Financial Mistakes You May be Making

Author: Steve Gillman


All of us make financial mistakes, and research in the new fields of evolutionary economics and behavioral economics are starting to explain why. It will be good to have this knowledge someday. But in the meantime, here are five of the more common money mistakes you may be making, so you can start correcting them now.

1. Making A Competition Of Financial Decisions

Trying to "beat" anyone else in a financial transaction is a bad habit, unless you are playing poker or negotiating a business or investment deal. The first people to buy new technology get to show it off, but they also get the worst version at the highest price. If you "win" at an auction it means you paid more than anyone else was willing to pay. Looked at that way it doesn't seem so smart.


Evolutionary economics explains why we feel this need to "win." It developed as a way to gain a better position in the tribe, which increased one's survival odds thousands of years ago. This tendency of ours is of very little value in a modern economy, so ignoring such urges is wiser.

2. Believing You Are Owed Something

Nobody owes you a thing unless you have a contract or a promise. Dwelling on what is "owed" to you is a financial mistake because it gets in the way of doing what is necessary. And why does anyone owe you a thing? For example, health insurance came to be expected of large employers based on nothing more than the fact that many provided it. Had enough companies provided cars to employees, we would think we are "owed" a car by our employer.

Forget what is "owed" to you. Just work honestly to get what you can. Ask for a raise, but if you're not paid enough, find another job. Collect that unemployment benefit if it's available, but don't think others have an obligation to provide your income for you. Once you stop looking for your "due" you can start looking at how to make money and create what you need for yourself. Usually this means seeing what others want, and finding a way to provide it for a paycheck or a profit.

3. Believing Value Is About Prices

Suppose a television normally sells for $900 and is on sale for $400. Is that a good value? Most people may think so, but the value of personal items is measured by what the individual user needs. If you're as happy with a $200 television, then the other is over-priced from your perspective. Such personal purchases are worth only what it makes sense for you to pay. If a $20,000 car is worth just $3,000 to you, then that's that (and you don't buy it).

4. Believing Value Is All About You

I once saw a man lose $30,000 by pricing his home too high and leaving it empty for years - one of the more common financial mistakes. With investments, value has nothing to do with what you think a thing is worth. The only important measure is what the market will pay for it.

People often confuse personal consumption items with investments, thinking, for example, that a car is an investment. A $22,000 kitchen remodeling project isn't an investment either, if future buyers will pay only $10,000 more for the home afterwards. The owner might like to think it added $30,000 in value, but his ideas are irrelevant. He better enjoy that new stove and cupboards, because they were not investments, but a $12,000 personal purchase (that's his net loss).

5. Believing High Profits Are Unfair

In any honest sale, the price is fair, or it wouldn't have been paid. Consider if your own house had a market value of $400,000 and you wanted to sell it. Would you lower the price to make it more "fair?" Not likely, so why expect any business to charge less than what the market dictates?

How much profit is made on something is entirely irrelevant to what its value is. Your choice is to buy it or not. It's a financial mistake to waste time complaining about a profit you would gladly accept if you were on the other side of the transaction. The truth is that you wouldn't buy it if it wasn't a fair price, and nobody (in a free country) is forcing you to. Spend your energy looking for a better alternative or finding ways to make more money instead.

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Manage Money and Earn More

Author: wang y. wei

The way to manage money and earn more is more than just a single way concept. Not only does managing money mean being able to keep money per se, but also to be able to mobilize the money that we have to the direction in which we intend them to go. This includes investment, business ventures, and leisure activities.

More Saved, More Resources

Though it is quite confusing to understand how one may be able to earn more when he is saving more and not the other way around, the concept of the former dictates the effect.

Being able to save more will give you more freedom to allocate the money in what business and endeavor one seeks to have. In conjunction with the previous statements, managing money does not only mean saving, but being able to have the resources to move about. In
this case, having more money in the bank or floatingly available enables you to use them for businesses or leisure.


The Power Of Capital

Should you choose to invest your earnings and savings on a business venture, one thing that limits one's capability to start off with the desired business is the capital needed. Though most businesses require a substantial amount of money, these are the big establishments which require a corporation of several investors with investments in the millions.

As a private businessman or entrepreneur, one may start with a personal business of a small nature such as handcrafted items or services, and work your way up from there. Once you start rolling in the Benjamins, you are on your way to choose your path to either retain your business or go higher up the economic chain.

