Millionaire Acts

Payday Loans Explained

Tyrone — Sun, 07 Mar 2010 06:31:04 +0000

There are times that we need cash for emergency purposes and that’s the main purpose why it is advisable to put up an emergency fund before you invest the rest of your money.

One of the best ways to get an emergency cash loan is through your credit card cash advance. However, if you don’t have credit card or if you have reached the maximum credit limit, then you can resort to what they call payday loans. Payday loans are short-term loans with some ranging from fifteen days or less. In simple terms, payday loan is basically a loan of cash that is taken against the consumer’s next paycheck.

Generally, payday loan companies require that the consumer or client must give a post-dated check of the amount of the loan plus a surcharge called interest, which they withdraw from the account of the consumer on his next date of salary payment. However, there are also some agents of payday loans in which they require your payroll ATM card to be a collateral against your loan so that every payday, they get to withdraw your salary equivalent to the payment amortization plus interest charges on your payday loan.

Before you avail of any pay day loans, you must conduct a thorough research on the payday loan company where you are availing of a short term loan. The additional surcharge / fee charged by different payday loan agencies are different. Look for the one offering the lowest. It is very important for the consumer to go through the features, terms and conditions before choosing a payday loan agency.

What are the features of payday loans that makes it one of the best resource of emergency cash? Let’s enumerate them below:

Quick Cash: When an emergency need arises, payday loans instantly provide the extra cash to cover these sudden expenses.

No credit check: Unlike the procedure of other personal loans such as housing loans or car loans, payday loans do not require a credit check or credit apparaisal to be performed; thereby making it easy for people with a poor credit history to acquire a loan.

No formalities: While all the other types of loans demand a lot of paperworks and formalities in documentation, payday loans don’t have these hassles. Simple personal details such as name, age, residential address, employment ID, savings bank account details, etc. are essential details to provide when availing of payday loans.

As a final remark, I would not advise you to be dependent on payday loans because you will definitely be trapped in rat race. Whatever you earned through your job will be spent immediately without you even touching the money you’ve worked hard. Discipline yourself in terms of handling your finances and just resort to payday loans if you are in dire need of cash which are in extreme instances.

Major Speaking Engagement at Blog World Philippines 2010

Tyrone — Sat, 06 Mar 2010 01:31:18 +0000

For all those who are my friend at facebook, probably by now, you have already knew that I was one of the major resource speaker in yesterday’s Blog World Philippines 2010 where I talked about the special topic of Financial Blogging. It was my first major speaking engagement.

I was surprised the day I received an invitation from Sir Leo Fuentes, the President and CEO of Asian Institute of E-Commerce. They have campuses mostly located in Pangasinan. It was attended by a lot of students mostly youth that came from provinces of Gapan and Dagupan among others.

During my presentation in front, I introduced my blog Millionaire Acts as a blog that talks about mainly on how to achieve financial freedom. Why do we need financial freedom? For reasons such as to have more time with our family and loved ones and for more time to the things that we enjoy the most.

In achieving financial freedom, we need to ASPIRE.BELIEVE.ACT.ACHIEVE our goals. Goals serve as our targets and purpose. They are there to drive us and be inspired to reach them. True we may encounter a lot of challenges in achieving them but once you overcome all these challenges, you will reap the rewards of becoming a winner.

I also mentioned in my talk about how did I come up with my url “Millionaire Acts” which is a product of the documentary film “The Secret” about the powerful “Law of Attraction”. What the mind conceives, the body can achieve and so when you want something, all the universe will conspire in helping you to achieve it. You can watch a preview of this documentary film in the video at my sidebar.

After that, I mentioned various opportunities and features that this blog opened up for me. This includes two features at Good House Keeping Magazine, Rich Dad Event here in the Philippines, Manila Bulletin Feature among others. I ended up my talk introducing one of my new blogs about make money online intended for newbie bloggers and aspiring bloggers who want to know how to start blogging.

