How to Achieve Your Goals By Surrounding Yourself with Like Minded People
What’s one of the fastest ways not to achieve your goals? Spend all your time with people that have goals opposite than yours. On the other hand, hanging around people who have your same aspirations will make you more likely to actually achieve some of the things that you’re striving for.
Mindset of Success
There are many reasons why this association factor is true. Of course there are always exceptions to the rule but in general, if you want to be successful then surround yourself with successful people. Why else do you think your parents were always so concerned with you hanging out with “the wrong crowd” when you were growing up : )
So what do you do if the people you’re around all the time aren’t interested in your goals? It’s not exactly easy to switch jobs, find new friends, or adopt a new family just because those groups of people don’t have your same interests. Don’t despair, modern technology has made it possible to extend your social network so that you can start virtually spending time with like minded people.
Personal Finance Goals
Let’s look at an example. It might surprise you a little, but I’m going to pick financial goals as the topic : ) Let’s say you’ve never really been into managing your money but you recently heard Dave Ramsey, Suze Orman, or David Bach on TV or the radio and they inspired you to take control of your finances. The problem you run into after reading Total Money Makeover, Nine Steps to Financial Freedom, and Smart Couples Finish Rich is that none of your friends or family want to hear about Debt Snowballs, Money Cycles, or Latte Factors.
So how do you stay motivated to be financially responsible and learn more about money matters? If you’re reading this site, chances are you already know the answer. Simply tap into the enormous money community that’s open 24/7 and accessible most places in world, the personal finance blogosphere. You can spend hours reading about investing in a down economy, improving your credit history, or investing in ETF’s.
People are willing to share different options for your IRA and kindly give reminders to open or fund your IRA. What better way to get a jumpstart on your finances than getting free financial software, you could win a copy of TurboTax or get free tax software.
Whether you’re looking for information on saving money on prescriptions, living within your means, or strategies to reduce your health insurance costs you can find it all online.
If you’re relatively new to money matters you can find out about simple budget plans or maybe how a little reverse budgeting might work better for you. Learn how you could use a credit card for debt reduction and how you shouldn’t use credit as your emergency fund.
Not only can you read about all these personal finance tips, you can join the money conversation by leaving comments and asking questions. For an even more interactive experience you can visit financial forums and ask any burning money question you have. If you have the itch to join the community as a publisher and not just a reader, you can leverage the experience of others. After you’ve hung out for a while you’ll start to recognize some of the same people and might eventually even want to start your own money network with some of them.
Finding Like Minded People
Although you may not be physically around other like minded people, you can spend enough time with them virtually that their experience and enthusiasm can rub off and seep into your real life. While this example was aimed at personal finance goals, the Internet is a big place and whatever your interests are I can almost guarantee you’ll be able to find other people online who share your hopes and interests.
If you’re unsure of how to find these people, the good news is the searching has already been done for you! It’s as simple as going to Google.com, describing your goals in three or four words, and clicking “Google Search”. Good luck!
You Can Save Big Bucks by Buying in the Offseason
I hate shopping! Luckily for me, my wife not only enjoys it but is a master at finding good deals. She saves us lots of money by using time as her ally.
Wait Out the Store
One strategy she uses is to find something she’s interested in and then stakes it out. She’ll keep an eye on it to see if the price drops or they have a sale then swoop in for the kill. This technique is typically used on larger ticket items; you wouldn’t want to spend all your time watching the price of toilet paper. It will also take you longer to buy certain things since you may be waiting for months at a time but you’ll definitely save some cash.
Buy Off Season
Another approach she takes that saves us 50–75% off of retail prices is to buy during the off season. This works especially well for clothing, just today she cleaned up on baby clothes at the Children’s Place. She bought our son his wardrobe for next winter as the store cleaned out winter clothes to make room for spring/summer attire.
Her strategy was to cover his basic clothing needs for next winter and she saved around 65% on her total bill. The follow up technique that’s even cheaper is to hit garage sales next summer where we can find kids clothes for next to nothing and fill in the gaps.
Obviously it would be nice to buy everything that cheaply at garage sales but little boy’s clothes pose a problem. We’ve found the majority of kids clothes at garage sales are for little girls. It seems parents tend to buy girls more clothes in general so they just have more to get rid of. In addition, little boys are pretty hard on their clothes so they’re more likely to wear out the knees and elbows to the point where parents don’t even try and sell them at a garage sale.
Whether you’re buying at a retail store, garage sale, or on eBay. Buying off-season can save you tons of money. All it takes is a little planning : )
Did You Know Your Credit History Can Affect Your Insurance Rates!
Last week, I got a surprise bill in the mail. Based on my credit score, my auto insurance increased by 40%! Ouch!!! What is going on? I pay all of my bills on time, and I usually pay extra on my credit cards.
