Posts by jsangl
SERIES: Investing Fundamentals Part 3 – Get the Free Money
Welcome to the latest series at JosephSangl.com – “Investing Fundamentals” Investing is consistently rated by our audience as one of the most confusing topics they face. In this series, we are going to share some foundational principles that can really help you understand investing better!
Three Get the Free Money
Yes, I said FREE money. Many employers will match a portion of your contributions into a self-directed retirement plan! I encourage you to go to your employer’s human resources department and sign up for the retirement plan. Start investing money into it immediately! Contribute enough money to obtain the entire employer match. Remember this is really just FREE money!
The company you work for will usually match you up to a certain percent of your pay. I worked for an employer that matched me dollar-for-dollar up to 8% of my pay (100% automatic rate of return!!!). Another matched dollar-for-dollar up to 6% of my pay. Still another matched dollar-for-dollar up to 3% of my pay. Whatever your employer is willing to give you is FREE MONEY!
It is baffling that many people don’t take advantage of these free money opportunities. I have heard several excuses about why people choose not to, excuses like:
- “I can’t afford to contribute.”
- “I’m living paycheck to paycheck already.”
These people are basically saying they can’t afford to be given free money. Doesn’t make a whole lot of sense, huh? This is an opportunity to receive a 100% return on your investment! DO NOT WASTE THIS CHANCE!
STEPS TO TAKE:
- Talk to your employer TODAY and sign up for your company’s retirement plan. Start contributing something – at least enough to get the full match.
- As quickly as possible, increase your investing contribution to at least 10% of your gross income. I know this is a lot of money, but you will NEVER regret this decision.
RECOMMENDED RESOURCE:
- OXEN – The KEY to an Abundant Harvest In this book, Joe shares the steps you can take to maximize your money through investing!
- This book is also available via Amazon and Kindle.
NOTE: This post contributed by IWBNIN intern – Craig Fatt
SERIES: Investing Fundamentals Part 2 – Automate Your Investments
Welcome to the latest series at JosephSangl.com – “Investing Fundamentals” Investing is consistently rated by our audience as one of the most confusing topics they face. In this series, we are going to share some foundational principles that can really help you understand investing better!
Two Automate Your Investments
Make your investments automatic! You can set up your bank account to auto-draft money into different accounts like a 401k or a child’s 529 college-savings plan. This will prevent you from forgetting or trying to use the money elsewhere because you will never even notice it’s gone!
If you ever have to switch between banks then the auto-drafting will stop so you will need to get it set up at your new bank. I know from firsthand experience how hard it can be to write a check to my savings account and my daughter’s 529 college-savings plan. There are moments where you will think “Wow! I could really use this money elsewhere!”
If I had to write a check every month to my savings account or to my investment accounts, there is a high likelihood my investing plan would be seriously off-track. MAKE IT AUTOMATIC!
By making your investments automatic you will see your net worth increase every single month. Making investments automatic eliminates the possibility of using this money for splurge purchases. This is awesome for those of us who are highly susceptible to spend any and all extra money!
STEPS TO TAKE:
- Go to your bank and tell them you want to start auto-drafting money into an investment account such as a 401(k) or any retirement account or also a 529 college-savings plan. I also do this with my savings account!
RECOMMENDED RESOURCE:
- OXEN – The KEY to an Abundant Harvest In this book, Joe shares the steps you can take to maximize your money through investing!
- This book is also available via Amazon and Kindle.
NOTE: This post contributed by IWBNIN intern – Craig Fatt
SERIES: Investing Fundamentals Part 1 – Diversify Yourself
Welcome to the latest series at JosephSangl.com – “Investing Fundamentals” Investing is consistently rated by our audience as one of the most confusing topics they face. In this series, we are going to share some foundational principles that can really help you understand investing better!
One Diversify Yourself
I’m sure you have heard someone say don’t put all your eggs in one basket. That directly relates to investing! A key step when investing is to diversify your investments. For example you should not put all the money you can into one company’s stock, instead spread your investment out. By spreading out your investment you greatly lower the risk of your investment.
You can research countless times where people have put a large portion of their money into one company only to have it fail, which means that they lost A LOT of money. Several people lost large sums of money when they only invested in Enron during the early 2000’s and then it went under. If these people would have diversified their investments they could have softened the blow.
An easy way for you to diversify your investments is to look into investing in mutual funds. A mutual fund allows you to purchase a portion of many stocks and bonds with the single share purchase so you are automatically diversified even though you have only bought 1 share! Also DON’T JUST THINK ABOUT STOCKS. Invest in a new business or a home that can be rented out. You don’t have to just think about the stock market when it comes to investments! You have a world of things to invest in! Real estate, land, new businesses, or even your own business.