Other speakers include Carlo Ople, Janette Toral, Kelvin Servigon, Julius Cesar Mamaril, Philip Tiangson, Julius Sison, and Cristina Gascon. Many were amazed, including me with what Philip Tiangson has claimed. He was able to raise P15 Million in blogging in the span of 3 years mentioning in his speech the things that he was able to buy that includes a car and a house! WOW!

After our respective talks, we proceeded to a question and answer portion where every student was given an opportunity to ask us questions.

The event was a success! I was able to network with various people. Thanks for the opportunity Sir Leo. Until next time.

How to Ask for Salary Increase

Tyrone — Wed, 17 Feb 2010 00:02:20 +0000

Times are tough nowadays. There are a lot of job layoffs and salary freezes. Companies are squeezing their budgets so employees are multitasking as of now performing two or more job responsibilities more than they usually do without getting enough salary increases. If your job responsibilities have changed and grown, you should address this situation with your manager as soon as you can. If you don’t you’ll only build resentment and also miss a valuable opportunity for professional growth.

Here are some of the tips on how to ask for a salary increase.

Find your original job description. If you don’t have one, write one for yourself, outlining as clearly as you can the job responsibilities you were hired to do. Then, on a second page, write a detailed outline of what you’re actually doing for comparison. Now, you’re ready to ask for a five-minute meeting with your boss. Ask either in person or, even better, by email - which keeps your boss from feeling ambushed and lets him plan for the possibility of salary increase.

Start the meeting by telling your boss how much you like your job and working for him. Mention how you’re enjoying your new job responsibilities and thank him for the confidence he’s shown in assigning them to you. Now comes the hard part- asking for a salary increase! Simply say, “I feel I should be paid more for taking on the added responsibilities, and I hope you agree.”

Keep talking. Your heart’s probably now in your throat but just go on. Mention the specific salary increase you are asking as a percentage increase from your current salary. If he doesn’t agree with the amount, all you’ll have to work out is the figure.

If he says no, ask him when you might expect a salary raise for the responsibilities you’ve taken on, and have him commit to another review date. Before you end the meeting, ask your boss for his feedback on what you’re doing well and where you could improve. Once the economic forecast improves and there is more flexibility in your company’s budget, you’ll be the first person he considers for a salary raise.

To Dream The Impossible Dream

Tyrone — Tue, 16 Feb 2010 06:24:20 +0000

Everyone starts from a dream. Dreams drive our determination to succeed. Dreams increases our will power. In reaching your dreams, it’s not always a safe and smooth road. You need to encounter a lot of trials and hardships. A lot of times you will fail before you can even see a first glimpse of success. You should be able “to fight the unbeatable foe” and “to run where the brave dare not go”.

Failures are always part of every success. It teaches us valuable lessons in life. It makes us stronger to withstand more challenges that comes along our way in achieving our dreams. Sometimes, you will feel lonely in achieving these dreams as you have “to bear with unbearable sorrow”.

“To reach the unreachable star” is not always easy. You need to possess the discipline and courage “to fight for the right without question or pause.” You need to be more focused on “to follow that star no matter how hopeless no matter how far.”

The song Impossible Dream reminds me that we should strive hard for our dreams. Each one of us has a purpose in this world, a quest to follow. Don’t limit yourself in reaching small dream. Reach the “impossible dream”, “the unreachable star”.

Here are the lyrics of The Impossible Dream composed by Mitch Leigh, with lyrics written by Joe Darion:

To dream the impossible dream
To fight the unbeatable foe
To bear with unbearable sorrow
To run where the brave dare not go

To right the unrightable wrong
To love pure and chaste from afar
To try when your arms are too weary
To reach the unreachable star

This is my quest
To follow that star
No matter how hopeless
No matter how far

To fight for the right
Without question or pause
To be willing to march into Hell
For a heavenly cause

And I know if I’ll only be true
To this glorious quest
That my heart will lie peaceful and calm
When I’m laid to my rest

And the world will be better for this
That one man, scorned and covered with scars
Still strove with his last ounce of courage
To reach the unreachable star

Economic Terms You Need to Know When Investing

Tyrone — Tue, 16 Feb 2010 05:18:09 +0000

The health of the economy is directly proportional to your investments. If the economy is doing good, then chances are your investments will also earn good. However, if the economy is experiencing a downturn, then definitely, your investments too are affected.

