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Not to be afraid to educate yourself about money. There's so much info out there! :)

Indeed, the tenth one is strange. It is so because there is nothing sure in it and finance is based on something solid.

Although some may disagree - buying a car instead of leasing. Leasing is a trap that makes you feel rich since you can get a lot of car for a little money - it's akin to paying rent for the rest of your life.

May I suggest a missing item: "be prepared for the unexpected." This means have an emergency fund. Even before you pay off debt, you should have SOMETHING available in case (when) something unexpected happens.

I agree with you on #10. Giving just makes you feel better overall.

#10 is a great one. I agree that it feels good and ends up coming back in the end.

Wow. I feel better after reading your list because I'm pleased to announce that my husband and I are doing all of the above. Sure, we could be doing better in many of the areas, but what we have is better than nothing, and we're working hard to improve.

I've actually found that most of the financial books and advice I've read tend to mention something akin to #10. The One Minute Millionaire particularly talks about this concept. I totally believe it to be true and vastly important.

Excellent list. I also like the addition of number 11: "be prepared for the unexpected" by Rob.

I find myself having to pay unexpected expenses every year.

I'm doing most of these, though I just recently started some of them. In about 2 months I'll have all my credit cards paid off!

#10 is a good point - as the saying goes "What goes around comes around." By giving money away, you make room for more of it to come your way.

Instead of adding more to your 401k after taking advantage of your employer match, it makes more sense to put that extra contribution into a Roth IRA. A Roth IRA will grow tax free and in the end leave you with more money than a 401k which will all be taxed at your income tax rate. With capital gains and dividends being taxed at 15% there is even an argument that a taxable, non-retirement account, would be more beneficial than a tax-defferred plan if your retirement tax rate will be over 15%.

Steve --

I think that's what I said. See #8.

I just felt an explanation of the tax benefits of the Roth would make some sense to make your point. Also a 401k may not be the best choice in our current tax environment if your expected income tax rate at retirement is over 15% which is likely if they do a good job saving, considering the requirments to start withdrawing your money at 70 1/2. In a non-retirment account you wouldn't be required to withdraw the money and can have more control over your tax situation expecially in conjunction with a well-funded Roth IRA. Having three "pots of money" are a key.

I would like to give a differing opinion on 401k. I have been able to max out my 401k for most of my career. On looking back I think I would have only invested the minimum to get the employer match and put the rest in a taxable account. I have been able to become semi retired at the age of 39 by investing mostly in real estate. The money that I have put in my 401k would have been put to much better use by investing in more real estate.

Dont forget about your 10% every sunday!

Great list! And don't get a payday loan!

Good stuff here. The comment above about the payday loan is definitely worth repeating. In fact, a good addendum to the list would read something like "Watch out for horrible financial traps and costly mistakes." Payday loans, store charge cards, late fees, etc. These types of mistakes can erase all the benefit of a whole years worth of interest from your savings account and then some. There are a lot of shady businesses out there, most of them perfectly legal, that are more than happy to rip you off.

A great list. It reads a lot like "The wealthy Barber," which is my favorite financial book besides The richest Man in Babylon.

How would you modify this for someone who is disabled (unable to work at all) and who makes nothing more than a small disability benefit each month and cannot increase their income from working in any way?

If someone in such a situation spends on the necessaties only: health insurance, medicine, food, doctors, etc. and still doesn't have enough because of the low disability pay and high costs of healthcare, what would you suggest they do? Especially if they're still very young when they become disabled and haven't had the opportunity to begin saving or getting ahead?

I would love to hear any tips on this topic that you may have. Thanks a lot.

Newreader --

That's a tough one -- and an issue I don't know a lot about. I'd suggest looking for a blog writtent by someone who's disabled (or knows the issues associated with being disabled) and see what they have to say.

All of the ten points sound great but they are for the elite in America. The majority of people are living from pay check to paycheck or handout to handout(pension, welfare check, SS check-retirement or disability). Most Americans have no idea how to get more money for necessities even though the means to do that is right under their noses. It is better to sell what is in the house or apartment than to lose the house or the apartment and have to live with people who don't want to share their space.
Go on a treasure hunt in your living quarters, even disabled people can do that for the most part. Watch the Antiques Road Show, Find, Cash in the Attic and the other shows. Get the Kovel's newsletter and study to cash in on money.

It's difficult to listen to all of this, especially for me, who thought I was successful. I am 32, used to have a good savings, but after it didn't work in past relationships, I am paying just over $1700/month in child support, while grossing $2500/month ($67k year with a degree in engineering) and trying to sell my house to get rid of a $930/month mortgage + utilities - now living with my parents, also paying about $700/month in credit card debit ($35,000 accumulated so far). I am paying mortgage and bills on my credit card because it won't sell and no matter how much I make, the gov't takes it to give my 2 kids mom a life of luxuries. Besides suicide, does anyone know of a way out - no plan of mine will work!!!

Tony --

Find someone you know and trust and who's good with money. Sit down with them, go through your finances, and seek their counsel.