STEPS TO TAKE:
- Review your investment choices. Are they diverse?
- Are you only investing in one type of company? If yes, take steps to address right away!
- What other investments could you make outside of the stock market?
RECOMMENDED RESOURCE:
- OXEN – The KEY to an Abundant Harvest In this book, Joe shares the steps you can take to maximize your money through investing!
- This book is also available via Amazon and Kindle.
NOTE: This post contributed by IWBNIN intern – Craig Fatt
Saving For Known Upcoming Non-Monthly Expenses
Everyone must save for three things: (1) Emergencies, (2) Known Upcoming Non-Monthly Expenses, and (3) Dreams
Of these three, it seems like saving for #2 – Known Upcoming Non-Monthly Expenses is the most difficult and creates the most issues with budgeting.
Here’s why Known Upcoming Non-Monthly Expenses create severe budgeting difficulty:
- They are non-monthly Because of this, we tend to forget about them until they show up
- They are usually larger expenses Property taxes, insurance premiums, Christmas, vacation, car maintenance and repairs, and insurance deductibles usually have larger price tags than typical monthly expenses
- We don’t save for the expenses monthly We wait until the bill arrives and then we are forced to scramble in an attempt to pay for it
This is why I call these type of expenses “Budget Crushing Expenses.” You can avoid this stress entirely by creating a Known Upcoming Expenses saving plan!
Here’s a step-by-step way for you to eliminate “Budget Crushing Expenses” from your life:
- Download our free “Known Upcoming Expenses Calculator” tool HERE.
- Enter all your “Known Upcoming Expenses” into the tool – include the annual expense of each line item.
- Enter your “# of Pay Periods Per Year” into the tool – enter “12” if paid monthly, “26” if paid every 2 weeks, “52” if paid weekly, and “24” if paid twice each month.
- You have now calculated the amount you need to save out of each paycheck to ensure all of your Known Upcoming Non-Monthly Expenses are covered.
- BONUS STEP: Set up an on-line savings account (I use Capital One 360 – formerly known as ING Direct) and make your savings automatic. In other words, you can set up automated transfers to your on-line savings account. This allows you to “set it and forget it” and KNOW you’re major known upcoming non-monthly expenses are covered!
AUTHOR’S NOTE: I am paid monthly. I have set up a monthly transfer to happen on the 6th day of the month from my regular bill-paying bank account to my Capital One 360 account. It may not be the most exciting thing in life, but it is INCREDIBLE to know I have eliminated “budget crushing expenses” from my life!
10 Summer Fun Ideas That Won’t Break The Bank
Summer is an incredible time to gear down, rest, and renew relationships.
It is also a time that could break the bank if one is not very careful. To help you have an incredible summer without destroying the budget, we put together a list of fun ideas for you:
10 Summer Fun Ideas That Won’t Break The Bank
- Go camping in a tent Or as one of my friends calls it: “Pretend to be homeless” 🙂 I love tent camping!
- Take a vacation with family or friends and SHARE the cabin/house/condo/etc. My bride and I have done this many times. It cuts lodging costs by half (or more) and allows us to hang out with our friends/family even more!
- Take up a hobby that doesn’t cost a lot. My friends play basketball once a week. I run with my daughter. Tennis costs next to nothing. Corn hole. Put on an art contest and invite your children and their friends to participate. Hike trails at a state park. Go swimming at a local park.
- Start a small business with your children. Ask them for their ideas. Choose one while teaching them the concept of value (what customers are willing to pay money for) and marketing/sales (no one will buy if they don’t know it exists). Sell the product/service on-line using a basic website (can set up through a basic free blogging service) and PayPal.
- Attend a play at a local community theater. If you volunteer to serve at several of their events, you can probably attend a show for FREE!
- Volunteer at a local food pantry or homeless shelter. This really costs nothing, and it allows you to serve those who are struggling!
- Go to yard sales, buy cool stuff, and sell on-line. My children love discovering “treasures” on Fridays and Saturdays.
- Go fishing at a local pond or lake. When I see my little son experience the thrill of catching a fish, touching it, and then tossing it back in the water – it is AWESOME! My daughter loves fishing too. And my bride catches some sun.
- Produce a home movie using a script written by your children. iPhones have HD video capability. Many iPads and nearly every MAC has iMovie which allows you to edit and produce the show. This really fosters creativity!
- Launch five helium balloons with your name and address and a note. Ask the discoverer of the grounded balloon to write you back and tell you about where and how they found the balloon! You never know when you will hear back and from how far!
Any ideas you would add to the list?