Investing Prudently and Other Tidbits
Mar 3rd, 2007 by Jennifer Lynn
More Financial Goals Defined
I’ve decided to take a moment to try to collect some thoughts. Hopefully this post is somewhat coherent since I’ve been feeling a bit barfy today (currently nurturing a huge mug of mint green tea, which, thankfully, seems to be easing the tummy pains for the moment).
So here goes.
* Unclutter my messes. As I previously wrote, one of my main goals for March is to get rid of all the unnecessary crap that is currently cluttering up my living space. If I haven’t utilized something in the past 12 months, chances are it’s getting ’tossed’ (’tossed’ = being stored in a garbage bag to be hauled to the basement for a future spring lawn sale).
I find this approach helps me remain more clearly focused on goals surrounding other aspects of my life. Living clutter-free relieves a considerable level of burden and stress. It helps disintegrate a certain amount of distraction and complication while inviting positive energy for meditation.
Manifesting the correct energy to surround myself in assists my spiritual well-being and productivity levels. I’ve learned one of the best ways to garner positive results is to start with the aesthetics - in this case, my outside surroundings.
I’ve always preferred more simplistic approaches and pleasures in life. It’s definitely a path I’ll continue pursuing.
* Shift savings from a low interest account into a high interest account. The American economy is battling an average of 3% inflation per year. This means that if your money is sitting somewhere and receiving a 3% return, you’re barely breaking even. And if your savings are stashed away in a savings account at traditional bank with less than that (which, likely, it is), you’re actually losing money.
As I build a comfortable nest egg, I’ve established a primary savings vehicle at iGObanking, an online savings account which yields a yummy 5.30% APY right now. For my situation, it’s an excellent starting point. I highly encourage anyone with a traditional savings account to invest their savings into an online account they feel comfortable with.
* Truth is always simple. Life does not have to be very complicated, and neither should the road to wealth. It does, however, require diligence, patience and very simple logic.
I spend less than I earn and always sock away at least 10% of my income automatically from each paycheck. Once I foolishly stopped the cycle of giving money to everyone else first, my savings immediately began to blossom. (See My 2007 Goals for Financial Prosperity).
* Invest prudently - almost any purchase makes you instantly poorer. With that knowledge crawling through the back of my mind, I try to make a list of everything I desire which requires money. Instead of purchasing recklessly, my choices are now much more selective and prudent.
The key to gaining emotional control over my finances is to mentally shift my focus over to spending consciously and wisely. Instead of stressing over what I can’t afford, I instead concentrate on the necessities and desires which are possible within my limited income stream. And I feel blessed and content with what I do have.
* Every Desire Has Limitations. I may not have everything I desire. But the truth is, I never will. No one can. Even Bill Gates has limitations (in terms of time, energy, etc.) to which he can enjoy his wealth through experiences and items. It is an inherent part of human nature that I’ve willingly accepted. I also realize that constantly regretting what I can’t have only serves in manifesting a rather miserable existence.
Wealth is impossible if wasted carelessly. But by learning to invest prudently now, I’ve successfully avoided status symbols and have begun my journey toward a more prosperous future.
~†~ Baby Steps are Key ~†~
** Think simplistic notions. Success is realizing where your money is going **
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[...] Broke A$$ Student writes Investing Prudently and Other Tidbits. [...]
Hello!
I’m impressed that you’re able to save 10% while in school. Very impressed. At this stage, though, I wouldn’t worry nearly as much about the money you save as the income you prepare to earn.
http://rwrld.blogspot.com/2006/12/best-investment-for-2007.html
A small percentage change in income and income growth is going to make far more difference than a small difference in interest income at this stage of your life.
I am also impressed with how much you can save. I know I was not in the same shape in college. My first job out of college was in consulting which was great because someone else paid my bills. That helped a lot and I thought I was doing well…and then someone recommended a book which I recommend to everyone now, Rich Dad, Poor Dad. The helped me shift my mental focus.
It’s great that you see that many of your expenses are not necessary. One powerful thing that I learned from the book is that the expenses aren’t really the problem. The problem is classifying something as an asset which is really a liability such as a house. Another powerful lesson I learned was that, buying fun stuff like cars and dvds etc. is not a bad thing. Instead of buying them though, you need to figure out an asset or investment that will pay for them.
If you haven’t read the book, I hope you find it an interesting read.