Capital and the way to manage money and earn more in the process is a tricky and risky thing to do though. Be prepared to accept a losing business as well.

Wholesale Concept

Another concept which enables you to earn more is to keep a wholesale concept in mind at all times. This is simple defined as being able to see that the more you acquire in a single deal, the more you save, and the more you save, the more you are able to use that savings for other businesses or other requirements, therefore cutting down on the total projected expenses.

It may not be always be the case for many, especially if one has a very limited capital to invest. Nevertheless, what is more important is that one is able to work efficiently in one's own means of production and not depend on floating bonds and loans as these are the usual causes of a business to stay stagnant and not earn due to the interests.

It is quite daunting to manage money and earn more, with the consistent juggling of resources and risks to achieve at something without foolproof success. However, a properly set management and a little bit of luck will definitely rake in big rewards to the whole process. Starting small and working up rather than starting with big things right away is crucial to the
learning process and the tricks and trade as well in business handling. This is what will matter especially when the competition becomes tighter in the higher business environment.

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5 Easy Steps to Being Poor

Author: Sherry Ridge

What is poor? Just a few of the dictionary definition indicate that it is “lacking material possessions”, “of, relating to, or characterized by poverty”, “Meager”, and/or “small in worth.” Others think it is noble to be poor and ensures you a place at the pearly gates. Some say it’s the amount of money you earn. My 20 year old earns less than $10,000 a year and yet lives on his own, paying rent, utilities, gas, food, etc. Being poor is not the amount of money you make, but what you are choosing to do with it. Time and time again we hear success stories of families flourishing on what the government says is poverty level, yet they pay their bills on time, they provide for their families and manage to save a little. They may not have everything they WANT but they do have everything they NEED. What differentiates them from the actual poor is how they view money, how they manage their money and the financial decisions they make. They do not follow the steps listed in this article.

Being poor in America today is easier than you thought...we have come up with 5 easy steps that will guarantee that you and your family are/remain poor. Follow them and you can be assured that your dreams won’t come true.

1. Do not look at the cost of items you purchase in terms of total cost of time and money. So many times we make emotional purchases that in the long run cost us more than we ever imagined. Buying on time, using credit to purchase items always cost more than the price tag lists.


2. Buy items on credit terms for as long as the creditor will allow. We look at our purchases in terms of the monthly amount, we seem to want to make the payment as small as possible, to fit our monthly budget and again don’t look at the bottom line, final number as to what that car, TV, house, sofa, etc. really cost.


3. Save just to spend it. Saving money in a 401K plan, mutual fund, money market account, saving account, need to have a purpose and should not be taken out for any other reason. We advocate that families need to set money aside for upcoming expenses and this should be in an account that has easy access with no penalties to withdraw; it only comes out when the bill comes due. Retirement accounts are for retirement only, not for a vacation, new furniture, car, etc. It should never be touched until you reach the goal that you saved for...retirement.


4. Spend money as you get it, don’t have a budget. A budget is a financial plan to succeed! We don’t see this valuable tool for what it is, instead many view it as liability, a burdensome. You will never succeed financially if you don’t know where your money is going and if you don’t plan your spending.


5. Give money away. When you have a limited income you have no business loaning money to friends, family etc. and/or co-signing for others. Remember the old saying... “No good deed goes unpunished.” You also should not be giving your hard earned cash to your Madison Avenue creditors in the way of interest on your debt.


If you think that being poor is not the lifestyle for you then all you need to do is buy items you actually need/use, buy these using cash and not on credit terms, have savings/investing plan and follow it, know where every penny comes from and goes to, lastly don’t loan money you can’t afford to flush down the toilet and never sign your name for someone else’s spending.

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Money Myths Of The Poor

From tender age, we were exposed to myths about money and myths of being rich. Be it from our parents, brothers, sisters, relatives, or friends. The myths that we have determine our financial well being in our adult lives.

I call them myths because they are not true. Or, at least they are not giving you the complete picture.

We can't blame our parents for the myths in us. They already gave us the best they could. And don't forget that times change. Things were true then may not be true today.

If you want to move ahead financially, you have to be aware of the myths that you have about wealth and money. And do not let the myths stop you from living a wealthy life.

Money Myth 1: Work hard and you'll be rich.
Many of us think that by having a job with a big company would ensure that we're on the path to financial freedom. With so many layoff announcements, we might be out of job anytime. I'm not saying that you'd be one of them but the fact is there is no job that is guaranteed.

