Saving money isn't all about whether or not you know how to score screaming bargains.
It has more to do with your attitude toward money.Just think of those who don't fit the filthy-rich stereotype. People like Warren Buffett.
As explained in the book The Millionaire Next Door by Thomas J. Stanley and William D. Danko, personal finance has as much to do with people's traits as it does with money. Many millionaires, in fact, have frugal ways.
Understanding how personal traits can influence your finances is an essential ingredient for building wealth.
Here are 10 key traits:
1. Patience:
Patience is one of the most important traits when it comes to saving money.This means waiting until the first wave of product hype has passed, keeping a car for an extra few years before getting another one and waiting until something you want fits into your budget instead of putting it on credit.Patience is often the difference between creating savings and being in debt. Having the patience to wait until you find a good deal is a cornerstone of good finances.
2. Satisfaction:
When you're satisfied, there is no reason to spend money on nonessentials. The sole purpose of commercials is to make you believe that buying a product or service will make you happier, wealthier, better looking or improve whatever isn't bringing you satisfaction.People spend because they want to capture the excitement shown in advertisements. When you are satisfied with what you have and your life (not trying to live like those on TV), your finances will be in a lot better shape.
3. Organization:
Being organized can make you more productive and ensure that all the many issues pertaining to personal finances are addressed.It means not paying late fees, not buying two of everything, knowing deadlines that can affect your finances and getting more done in less time. All these can greatly benefit your finances.
4. Discipline:
You need the discipline to continue to save money for specific, long-term goals every month.Personal finance isn't a way to get rich quick, but is a disciplined execution of your lifetime plans.
5. Reflectiveness:
It's important to be able to look at your financial decisions and reflect on their results.You're going to make financial mistakes. Everyone does.The key is to learn from those mistakes so you don't make them again, or recognize if you keep repeating them.
6. Creativity:
The economy and our earnings don't always match our expectations.Unexpected developments wreak havoc to elaborate financial plans. When this happens, changes are needed to deal with the new circumstances. Creativity is essential to accomplish this.Creativity allows you to make something last longer rather than purchasing it when you don't have the money. It means juggling money to stay out of debt rather than simply paying with a credit card. It means finding a cheaper alternative when money is tight.In these ways, creativity plays a large role in keeping finances in order.
7. Curiosity:
Having curiosity helps you learn, study and improve yourself.The curiosity of wanting to know more, to take the time to study and then take what is learned and put into practice is an important process that is driven by curiosity.
8. Risk-Taking:
To build wealth, one needs to be willing to take risks. This doesn't mean uncalculated risks. It means weighing all the options and taking calculated risks when appropriate.The stock market has risks involved, but over the long term, history shows that it provides good returns on money that is invested wisely. Those who fear risk altogether end up saving money in accounts that likely lose money to inflation in the long run.
9. Goal-Oriented:
The importance of setting and working toward goals is obvious. If you don't know where you are going, it's difficult to get there. It helps your personal finances immensely if you have money goals and are motivated to reach the goals that you have set for yourself.Those who lack goals don't have a road map to take them to the financial destination they want.
10. Hard- and Smart-Working:
Creating wealth and staying out of debt rarely comes about without a lot of hard work.Many people might hope that the lottery will solve all their financial problems. The true path to financial freedom, however, is to work hard to earn money while educating yourself to continue to have more value and increase your salary.You may not possess all of the above traits. But knowing them can help you make changes so that you nourish the ones that you have and obtain the ones you're missing.Ultimately they will help you with your personal finances and create a plan to accumulate the wealth you desire.
Copyrighted, TheStreet.Com. All rights reserved.
Thursday, February 14, 2008
Wednesday, February 13, 2008
Answered Prayers
A voyaging ship was wrecked during a storm at sea and only two of the men on it were able to swim to a small, desert like island. The two survivors, not knowing what else to do, agreed that they had no other recourse but to pray to God. However, to find out whose prayer was more powerful, they agreed to divide the territory between them and stay on opposite sides of the island. The first thing they prayed for was food.