Since the US has the largest economy in the world, most people watch its economy as it may have a domino effect to smaller economies most especially for countries whose main clients for their export products is the US market. According to Kiyosaki, there are three main economic terms you need to know when investing. You’ll hear these economic terms reported on the nightly news and in your newspaper.

The Index of Leading Economic Indicators. This is the measurement perhaps most widely watched by economists. Issued monthly by the Conference Board, a business research group, the index is based on ten different economic factors, among them the jobless rate, the number of new houses under construction, the M2 money supply, the number of new factory orders for consumer goods, and the prices of certain stocks. The index allows economists to assess the current state of the economy and to predict, for example, when there might be higher inflation, an upswing in productivity, higher unemployment, or a recession.

The Gross Domestic Product. As you’ve learned, this is a total measure of the goods and services produced in any given period, usually a year. The GDP, measured by surveying several thousand different goods and services, is a sort of national balance sheet. It reports on production, distribution, use, and export. The GDP is adjusted for inflation and for seasonal factors such as increased consumer spending.

The Consumer Price Index (CPI). Also known as the cost-of-living index, the CPI looks at the economy from your point of view. Every month the U.S. Bureau of Labor Statistics records the prices of 80,000 different goods and services typically used by Americans. Among the prices tracked are those for housing, food, clothing, transportation, health care, education, and recreation. The most widely used indicator of inflation, the CPI is the basis for calculating increases in such things as Social Security payments.

Kiyosaki left us with two of his Rich Dad Tips on Investing:

Three consecutive rises in the index of leading economic indicators signal that the economy is growing. Three consecutive drops signal a downturn.

Let’s say the economy goes into a nosedive. An economic depression is emotional depression. People lose money and they get depressed. But if you’re armed with financial knowledge, you increase your chances of riding out a depression.

According to Kiyosaki, sophisticated investors make more money in times of bust. They keep their emotions neutral and enter the market when everyone else is fleeing it in panic. The financially intelligent buy when others are selling. Great opportunities are seen not with your eyes, but with your mind.

As an end, here’s another Rich Dad Tip:

There will always be market booms and busts. The trick, in a bust, is to buy instead of sell. Don’t panic, profit!

Debt Consolidation: Consolidating Your Debt Payment

Tyrone — Thu, 11 Feb 2010 06:38:49 +0000

Having lots of debts is different to manage. You may need to track down all debts from one creditor to another including interest expenses and late payment charges. One solution to handling multiple debts is through debt consolidation.

Debt consolidation entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan. More often, debt consolidation involves a secured loan against an asset that serves as collateral, most commonly a house. In this case, a mortgage is secured against the house.

Now, it may sound positive to you to have debt consolidation for easy debt management. However, it may also be a disadvantage to you since most debt consolidation loans are just home equity loans in disguise. They use the equity built up in your current home loan and use it to repay all of your unsecured debts. These debt consolidation loans usually convert all of your current unsecured debts into a secured debt which is now backed by your home as collateral. So, if you were not able to pay off your debts, the debt consolidating company may foreclose your house mortgaged to them.

Aside from having your home mortgaged when you availed of a debt consolidation program, the total amount repaid is often significantly higher due to the longer payment period of the loan.

Having said the statements above, here are the advantages and disadvantages of debt consolidation:

Debt Consolidation Advantage:

- Lower interest rate, usually fixed interest rate for the convenience of servicing one loan

- Lower monthly payments

- Longer period of debt repayment

Debt Consolidation Disadvantage:

- Total amounf of debt repayment is higher than original debt principal

- Danger of house foreclosure if debt left unpaid

I suggest before opting for a debt consolidation program, ponder first if it will give you debt repayment convenience. Otherwise, if this is just another “escape debt” just to pay your current debt which will lead to a cycle of debts, then you should not take the risks of your home being foreclosed.