Recently, my friend was laid off in less than a month in his new job. Having a job is merely helping you to cope with daily expenses, providing you shelter, food and clothing. Do not be misled that a job or your employer will turn you into a rich and wealthy person. No one cares more than you about your wealth.

Money Myth 2: Saving is good.
When I was small, I was told by my mother that I must learn to save. I thank my mother for inculcating the habit of saving in me. The habit of saving helps me to develop discipline. Many people think that when they save enough, one fine day they'll be rich.

But is saving alone enough to make you wealthy?

I came to realize that if I only depend on my savings to get rich, I'd have to wait for a long time. That's the problem with savings, it takes a long time for you to get rich. Saving alone is not enough. You have to learn to invest your money in other investment vehicles to grow your money faster.

Money Myth 3: Debt is evil.
The other common myth about money is debt is bad. Did your parents ever tell you that borrowing was bad? Mine did. Not all debt is bad, actually. It depends on how you spend your loans that you're getting. If you take a credit card loan to buy a flat plasma TV, it's a bad debt. On the other hand, if you take loans to start a business or invest in real estate, the debt is good.

If debt is bad, can you imagine what would happen to companies if they are not allowed to take loans from the banks? As a general rule, if you use debts to buy things that increase in value over time, they are good debts. You must know whether the debt you're taking is good or bad.

Money Myth 4: You need money to make money.
When I ask my friends what's stopping them from starting their own business, the common answer is "I don't have money. And it takes money to make money." I do agree that it takes money to make money. But does it really to be your own money?

Everybody has limited resources when it comes to achieving our financial goals. I do not expect you to have everything when you plan to build your own business. You might need financial backing, manpower, expertise, or a coach to guide you. If you lack resources in any areas, find the resources. Someone else will definitely have it. It does take money to make money, but you can use OPM - other people's money.

Money Myth 5: Investing is risky.
Many think that investing is risky because they lack education in investing. Investing itself is not risky if you know how to control the risks. Most of us invest based on a tip from a friend or broker without doing our own research. When you lose money, you say that investing is risky. And you tell yourself that you'll never invest again.

To be frank, everything we do has a risk in it. Learn to manage risks by educating yourself. You can educate yourself by attending seminars, reading books, or even from the Internet.

Money Myth 6: Wealth reflects in material possessions.
Material possessions reflect your level of wealth. This is a misleading measurement. Someone who is driving a Porsche might not be rich and he might highly in debt.

Wealth does not reflect in material possessions. Wealth is a state of mind. Wealth is how fast you can become rich if you're stripped of everything. As Henry Ford once said after he was asked what he would do if he lost all his fortunes, "I'll become a millionaire again within five years."

We possess one or more of the above myths, consciously or unconsciously. But what is more important is to be aware of the myths and replace the myths with facts. By doing this will tremendously improve your financial well being.

ABOUT THE AUTHOR
PT Cheng is the owner of FinanciallyRich. Get excellent tips on how to be your own boss, have more money, and free time. For future articles, subscribe to his FREE newsletter at http://www.financiallyrich.com/subscribe.asp and receive a BONUS report.

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1000 Ways to Make Money

Some ideas you may consider to earn extra money:

1. Produce Christmas cards which are printed on the front with, for example, "Happy Christmas from the Smith Family". Or, instead of the name 'Smith', pick one of the dozens of other popular surnames. Sell packs of these cards by direct mail to people listed in telephone directories.

2. Make money from renting out expensive children's toys. The toys you rent out will include remote controlled models and computerised games. Use a little van to deliver the toys to customers. Paint in toy town colour scheme. Call the van a toy mobile or similar suitable name.


3. Introduce to your region a service which mounts maps for businesses. Keep a stock of local, national and international maps. Mount these maps in a professional manner to suit the wall space available at offices. Send out leaflets about your services to office managers.

4. Bring out a regular publication for ambitious amateur musicians. This publication might include ads from : 1) Employers seeking musicians. 2) Retailers selling equipment accessories and supplies. 3) People selling used equipment. 4) Musicians seeking to make contact with other musicians. Also publish interesting editorials and letters.

5. Design and manufacture kits for making models with cocktail sticks, for example: model churches, castles, windmills, houses, etc. Buy the cocktail sticks in their unpacked state from the manufacturer. Sell your kits by mail order from ads in craft magazines or distribute to model shops.

