If you are want to know how to become a millionaire, read the second story below. Three highly successful, self-made millionaires share their number one money-saving trick.
Are you in the market for a new computer? You might be surprised to see which company just lowered the prices on their newest products.
Are your kids looking to secure a credit card? Has your credit score been, well… less-than-optimal? Perhaps your kids (and you) could benefit from some personal finance training. Your credit score could improve as a result.
Speaking of credit scores, they are a clear indicator of people’s abilities and willingness to save money, not just for their future, but also for near-term emergencies.
These and other topics in today’s report:
Apples are on sale this week
How to become a millionaire
3 self-made millionaires share their No. 1 money-saving trick – Nice advice here, but one of the ideas is the “50-30-20 percent rule.” For most people that’s spend half of what they make on essentials, then 30 percent on fun, and save and invest 20 percent… or for most people, save whatever scraps are left over. Kyle Taylor of The Penny Hoarder has turned that approach on its head. He saves half of what me makes, lives on 30 percent for essentials and 20 percent for fun.
While few among us would be able, willing to live like that, Taylor is a 30-year old self-made millionaire. Definitely food for thought. (money / CNBC)
Give credit where credit is due
You don’t need great credit to help your kid get a credit card – Good news! Just because you might have less-than-optimal credit doesn’t mean that your kids can’t secure a credit card. HOWEVER, kids tend to learn from their parents – overtly or otherwise; your spending habits are likely influencing your children’s spending habits as well. If your credit is not good, chances are you might be getting your kids off on the wrong foot. Help them learn about the dangers of credit cards, not just their conveniences.
You might want to direct your kids to one of the many personal finance courses available on the internet. A few years ago, Bank of America teamed up with the Khan Academy on a great series.
Along with your kids getting a personal finance education, it wouldn’t hurt any of us to watch these videos.
Making ends meet
The New York Fed, as part of its survey of consumer expectations, has begun releasing the answers to questions about financial fragility. The study found around 67% said they were likely to come up with $2,000 in a month, meaning nearly 33% said they weren’t likely.
Your credit score says a lot about you… financially
The lower your credit score, the more likely you are to have trouble coming up with emergency cash. Only 11% of those people with a credit score of 760 and above said they would have difficulty, versus 64% of those with a credit score of 680 and below.
Most people have already been victims of the most basic forms of identity theft — having fraudulent charges on your credit card. Those even less lucky have been victimized in more aggressive ways, with criminals obtaining medical care, working, and flying in our names.
Unwinding that mess can take years and thousands of dollars. The effect is exacerbated by the fact that the crime doesn’t generally stop with the one person who stole your information. Credit card numbers, Social Security numbers, and other data gets packaged and sold on the underground Internet so that different people all over the world could be impersonating you at the same time.
So how does it happen: here are 18 surprising ways your identity can be stolen
On a related note: here are ten tips to help beat the hackers and stay safe online
The streak is over
After 110 days, the major stock market indices closed with a sizable loss today, the loss of more than 1 percent was the first time in nearly four months. The market decline is a good reminder that, on a day to day basis, your investments won’t always increase in value.
If you want to know how to become a millionaire, most financial advsiors will suggest investing in the stock market. Start early, invest as much as you can, and your chances of success are great.
“If I’d had more money in the market before the election, I would have made a fortune,” he said. “I thought it was going to stop, but the market just keeps going higher.”
For retirees, this is where problems start. Some retirees will get caught up in today’s market fever and decide to take on more risk than is advisable at this stage in the game. Unfortunately, and inevitably, something will go wrong, and that comfortable retirement will be reduced to something less.
One of the biggest dangers is speculation. While I don’t believe that you can time the market, it’s always prudent to have some money out of the market. If your financial professional is urging you to preserve your money in these uncertain times, that’s likely good advice. It’s human nature to reach for more — especially if you’ve been successful in the past. But eventually — just like the weather in my neck of the woods — the market will go cold.
Investing is a long term proposition. Some days, weeks, months, even years, the market seems to go up — seemingly unstoppable — and some years, it declines. Over the long haul, the stock market has proven to be a great place to build wealth. If you need money in the next few years — like most retirees — make sure to have some ready cash available. A one day decline does not a bear market make. Regardless, you want to have cash available to be able to weather a protracted market decline.