Why Savers Are Losers?

Tyrone — Wed, 10 Feb 2010 07:12:42 +0000

One of the most liberal idea of famous Rich Dad Poor Dad author Robert Kiyosaki is that SAVERS are LOSERS! Yes, you’ve heard it right, Kiyosaki said that savers are losers! You may think that this is in contrast with the notion of personal finance as it talks about saving money but no it isn’t.

Just like in Sports like the upcoming 2010 Winter Olympics, an athlete must first prepare to achieve his end goal. He then sees the end of the line before he even starts. In preparing for the big event, he must exercise and condition his body, prepare for some tactics and improve his skills to perform well. Tactics are “techniques” to reach the goal earlier than the rest and thus, it is imperative to study these techniques to win the game.

In achieving financial freedom, it’s not always sufficient to just save for money. That’s why Kiyosaki said Savers are Losers. One must know how to invest their money to fight inflation. The very goal of investing is to have an additional income because the value of our money decreases as an effect of inflation. The value of your money today is not the same as the value of your money one month ago because of inflation.

Savers are losers because they only know how to save money in the bank through bank deposits which give them very little interest income not even enough to outgrow inflation. One must build several assets that are income producing to become passive income earner. Therefore, savings should be used to invest in assets. By assets, I mean those investment vehicles that puts in money into your pocket.

Savers are losers because they deprive themselves of the comforts that money can buy. It may seem conflicting but what Kiyosaki really mean is that we should know how to properly invest our money to have passive income and use this passive buy our wants, preventing ourselves from deprivation.

What are Forward Contracts?

Tyrone — Wed, 03 Feb 2010 05:47:48 +0000

In this article, I will introduce a financial derivative called Forward Contracts. What are forward contracts? Forward contracts are used by companies to take advantage of a speculation.

A forward contract is an agreement between two parties to buy or sell a specific asset at a certain future time for a certain price agreed today. It costs nothing to enter a forward contract. The party agreeing to buy the underlying asset in the future assumes a long position, and the party agreeing to sell the asset in the future assumes a short position.

So how does forward contracts work? Forward contracts are some of the reasons why do some companies failed and declared bankruptcy. One example of an asset that is most transacted in forward contracts is oil. Oil is essential because it is one of the important raw materials to operate almost all types of machines. Companies use these machines and equipments in their operations. Therefore, when the price of oil rises, the tendency is that the price of their product will also rise.

So what do these companies do? They usually enter into a forward contract with oil suppliers. Speculating that the oil will rise in the next few months, they will sign forward contracts with these oil suppliers to supply them oil in a specific time in the future. These companies will benefit if the price of oil indeed rise. However, in contrast, if the price of oil fell, then they are at a loss since they are obliged to buy it at a much higher price than the market price.

Another example of where forward contracts are used is the foreign exchange. Foreign currency traders use forward contracts to leverage the rise and fall of currency values. Currencies are most important for traders and businessmen doing import and export of their products.

Develop Your Marketing Skills

Tyrone — Tue, 02 Feb 2010 06:59:27 +0000

Marketing is one of the most important skills that you need to develop whenever you plunged yourself into business. Marketing is the way you promote your products or services. It is a way to get your products known to the public and target your customers.

In one of my previous posts, I wrote about some low capital marketing ideas. While there maybe a lot of ways to market the products or services of your business, you need to study first the so-called Four P’s in Marketing to hone and develop your marketing skills before you can even market your business. By using variations of these four market components you have the ability to reach multiple consumers within your target market.

Price. The price is the amount a customer pays for the product or service. It is determined by a number of factors including market share, competition, material costs, product identity and the customer’s perceived value of the product. You may increase or decrease the price of product of your business depending on supply and demand in the market.

Product. Product is a tangible object or an intangible service that is mass produced and measured as a specific volume of units. Intangible products are often service-based offerings.

Place. Place represents the location (e.g. Country) where a product can be purchased. It is often referred to as the distribution channel. It can be both physical, as well as, virtual (e.g. the Internet).

