Posts Tagged With: Financial Planning

10 Things Rich People Know that You Don’t

Posted on November 19, 2014 by Melissa Hart

“People don’t become wealthy by accident, here’s how they do it’

This article describes 10 habits that anyone can develop that will improve their financial management skills—regardless if they want to be the world’s next millionaire or if they just want to live comfortably. For more information about each of the 10 items below, please see the original article.

Start saving and investing early in life
Automate savings and investments so deposits are made automatically on a regular basis
Maximize contributions to retirement and investment accounts
Never carry a credit card balance
Live like you’re poor and adopt a “less is more” attitude
Avoid the temptation to live beyond your means
Be goal oriented and know what you consider to be important
Get educated and learn about investments before investing your money
Diversify your portfolio and avoid the temptation to put all your eggs in one basket
Spend money to make money by hiring a qualified and experienced financial adviser, accountant, and, if needed, an estate planner

For more information go to http://www.marketwatch.com/story/10-habits-of-high-net-worth-women-2014-07-02?page=1

Teaching Suggestions

You may want to use the information in this blog post and the original article to

Stress the importance of making smart decisions as opposed to foolish decisions.
Tie the suggestions in this article to material in the text.

Discussion Questions

Which of the ten habits described in this article can you use now to help manage your personal finances?
The first suggestion, “start saving and investing early” is a basic principle we stress in the text. What are the advantages of starting early?

Categories: Chapter 1, Chapter_11, Financial Planning | Tags: Financial Planning | Leave a comment

Thinking Like A Rich Person

Posted on October 4, 2014 by Melissa Hart

While thinking about getting rich will not get you there, certain attitudes (along with accompanying behaviors) can move you in that direction. In his book How Rich People Think, Steve Siebold makes these suggestions:

Leverage, the use of other people’s money to make money, is the foundation. Look for investment opportunities that will grow your wealth faster than saving part of your wages as an employee. Look for methods to solve problems to make money. New products and services are created each day, and some will result in large fortunes.
Avoid the lottery since only a very, very small number of people will retire using that financial planning path.
Worrying about money is a waste of time. Concentrate on problem solving to make money. Even as an employee, your creativity and innovations can result in a higher salary.
Emphasize investing instead of spending. This action will result in higher wealth.
Use credit to your advantage, not for things you don’t need and can’t afford.

For additional information on thinking like a rich person go to:

http://www.foxbusiness.com/personal-finance/2014/09/12/5-ways-to-think-like-rich-person/

Teaching Suggestions

Have students talk to others to obtain additional suggestions for improving a person’s long-term financial security.
Ask students to propose a product or service that solves a problem in our society and could result in future income.

Discussion Questions

What are common barriers that people face when taking the actions suggested above?
Describe additional actions that might be taken to create long-term wealth.
What are some examples of problems to be solved in our society that could be the basis for future products or services?

Categories: Chapter 1, Financial Planning | Tags: Financial Planning, How Rich People Think | Leave a comment

The Slacker’s Guide to Saving for Retirement

Posted on April 23, 2014 by Melissa Hart

Whether retirement is coming soon or feels far away, it’s something you need to think about.

This article encourages students to make retirement planning a part of their budget and one of their financial goals. It also points out the benefits of starting early—even if students can contribute only a small amount because of other obligations that include paying off student loans and other debt obligations, paying rent, buying groceries, and establishing an emergency fund.

A very good suggestion included in this article is to start by saving just $25 from each paycheck, and then increase the amount until someone feels they have reached a limit they are comfortable with.

Other suggestions include participating in a 401(k) account at work and using bonuses and salary increases to boost the amount contributed to your retirement account.

For more information, go to

http://finance.yahoo.com/news/slackers-guide-saving-retirement-113005671.html

Teaching Suggestions

You may want to use the information in this blog post and the original article to

Encourage students to develop a long-term financial plan that includes retirement goals.
Discuss time value of money examples that show how small dollar amounts invested on a regular basis can help achieve long-term financial goals.
Launch a discussion about the different types of retirement accounts.

Discussion Questions

1. Many people never begin saving or investing because there is never anything left over at the end of the month. How can you find the money needed to begin saving and investing?

2. Why should you begin to save for retirement now instead of waiting until later in life?