Saturday, January 3, 2009

The Pièce de Résistance

The final blog I'm posting is one that I have emailed to people, read multiple times, and quoted often. Apparently Frugal Dad received a lot of criticism about this, but he probably stirred up some powerful negative emotions from people who identified themselves in the article. I myself have said some of the things in it such as, "I work hard so I deserve it." As a result of this article, I have tried to stop using the word "deserve" in my active vocabulary and replaced it with other buzzwords like "want" or "need" instead. If one continually thinks they "deserve" a reward or treat at the end of the day, end of a project, or end of a work shift, then over time, it is not a reward or treat, it is a normal part of the day. This way of thinking leads to a slippery slope of overspending and that is why it is so dangerous.

And the #1 blog of the year is Language of the Perpetual Poor by Frugal Dad.

Almost there

This next post is one that is often written and talked about, but I think that the advice is worth repeating. It is from Trent at The Simple Dollar once again, my favorite daily read. Credit card debt is a huge problem in the land of instant gratification and buy now, pay later, aka the USA. Fact of the matter is, if one has credit cards that are not paid in full every billing cycle, one is living beyond his or her means. Abusing credit is similar to drug use such as alcohol since some people can use in moderation and others spiral out of control. I have witnessed several of my peers getting in over their heads and having to claim bankruptcy or get tiresome second jobs. It does not help that creditors have tactics to keep one using credit such as limit increases and the ability to write checks. Eliminating credit card debt can relieve stress, create more financial freedom, and improve one's credit score. Good credit is essential for obtaining financing on a vehicle or house with the lowest interest rates. If you have any amount of credit card debt, this article may be of use to you. It is great, simple advice.

Got Credit Card Debt? Ten Tactics to Use Right Now to Get it Under Control

Friday, January 2, 2009

Another excellent article

The Extraordinary Power of Compound Interest
from Get Rich Slowly

I wrote a short blurb about compound interest a few months ago, but this article does a much better job explaining just exactly how much compound interest pays off over time with some great, concrete examples. I firmly believe that one does not need a high income or high return on investments to build wealth.

"The rich are not rich because they earn a lot of money; the rich are rich because they save a lot of money."