Promotion. Promotion represents all of the communications that you may use in the marketplace. Promotion has four distinct elements; advertising, public relations, word of mouth, and point of sale.

In marketing your product or services, you need to ask yourself about these 4P’s in Marketing to target your customers better, minimize costs, and improve business profit.

Qualities of an Effective Leader

Tyrone — Wed, 20 Jan 2010 13:58:40 +0000

The Philippines is going to elect another leader this coming May. Who deserves to be the leader among those contenders? Who has the qualities of an effective leader?

There are a lot of people that say leaders are born. Some say that leaders are made. Whatever your opinion on this, leaders should be ‘effective’ in their leadership and should be responsible to their constituents.

Let’s discuss some of the qualities of an effective leader and apply these qualities to the country’s highest leader, the President, as we cast our votes this coming Presidential elections.

The highest form of leadership is servanthood. Leadership is one of the highest calling a person can receive. How can you distinguish an effective leader among the rest?

An effective leader is the one who serves, a bad leader wants to be serve.
An effective leader is one who empowers, a bad leader wants that power.
An effective leader wants people to grow and become great, a bad leader becomes insecure when someone grows and they always have to be the great one.

There’s this law in Physics that for every action, there is an equal reaction. The secret to become an effective leader is simple enough.

If you want to be happy, make someone happy. Instantly you become happy.
If you want to be motivated or empowered, motivate and empower someone. Instantly you’re motivated and empowered.
If you want to be appreciated, appreciate people and they will appreciate you.
If you want respect, of course respect them first.
If you want to be trusted, you must trust others too.

As an effective leader, you should not wait for someone to do those things for you first, You have to do it yourself first. An effective leader is called a ’leader’, because people follow what you do, not what you say. Effective leaders serve as inspiration and motivation among their followers.

Rich Dad Tip:

“A leader’s job is to bring out the best in people, not to be the best person.”

As an end to this post, I would like to give you the Leadership Litmus Test that I learned from Robert Kiyosaki:

- Are you depending on charisma to lead your team? Watch out—leadership has less to do with personal magnetism than with persistence in communicating your mission to your people.

- Do you hole yourself up in your office all day long, poring over numbers rather than getting out and talking with your team? Financial statements are important, but so is mixing with—and listening to—your employees. Watch out for the stuffed-shirt syndrome. The best way to keep abreast of company progress is through informal interaction and ad hoc meetings.

- When it comes to making decisions, do you put off the day of reckoning? Effective leaders need to be action-oriented; otherwise their companies will succumb to paralysis.

- Do you lead by command—telling people what to do, and punishing them if they don’t—or by enabling? Leaders who hire talented people and give them space to shine are establishing an atmosphere of trust in which creative ideas will flower.

Cash Flow Management in Business

Tyrone — Wed, 20 Jan 2010 07:27:08 +0000

Cash flow is the heart of a business. Cash flow determines if your business will prosper or fail. A positive cash flow provides good return of investment while a negative cash flow means that you are draining money in your business.

Whatever kind of business you have, you must have the right cash flow management skills. Attention to details in the early stages of your business will pave the way for success. Here are some pointers I learned from Rich Dad Coaching Program to help you contain and direct your cash flow in your business.

- Call on an accountant, banker, or financial consultant for advice in structuring your cash management system.

- Delay taking a salary until your business is generating cash flow from sales. If you’re terribly strapped, keep your day job and start your company part time.

- Review your cash position daily, looking at cash sources and needs for the coming week, month, and quarter. This way you can plan for any large cash need before it becomes a crisis.

- Keep a close eye on your ratio of assets to liabilities. This will enable you to move quickly when money needs to be borrowed. Be alert when liabilities rise over assets. You should be generating enough cash flow to pay for those liabilities.

- Bill customers as soon as your product is shipped or your service provided. Do it outright. Don’t delay.

- Require payment up front until credit has been earned by your customers. Business customers need to gain your trust before you can avail of credit.

