cards. On one hand, there are “The Credit Card Spenders,” i.e., those who view credit cards as “easy money.” They treat credit cards as a means of extending buying power beyond earned income, usually to purchase things they want but can’t afford at the time. On the other hand, there are “The Credit Card Haters,” i.e., those who are aware of the financial danger that credit cards pose as a result of their high interest rates and fees. While The Credit Card Spender tends to charge away happily with virtually no discretion, The Credit Card Hater virtually avoids using credit cards altogether, opting instead to pay for things by cash or debit card while purchasing only what she can currently afford.

The reasoning behind The Credit Card Hater’s attitude towards credit cards might not be so obvious at first, so let’s illustrate by example just how financially imprudent credit card usage can be: Suppose Sam The Credit Card Spender receives a card with an $8,000 limit at 15% APR, which she proceeds to max out in an epic spending spree that begins the second after she activates her card and ends just before she receives her first bill. To say that Sam is a personal finance newbie would be an understatement. But she means well. In the midst of her shopping hangover, she vows not to charge a single penny more to her card. Yet, she presumes the minimum payment printed on her bill each month (the product of 2% of the remaining balance or $20, whichever is greater) is all that she owes, so she proudly mails in a check each month equal to the minimum payment. Sam is encouraged as she observes the payment drop each month. First month: $160; next month: $158.80, and so on. “These low monthly costs sure seem like a small price to pay for $8,000 worth of stuff,” she says to herself. What Sam fails to realize, however, is that the reduction in minimum payments isn’t a feature of responsible credit card loan management, but instead significantly prolongs her payback time and ends up costing her far more money than if she were to pay a fixed amount of, say, $160 each month. Here’s a comparison:

Option #1                           Make Min. Payment

Total Paid:                      $20,245.78

Total Interest:                 $12,245.78

Total Years to Pay off:       29.75

Option #2                           Pay $160/Month

Total Paid:                      $12,632

Total Interest:                 $4,632

Total Years to Pay off:       6.58

It’s obvious that it’s in Sam’s interest to pay more than the minimum balance each month. However, even if she pays a fixed rate of $160 each month, she’ll still end up paying 58% more than what the stores originally charged her. In other words, that jacket Sam thought she bought at a “bargain price” of $100 would end up costing her $158 if she followed Option #2; much better than the $253 she’d pay under Option #1, but still worse than raising her monthly payment. In other words, the more Sam pays, the more she can combat the price hike in the true cost of her credit-card bought goods. Nevertheless, carrying any balance on her credit card means she’ll pay more than the price paid at initial purchase. Hence the message of the The Credit Card Haters: voluntarily financing non-emergency expenses through credit is just plain dumb. Better to pay cash.

A Third Option: Credit Card Saving

If Credit Card Spending and Credit Card Hating were the only two options in town, the clearly superior choice would be to become a Hater. However, there’s a third option that involves using a credit card without the downsides outlined above and with some advantages over Credit Card Hating. Let’s call this third option “Credit Card Saving.” Not because it involves collecting rectangular pieces of plastic, but because it involves a change in mentality, namely, one that eschews the “buy now, pay later” attitude that the Credit Card Spender adopts and the Credit Card Hater abhors. Instead, the Credit Card Saver treats rewards offerings as a strategy to preserve one’s savings.

The Credit Card Saver recognizes that credit cards don’t have to be toxic to one’s personal finances. The downside that the Credit Card Spender experiences doesn’t result simply from having credit cards and using them, but from using them and carrying a balance. If Sam the Credit Card Spender were to become a Saver and use her cards only to pay for her monthly expenses, keep her expenses lower than her income, and pay off the total balance on her card each month in a timely manner, she’d never incur any interest or fees. As a Credit Card Saver, Sam would have the discipline to treat her credit card much like a debit card, purchasing what she needs rather than buying things she can’t currently afford. But instead of having her money withdrawn with each purchase she takes, she’d receive a bill at the end of the month totaling her expenses for that period. This has the advantage of allowing savings to compound over a greater number of days as it sits in an interest bearing checking account for a longer period of time.

However, unless Sam’s spending tens of thousands of dollars each month, the added interest she’d collect over the course of the month would likely be pretty miniscule. If the only savings advantage of using a credit card came from collecting a tiny bit of extra interest in a bank account, it might not be worth the hassle. But the real potential that credit cards offer in preserving savings comes from taking advantage of cards that have rewards perks.

Thanks to realsustainablehabits.com