четвъртък, 24 ноември 2011 г.

So you want to be a millionaire

Me, too -- in fact, I'm already there, and so are a lot of folks who shun lightning-strike fantasies about wealth. You can do what we did.By Liz Pulliam Weston
The day my husband and I became millionaires was a lot like any other day.
He went off to work, grumbling about the commute. I was fretting about our utility bill and decided to check our personal finance software to see how much more we were paying than the previous year. While I fiddled with the numbers, I told the software to update our account balances. Lo and behold, the net worth column showed seven figures where before there had been six.
There was no popping of champagne corks, no trips to the Continent, no quitting of jobs. The fact that the experience was so mundane speaks volumes, both about how millionaires are really created and what it means to be one.
We didn't, for example:
Win the lottery.
Score a big win in the stock market.
Inherit a huge pile of cash.
Appear on any reality shows.
We do, however:
Make financial security a priority.
Spend less than we earn.
Save and invest regularly.
Pay down our debt.
Own a home.
Maximize our incomes.
If you want to be a millionaire someday, I hope that our experience -- and those of millions of others who have achieved this goal -- might provide some insights and inspiration for getting there.
First, though, let's deal with the obvious: a million ain't what it used to be. But that's nothing new. Except for brief periods of deflation, such as during the Great Depression, the generally rising level of prices has always chewed away at the value of a buck. That means you need $1.85 million today to match the buying power of $1 million in 1986, or $7.44 million for the equivalent of a million in 1956.
Still, reaching the million-dollar mark put us in the top 10% of all U.S. households. (The minimum net worth to join that 90th percentile, according to the Federal Reserve's latest Survey of Consumer Finances was $831,600 in 2004.) In global terms, we're near the very pinnacle of wealth when you consider that billions of people live on just a few dollars a day.

Of course, we live here in the good old U.S.A., where a million-dollar net worth may be "enough," or not. As I wrote in "The myth of the $1 million retirement," some people need a lot less to say goodbye forever to work. Others, with more expensive lifestyles and expectations of living a long time, may need a lot more. Hubby and I have a bunch of long-lived ancestors as well as some costly goals ahead, so we're not going to retire just yet.

I'm confident, though, that the habits and strategies that got us to the million-dollar point will get us the rest of the way, regardless of what happens in the short run to the economy, the markets and real estate.

So here they are:

You've got to want it -- and plan for it

There are few accidental millionaires in the world. People who achieve financial independence, however they define it, make getting there a priority in their lives, according to Thomas J. Stanley and William D. Danko, authors of the groundbreaking book, "The Millionaire Next Door."

That doesn't mean you have to live for money, but you need a clearly defined goal and a plan to achieve it. If your goal is retirement, for instance, you might try MSN's calculator to see what you need to do to get there.

If you haven't got a plan, it's way too easy to lose your way: spending money on stuff that isn't important, taking on debt that's toxic rather than helpful, giving in to despair when markets turn against you. Having a long-term goal, and a long-term view, are essential to keeping your balance.Constant craving

I started planning for retirement in my mid-20s by signing up for my company's 401(k) plan. Every year or so since then, the plan gets reviewed and adapted to suit changing circumstances: marriage, new jobs, new house, new baby.

Knowing where we're headed has made it much easier to make dinner at home when we'd rather eat out, or to opt for a camping weekend with friends rather than a trip to Hawaii.

We still go out and have nice vacations, just not as often as we might if we weren't also focused on our futures.

Live within your means

I bless my Depression-era mother, who grew up poor, knew how to pinch a penny and put a high priority on savings. She understood the importance of "paying yourself first," so from my first job I've been in the habit of saving at least 10%, and often 20%, of my gross pay.

She taught me to use credit cards as a convenience, not an excuse to buy stuff I couldn't afford. She viewed people who carried credit card balances with the same suspicion and displeasure with which she regarded people who didn't keep a tidy house.

Even if you weren't raised by a parent like that, you can still incorporate those two lessons and be miles ahead financially in a few years. The thousands of dollars you'll save on credit-card interest can be redirected toward your investments and speed you to your goal.

We're also big believers in automating financial decisions wherever possible. Money is transferred like clockwork from paychecks to retirement accounts, and from our checking account to our savings plans. If we can't see it, we tend not to spend it, so we don't have to constantly make decisions about where our money should go.

"Unless your plan to pay yourself first is on automatic, you will fail," declared David Bach, author of best-selling finance books, including "The Automatic Millionaire " and "The Automatic Millionaire Homeowner." "Discipline and budgeting is too hard and too time consuming. ... Trust me, if you want to be rich, or simply not poor, save automatically through systematic savings programs."

Invest regularly, and don't stop

I've talked to a bunch of folks who, in the late 1990s, insisted they were risk-tolerant investors with a long-term view but who nonetheless bailed out of their stock holdings during the 2000-2001 bear market. Some of them started to dip their toes in the markets again as stocks strengthened, but I've no doubt they'll be scared off again by the first big downturn.

