Thursday, February 18, 2010
Sunday, January 3, 2010
How To Be a Millionaire On Minimum Wage
By: Zigfred Diaz
“Robert Reich, once observed ‘most minimum wage workers aren’t poor.’ He is right.” - Johny Isakson, U.S Senator (Robert Reich is former U.S department of Labor Secretary)
Minimum wage earners keep complaining about their salary. They say they cannot retire rich. Most of them just go through their work and retire relying only on their small SSS pension and the little retirement that their company will be giving them.
For most minimum wage earners, becoming a millionaire when they retire is quite an impossible dream. They contend that they can only be a millionaire if they receive a hefty sum of retirement money from their company.
Is it really possible to achieve millionaire status by your own efforts alone ? (Humanly speaking) Let us consider this actually scenario.
In the Philippines, Central Visayas Region, the current minimum wage is P 241.00. Multiply it by 26 days of work you get P 6,266.00.
Let’s just say that you are 30 years old and you faithfully saved that P 266.00 per month and spent the rest of the P 6,000.00, that would amount to P 3,192.00 per year
Do the math. If you put that P 3,192.00 in an investment vehicle that would give you 10 % interest per month in interest (compounded), do you know how much your money would become in 30 years, that would be P 1,052,001.00. If you started this kind of savings program when you were 30 years old you will retire a millionaire at 60 years old by your own savings program alone, add to that the retirement benefits from your company, your monthly pension from the SSS and your PAGIBIG “savings.”
What if you decided to add another P 500.00 in your monthly investment and invest P 766.00 instead? This would amount to P 9,192.00 per year and at the end of 30 years it would amount to a whopping amount of P 3,029,447.00 (At 10 % interest per year compounded)
Perhaps later on you would increase your savings to P 1,766.00 a month if you receive a salary increase. If you do that even on the 10th year after you start saving only P 266.00 a month, you will retire with P 4,472,777.00.
The growth of your money is possible because of what we know in the world of finance as the Rule of 72.
Albert Einstein’s greatest discovery was not the theory of relativity, it was the Rule of 72. (Although some people say that the rule existed long before he was born, most would agree however that he has popularized it)
What has the Rule of 72 have to do with investing and growing your money ?
Basically knowledge of the Rule of 72 is the basic building block of learning that each budding investor should have.
Simply stated the Rule of 72 helps you determine the following:
1.) What interest rate you should avail of in order for your money to double quickly.
2.) How many years does it take for your money to double.
In a nutshell the Rule of 72 is stated as follows:
72 divided by interest rate return = No. of years it takes for your money to double.
So, if you put P 100,000.00 in a bank account, it will take 72 years for your money to become P 200,000.00 since the bank only offers a 1 % percent interest rate. (72 divided 1 = 72)
Let’s say you get a little wise and you put your P 100,000.00 in a time deposit account it will take 18 years in order for your money to become P 200,000.00 (72 divided by 4 = 18)
Basically the higher the interest rate the less number of years your money will it take for your money to double.
So if you put your P 100,000.00 in an instrument that would give you a 12 % interest rate it will only take 6 years for your money to double (72 divided by 12 = 6)
However take note that the Rule of 72 is more accurate with lower interest, the higher the interest rate rises the more inaccurate it becomes. (An example of this is that if you earn have P 100.00 an invest it in an instrument at 72 % interest rate per year according to the Rule of 72 your money will become P 200.00 in 1 year. However this is not entirely accurate since you will need a 100 % interest rate in order for it to become P 200.00 in 1 year time)
Interested in how many years would it take for your money to TRIPLE and what should be the interest rate that you should avail of? then you should use the Rule of 115. It works basically the same way as the Rule of 72, just substitute 72 with 115.
Earning the minimum wage ? No problem with the Rule of 72, You could be a millionaire !
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Author Bio
Zigfred Diaz is a Registered financial & Real estate broker. He is also a practicing lawyer & a law professor. Recently he has involved himself with internet marketing. If you would like to know more about investments, how to handle your money, take charge of your financial future and earn extra income visit his blog at www.moneysmartpinoy.blogspot.com
Article Source: http://www.ArticleGeek.com - Free Website Content
“Robert Reich, once observed ‘most minimum wage workers aren’t poor.’ He is right.” - Johny Isakson, U.S Senator (Robert Reich is former U.S department of Labor Secretary)
Minimum wage earners keep complaining about their salary. They say they cannot retire rich. Most of them just go through their work and retire relying only on their small SSS pension and the little retirement that their company will be giving them.
