9
Jul
2020
2
Your Dream Finances

Dream Finances

Build Your Dream Finances Now

I have talked about wealth building in another article. Now I will tell you about Dream Finances. I prefer to use the term Dream Finances, since more of you understand that term. The issue is Dream Finances versus Nightmare Finances. Dream finances include a portfolio with guerrilla budgeting, mutual funds for savings, and home buying the right way and

Dream Finances is defined by me as having the finances that allow you to sleep like a baby at night. You are living below your means, and all your financial systems are in order. Bills are easily paid, savings overflow, and investments are growing.

Dream Finances Will Allow You to Sleep Like a Baby at Night.

Guerrilla Budgets

It all begins with understanding budgets. Budgets on the one hand are basic, but on the other hand prove to be elusive to far too many. The number of people who do not budget is surprising to me. What is more surprising is the number of people who tell me they do not know what a budget is, all they know is they buy what they want, then run out money for bills.

“Buying What You Want” is not a budget. A budget is when you take what you have and make it stretch to include all your needs and some of your wants. You also have money for future expenses.

Remember the four 'This-is' - 'Do I Need This?,' 'Can I Use This?', 'Will I Use This?', and 'Will This Last?"  -Lois

Sometimes, you get none of your wants. But it is essential to get all your needs met. Otherwise, I call your system the non-budget. The Guerrilla Budget, takes care of your needs, gets some of your wants, and includes growing money and assets for the future.

Sane Savings

According to national statistics, most Americans do not save money. Hence, there are constant adds on tv and in print to take out loans. That means predatory loans, home loans, car loans, loans with relatives. Those loans are like moving life backwards.

A much better alternative to loans from others is to borrow from yourself. That requires savings. The name of the game is money, actual money, not borrowed money. Saving money is a process of moving forward since it helps you to get out of debt and stay out of debt.

$1 Invested Per Day Using Compound Interest, Dollar Cost Averaging Into Account

Years 8% 10% 12%
5 Years $2,071 $2,186 $2,511
10 Years $5,156 $5,783 $7,802
15 Years $9,753 $11,701 $18,952
20 years $16,602 $21,439 $42,446

7 Mistakes of old and new investors-Free File

Investing Insights

All the richest people in the world invest heavily in the equity markets. That would include stocks, bonds, mutual funds, or a combination of those in mutual funds. There are other exotic ways to invest, but here I list the basics.

You can do simply fine with basic investing. As a matter of fact, many basic investors get rich if they know how to study, research investments, and be patient. I do not recommend you ever invest before you study and gain the knowledge required to make informed decisions.

Many of the richest investors include Warren Buffet, George Soros, Carl Icahn, Abigail Johnson, Thomas Peterffy, Bill Gates, and Jeff Bezos. All of them got rich investing in their own stocks, mutual funds, or companies.

Retirement accounts use various investments, if you understand those investments versus only checking the money market box you can retire comfortably. Some people who get to know investments well and use their knowledge for their retirement account, sometimes do so well they retire early.

Big Thing Buying Right

This is where it starts. If you overbuy with education, home, or cars, you could set yourself back for a long time. Buy affordably and you will move forward in life with the ability to save and invest. When you save and invest money you can bring peace of mind and relaxation to your life, instead of constant worry about your next emergency.

Ladies for peace of mind when you buy a car you must understand the rules.

CarBuying That Banks

New cars are out of line with current average incomes. Therefore, if you buy a new car you could have a large bill to pay for seven or eight years. That is huge and can be hugely painful. It does not have to be. There are many great ways to buy a car affordably if you are low income, moderate low income, or middle income.

But, do not think you are at risk just because your income is not high. High income people can have the same issues when they focus on a luxurious car without regard to cost. Go here to find out how you can buy a quality car affordably no matter what your income.

Ladies, it takes skills to purchase a home and non-owner occupied rental property

Home Buying That Banks

Home buying should come down the road. What does it take to buy a home? A stable job, a good credit score, and money in the bank, learning the home buying process, to name a few. It is possible to buy a home if you have a moderate income, but first you must know how to buy a quality moderate home for your income. Then, you must know how to keep the home you buy for decades.

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9 Responses

  1. This is an awesome article to set you in the right direction when it comes to your finances. I love that you’re all about going for what you need and not what you want.

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