Financial Procrastination

I love it when another author writes about money, I agree with it and it has points that I had on my article topic list!  I found just that article recently about what procrastination can do to your money.  I would love it if you read this article because the statistics that are in it, but I will do a quick summary here also in case you don’t have time! 

1. Don’t delay investing it costs you money – smaller amounts invested now can pay off more than large amount invested in twenty years.
2. Timing the market usually costs you money – studies show that missing just a few of the markets best days dramatically affects your rate of return. (On a personal side note aside from this recommended article, timing is more work you have to spend a lot more time on your money if you are trying to time the market.  I for one don’t have that time and prefer an automatic investing program.)
3. Ignoring money can cost you late fees, overdraft fees, the benefits of unused gift cards and more!
4. It costs you money to be late on your taxes.
5. When the financial decision is a big one, think retirement or purchasing a home, don’t rush into it without knowing the details.

Now it is time to do something about money procrastination!  How you ask?  Well just as you would when you are planning a vacation, cleaning your house or organizing a closet it only takes three easy steps will get you started.

First, make a list of what you need to accomplish.  Without knowing that first you need to ask your boss for time off for vacation you many waste lots of time and money booking your vacation to find out you have to be at work that week.  Sit down and make a list of what money issues you have been procrastinating on, it will make tackling them easier and cheaper because you can address the most pressing issues first.

Second set aside some time to work on your list of things to tackle.  If you don’t allocate time for cleaning it has a tendency to not get done and then you have a dirty house.  Many people dedicate Saturday morning or some other convenient regular time to clean.  Money is no different, you will make more progress if you know that every Sunday night you have an hour to sit and work on money, whether it is paying bills, researching investments or reading to expand your knowledge!

Finally, do something!  Even a small step can take you a long way.  If you don’t have the time or desire to completely reorganize your closet even the small step of throwing out the unused items will make a big difference in the appearance and organization of a closet.  Money is the same, small steps can help.  Set up automatic payments so you don’t get late charges, get at least $25 into an investment on a monthly basis, or cancel one small expense to help bring your budget in balance.

Paying small amounts of attention to your money can make a big difference.  Don’t wait another day to get your money on the right track! 

Don’t miss our money fitness workshop to help you get that list created with a bit of help!

Getting Started Investing

This article I found is a great basic let’s get going piece of advice.  I even agree with most of it, so no point in rewriting it!  When you’re done hop over to my site on the detailed steps on what everything means (www.25toretire.com)!

http://frugaldad.com/2009/10/13/successful-investing-not-magic/

Why you should invest

Why should you invest? Investing creates freedom!

I already have Freedom, I am American? Freedom – Do you have the means to live and do exactly what you want when you want! Without saving money and investing you are tied to your job, parents, kids, the government, whoever is providing you money! Investing provides the money to help live your life your way! Just a small sampling below to show you why you should save!

Investing provides money to:

• Take care of yourself and family in retirement – no relying on a pension or the government.

• The ability to retire when you want to, not when you are able to get social security or retirement benefits from your company – if they even provide have them.

• Seize opportunities when they come along – business deals, new houses, you name it if it comes along and you don’t have money you cannot seize anything!

• Increase your sense of self worth, this comes from knowing that you don’t have to depend on anyone. This is more empowering than you will ever know until you are in the position where you have this freedom! It empowers you to write your own story, not one dictated by your provider. Don’t you want to write your own story?

• Investing gives you a sense of security that when bad does occur you are better able to manage it. You can worry about your emotions not how you will pay for everything.

This is just a small sampling of what investing can provide. Isn’t having one less dinner out worth the freedom that investing provides? That is all it takes, $25 a month, one dinner out. I even dare you to imagine missing 4 dinners out a month – $100 a month saved could rock your world! Don’t delay save now!

How to stay calm in a financial crises

I know everyone is getting tired and depressed about the current financial rollercoaster.  So how do you get through in a calm fashion?  The short answer?  Ignore the media.  The long answer has a couple more details to it!

1. Ignore the media – If you do not subject yourself to the over analysis done by the media of what is going on it is harder to become depressed and easier to stay calm.  Liken it to a watched pot never boils, nothing major is going to change in one day.  Check in on what is going on once a week and spend the rest of your time focusing on you! (See number 4)
2. Remember what your timeline is – Investing is for the long run.  If you don’t need the money for five years there is nothing to worry about.  The market will come back and we will move on.  If you need it before 5 years you should not have been in the stock market.  It is a volatile investment in the short term and a great investment in the long term.  What to do if you are in it and you do need the money?  Sit for as long as you can, but then take it when you needed.  Exhaust all other responsible options first.
3. Use your extra time that you are not watching the news to educate yourself about how markets work and other money matters.  All economies must have their ups and downs.  We have been very lucky to have had a long period of growth; it was inevitable to have a down turn.  It has happened before, it will happen again and we will all be okay.
4. Remember that YOU create your destiny.  Take this as a time to move forward when everyone else is drowning in their tears.  Take a minute, determine where you are and then get out there and move yourself in the direction you want to go!

Need more help with that?  Check out our MoneyFit package at http://www.smartstepomaha.com/services