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Dealing with Savers and Spenders


wealthymatters.comI found the following post here: http://www.misformoney.net/2009/04/opposites-attract-when-saver-marries.html . I found the advice pretty sage.It’s basically for couples to help them deal with different money habits but I don’t see why the tips can’t be used with the friends,colleagues and business associates we need to work with.

Opposites Attract – When a Saver Marries a Spender


Let’s be honest, it is common for couples to fight about money. It is also common to have two financial opposites in the relationship. This pairing provides special challenges, but there are many couples who make it work. It all starts with awareness, first about yourself and second about your partner. Read more of this post

5 Habits of Financially Successful People


                                                                                 Here is a piece I found while surfing at Wise Bread.com wealthymatters.comhttp://www.moneymanagement.org/Community/Blogs/Blogging-for-Change/2011/January/Five-habits-of-financially-successful-people.aspx  Check if you have the following criteria in place if you are serious about being financially successful.

What is the true definition of financial success? Although it varies from person to person it can usually include: the ability to pay bills without worry, being free of debt, and having enough money in savings for things such as emergencies, family vacations, retirement, college funds, and more.

Being financially successful is easier said than done. There are no quick fixes or magic formulas for achieving financial success. Financially successful people understand the difference between wants and needs and how to create clear financial objectives for achieving their goals. Below are five habits of financially successful people.  Read more of this post

Learn Wealth Building From The Millionaire Next Door


wealthymatters.comDo you want to be a millionaire? Then perhaps you should start by studying the habits of millionaires….. And this book is just the right place to start.

If you check lists of the best financial books of all time,  you’re bound to find several that include The Millionaire Next Door: Surprising Secrets of America’s Wealthy. Written in 1996 by professors William Danko and Thomas Stanley, its main premise is that people who look rich may not  be wealthy; they overspend — often on symbols of wealth — but actually have modest portfolios and, sometimes, big debts. On the other hand, many actual millionaires tend to live in middle-income neighbourhoods, drive economical cars, wear inexpensive watches, and buy suits off the rack.

Following are some of the gems of wisdom found in the book that the authors Danko and Stanley have gleaned from their thousands of surveys of millionaires.

#1: Income Does Not Equal Wealth
Yes, higher-income households tend to have more wealth than lower- and middle-income households. But the size of a paycheck explains only approximately 30% of the variation of wealth among households. What really matters is how much of the income is invested. On average, millionaires invest nearly 20% of their income.

Danko and Stanley even offer a “simple rule of thumb” formula for determining whether you have a net worth that is commensurate with your income:

Multiply your age times your realized pretax annual household income from all sources except inheritances. Divide by 10. This, less any inherited wealth, is what your net worth should be.

Those in the top quartile of wealth accumulation are prodigious accumulators of wealth (PAWs), according to Danko and Stanley. Those in the bottom quartile are under accumulators of wealth (UAWs).This formula also helps in sorting out the millionaires/millionaires-to-be(PAWs) and the millionaire-lookalikes(UAWs).Here is a calculator to do this calculation easily:https://wealthymatters.com/2011/01/17/am-i-wealthy-calculator/

#2: Work That Budget Read more of this post

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