Recently, my credit rating plummeted. What did I do wrong? First, I decided to consolidate my credit card bills. Since I believe I am responsible for every penny of the debt, I did not go to some sort of agency to short-change the card companies. Instead I transferred the balance from one card to another. Big mistake!!
Why? I did not know that I needed to contact the credit card company to close the old account. Plus, closing the account is only half the process. I needed to have the credit card company send a letter to the three credit reporting agencies and let them know my account was closed in good standing. Not only do I need to do that for credit cards that are paid in full, I need to consider my old student loans.
The loan company that carried my subsidized and unsubsidized student loans still shows on my credit report as active. Okay, I am so confused!! The account balances were transferred and consolidated to a bank upon my graduation-3 years ago! Why are the accounts still open, as if I am going to ask for more college money? I need to have those accounts closed and ask the company to send a letter to the reporting agencies saying they were closed in good standing in 2005.
I had no idea my credit score could have such an impact on my insurance rates. Now I don’t know if or when my auto insurance will ever go back down. However, I have learned a very valuable, all be it expensive, lesson. Close accounts that you do not plan on using in the future; but, do not assume everything is great. Request creditors send a letter to let the reporting agencies to let them know you are in good standing with the company.
Otherwise, you may watch your insurance raise by a ghastly amount! It seems many insurance agencies are starting to include credit reports in figuring the premium. Check yours out! Do not be like me and learn the hard way.
Has your credit score had any impact on your insurance rates?
Tina
Managing a Health Savings Account
Like all issues dealing with the government and tax free saving plans, the whole idea of a Health Savings Plan can be totally confusing. Do you qualify? What are to contribution limits? Can the money be invested? What happens if I draw it out for something other than health care? Do you need a health savings account provider?
Unfortunately, as I was researching the topic, I did not find an independent provider that has no particular affiliation and your best interests at heart. Most providers are bankers that set up HSAs like any other long-term savings plan, similar to an IRA. Of course, different financial institutions will want to be most helpful, because they want you to put the money into their business.
Ultimately however, it will be solely up to you to monitor the account, making sure you only save the allowable amount, and how to replenish the account, if you have to use any of the money for a medical expense. You cannot roll the money over into another type of savings account. The money is only to be used for health care.
Even if your boss also contributes to your HSA, you are the one to make sure the account is in good standing and will not come under the scrutiny of the Federal Government. So, you need to do your homework and make sure to abide by the rules and regulations. However, I think there is a good place for you to get advice.
If you go to an accountant to do your taxes, ask about a Health Savings Plan. Even if you have read the 40 page manual, verify that you correctly understand all the legalities. If you do your own taxes, you can go to IRS.Gov and get lots of information from their website. Several articles are already posted regarding the subject. Should you still have questions, you can contact the IRS directly and ask.
I know. It does seem a little freaky to be contacting the entity that loves to part you from your money. But, who better to know the rules regarding a tax free savings plan. Plus, they can redirect you to other personnel qualified to make sure your HSA works for you, and you have the information necessary to provide for yourself.
Does anyone else know of good resources to help make sense of and manage a health savings account?
Tina
Is a Health Savings Account Right For You?
The cost of health care, like everything else, is on the rise. However, if you have to go to the doctor, the emergency room, or even stay overnight, you can be in the poorhouse pretty quick, even if you have insurance. If you are not insured, you may have to sell your soul or your firstborn to pay for the coming bills. If this is how you feel, you might want to checkout a health savings account.
Back in 2003, President Bush signed a bill allowing Americans to start a Health Savings Account (HSA) to help offset the cost of potential and impending medical bills. So, if you set up payments into an HSA, you will not have to pay taxes on that money and you don’t have to worry about spending it all in a year’s time like you do with a flexible spending account.
For example, you have insurance through your work, but you have to pay a deductible plus a percentage after that, until the bill is so high you will be living on the street before the full-coverage kicks in. So, what do you do? Well, if you set up an HSA, you can put the deductible and anticipated percentage amounts in a savings account, in the event you or a family member should need medical care.
The problem is figuring out all the rules and regulations, because some people do not qualify for the plan, and like any other government idea, someone had to kill a forest of trees to put it all on paper. For example, if you are already on Medicare, VA benefits, or have Tri-Care insurance through the military, you will not be eligible for an HSA.
However, it is worth checking out. Go to the US Treasury site and read the digital booklet. It may take a little time to figure out. But, if you can put money aside for a rainy day, and have it be tax free, I say it is worth your effort. After all, you may be healthy today, but an accident or age can change the scenario all too quickly.
