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What Do All These Books Tell You?
Posted By Ron On January 4, 2012 @ 8:35 AM In Money,Personal Finance | Comments Disabled
These books all tell you the same thing. Oh, they may have a different twist or two; something you’ve never thought about or they may use a new word they’ve made up and copyrighted. But one thing’s for certain, the principles of financial success haven’t changed much in thousands of years.
That doesn’t necessarily bode well for the financial gurus selling those books! But we can’t deny the fact that “there is nothing new under the sun” especially where it concerns personal finance. The main difference in each of these personal finance books is the approach each one takes and the motivations they provide. That is literally the biggest difference in virtually any generic personal finance book you read – the approach and the method of motivation.
This principle is listed in virtually EVERY personal finance book and the reason? It’s the basic foundation of financial success. Compare how much you make to how much you spend and hopefully there’s a gap. If there isn’t, you’ll have to either increase your income  or decrease your spending … or both.
It’s hard to get ahead by just spending less. You’ll need to earn more money eventually and there are dozens of ways to earn more money  if you’re willing to give it a try. And new ways to make money  pop up all the time.
How’s this for a way to make extra money ? My daughter has a friend who rented a meeting room at a local hotel, brought in a DJ, and then charged his friends  $15 each to come to the party. Over 260 people showed up. The DJ cost $300 and the room was $150. You do the math, but to my way of thinking, this is a smart young man who sees a need, fills it, and profits.
The Internet is full of fantastic examples of people who paid massive amounts of debt in relatively short periods of time. It all depends on your personal motivation level and your willingness to use self-discipline. I personally paid off more than $120,000 in debt in just 52 months  (a little over 4 years). My wife and I were INTENSE fanatics about getting that debt paid! How intense are you?
Again, look to the Internet. Like me, tons of other writers have extolled the virtues and the peace of mind that grows when you have a safety cushion called Emergency Fund. How much you keep in it is up to you, but I personally recommend no less than 6 month’s living expenses. Notice I said living expenses – food, shelter, transportation, insurance – and that’s it. No private school, no dining out, no new clothes, no gifts , nothing but what is absolutely necessary to keep you afloat. You’d be surprised at how little you can live on when you HAVE to.
Once you’ve gotten your debt paid off and have a cushiony safety net, the next step is to max out your retirement savings. If you meet the qualifications (most people do), head over to Scottrade  or better yet, optionsXpress  (it’s cheaper) and set up a Roth IRA. You don’t get any tax savings now with a Roth, but your earnings are tax free once you reach 59 1/2 years old.
Have you ever read about those incredibly rich people at the turn of the century? People like John Rockefeller, J.P. Morgan, Andrew Carnegie, and the Vanderbilts had an advantage you and I don’t have – there wasn’t an income tax back then and even when it DID become enacted in 1913, only those with incomes over $450,000 (inflation adjusted) had to pay … one percent. The highest rate was 6 percent on incomes over $11 million plus!
The best way I’ve found to invest  is to regularly put cash into a savings account , then when you have $1,500 to $2,500 saved up, move it to your online brokerage account and invest  it (read How a Second Grader Beats Wall Street ). How does a second grader beat the Wall Street moguls – by investing in broad based exchange traded funds  that put money in stocks, bonds, and even commodities based on your own tolerance for risk and volatility .
Of course, if you’re uncomfortable making your own investment decisions, make sure to use WiserAdviser  to find a financial advisor. WiserAdvisor has hundreds of advisors in their network  and YOU get to pick which one matches your needs best. There’s no cost to use the search system, no obligation if you do, is confidential, and since WiserAdvisor WiserAdvisor isn’t a financial services company and doesn’t offer any financial advice, there’s no conflict of interest.
Living wisely means living frugally – but not living like a miser. While it’s true that you don’t “save yourself to wealth”, it makes no sense to wantonly waste money on things you don’t need or on things that won’t hold their value or will break shortly after purchase.
Living wisely means using banks like PerkStreet  for the debit card rewards, writing a will for your heirs, living your life on a budget , and maintaining the proper amount of life insurance , car insurance , and homeowners insurance. It means maintaining your credit report and understanding your credit score  and what impacts it.
Living wisely means managing your money in a way that allows you to bless others, and take care of yourself and your family.
Principles never change. If you want to avoid reading all the books in the picture above, just remember to:
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 emergency fund: http://www.thewisdomjournal.com/Blog/emergency-fund/
 Invest: http://www.thewisdomjournal.com/Blog/go/scottrade.php/
 increase your income: http://www.thewisdomjournal.com/Blog/make-extra-money-incom/
 new ways to make money: http://www.thewisdomjournal.com/Blog/new-ways-to-earn-extra-money/
 friends: http://www.thewisdomjournal.com/Blog/7-people-you-absolutely-need-in-your-life/
 $120,000 in debt in just 52 months: http://www.thewisdomjournal.com/Blog/how-i-paid-over-120000-in-debt-in-52-months/
 gifts: http://www.thewisdomjournal.com/Blog/go/gifts.php/
 optionsXpress: http://www.thewisdomjournal.com/Blog/go/optionsxpress.php
 audit triggers: http://www.thewisdomjournal.com/Blog/25-tax-audit-flags/
 report ALL your income: http://www.thewisdomjournal.com/Blog/surprising-taxable-income/
 This year use Turbo Tax – the #1, best selling tax software!: http://track.linkoffers.net/a.aspx?foid=3241699&fot=9999&foc=1
 sales tax deductions: http://www.thewisdomjournal.com/Blog/sales-tax-deduction/
 57 Avoidable Tax Mistakes: http://www.thewisdomjournal.com/Blog/57-avoidable-tax-mistakes/
 savings account: http://www.thewisdomjournal.com/Blog http://www.thewisdomjournal.com/Blog/go/savingsaccount.php/
 How a Second Grader Beats Wall Street: http://www.thewisdomjournal.com/Blog/go/amazon.php?asin=0470375949
 exchange traded funds: http://www.thewisdomjournal.com/Blog/understanding-exchange-traded-funds-etfs/
 tolerance for risk and volatility: http://www.thewisdomjournal.com/Blog/how-to-determine-your-investment-personal-risk-tolerance/
 WiserAdviser: http://www.thewisdomjournal.com/Blog/go/wiseradvisor.php
 network: http://www.thewisdomjournal.com/Blog/20-networking-mistakes-you-should-not-make/
 PerkStreet: http://www.thewisdomjournal.com/Blog/go/perkstreet.php/
 budget: http://www.thewisdomjournal.com/Blog/go/budget.php/
 life insurance: http://www.thewisdomjournal.com/Blog/insurance/#life-insurance
 car insurance: http://www.thewisdomjournal.com/Blog/insurance/#car-insurance
 credit score: http://www.gofreecredit.com/r/4d8948948e/?subid=
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