For most minimum wage earners, becoming a millionaire when they retire is quite an impossible dream. They contend that they can only be a millionaire if they receive a hefty sum of retirement money from their company.
Is it really possible to achieve millionaire status by your own efforts alone ? (Humanly speaking) Let us consider this actually scenario.
In the Philippines, Central Visayas Region, the current minimum wage is P 241.00. Multiply it by 26 days of work you get P 6,266.00.
Let’s just say that you are 30 years old and you faithfully saved that P 266.00 per month and spent the rest of the P 6,000.00, that would amount to P 3,192.00 per year
Do the math. If you put that P 3,192.00 in an investment vehicle that would give you 10 % interest per month in interest (compounded), do you know how much your money would become in 30 years, that would be P 1,052,001.00. If you started this kind of savings program when you were 30 years old you will retire a millionaire at 60 years old by your own savings program alone, add to that the retirement benefits from your company, your monthly pension from the SSS and your PAGIBIG “savings.”
What if you decided to add another P 500.00 in your monthly investment and invest P 766.00 instead? This would amount to P 9,192.00 per year and at the end of 30 years it would amount to a whopping amount of P 3,029,447.00 (At 10 % interest per year compounded)
Perhaps later on you would increase your savings to P 1,766.00 a month if you receive a salary increase. If you do that even on the 10th year after you start saving only P 266.00 a month, you will retire with P 4,472,777.00.
The growth of your money is possible because of what we know in the world of finance as the Rule of 72.
Albert Einstein’s greatest discovery was not the theory of relativity, it was the Rule of 72. (Although some people say that the rule existed long before he was born, most would agree however that he has popularized it)
What has the Rule of 72 have to do with investing and growing your money ?
Basically knowledge of the Rule of 72 is the basic building block of learning that each budding investor should have.
Simply stated the Rule of 72 helps you determine the following:
1.) What interest rate you should avail of in order for your money to double quickly.
2.) How many years does it take for your money to double.
In a nutshell the Rule of 72 is stated as follows:
72 divided by interest rate return = No. of years it takes for your money to double.
So, if you put P 100,000.00 in a bank account, it will take 72 years for your money to become P 200,000.00 since the bank only offers a 1 % percent interest rate. (72 divided 1 = 72)
Let’s say you get a little wise and you put your P 100,000.00 in a time deposit account it will take 18 years in order for your money to become P 200,000.00 (72 divided by 4 = 18)
Basically the higher the interest rate the less number of years your money will it take for your money to double.
So if you put your P 100,000.00 in an instrument that would give you a 12 % interest rate it will only take 6 years for your money to double (72 divided by 12 = 6)
However take note that the Rule of 72 is more accurate with lower interest, the higher the interest rate rises the more inaccurate it becomes. (An example of this is that if you earn have P 100.00 an invest it in an instrument at 72 % interest rate per year according to the Rule of 72 your money will become P 200.00 in 1 year. However this is not entirely accurate since you will need a 100 % interest rate in order for it to become P 200.00 in 1 year time)
Interested in how many years would it take for your money to TRIPLE and what should be the interest rate that you should avail of? then you should use the Rule of 115. It works basically the same way as the Rule of 72, just substitute 72 with 115.
Earning the minimum wage ? No problem with the Rule of 72, You could be a millionaire !
Send this page to:
Author Bio
Zigfred Diaz is a Registered financial & Real estate broker. He is also a practicing lawyer & a law professor. Recently he has involved himself with internet marketing. If you would like to know more about investments, how to handle your money, take charge of your financial future and earn extra income visit his blog at www.moneysmartpinoy.blogspot.com
Article Source: http://www.ArticleGeek.com - Free Website Content
Wednesday, December 2, 2009
Would You Like To Timeshare?
By: J Shipper
Timeshares are a large part of the vacation travel industry. Travelers who cannot afford to own a home abroad, or who don't want the worries associated with exclusive ownership, often see timeshares as an affordable alternative.
