Financial Safety Advice

The recent post on the budget to have a baby amused me. Do not get me wrong, newborn babies are expensive and very well give advice to new parents on how to keep costs manageable, but as a father of 3 daughters, I am afraid I have to say spending increases as they grow. The good news is that you can give your child a childhood rich, happy without breaking. It only takes a little creativity and creative work on your part.

Education

The children garden is very different these days than it was when I was a kid for five forty something .. years. In most school systems today, children are expected to more or less come to know the alphabet and write all the letters. Parents can and should teach these skills at home, but sometimes it helps to have some outside help.

If your child is in daycare, it is likely that these skills are part of the curriculum every day. If you are a parent who wants to send his son to a preschool experience for socialization with other children and early education opportunities, there are affordable options.

prices vary widely in preschool and some may offer financial assistance. Call to close child care and visit many schools and do not be shy to ask about prices and availability of tuition assistance. You do not have to send your child to preschool more prestigious or more expensive to get a good start in their educational careers.

Entertainment

Toddlers and preschoolers are naturally curious and may have only one ball and play. Many malls open their doors early to allow people to walk, which can be a good option in the days when the weather is inclement.

Reading books is a great way to bond with your child. Of course, you can use the library for free books, but also check to see if they have free fun programs. These nonprofit programs send a free book, age-appropriate children once a month to five years of age. Read the rest of this entry →

The first step to increase your savings and properly manage your money is to start reducing your expenses. What is the first expense that you have to reduce and eventually eliminate? So is the interest you pay on your consumption.

You have to avoid taking a lot of debt, and seeks to eliminate the debts that have very long periods. Why? What happens is that 7% -8% may seem small but on many long-term payments, it becomes much money.

For example, if you buy an apartment at $ 250,000 and take $ 200,000 in mortgage at 6% for 30 years and you pay only the minimum you should pay each month, you end up paying $ 422,280 in monthly installments. You will have paid $ 222,280 in interest to the bank. That’s like if you bought two apartments and you gave one to the bank!

That means instead of paying the minimum payment required by your bank (like your bank want to do), you CONSTANTLY have to deposit more money, to reduce and eventually eliminate the principal amount … but you end up donating money to the bank in the long term.

David Bach, in his book “The Automatic Millionaire”suggests that we should put the monthly payment of our mortgage, for example, and” two fortnightly payments “means that if you have to pay $ 1,500 monthly for your mortgage, you’re done negotiating with the bank to pay $ 750 every two weeks. The result: you end deposit 26 payments a year (every year brings 52 weeks), which translates to pay … 13 months. Every year of your mortgage is reduced by one month at a time. Do you think that this extra payment is going to hurt? Are you going to notice? Most likely not. But this is the point: if you do it from the beginning of your mortgage, you end up paying your property in 23 years, saving seven years of the total mortgage. That’s a huge savings because we are talking about a 30% reduction.

More than anything, YOU required to cut any consumer interests beyond 6%, especially credit cards, or lines of credit and overdraft, you load the “modest” sum of 2% per month. That seems small, but adds a 24% per annum of the total debt.

That is why from now on:
After covering your needs at home and transport, avoid any consumer debts now. Never lend money to spend.
Pay only in cash. If you pay by credit card, pay the entire balance of your credit card each month end.
Takes 10% of your money each month to reduce the principal amount of your outstanding loans. This is in addition to the minimum payment required on each share.

80% of millionaires are people who have made themselves, only 20% of millionaires are people who are millionaires by inheritance, lottery or a lucky break in the stock market or other conditions which shows that the more people are rich that is done by their own efforts and not to get it all by chance, however there is a problem, since even just a popular saying is both a truth that “the first generation creates wealth, the second and the third administration spends “this because of different views about money can briefly explain what happens in most cases.

The first generation: Work hard, save, invest and diversify.

The second generation: usually saw their parents worked, saved, invested and diversified, it also helped their parents to get wealth.

The third generation: was not sacrificed as if they were grandparents and did not see it very closely so that they cause a big impact, and lived in wealth and may not have worked hard in the pursuit of goods and money ( or may not have worked at all) only saw the process of investing and diversifying not to earn money, save it and undertake the projects.

In other words without the wealth of financial education a family can begin to wane or permanently in the third generation.