With tightening budgets, I know people are having a difficult time just meeting the daily expenses. Nevertheless, speaking from personal experience, you cannot foresee a car accident or a cold that progresses to bronchitis or pneumonia. As my grandma says, “Life happens while you are making other plans.” So, before life happens, plan for the day you are going to need medical care.
Tina
Free Long Distance Phone Calls with Grand Central
Thanks to Pro Bargain Hunter I stumbled upon a cool way to make free long distance calls using Grand Central.
The service is still in Beta so you have to reserve a number for yourself but I was able to get an invite to try it out. Once you’ve signed up, you go to Settings -> Web Call Button and choose your button. Then click on the “Post” link to get the code to embed your call button in a web page, you can see mine below:
You can send your friends, family, or business associates the link to your web page and you can talk to each other for free. I’ll use my call button above as an example to walk through the process. Now that you have my call button, you can type in your name and phone number, click the Call Me button, and GrandCentral will ring your phone in a matter of seconds.
Once Grand Central has you on the line, they then call the number I have setup in my user options and once I answer, we’ll be connected. It doesn’t cost either person a thing! I have mine setup to ring my cell phone so that I can just shut it off when I want, so technically it will cost me cell phone minutes, but if you send it to your land line, there’s no cost.
Another cool feature is that you can leave the “keep my number private” button checked and your number will show up as Unknown on the recieving phone. It’s perfect for things like eBay auctions, you can let prospective buyers ask a question about an item without having to exchange phone numbers or have any special software installed. Isn’t technology cool!
Power of Trying Something New – Personal Finance Review
Do you ever feel like the growth in some area of your life has hit a plateau and you don’t know what to do about it? One of my friends was recently in that situation and took action that reminded me we sometimes have to move out of our comfort zone and try something new to make progess.
This is the friend that I introduced to selling on eBay who not too long ago became my eBay partner. His wife is staying at home with their new kid and he started an eBay business to supplement their income. He had been seeing steady growth but not enough to earn the money he had planned on. He realized he needed to try something new in order to break through the income barrier he was facing. After researching many different options, he decided to spend alot of money buying pallets of goods from Liquidation.com to resell on eBay.
It wasn’t an easy choice, he was spending almost all of his earnings to date on the deal and had never done anything like it before. Despite the doubt and all the reasons not to do it, he bought the products, took a day off from work to have the pallets delivered, and dove into listing the inventory. Using his new approach he’s able to list more items, faster, and make higher profit margins.
I was pretty impressed with my friend’s willingness to try something new and take a risk. I’m really glad its working out for him and offered to be an investor when he needs a few thousand dollars to buy more products. To me, it was a great example of how we have to be willing to change to grow.
Personal Finance Review
Some weeks are better than others in terms of personal finance content online and this week was just chock full of good stuff so this is a longer review than normal. Enjoy the articles:
Lazy Man & Money has an article I really liked called Your Financial Football Team, that reminded me of my Personal Finance for Sports Fans series and Is Your Investment Portfolio a One Man Team?
Suns Financial Diary reminds us that we’re not the only ones feeling the pain of the financial markets, things aren’t pretty with Chinese ADRs either.
The Digerati Life has a great article on beating the average investor’s returns with the Simplest Investment Portfolio and Generation X Finance reminds us of the importance of The importance of disability insurance.
No Credit Needed is pretty well read when it comes to debt reduction and offers his Favorite Books About Debt Reduction And Credit.
Free Money Finance warns that little expenses can add up, the Mighty Bargain Hunter covers banks obligations on foreclosed property, and Five Cent Nickel lists 12 commonly missed tax deductions.
Blueprint for Financial Prosperity gives us 8 Reasons To Do All Your Shopping Online, make sure you also read how to save money on shipping when shopping online.
Many people are asking the question whether they should refinance after all these interest rate cuts, Get Rich Slowly takes a look in Are Mortgage Rates Tied to the Federal Funds Rate?
The Simple Dollar takes a look at online personal finance analysis tools like Mint and Wesabe and My Money Blog talks about a new online payment system called MoneyExchange that’s offering a $25 bonus to signup.
If you’re not tired of reading about money yet, here are some more good posts from the M-network:
–75 Frugal Hacks for Your Home @ Being Frugal
–Prosper – the Ebay of Person to Person Lending @ Cash Money Life
–Making Money in Real Estate with Fixer-Uppers @ Gather Little By Little
–The Big Rocks of Life @ Moolanomy
–Money Mistake Monday – The Learn Before You Invest Syndrome. @ My Two Dollars
–American sub-prime crisis: should the rest of us care? @ Plonkee Money
–The Real Cost of Homeownership @ Single Guy Money
–How to buy partial shares of Berkshire Hathaway with ShareBuilder @ The Dough Roller
–The “Can We Afford The Payments” Mentality @ Paid Twice
How to Lower Your Grocery Bill by Recycling
Recycling is a royal pain but I do it to help conserve resources for my son and future generations.