However, unscrupulous salespeople, poorly maintained properties and unexpected hidden costs have brought a lot of bad publicity to the industry. A well-informed consumer can avoid the common pitfalls.
It is always risky to buy property sight unseen, but many people do this when they purchase timeshares. If you purchase in an area where you wish to vacation, you may be unpleasantly surprised when you arrive at your destination.
However, many timeshares are purchased with the intent of trading them for others in different locations, and in this case the location of the property is a bargaining chip, not the actual physical property. Timeshares in prime locations such as Hawaii are easier to trade than others.
Recently, big corporations such as Disney, Hilton, Marriott and Hyatt have entered the timeshare market, and their properties are of a uniform standard around the world. First, you should know that if you buy a new unit directly from a timeshare company, it may cost up to 60% more than if you purchased from the resale market.
Buying from a time-share company is more expensive primarily because of the company's marketing costs, which include free trips, meals and vacation activities for prospective buyers. Most customers of these timeshare companies buy on impulse, without any intent to purchase when they first walked into the timeshare seminar. Hard-sell tactics and "Buy-it-NOW-one-time-only-offers!!!" are the rule, and to avoid being pressured into a bad deal, the best tactic is to avoid these sales presentations altogether.
Try the resale market for better deals. Time-share resales are listed on many websites, on eBay and with independent time-share brokers. The search term "timeshare resale" produced approximately 500,000 results on Google, so there are plenty of services to choose from. If you buy directly from an individual, a resale broker or a lawyer can handle the closing for a charge of $300 to $500.
If you are buying a timeshare for the resale value, consider regular real estate instead. Timeshares do not increase in value in tandem with conventional real estate. From a strictly financial point of view, time shares are poor investments.
Most real estate increases in value, but this is not always the case with time-shares, especially those bought directly from timeshare companies. If you get a good deal on a resale timeshare in a prime location, it may increase somewhat in value. But usually time-shares are like cars -- they are commodities to be used, and are resold for less than the original purchase price. Don't think of timeshares as real estate; you are buying a vacation plan.
Also, unless you buy in a prime location, swapping them may not be easy. Timeshares are frequently sold on the claim that the buyer can trade a week in one place for a week at another location. This is only true if the location is in demand by other vacationers. Otherwise, expect to vacation in the original location each year.
To find out whether or not you will be happy with a timeshare, it may be a good idea to rent one for your next vacation. Many timeshare units are placed on the rental market by owners who couldn't get away to vacation at their alloted time, and these units often rent at bargain prices. Check the same websites that offer timeshare resales for available rentals.
There is a new "points" system being offered by some timeshare properties. Instead of getting a week each year, buyers purchase a set number of "points." These can be redeemed for a week's stay during the peak season, for longer periods during the off-season, or even spread over the year in two or three day segments.
Some large hotel companies such as the Marriott also offer a points systems whereby a stay at their hotel earn points in the company's time-share system. Points systems can be confusing, so be sure you have a clear understanding of the services you are buying. For instance, find out how much advance time is required to reserve a week at the resort during peak season, whether the points have an expiration date, and if it is possible to transfer the points to other facilities in the same resort chain. However, when it comes to vacation planning, the points system offers more flexibility because the buyer is not locked into the same week every year.
Most important, don't forget the annual maintenance fee. Time-share owners are responsible for paying a portion of the property's upkeep. These annual fees, including maintenance and real estate taxes, typically range from $300 to $700 per week of ownership.
In summary, timeshares can be a good buy if they offer some flexibility in terms of transferring to other locations and timing your vacation. The typical timeshare is a small condo with kitchen facilities and one or two bedrooms, ideal for a family vacation, and since such units rent for $150-200 per night, a timeshare purchase may be a cheaper way to travel. However, if you are a mobile traveller who likes to stay in a different town every night, a single person who doesn't need the extra space, or if you travel at unpredicatable times, then a time share may not be suitable.
Author Bio
J Shipper www.timeshares-now.info www.condo-cruise-ship.com and www.2qz.com/condo-cruise-ship
I'm assuming that you have encountered some form of procrastination in your life. For those of you who don't struggle with procrastination. Congratulations! I find procrastination especially frustrating to handle, when it disguises itself as irritability, confusion and anger, pointing my heart and mind away from where the real causes lie.
