Money Blog » Investing

Make your first million

Alex — Thu, 22 Jul 2010 20:46:56 +0000

On the average, a worker can make somewhere between a million to two million bucks in a lifetime. Now, everyone wants to be a millionaire. Logic will have it that the faster you earn the first one, then there is a better opportunity for you to make more before you kick the bucket.

So how do you make your first million on a paycheck-to-paycheck lifestyle? Investopedia lists ten things you can do to stash a few more bucks into your savings account.

Stop Senseless Spending
Prune Your Purchases
Target Your Taxes
Crafty Compounding
Build Through Your Boss
Ramp-Up Your Retirement Savings
Incremental Investing
Dare To Diversify
Reconsider Real Estate
Increase Your Income

The list is pretty sensible since it starts with culling all unnecessary expenses – meaning you have to start by changing the way you spend. The later points (investing) can come easy once you’re able to get a grip on your finances.

Another interesting point raised is the importance of making sure you only pay the tax that you’re required to pay. Many overlook the savings that one can have just by availing of the tax credits one’s entitled to.

Top 10 worst-paying college degrees

Alex — Mon, 28 Jun 2010 21:05:53 +0000

These days, it’s hardly about doing what you love and like. It’s about doing what you can to earn the big bucks so that you can retire early and do what you love and like.

Now that the job market’s basically shot to sh*t, even getting a college degree isn’t a guarantee for one to land a job. And if you’re looking for the big bucks, some degrees just don’t give out that much in return when you practice the field.

Yahoo lists the 10 worst-paying college degrees. They are:

10. Drama (starting annual salary: $35,600; mid-career annual salary: $56,600)
9. Fine arts (starting annual salary: $35,800; mid-career annual salary: $56,300)
8. Hospitality and tourism (starting annual salary: $37,000; mid-career annual salary: $54,300)
7. Education (starting annual salary: $36,200; mid-career annual salary: $54,100)
6. Horticulture (starting annual salary: $37,200; mid-career annual salary: $53,400)
5. Spanish (starting annual salary: $35,600; mid-career annual salary: $52,600)
4. Music (starting annual salary: $34,000; mid-career annual salary: $52,000)
3. Theology (starting annual salary: $34,800; mid-career annual salary: $51,500)
2. Elementary education (starting annual salary: $33,000; mid-career annual salary: $42,400)
1. Social work (starting annual salary: $33,400; mid-career annual salary: $41,600)

This simply means that if you’re out there to get a college degree through student loans, you’d be much better off entering more profitable fields like engineering or computer science. Those fields hand out better starting salaries letting you deal with loans quickly.

I wonder why English isn’t part of this list.

Do you have a will?

Alex — Mon, 14 Jun 2010 21:30:42 +0000

One of the things that parents should avoid doing to their kids is to pass on the “other” burden of death to their children. Aside from the (typical) grief family members can feel, there’s also the headache of having to deal with the paperwork and services.

One of the things that you can actually prepare for before dying is your will. Surveys have shown that 57% of Americans don’t have a will. 69% of parents of minors neglect having a will. And yet we all know you can croak any time. No one’s too young to die.

When it comes to money, the bonds of family don’t even hold! And when you don’t have a will, it’s the state that deals with whatever stuff you have lying around at the time of your death. And if you’re pissed off at paying your taxes, then just think of the state dipping their fingers into everything you’ve worked hard for all your life.

So consult with a lawyer and draft your will to avoid having to get .

10 biggest sources of retirement income

Alex — Wed, 02 Jun 2010 21:24:23 +0000

If you’re still active in your “career,” chances are, your job is your primary source of income. If you’ve been financially smart, then you might be earning some dough via passive income.

As soon as you retire, you turn to a more diversified pool of source for your income. Yahoo identifies the top income sources during retirement.

Social Security
Retirement Accounts
Pensions
Savings Accounts and CDs
Stocks and Stock Mutual Funds
Home Equity
Part-Time Work
Inheritance
Annuities or Insurance
Rent and Royalties

Over the past few years, part-time work has increasingly become one of the top income sources. While some seniors would claim that they do it out of boredom, many just don’t have other sources.

This list just goes to show that it is important to save up for retirement, invest and diversify. You better let that 401k grow, as it is often the big payout come the time you have to hang the gloves.

Spouses and financial views

Alex — Tue, 18 May 2010 23:31:29 +0000

How do you and your spouse manage your finances? Are both of you wanton spenders? Just one of you? Typically, if both spouses do not share the same conservative view on spending, then it doesn’t help the household.

Oftentimes, such conflicting views with regard to money also get to argue a lot. A lot of fighting breeds bitterness. And longer states of bitterness usually end up in divorce. And divorce is always a financial killer on at least one party.

Financial habits do not change overnight. That’s why many financial gurus would claim that you should marry right. So it’s best to discuss these things with your partner before hooking up for the long haul. If you’re not too sure, then a pre-nup might be in order.

If you’ve already tied the knot, then be sure that you be completely honest and talk things out and if you’re the miserly one, be sure to keep good track of your household’s finances.