If you don't know anyone like this, find a church in your area that has a "financial counseling ministry" (many of the larger ones do.) Meet with the contact they give you and apply what he/she says.

There is hope. I've seen people in MUCH worse financial difficulty than you turn around their financial lives. It will take some time and require some sacrifices, but it can certainly be done.

i like number 5.especially adding value to property etc.easiest way to make more money!invest invest invest!

i like number 5.especially adding value to property etc.easiest way to make more money!invest invest invest!

Don't worry too much on spending small amounts, but focus on saving on bigger expenses?

I agree with #8... saving for retirement is key. I know it will be beneficial in the upcoming years. This list is a great reference.

I am looking for a way to make big money in a small amount of time. It seems to me like real estate is the only way to go. being a mother of 3 is not easy. I have tried all of the work at home sites you can imagine and they all want money to employ you. I learned a long time ago that you should never pay some one to work for them. They should only pay you. So what do you really have to invest to work for yourself, if you want to be a millionaire?

great #10 tip! Not only does it involve Karma and tax deduction, but it also brings up the good point of doing something good for others makes you happy! And being happy in life is RICHNESS in itself:)

Hi Tony,
Hopefully things are much better for you now and your comment about suicide was not even seriously considered as an option! You are young, successful and have a good job and a college degree all to your name. And obviously parents who care enough to let you live with them.

For starters, this is not a dead in the hole situation. There are two courses: one for if you have good credit and one for if you don't. But first things first, you need to increase your income immediately! Part-time job - waiter, bartending, anything that puts extra money in your pockets immediately. You need to ask for a raise at work or if you are doing engineering, I'm guessing you probably get a raise every year, which increases your income. I would also start looking for a new job which most times gives you an increase of at least 20% in your salary.

By just what you posted, you are about -$830/mth in the hole. This breaks down to about $207/week or $41.5/day. I personally would not sell my house, but I would get another job to supplement my income. $41.50/ day is do-able. Working two jobs - hard, but do-able as well. But I would only do this until I could either get a new job making more money or got a raise at my current job.

The next piece comes in with the credit question. Do you have good or bad credit? If you have good credit, another asset for you! I would look into refinancing the house and consolidating the cc debt under the house AND cutting up the credit cards. Do not make any more debt. This debt can then become a tax deduction for you as you pay it off rather than non-deductible debt. And it would probably be at a lower interest rate than it is now. The other option if you have good credit is to negotiate with the creditors to get the interest as low as possible and when you can get everything on a zero interest rate card. Then DOLP the debt away. (Read Automatic Millionaire by David Bach for details on DOLP. Great book, easy read.)

If you have bad credit, then you still need to DOLP the debt out of existence, but I would stay away from consolidating the debt under the home. You don't want to miss any payments and lose your home and the interest may too high anyway if you refinance.

But all of this is with the premise that you first get another job to increase your income first. And of course stay positive. If I were you, I would continue to live in my home (which probably feels better to your self-esteem than living with your parents), and work the two jobs (40hrs a week (10 hrs / day on weekends) - you only need to be making about $5/hr, 20 hrs - $10/hr).

I suggest waiter or bartending because then you get free food. :)

The job may only get you to break-even every month, which is much better than $-830, but it can get you through while you work on increasing your income. Which you are young and well-educated, so it will increase. Plus it makes you feel good to still be taking care of yourself and know that she has not won!

You can do it! Soon you'll be making $80,000 or over $100,000 and that $1700/month will seem like a drop in the bucket.

Also, remember the second most important thing after getting another job is to pay off the credit card debt. Once this is done, you'll have an extra $700/month to keep!! It's doable, trust me!

I had a large amount of debt as well, and was going through a lot of difficulties and I prayed a lot, stayed positive and worked hard! Life is what you make it and you're young and things change from day to day! It may seem insurmountable now but once you get over that mountain, you'll be so proud of yourself! It's all in the attitude!

Exercise a lot as well - helps you to stay positive! The thing I always remember is a saying I read from a book: "The best revenge is to live well!!"

Best of luck to you!

Take care of yourself!

C-


hi guys im 23 years old , im having a problem with getting into college because i cant get any loans because my parents make to much money and they cant co-sign or help pay. I cant find a job in the town i live in because no one is hiring. Im renting a house i own both my vehicals and m barley making rent doing odd end jobs . how can i get started in making money so one day i to can be wealthy?

Blake,
You're 23 years old w/two vehicles, having a hard time making rent and would like an education? I would recommend that you sale one of your vehicles (this would save money on insurance, proptery tax, state inspection and maintence). And put some fo themoney form the sale into savings (i'm talking it that you have none already). Now, for the education part of your statmenet. Not knowing your interest for a College major, I do know something that may help you or anyone interseted in obtaining a free education.