Procrastination is a temporary solution to cover or push away intense feelings during the creative process. Some creatives feel anxiety before starting a project. Others feel depressed in the middle of creating a project. Still others struggle being unable to finish a project, especially one that comes closest to the realization of part of their artistic vision. They don't want to face the unknowns of exploring a new project.
Procrastination is a form of self-sabotage. I call it a short-term last resort. If you let procrastination go, it can take over your life. In the following exercises, I can increase your awareness of how procrastination may be interfering with your work. Remember to choose to work one exercise at time. Take your time when you write. Be patient as you start to react to these two exercises. Let your mind and heart gently guide you toward deeper awareness and desire to change.
TO-DO LISTS:
Lists are easy to write in your journal. If you can write a laundry list, then you can write a journal list. Feel free to choose organization tools that work best for you. My preference is to use a combination of my calendar, some goal files (pc), index cards and my memory. When I'm creating lists, I like having access to both flexible tools(cards and memory) and a workable structure ( past lists and some goal files). Remember to write a clear, easy to read, and detailed to-do list.
CHOOSE ONE AREA: Choose one urgent "procrastination" area.
To help your focus answer the following questions about your situation:
Purpose: Increasing your awareness of your resistance:
What part of this activity, that I don't want to do? (answer in specifics)
What am I feeling about working on this activity? (There may be more than one feeling)
What would I rather be doing?
What is so attractive about resisting this activity?
Purpose: Increasing your awareness of your motivation:
What part of doing this creative project do you like?
What are your feeling about this creative project? (any feelings)
Summarize your resistance statements and your motivated statements
Look for any similarities and differences (use this information to answer the next question)
Look for ways to increase your motivational actions and decrease your procrastination actions.
Congratulations! You've chosen your new goal.
Start working on it now!!
No more procrastination!
Author Bio
Lael Johnson, owner of Writer's Eye Advisory Service, offers creativity coaching services and additional writing resources. For more information visit: www.writerseye.com
Article Source: http://www.ArticleGeek.com
Timeshares are a large part of the vacation travel industry. Travelers who cannot afford to own a home abroad, or who don't want the worries associated with exclusive ownership, often see timeshares as an affordable alternative.
However, unscrupulous salespeople, poorly maintained properties and unexpected hidden costs have brought a lot of bad publicity to the industry. A well-informed consumer can avoid the common pitfalls.
It is always risky to buy property sight unseen, but many people do this when they purchase timeshares. If you purchase in an area where you wish to vacation, you may be unpleasantly surprised when you arrive at your destination.
However, many timeshares are purchased with the intent of trading them for others in different locations, and in this case the location of the property is a bargaining chip, not the actual physical property. Timeshares in prime locations such as Hawaii are easier to trade than others.
Recently, big corporations such as Disney, Hilton, Marriott and Hyatt have entered the timeshare market, and their properties are of a uniform standard around the world. First, you should know that if you buy a new unit directly from a timeshare company, it may cost up to 60% more than if you purchased from the resale market.
Buying from a time-share company is more expensive primarily because of the company's marketing costs, which include free trips, meals and vacation activities for prospective buyers. Most customers of these timeshare companies buy on impulse, without any intent to purchase when they first walked into the timeshare seminar. Hard-sell tactics and "Buy-it-NOW-one-time-only-offers!!!" are the rule, and to avoid being pressured into a bad deal, the best tactic is to avoid these sales presentations altogether.
Try the resale market for better deals. Time-share resales are listed on many websites, on eBay and with independent time-share brokers. The search term "timeshare resale" produced approximately 500,000 results on Google, so there are plenty of services to choose from. If you buy directly from an individual, a resale broker or a lawyer can handle the closing for a charge of $300 to $500.
If you are buying a timeshare for the resale value, consider regular real estate instead. Timeshares do not increase in value in tandem with conventional real estate. From a strictly financial point of view, time shares are poor investments.
Most real estate increases in value, but this is not always the case with time-shares, especially those bought directly from timeshare companies. If you get a good deal on a resale timeshare in a prime location, it may increase somewhat in value. But usually time-shares are like cars -- they are commodities to be used, and are resold for less than the original purchase price. Don't think of timeshares as real estate; you are buying a vacation plan.
