Thursday, May 20, 2010

 

“The Wealthy Barber”

 

By David Chilton


I just finished this book last night and I learned a ton. Most importantly I learned that putting your money in a ‘Mutual Fund’ in the mid 90s was pretty lucrative.

Overall the book, gives a very ‘common sense’ approach to finance.

Roy a small town barber is famous for his great financial advice. Not only does he have good advice but he also has Millionaire status backing up his advice. Not from getting lucky in the Stock Market, or flipping homes but basic financial techniques.

First and foremost “The Wealthy Barber” emphasizes the importance of paying yourself first. Roy suggests to his pupils a minimum of 10% of your income. This 10% is for retirement and should be invested in long-term investment vehicles. (Mutual Funds, IRAs, Life Insurance, Real Estate)

“The Wealthy Barber” also gives advice about how and who should invest in these particular vehicles. Making investing a painless and straightforward process that anyone can handle. In depth chapters about Saving Money, Creating a Will, Investing in Retirement Funds.


The book is just under 200 pages and is a quick read, I would recommend it to anyone. Despite changes in return rates and a slow economy the lessons in the book are timeless.  A book well worth the while.

            

Wednesday, May 19, 2010

        The average college graduate leaves college with not only a diploma but also around $20,000 dollars in student loans.  So here are a few ways to save on college tuition. First sign up with FAFSA, it isn’t a long process and you only need a small amount of information. If you are single and your parents claim you as a dependent, you will need to know their tax information. If you file taxes on your own you will need yours. FAFSA will also ask for personal account information to see how much money you have in your bank account. All of this information is secure and is used to determine whether you qualify and if so for how much.

It is often used to deliver federal scholarships. For detailed analysis check out the fafsa website at www.fafsa.com

Talk to your counselor about scholarships in your program. Lots of science degrees qualify for the smart grant, which requires you to be a junior and have at least a 3.0.

 I am always interested in how readers have been able to benefit from federal programs for students. What have you done?

Tuesday, May 11, 2010

Pinching Penny Weekly Tip


-       Rather than pay hundreds on that new piece of furniture you need. Take a few hours out of your day and refurbish a used furniture item.

Here is a great example that my wife did. When moving into our new home we needed a dresser. We found this at a second hand store, she spent a few hours sanding and painting it. 

Total Cost: dresser+paint+stain=$65 dollars

                                                                             Before


      After