As you can see from the picture, we have lots of stuff to recycle. Where did most of that stuff come from? The grocery store!
Cereal boxes, milk containers, beer bottles, diaper boxes, tin cans, glass jars, etc. They all come to us courtesy of our local Hy-Vee or Price Chopper. The more stuff we buy and eat, the more I have to recycle!
I’ll tell you what, loading it all into the car and making the trek to the recycling center is not exactly my idea of a nice way to spend a Saturday afternoon. I store it all up in bins to try and minimize the number of trips but eventually they get to be overflowing and my wife reminds me its time to clear it out of the garage.
So the next time I’m at the grocery store and thinking about buying a box of snacks or extra carton of ice cream, my answer will be no way! Not only will I spend less money on groceries, I’ll accumulate recycling less quickly and reduce my trips to recycle!
Term Life Insurance Can be a Life Saver
Although no one really likes to talk about it, every day is a gift and we are not guaranteed another. An accident or sudden illness, and our family is left behind to take care of funeral and burial expenses, not to mention the potential financial struggle for years to come. If the unexpected happens, that is when term life insurance can be a life saver.
Unlike whole life insurance, a term policy is for a specific amount of time. You may choose to only have the policy while the kids are growing up, so your spouse has the extra income needed to continue raising the children alone and helping them through college.
Before the policy expires, if you want to extend the policy, you may. The only thing is, the rates are adjustable-although they can never go beyond the cap. So, if you renew the policy, your premiums may be higher or lower, depending on your age and projected expenses, investment earnings, etc.
Generally, term life insurance premiums cost less than whole life insurance. So, many people choose term simply because it is more affordable. After the children are grown and gone, you can let the policy expire.
Alternatively, if you change your mind, and want to make sure your spouse has the money for extra expenses and the rising cost of living, your term life policy can be converted to a whole life policy.
However, if you believe a whole life policy may be your ultimate choice, it is better to purchase the policy when you are younger. With whole life, the premiums are locked in, and cheaper for you now than if you wait until you are older and change your mind.
Actually, it comes down to simple mathematics. If you are on a limited budget, but want a little extra financial security, begin with term life insurance. If your situation improves, you can upgrade to a whole life policy at any time.
Who do you recommend for term life insurance?
How to Get Insurance for the Self-Employed
Unless you work for a company that has a group insurance plan, health care insurance can be astronomical. In fact, more and more people do not have insurance at all because smaller businesses cannot afford the benefit, and getting insurance on your own becomes a choice between keeping a roof overhead or having a health coverage.
For the self-employed, the problem can be even more pronounced, since you are already struggling to make enough to pay the bills, without the guarantee of a regular paycheck. So, how to get insurance for the self-employed is a stressful issue.
I am sad to say, I do not have any cheap answers to suggest, but I may have one that is less expensive than other options.
My brother started his own business a couple of years ago. One of their main concerns from the beginning was health insurance. Both are middle aged with pre-existing health issues. Ouch! Right there, the insurance premium is going to go way up. Plus, they wanted full coverage, so they did not have to worry about dental and eye care.
When I asked what they decide to do, my brother told me about NASE (National Association for the Self-Employed). Through this association, my brother and his wife can get full coverage insurance at group coverage premium prices. While it is still not cheap, because an employer is not subsidizing the amount, it is far better than full coverage, if he were to get it on his own.
As a member of NASE, my brother also has access to medical advice from qualified physicians, before he spends money to go to the doctor. He can also save money on other health care costs; and he can get a list of doctors throughout the country, if he has to be away from home on a business trip or vacation.
Personally, as I began exploring the issue, I must admit I am flabbergasted at the cost of health insurance today. Even with an employer and a full-time job, the family premiums take a big chunk out of every paycheck. But, I also know the alternative is worse.
A few months ago, my neighbor had a stroke. Lean and seemingly fit, who would ever guess he would soon be paralyzed on one side. He has no health insurance through his company. He was in the hospital for two months and now he has ongoing health care concerns, maybe for the rest of his life. Plus, I believe his wife had to quit her job, because he needs around-the-clock care.
So, if you think you can get by without health insurance because you are young and healthy, think again. Today, you have the gift of good health. Tomorrow, who knows?
Do you have any other advice for self-employed people looking for health insurance?
Tina
Enter Your Email below to request free access to the member newsletter and article updates.
I'm Ben Edwards and I've been addicted to personal finance since I was 12 years old.
That passion for money has paid off for my family - so in 2006 I founded Money Smart Life to help you afford the life that you want. Read My Story...