Also, unless you buy in a prime location, swapping them may not be easy. Timeshares are frequently sold on the claim that the buyer can trade a week in one place for a week at another location. This is only true if the location is in demand by other vacationers. Otherwise, expect to vacation in the original location each year.
To find out whether or not you will be happy with a timeshare, it may be a good idea to rent one for your next vacation. Many timeshare units are placed on the rental market by owners who couldn't get away to vacation at their alloted time, and these units often rent at bargain prices. Check the same websites that offer timeshare resales for available rentals.
There is a new "points" system being offered by some timeshare properties. Instead of getting a week each year, buyers purchase a set number of "points." These can be redeemed for a week's stay during the peak season, for longer periods during the off-season, or even spread over the year in two or three day segments.
Some large hotel companies such as the Marriott also offer a points systems whereby a stay at their hotel earn points in the company's time-share system. Points systems can be confusing, so be sure you have a clear understanding of the services you are buying. For instance, find out how much advance time is required to reserve a week at the resort during peak season, whether the points have an expiration date, and if it is possible to transfer the points to other facilities in the same resort chain. However, when it comes to vacation planning, the points system offers more flexibility because the buyer is not locked into the same week every year.
Most important, don't forget the annual maintenance fee. Time-share owners are responsible for paying a portion of the property's upkeep. These annual fees, including maintenance and real estate taxes, typically range from $300 to $700 per week of ownership.
In summary, timeshares can be a good buy if they offer some flexibility in terms of transferring to other locations and timing your vacation. The typical timeshare is a small condo with kitchen facilities and one or two bedrooms, ideal for a family vacation, and since such units rent for $150-200 per night, a timeshare purchase may be a cheaper way to travel. However, if you are a mobile traveller who likes to stay in a different town every night, a single person who doesn't need the extra space, or if you travel at unpredicatable times, then a time share may not be suitable.
Author Bio
J Shipper www.timeshares-now.info www.condo-cruise-ship.com and www.2qz.com/condo-cruise-ship
Procrastination Solutions
By: Lael JohnsonI'm assuming that you have encountered some form of procrastination in your life. For those of you who don't struggle with procrastination. Congratulations! I find procrastination especially frustrating to handle, when it disguises itself as irritability, confusion and anger, pointing my heart and mind away from where the real causes lie.
Procrastination is a temporary solution to cover or push away intense feelings during the creative process. Some creatives feel anxiety before starting a project. Others feel depressed in the middle of creating a project. Still others struggle being unable to finish a project, especially one that comes closest to the realization of part of their artistic vision. They don't want to face the unknowns of exploring a new project.
Procrastination is a form of self-sabotage. I call it a short-term last resort. If you let procrastination go, it can take over your life. In the following exercises, I can increase your awareness of how procrastination may be interfering with your work. Remember to choose to work one exercise at time. Take your time when you write. Be patient as you start to react to these two exercises. Let your mind and heart gently guide you toward deeper awareness and desire to change.
TO-DO LISTS:
Lists are easy to write in your journal. If you can write a laundry list, then you can write a journal list. Feel free to choose organization tools that work best for you. My preference is to use a combination of my calendar, some goal files (pc), index cards and my memory. When I'm creating lists, I like having access to both flexible tools(cards and memory) and a workable structure ( past lists and some goal files). Remember to write a clear, easy to read, and detailed to-do list.
CHOOSE ONE AREA: Choose one urgent "procrastination" area.
To help your focus answer the following questions about your situation:
Purpose: Increasing your awareness of your resistance:
What part of this activity, that I don't want to do? (answer in specifics)
What am I feeling about working on this activity? (There may be more than one feeling)
What would I rather be doing?
What is so attractive about resisting this activity?
Purpose: Increasing your awareness of your motivation:
What part of doing this creative project do you like?
What are your feeling about this creative project? (any feelings)
Summarize your resistance statements and your motivated statements
Look for any similarities and differences (use this information to answer the next question)
Look for ways to increase your motivational actions and decrease your procrastination actions.
Congratulations! You've chosen your new goal.
Start working on it now!!
No more procrastination!
Author Bio
Lael Johnson, owner of Writer's Eye Advisory Service, offers creativity coaching services and additional writing resources. For more information visit: www.writerseye.com
Article Source: http://www.ArticleGeek.com
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