Money Saving Tips's blog

I’LL GIVE YOU $500,000

Okay, I am not going to give you $500,000 just for looking at this article but this article will show you how to build an asset of that amount. This all came from a discussion between me and one of our children over the bad habit of smoking versus the good habit of saving. Now, we will share it with you.

Save, Save and Save

There are 3 definitions of save/savings that relate to your personal finances. We will explain these 3 definitions using the “big 3 tools” of personal finance. The first definition of save is to reduce costs. This means that you find ways to buy the same thing for a lesser price. The second definition of save is to simply not spend. When you are faced with the personal choice of buying something or not, choose to not spend the money.

If you had to choose only one, saving or debt repayment, which would you choose?

My answer to this question is YES. You may say that is silly but so is the question. You may choose paying off debt preceeds saving as it frees up money to save and usually the interest on the debt is higher. The one problem with that is the transition period when the debt is paid off. You have this huge surplus in your budget when the debt is paid off and no skill set for savings developed. That is why YES...both is the only answer.

How to enter a car lease on your balance sheet?

Answer

The execution of the task of entering a car lease on your net worth balance sheet is rather simple. You take the monthly payment on your car lease, multiply it by the number of months left on your car lease and enter it on the liabilities side of your balance sheet.

Should I Sell Now???

I like a diversified portfolio of dividend generating stocks bought for long-term income. It is the same formula that Warren Buffet was taught and has used to make his fortune.

Too many people buy a mutual fund at its peak, sell in a panic when it drops 10 per cent, and then rant against "casino markets." But some will buy again – after the market has gone back up to the top.

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