- Pay your bills promptly, but ask for extended-payment terms from day one. Ask for extended-payment terms again after you’ve made several timely payments.

- Keep your overhead to a minimum. Don’t purchase anything new—such as a copy machine—until sales justify the purchase. You must examine your expenses thoroughly. Expenses are negative cash flows and if not managed properly, it can eat your business.

- Invest your cash on hand to maximize its earning potential. If you have extra cash in your business, try to look for other investments options where it can generate the highest yields.

- Establish tight internal controls over the handling of cash.

- As your business grows, continue to keep a close eye on cash management. Losing sight of cash flow during expansion is a common reason businesses go under.

- Make sure your bank account is reconciled by someone other than the person preparing checks or signing them. Always have a check and balance.

Rich Dad Tip:

“The ability to run a company from financial statements is one of the primary differences between a small business owner and a big business owner.”

Follow your cash from receipt to deposit, from purchase order to writing the check, and have an outside accountant review your system to make sure you have adequate internal control procedures.

Shopping for Auto Insurance

Tyrone — Sat, 16 Jan 2010 09:03:17 +0000

Auto insurance isn’t just about the car. Every auto insurance policy owner should take the time to read their insurance policies. Some auto insurance policies are actually a package designed to cover risks ranging from lawsuits and property damage to medical expenses and even death.

To shop wisely for auto insurance, you need to look at the separate components to be able to search for possible discounts and then decide the best way to spend your money.

Normally, car drivers are generally unaware of the myriad factors that determine auto insurance rates. In the US, people with good credit ratings tend to get better rates, as do drivers who take driving safety courses and students whose grade point is above 3.0.

There are also savings available for people who carpool to the office, cars that have safety and security systems, and people who buy multiple insurance policies from one company.

When you shop for your auto insurance, don’t skimp o critical areas, like the liability and bodily injury coverage built into your auto insurance policy. If you’re at fault in an accident, it’s the liability part of your auto insurance policy that will pay for bodily injury and property damage to others, as well as any legal fees and judgments.

And if you trim your insurance premium by reducing your bodily insurance coverage, you could end up with insufficient protection if an uninsured or underinsured driver hits you.

Look also for savings in other parts of your auto policy. If your car’s odometer has crossed, say the 100,000 mile mark, for example, it may not make sense to pay for collision coverage which could quickly end up costing more than you’d collect if the car was total wrecked. And if you’re unlikely to file a small claim because it will raise your rates, don’t bother paying extra for low deductibles that you won’t actually use.

Finally, don’t forget to consider insurance costs when shopping for a new car. Often, the more expensive the car is, the higher the insurance costs it will have.

Make Money From Your Home

Tyrone — Sat, 16 Jan 2010 08:15:28 +0000

Kiyosaki says that most often than not, a home is a liability and not an asset. Why? It is because for most people their homes bring a lot of expenses to them rather than an income. They need to pay various home utility bills aside from the real estate taxes.

Everyone knows that he or she can make money from home. Well aside from various home-based businesses such as blogging, and other outsourced work which you can do in the convenience of your own home, there are more ways for you to make money from your home.

Take in a Lodger. Renting out your home for tenants is one of the most popular way of making money from your home. It is a quick way to earn money from a spare bedroom although you will “pay” for it with a level of loss of privacy.

Location for Film or TV Advertisements. You can also make money from your home by renting it out as a place for a movie or TV commercial shoot. The most likely attribute it’s going to have is a unique or curious aspect. Your home should be a suitable venue for a scene on a movie or a place for shoot for tv commercials.

Short-Term Let. If your home is near a sporting venue or to a location of a big annual event, you could rent it out to participants and spectators, because even the smallest flat could be let-able. Some small time businesses can be set up using the space in your home.

Alternatively, if your home is near an airport, you could rent some of your space as a parking space.

Get Advertisements. If your home is located in a good location, say in a subdivision, where there are a lot of people passing by, you could set up a little billboard in your fence and get advertisers to advertise their products and services.