The next morning, the first man saw a fruit-bearing tree on his side of the land, and he was able to eat its fruit. The other man's parcel of land remained barren. After a week, the first man was lonely and he decided to pray for a wife. The next day, another ship was wrecked, and the only survivor was a woman who swam to his side of the land. On the other side of the island, there was nothing. Soon the first man prayed for a house, clothes, more food.
The next day, like magic, all of these were given to him. However, the second man still had nothing.
Finally, the first man prayed for a ship, so that he and his wife would leave the island. In the morning, he found a ship docked at his side of the island. The first man boarded the ship with his wife and decided to leave the second man on the island.
He considered the other man unworthy to receive God's blessings, since none of his prayers had been answered.
As the ship was about to leave, the first man heard a voice from heaven booming, "Why are you leaving your companion on the island?"
"My blessings are mine alone, since I was the one who prayed for them," the first man answered. "His prayers were all unanswered and so he does not deserve anything." "You are mistaken!" the voice rebuked him.
"He had only one prayer, which I answered. If not for that, you would not have received any of my blessings."
"Tell me," the first man asked the voice, "What did he pray for that I should owe him anything?" "He prayed that all your prayers be answered."
For all we know, our blessings are not the fruits of our prayers alone, but those of another praying for us.
The next morning, the first man saw a fruit-bearing tree on his side of the land, and he was able to eat its fruit. The other man's parcel of land remained barren. After a week, the first man was lonely and he decided to pray for a wife. The next day, another ship was wrecked, and the only survivor was a woman who swam to his side of the land. On the other side of the island, there was nothing. Soon the first man prayed for a house, clothes, more food.
The next day, like magic, all of these were given to him. However, the second man still had nothing.
Finally, the first man prayed for a ship, so that he and his wife would leave the island. In the morning, he found a ship docked at his side of the island. The first man boarded the ship with his wife and decided to leave the second man on the island.
He considered the other man unworthy to receive God's blessings, since none of his prayers had been answered.
As the ship was about to leave, the first man heard a voice from heaven booming, "Why are you leaving your companion on the island?"
"My blessings are mine alone, since I was the one who prayed for them," the first man answered. "His prayers were all unanswered and so he does not deserve anything." "You are mistaken!" the voice rebuked him.
"He had only one prayer, which I answered. If not for that, you would not have received any of my blessings."
"Tell me," the first man asked the voice, "What did he pray for that I should owe him anything?" "He prayed that all your prayers be answered."
For all we know, our blessings are not the fruits of our prayers alone, but those of another praying for us.
Friday, February 8, 2008
Stopped By A Brick
About ten years ago, a young and very successful executive named Josh was traveling down a Chicago neighborhood street. He was going a bit too fast in his sleek, black, 12-cylinder Jaguar XKE, which was only two months old.
He was watching for kids darting out from between parked cars and slowed down when he thought he saw something. As his car passed, no child darted out, but a brick sailed out and -- WHUMP! -- it smashed into the Jag's shiny black side door! SCREECH...!!!! Brakes slammed! Gears ground into reverse, and tires madly spun the Jaguar back to the spot from where the brick had been thrown.
Josh jumped out of the car, grabbed the kid and pushed him up against a parked car. He shouted at the kid, "What was that all about and who are you? Just what the heck are you doing?!" Building up a head of steam, he went on. "That's my new Jag, that brick you threw is gonna cost you a lot of money.
Why did you throw it?" "Please, mister, please...I'm sorry! I didn't know what else to do!" pleaded the youngster. "I threw the brick because no one else would stop!" Tears were dripping down the boy's chin as he pointed around the parked car. "It's my brother, Mister," he said.
"He rolled off the curb and fell out of his wheelchair and I can't lift him up." Sobbing, the boy asked the executive, "Would you please help me get him back into his wheelchair? He's hurt and he's too heavy for me." Moved beyond words, the young executive tried desperately to swallow the rapidly swelling lump in his throat.
Straining, he lifted the young man back into the wheelchair and took out his handkerchief and wiped the scrapes and cuts, checking to see that everything was going to be OK. He then watched the younger brother push him down the sidewalk toward their home.