Weaving in and out of the market like that is a great way to buy high and sell low -- the exact opposite of what successful investors do. These flighty folks would have been much better off just staying the course with a balanced portfolio of stocks and bonds -- which is what we did, and do.

Again, automated investing plans really help. We invest regardless of whether the market is up, down or sideways. We know that, in the long run, a well-diversified portfolio of stocks beats out every other investment, even if there are some bumpy times along the way. Others are convinced as well: in the 10% of households with the highest incomes in 2004, the Fed says, stocks -- and mutual funds that invest in stocks -- comprised 53.6% of all financial assets.

Another key: Don't cash out your 401(k) when you leave a job. About half of all workers do, and that's nuts. It's not just the taxes and penalties that eat up a quarter to a half of your withdrawal. More importantly, every $1,000 cash-out costs you $10,000 or more in future retirement income. So roll the money over into an IRA or your next employer's plan.

Be smart about debt

Net worth equals what you own minus what you owe. So in addition to building up your assets, reducing your debt over time helps build your net worth.

That doesn't mean you should avoid debt entirely. Few of us could swing a home purchase without a mortgage, and many people need student loans to finance their educations or business loans to expand their companies.
http://articles.moneycentral.msn.com/

Anyone Can Become a Millionaire by Following a Few Simple Steps


Becoming a millionaire isn’t all that difficult and there are countless ways to achieve that milestone. Some people do it through real estate, others start their own business, while some simply get lucky by winning the lottery or winning big on a game show. What is even more interesting is that you don’t have to be wealthy to begin with nor do you have to earn six figures to reach this goal.

I know some people who earn well over $100,000 and all they have to show for it is a large mortgage payment and a fancy car that depreciates faster than a glass of milk left outside in the summer sun. Anyone can become a millionaire and there are five things you need to do to have the best shot of making that a reality.
1. Earn Income.

Clearly, the more money you make, the faster you can reach that milestone, but that doesn’t mean your average Joe with a average income can’t obtain millionaire status. The current median income in this country ranges between $35,000-$60,000 depending on where you live. Better yet, get married so you have dual incomes. The wonderful thing about having dual incomes is that even with two people in the household, your income may double, but your expenses typically don’t.

If you don’t earn even an average income, all is not lost. It is up to you to do something about it. A negative attitude about your job or your earning potential won’t change anything. Be proactive and make the decision to improve your situation. It is your life, so take control and realize that things don’t change overnight. It may take a few years of slow growth before you reach the point where you want to be, but you can do it if you try. Remember, short of inheriting money from a relative or winning the lottery, you will need reasonable income to become a millionaire.
2. Live Within Your Means.

Ok, so you have income but now what? It doesn’t matter how much money you make if you spend it all or spend even more than you make. It might be nice to eat out at nice restaurants every night, or to always be on the cutting edge of designer fashion but, this will only make you look like millionaire to others instead of actually being a millionaire. This doesn’t mean you have to live a miserable and miserly lifestyle, but you simply need to live reasonably. The bottom line is buying things and acting like a millionaire if you aren’t will simply empty your bank account and give people a false impression of your status, but that’s it.

Start by purchasing a home that you can comfortably afford and drive vehicles that suit your lifestyle without straining your budget. You don’t have to be pulling down $75,000 a year and drive a 1992 Civic Hatchback or live in a dump, but throwing your money at a 4,000 square foot home in a gated community with luxury cars or SUVs that cost as much as one year of your salary won’t help you become a millionaire. Some may argue that an expensive home and real estate in general is a good way to become a millionaire, but I will touch on that later.
3. Save Money.

This isn’t rocket science but if you earn a reasonable income and you live within your means, guess what, you will probably have money left over to save. But that’s exactly the problem. Most people treat savings as an afterthought, or something that only gets attended to after all the other bills are paid. People pay bills, buy things, and then whatever is leftover they try to save. That is the wrong way to save. I’m sure you’ve heard it before, but pay yourself first. Whether it is $100 a month or $1,000 a month, think of the savings as a bill that needs to be paid and do it regularly. If you are unable to save money you will find that your only wealth is in the form of material things. So, you need to start saving every month and you need to make it happen automatically. An online savings account can accomplish this for you, and on top of that you’ll be earning better interest on that money than you would be at your local bank. In fact, I keep my savings at Ally Bank as they have a great interface and a pretty good interest rate.
4. Invest Wisely.

Now that you are saving money, you need to invest it wisely. Sticking it under the mattress or slowly building up in a savings account isn’t going to help you reach your goals any faster. You don’t have to read the Wall Street Journal or watch CNBC everyday while actively managing your portfolio in order to be a good investor. Some of the best investment advice is to simply invest regularly and in a diversified portfolio. If you do this you’ll already be doing more than most people and on your way to building wealth.