This was the case in one of the homes in our subdivision. The lot where the home was built is a corner lot and a lot of cars and people are passing by that home just to get to their respective homes. It was in a very good location.

The home owner took advantage of it and built a small billboard on their fence for interested advertisers. As expected, there were some advertisements on it. I remember there were times that when I passed by to that home, the billboard was full of ads and there were no more slots available for new advertisers.

What is Variable Life Insurance?

Tyrone — Thu, 07 Jan 2010 15:39:34 +0000

First of all, why are you buying life insurance? The basic rationale for life insurance is to replace your income in the event that you die unexpectedly. Your insurance policy then is supposed to “buy” your dependents’ time to replace the income they had depended on you.

Strictly speaking, life insurance is primarily for protection, not an investment or a savings plan. However, today’s insurance companies offer products with savings plans and investment features. These are what you call variable life insurance.

Variable life insurance vary from one insurance company to another. These insurance companies customized their insurance products to suit their clients needs. There are insurance products that give you the amount of your insurance coverage at a fixed time in the future in case you don’t die during that stipulated time. Protection aside, variable life insurance also give you profit based on the performance of the insurance companies’ investments.

The bottom line for variable life insurance is that these insurance products combine life protection and investment benefits with premium payments. In such cases, you need to know how much of your premium goes to protection and how much to investing. You should ask these to the insurance agent when getting a variable life insurance product. When you understand exactly how much yield you will earn on the investment portion, you can decide whether it’s better for you to just buy term life insurance and invest the difference yourself - assuming you are financially literate enough to know what are the other investment options.

How to Teach Your Kids About Money Matters

Tyrone — Sun, 27 Dec 2009 18:09:27 +0000

I am not yet a parent but in the not so distant future, I will be. As a parent, you want to give your children the life skills to survive on their own when they grow up. Part of that is teaching them about saving money. How do you do that? You have to teach them intentionally!

Work. Work is how money is made. There has to be an emotional and intellectual connection between work and money. Because this connection needs to be emphasized, you should never use the words “allowance”. Instead, you should use the word “commission” or “incentive” to your kids. When your kids do chores at home, they get their incentives. If they don’t do their chores, they won’t get get paid. However, be considerate in giving chores to your kids depending on their age and capacity.

Giving. Let your kids’ giving be spontaneous, and give tons of affirmations for giving to anything. Guide your kids about how much and where to give. Just let your kids grab some of their cash from their piggy bank to offer during mass. Giving their own money makes your kids less self-centered and brings them depth of character.

Saving. When teaching your kids about saving, the goals should be short-term. When they have saved for say a PSP, and they buy it, there is a sense of pride that will make parents smile a lot more than if you simply bought it for them.

When your kids are small, you can use a small transparent container or coin jars for their money savings so they can register visually see the saving going up and the spending bringing their balance down. As they get older, use envelopes for giving, saving, and spending. When they reach the teenage years, they should have a savings account of their own.

Spending. Spending is done differently when you are spending money you earn. It is one of the rewards of disciplined saving and working - the celebration of a goal-reached! When spending occurs in this way, your kids’ self-esteem will be maximized because he was able to accomplished a goal. There is a sense of accomplishment, of a job well done!

Millionaire Acts

Payday Loans Explained

What To Read Next

Major Speaking Engagement at Blog World Philippines 2010

What To Read Next

How to Ask for Salary Increase

What To Read Next

To Dream The Impossible Dream

Most Commented Posts

Economic Terms You Need to Know When Investing

What To Read Next

Debt Consolidation: Consolidating Your Debt Payment

What To Read Next

Why Savers Are Losers?

What To Read Next

What are Forward Contracts?

What To Read Next

Develop Your Marketing Skills

What To Read Next

Qualities of an Effective Leader

What To Read Next

Cash Flow Management in Business

What To Read Next

Shopping for Auto Insurance

What To Read Next

Make Money From Your Home

What To Read Next

What is Variable Life Insurance?

What To Read Next

How to Teach Your Kids About Money Matters

What To Read Next