Few people know that one way to get an engineering degree-for free-without having to joining the military, and without have to be low-income, is through the Merchant Marine Academy in Kings Point, New York. Not only is tuition covered, but so are your books and uniform cost, and you’ll receive a monthly stipend for the work you’ll be assigned.
Contact: Admission Officer, U.S. Merchant Marine Academy, 300 Steamboat Rd. Kings Point, NY 1102-1699; 516-773-5391 (outside NY call 800 -732-6276)
website: www.usmma.edu
and Well wishes!!

This is all very solid advice. The best advice here is probably to live on less than we make It's amazing how basic personal finance can be. The problem isn't that we don't KNOW. The problem is that we don't DO. Just do it! lol.

Great post.

adding value to property this need to be surely consider, but also need to focusing on bigger expenditure, agree with Point No.8, we have to pay our all debt time by time as much as possible one of the best way to make easy and tension free life... nice post...

i love number 10

from my own experience, giving seems to always have an effect on wealth

isn't some kind of miracle?

Great suggestions. If you're considering following these in order of priority, I'd suggest moving some of these points around.

As far as the order is concerned, I'd suggest swapping #10 to the number 2 position and swapping points #3 and #7.

I'd also consider adding an additional point near the top, right along with the item currently #10.

Pay yourself first! Set 5% - 10% aside as an emergency fund for those unplanned and unbudgeted expenses. Then you're less likely to be stressed when they occur.

Also, pay off the smaller debts first. You'll feel like your getting somewhere when one is paid off. Then use the same payment and add it to the current payment on the next lowest debt.


Suggest reading Dave Ramsey's books on getting out of financial debt. He makes sense.

Since this site is committed to building wealth I think there should be tip #11, start a business. Most people have a talent or expertise that they can turn into a tangible product or service. A business is important because it is one of those precious few and coveted above the line deductions. Above the line deductions reduce your tax liability dollar for dollar. For us hard working folks, taxes, along with debt is our biggest expense. If you cannot purchase a home and do not have kids then you are limited in terms of the tools you have available for reducing your taxes. A side business can greatly reduce your tax exposure. *Please always do your own due diligence and seek professional advice as necessary.

You should add About Praying

It is Amazing how God can help!!!!

You are right Matt. Pretty soon the only people with a job are the ones who start their own businesses. Seriously though, I was surprised that no one noticed that there is a difference between saving money and best money moves. One can have a ton of money and never have done anything useful with it. What good is money if you don't ever enjoy it?

While investing in an index fund is generally considered a diversified investment, in this uncertain market, with all sectors being down, this is not the case. A truly diversified portfolio not only includes a balance of stock and bonds, but also includes a set of alternative investments, more specifically real property and trust deeds. Trust deeds provide an investor with a monthly income stream from interest payments from a loan underwriten on piece of real property. The security for the investment lies in the asset, which with a proper LTV ratio will hold enough equity to protect the investor even in the most precarious scenario.

"Pay off all debts".

Agreed all the way. Somehow I never was too comfortable having money when I know I still have existing debts and cash loans. It's like holding on and spending money that isn't really yours.

"Contribute to your 401k to get the full employer match."
So true. I find it hard to believe the excuses I hear for not doing this.
A guy I knew did not want to do this because he was mad at the company, If I were mad at the company I would take every dime they gave me.

I agree with all but the buy a house part. Most people are broke because they are buying homes, especially ones they can't afford. A home is not an investment, it's a place to live. Don't put money in a house thinking it will pay you back. It may not.

All great advice but the biggest advice is to live within your means. The reason why people go broke when buying a home is because they buy something they want..not what they actually need and the want is usually more than they can really afford. I definately agree with increasing your income but getting a college degree isn't always the best way. An informal education is just as (if not more) important than a degree and just because you have a degree doesn't mean you will make more money. I know people who worked as a bar tender while going through law school but once done with law school realized they wouldn't make more money so they ended up as a bar tender with a law degree. I beleive that starting a business is a great way to bring in extra money and have a home office for the tax breaks. I love working for myself. I make my own hours, set my own goals, and even though it is part time I write off everything from my car to part of my utility bills. Wouldn't have it any other way.


I have personally think that spending less than you make and staying out of debt (1 and 4) go hand in hand. Many times we do spend more than we make and we put it on the card. We're not happy spending every penny we make, we have to spend what we dont yet have. Scalling down spending will help with two of the major point here. Thanks for the great post.

I totally agree with paying off debt. Credit Card interest rates are sky rocketing and they make it so you can't pay the debt off. I have one credit card that I pay off each month and the interest rate is over 26%. This is absolutely ridiculous.

Everyone needs to set a budget and stick with it. Set yourself a "fun fund" which allows you have money and have fun. Also, make sure your debts are paid and put extra. If you pay the minimum you will spend year paying off the credit cards and it is a never ending process.


If folks would get off there rear-ends pick one of the ten.

Budgeting, Planning, Paying off Debt, Pay themselves first etc.

They would find themselves far better off.

I became a millionaire investing 1 Dollar at a Time.

What makes me feel good today is by giving back to society. I am certainly not going to take it with me!
ie Salvation Army, Food Banks, Cancer Society, Plan International etc.

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