It was a long walk back to the sleek, black, shining, 12-cylinder Jaguar XKE - a long and slow walk. Josh never did fix the side door of his Jaguar.
He kept the dent to remind him not to go through life so fast that someone has to throw a brick at him to get his attention. ---- What a great story!
At times in our lives, we tend to become so wrapped up in other things. We become focused on ourselves or our job we do not realize there are others around us that need our help.
We can react in a negative way to a situation without fully realizing or taking the time to look at the other persons situation, or to take the time to find out the reason the other person has taken the action that they did.
Have a great weekend
He was watching for kids darting out from between parked cars and slowed down when he thought he saw something. As his car passed, no child darted out, but a brick sailed out and -- WHUMP! -- it smashed into the Jag's shiny black side door! SCREECH...!!!! Brakes slammed! Gears ground into reverse, and tires madly spun the Jaguar back to the spot from where the brick had been thrown.
Josh jumped out of the car, grabbed the kid and pushed him up against a parked car. He shouted at the kid, "What was that all about and who are you? Just what the heck are you doing?!" Building up a head of steam, he went on. "That's my new Jag, that brick you threw is gonna cost you a lot of money.
Why did you throw it?" "Please, mister, please...I'm sorry! I didn't know what else to do!" pleaded the youngster. "I threw the brick because no one else would stop!" Tears were dripping down the boy's chin as he pointed around the parked car. "It's my brother, Mister," he said.
"He rolled off the curb and fell out of his wheelchair and I can't lift him up." Sobbing, the boy asked the executive, "Would you please help me get him back into his wheelchair? He's hurt and he's too heavy for me." Moved beyond words, the young executive tried desperately to swallow the rapidly swelling lump in his throat.
Straining, he lifted the young man back into the wheelchair and took out his handkerchief and wiped the scrapes and cuts, checking to see that everything was going to be OK. He then watched the younger brother push him down the sidewalk toward their home.
It was a long walk back to the sleek, black, shining, 12-cylinder Jaguar XKE - a long and slow walk. Josh never did fix the side door of his Jaguar.
He kept the dent to remind him not to go through life so fast that someone has to throw a brick at him to get his attention. ---- What a great story!
At times in our lives, we tend to become so wrapped up in other things. We become focused on ourselves or our job we do not realize there are others around us that need our help.
We can react in a negative way to a situation without fully realizing or taking the time to look at the other persons situation, or to take the time to find out the reason the other person has taken the action that they did.
Have a great weekend
Tuesday, February 5, 2008
I have Learned
I've learned that no matter what happens, or how bad it seems today, life does go on, and it may be better tomorrow.
I've learned that you can tell a lot about a person by the way he/she handles a rainy day and lost luggage.
I've learned that regardless of your relationship with your parents, you'll miss them when they're gone from your life.
I've learned that making a "living" is not the same thing as making a "life."
I've learned that life sometimes gives you a second chance.
I've learned that you shouldn't go through life with a catcher's mitt on both hands. You need to be able to throw something back.
I've learned that whenever I decide something with an open heart, I usually make the right decision.
I've learned that even when I have pains, I don't have to be one.
I've learned that every day you should reach out and touch someone. People love that human touch - holding hands, a warm hug, or just a friendly pat on the back.
I've learned that I still have a lot to learn.
I've learned that you can tell a lot about a person by the way he/she handles a rainy day and lost luggage.
I've learned that regardless of your relationship with your parents, you'll miss them when they're gone from your life.
I've learned that making a "living" is not the same thing as making a "life."
I've learned that life sometimes gives you a second chance.
I've learned that you shouldn't go through life with a catcher's mitt on both hands. You need to be able to throw something back.
I've learned that whenever I decide something with an open heart, I usually make the right decision.
I've learned that even when I have pains, I don't have to be one.
I've learned that every day you should reach out and touch someone. People love that human touch - holding hands, a warm hug, or just a friendly pat on the back.
I've learned that I still have a lot to learn.
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