It is also important to remember that real estate is part of your investment picture, but it shouldn’t be all of it. Too many people stake almost everything they have into a primary residence and expect it to appreciate in value. Just like any investment, generally speaking, over time you will make money. There isn’t much debate about that, but relying heavily on real estate is no different than if you rely on one stock to fund your retirement. So, begin with opening up an investing account and put your money to work. It doesn’t matter if you are investing in stocks, bonds, or index funds, but keeping costs down helps you keep more of your own money. One of the best and cheapest places to start investing is at Zecco. I’ve also had quite a bit of success with TradeKing.

You can become a millionaire by simply buying a single stock and holding onto it for 20 years if it goes up significantly just like you can buy a $500,000 home and have it double in value in 20 years, but that’s a pretty risky proposition. Take a lot of the risk out of the picture by making sure all of your eggs aren’t in the same basket and develop an investment strategy that will provide steady growth over the years..
5. Stick With Your Plan.

Finally, if you have done the previous four items the only thing left to do is to continue doing it and stick to the plan. As far as income is concerned, always be on the lookout for ways to increase your income, whether it is through climbing the ladder at your current job, finding work elsewhere, or maybe even starting a business on the side. Increased income will mean you can save even more, provided you aren’t foolishly spending the additional money. As that additional money gets tucked away into savings or investments it will continue to grow even more quickly.
It Isn’t Hard to Do if You Work at It

Unfortunately, most people are looking for a way to get rich quick or to capitalize on the next big thing. It is true that some people have made their wealth through playing the real estate market, while others have done so by investing in a few stocks that exploded, but this is the exception and not the norm. If the above list seems overly simplistic, that’s good. There are no secrets to becoming a millionaire and almost anyone has the chance to make it happen. The process is simple:

1. Make money
2. Don’t spend all of your money
3.  Save some money
4. Invest that money
5. Repeat

Certainly, there are many factors in play that can make this easier or more difficult for different people. This is simply the process that you can use in order to reach that goal, whether it is in 5 years or 50, if you follow a few basic steps you can do it.

http://genxfinance.com

Chart of the Day: 9% of Americans Are Millionaires in 2011

How many millionaires do you know? The answer to this probably depends on your occupation, location, and whether or not you have your own reality show. But as explained in an earlier post, there are quite a few millionaires in the U.S. -- there will be 10.5 million in 2011 according to the Deloitte Center for Financial Services. That might not sound like too many, but this number is expressed in households, not individuals. And there are only about 118 million households in the U.S. So really, a fairly large -- if not surprisingly large -- portion of U.S. households belong to the millionaire club.You can see that millionaires were particularly plentiful when the housing bubble was fully inflated. A lot of wealth was lost when the real estate and the stock markets both crashed. The economy's 2008 collapse cut the percentage of millionaires in the U.S. by more than 3%. But the millionaires are rising again. Since that plummet, the percentage has risen about by 1.2%.

When you think about it, 9% is a pretty large portion of the U.S. to be millionaires. That means nearly 1 in every 10 Americans is a millionaire. So on average, if you drive by 10 cars on the road, one of them is probably a millionaire. Now you know why you see so many Range Rovers, Bentleys, and Ferraris.

But of course, reality is a little more complicated than this approximation. Millionaires are often clumped in certain locations, like major cities in New York, California, Florida, D.C., Massachusetts, Connecticut, and New Jersey. In fact, the Deloitte report predicts that New Jersey will have the highest density of millionaires of any state in the nation by 2020 -- nearly one in every four households. So don't expect reality shows to shun the state anytime soon!

http://www.theatlantic.com/business/archive/2011/05/chart-of-the-day-9-of-americans-are-millionaires-in-2011/238458/

Sex is like....

Sex is like Smirnoff - Enjoy Responsibly

Sex is like Becks-key - is In you

Sex is like Nokia- connecting people

Sex is like Perelik- Only nice people

Sex is like Sprite- things as they are

Sex is like Counter Strike-Play it, and you will love it

Sex is like Macedonian sausage Light - die for him

Sex is like family programs GloBul - Perfect for our four

Sexy trees or your imagination ....












What is statistics?

The authors present a meta-analysis of sex differences in smiling based on 448 effect sizes derived from 162 research reports. There was a statistically significant tendency for women and adolescent girls to smile more than men and adolescent boys (d=0.41). The authors hypothesized that sex differences in smiling would be larger when concerns about gender-appropriate behavior were made more conspicuous, situational constraints were absent or ambiguous, or emotion (especially negative) was salient. It was also predicted that the size of the sex difference in smiling would vary by culture and age. Moderator analysis supported these predictions. Although men tend to smile less than women, the degree to which this is so is contingent on rules and roles. (PsycINFO Database Record (c) 2010 APA, all rights reserved).
http://psycnet.apa.org/index.cfm?fa=buy.optionToBuy&id=2003-01977-007