6. Establish a directory of products no longer made. This directory might include sections on toys, novelties and household goods. Design the directory for business people and inventors who want to know both what has been made before and what ideas might be revived and/or modified.

7. Make cotton gloves especially designed for coin collectors. The gloves prevent the grease and moisture from fingers getting onto coins. Package the gloves and sell them from ads in coin collecting magazines or distribute to shops which sell collectible coins.

8. Bring out a correspondence course about how to write cookery books. The course might include information about: How to devise recipes, how to present them in written form and what makes a successful cookery book. Produce a prospectus and advertise in women's magazines.

9. Begin a business which rents out large and expensive astronomical telescopes to householders who want to develop their interest in astronomy. Publicise your service at the local astronomy society and use local advertising to attract clients.

10. Set up a company which produces a compendium of strip games, for example: Strip poker, strip snakes and ladders, strip lotto, strip snap, and strip ludo. Sell by mail order from adverts in X-rated magazines.

These are some of the methods to earn money with small or no investment,for more information visit
"http://n.1asphost.com/rachuts/money.htm"

About the Author

The author is a free ebook collector for the past 3 years and has a grand collection of 3700 free ebooks on different topics to his credit.You can visit my homepage at
"http://n.1asphost.com/rachuts/money.htm"

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10 MORE Ways to Make Money with your Digital Cameras

Here are some ideas to make money with your camera:

1. Pet photos - advertise a Pet Photography business where you photograph pets with their owners. Most owners won't struggle to take a photograph with their pet all by themselves. You can be the one who makes it easy on them. Not only can you charge for the service and your time, but you can offer the photograph in it's digital form or as a print that you can mail to them later - either created by your own photo printer or by a photo processing service.


2. Fishing contests - be around at the end of a fishing contest to take photographs of the contestants that didn't even think about bringing a camera. Most fishermen are more concerned about fishing than carrying cameras, and most fisherman also want a picture of their stringer full of fish or the big one that they're going to have mounted.

3. Parades - be in position to get great shots of folks and floats in the parade and sell the prints back to the individuals or to their family members. The folks who take part in the parades are often way to busy to take pictures before or after, so someone who captures them in action might really be doing them a favor - and a profitable service.

4. Landmark and tourist photographer - if there's a famous landmark in your area, offer your photography services to tourists who want their photo taken in front of it. Even if the tourists are carrying a camera and get someone else to take their photo, often the camera won't be digital with a display so it means the tourists won't know how the picture turns out until they're long gone. With your digital camera, you should be able to show them it's a good picture.

5. Graduations - preschool, high school, or college graduations offer dozens, if not hundreds of opportunities to capture a significant moment in someone's life. If the family members of the graduate aren't located in as good a location or don't have as good a camera as yourself - you'll have even greater opportunity at getting the shots they couldn't.

6. Holiday Family Postcards - offer your services to families that want their picture taken and put on a postcard that they can send to their extended family and friends. By using your digital camera you can not only get photo-postcards through online photo-processors, but you can make the prints available in your online gallery and have the customers refer their extended friends and family there to purchase a larger print if they desire it.

7. Photo Novelty Items - take photographs of people that want the pictures of themselves of their loved ones imprinted on coffee mugs, mouse pads, keychains, tee-shirts, and other items. Usually you can find suppliers of such photo-transfer merchandise and equipment in business opportunity publications, such as "Mind Your Business 101: How to Select & Start Your Own Business"

8. Used Car Photos - work out an arrangement to take snapshots of cars for used car dealers who don't have photographs of their current inventory. If any of the car dealers don't have websites that need photographs you could, provide an additional service by learning how to make and maintain a website of their inventory.

9. Promotional slideshow production - taking digital photos of a convention, church, business, college campus, or other promotable location - you can create a digital slideshow on Video CD or DVD for your customers to promote their business, organization, or event.

10. Newborn photo service - parents of newborns are some of the busiest people in the world. Advertise your services on an on-call basis so that you can take informal snapshots for the growing family either before they leave the hospital, or after they get home. This way both parents and the child(ren) can be in more of the pictures all together, and the parents have one less thing to try and figure out.

About The Author

C.S. Deam is a small business owner. His eBook Leverage Yourself Out of the Rat Race is available for immediate download at www.LinkertonPublishing.com where you can sign up for FREE E-Courses & Newsletters to help you on your path to self-employment.


CSDeam@LinkertonPublishing.com

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