How Minimum Wage Effects All Lives
Corporate CEOs Can Do Without Their Third Yacht and Mansion and Pay A Livable Minimum Wage
Not a day goes by that I hear something about minimum wage laws. Some lawmakers think it would be a good idea for low-income employees to have a livable wage. Some think increasing the minimum wage is not a good idea for the companies that have to pay. I feel differently.
Because of the constant arguing around the topic, I think many Americans are confused. They can’t understand why politicians would not want employees to make a livable wage with a higher minimum wage.
I will try to explain here why it is important for all of us to engage in the conversation around getting all Americans to enjoy a livable wage. By implementing a fair minimum wage this can happen, and how it affects personal finances and the economy.
Why Most States Minimum Wage is Not a Livable Wage
I personally do not feel that most minimum wage salaries are a livable wage, regardless of the area of the country you live in, and therefore it should be increased. My argument is outlined here.
The conversation around getting all Americans to enjoy a livable wage starts here
According to the U.S. Department of Labor, the minimum wage is normally controlled by laws of the individual states. There is also a federal minimum wage law. In states where the federal minimum is higher than the state minimum, the federal wage is used.
If the state wage is higher than the federal, the state minimum is used. There are several states that base their minimum wage on the consumer price index. Those states are, AZ, CO, FL, MO, MT, NV, OH, OR, VT, and WA.
They usually adjust their minimums every January. There are some states that don’t have a minimum, those are AL, LA, MS, SC, and TN.
Washington D.C. has the highest minimum at $15.00 an hour as of July 5, 2020. California is next with $14.00 an hour. The lowest are Alabama ($7.25 federal, no state minimum), Alaska ($10.00), Arizona ($12.00), and Arkansas ($10.00).
The average appears to be around $9.50 per hour in the U.S. If the minimum wage kept up with 1963 rates, the wage would be $23 per hour. Employees are only asking for between $9 to $15 an hour.
A recent highly publicized report stated that just eight men in the United States own more wealth than half the population. This was not the case or even close forty years ago.
At Least One State in The United States Has No Minimum Wage, and That is Sad
But, as corporations figure out how to keep more of the company earnings, employees are getting paid less and less over the years. Investors are getting paid more.
THE OBVIOUS DISADVANTAGES
There are the obvious disadvantages to earning the minimum wage or below, the first being; you will not have enough to rent a decent apartment or home. Some states make up for this with apartments they call “the projects” in the cities, or subsidized affordable rental apartments in the suburbs.
In “the projects’ apartment rent is based on income, so if your wages are low, your rent is low. The problem with this is the quality of tenant that good people are forced to surround themselves with is low. and repairs often go undone.
One example of complexes that are considered “the projects” are in my city.
I have had the opportunity to speak to a few people who lived in one of these apartment complexes and they told me it is miserable.
Even with low rent, these low wage earners are usually not left with enough money to purchase or run a car or save for emergencies. Life becomes one painful emergency after another.
The next disadvantage five minimum wage workers I spoke to in my city told me is that, in order to have a semblance of a normal life they have to work two jobs.
This means their kids are left alone frequently, they are usually over-tired driving home from their second job — a road hazard, and they have little or no time to take care of their personal affairs or that of their children.
Reporter Shaila Dewan, wrote in the New York Times, “Rent is Rising Out of Reach For The Middle Class”. My question is if rent is too high for the middle class, where does that leave the lower middle class or the low-wage worker?
What type of future does this group of workers have, if rent continues to climb, and low-income apartments continue to be torn down for high rise, high-income buildings; like we see in most cities around the United States?
Many of the major cities are so expensive that in order to live there you have to find a dwelling similar to a third world country. With lots of people living with you, and the building is usually in disrepair. A few years ago, a city near me had several articles in our local newspaper about a gentrification issue.
They wanted to tear down low-income “projects” near a fancy new shopping center — problem was, there were 1200 people living there and they could not figure out where to put them.
Lucky for them, the economy collapsed, and discussion was halted, at least for a few years.
Now, the economy has improved, so I suspect the discussion is quietly taking place somewhere behind closed doors to tear down the low-income apartments and replace them with high-income dwellings.
There has been a huge apartment building boom in our 7 sister cities area. A small percentage of the apartments are set aside for low-income dwellers, so this may be a partial answer to their relocation problem. These are called “affordable income subsidies”.
The drawback to depending on low-income apartment rent is that they are limited compared to the number of renters who need them. You usually have to get on a waiting list for an available apartment – as long as a few years.
According to Zillow, the rents for middle-income wage earners are running from 35% of income in (Hattiesburg, Mississippi) to 47% of income in Los Angeles, California.
A major disadvantage of a minimum wage job is that you can’t afford an apartment in most areas of the country. Since low-income apartments are very limited (as mentioned before), and can take a few years to land at the top of a rental list.
Even when the average low wage earner does get a low-income apartment — then the issue becomes food, utilities, healthcare, transportation, and emergencies.
If the average low wage income is $15,000 per year (an average usually quoted by media sources), and you have a family of 3, your monthly take-home could be a little as $900.
Most rents are at least $1000 per month for a 2 bedroom home in an average priced city. That means you are behind before you pay rent. It will take some work to find affordable housing, and pay all other living costs.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Find Out Now! Avoid Student Loan Disasters, Understand Student Loans
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
THE MOST EGREGIOUS DISADVANTAGES OF LOW WAGE JOBS
Low-income communities have a lower tax base for their school system, mostly because the school system’s funding is based on local tax dollars.
So, lower-income communities suffer low taxes and low funding for schools. This means they have fewer resources than middle income or rich school districts.
The end result is that students often get a poor quality of education. This may be one of the reasons they have a higher high school dropout rate. In some communities, there is an increased crime rate since high school dropouts find it difficult to get jobs.
Another disadvantage, which seems to go unnoticed by professionals, is an ongoing depression in poor communities. It is the result of trying to live within the confines of a miserably low wage job while working long hard hours.
Many in poor communities are forced to work two jobs in order to live within their miserable low wages, this also adds significantly to depression.
Some major cities have affordable mass transit, others don’t. So, minimum wage workers are forced to purchase and maintain a car which makes life even more difficult than it would be with mass transit.
THE MINIMUM WAGE SOLUTIONS
What are the solutions? Some politicians are in favor of new laws that would increase the minimums, others are not.
I encourage you to Google, your congressman, and senator — encourage them to vote to increase the minimum wage.
People who make a fair livable minimum wage can afford to pay rent on an apartment or small home. They can shop for necessities and food, and spend more time with their kids by avoiding the 3 job day.
Schools will have more taxable money for better schools, and higher-performing students.
Because people have more money to take care of their needs, crime will be reduced in their immediate community and those around them.
So, as you can see a livable minimum wage benefits communities the employees live in, adjacent communities, and the economy.
~~~~~~~~~~~~~~~~~~~~
Lois Center-Shabazz | Course Delta Agency
Personal Finance: Author, Blogger, Course Creator, Money Strategist
Interested in a Free Discussion about how I can help you with Fantastic Finances? Let’s Chat – Make an Appointment Here
GET YOUR FREE Fantastic Finances Tips Course by eMail
7 STEPS OF NEW INVESTORS FREE PDF
YOUR FREE PRINTABLES FOR HOME OR BUSINESS MORE FREE PDFS
JOIN MY PERSONAL FINANCE FACEBOOK PAGE
Personal Finances That Rock
To get personal finances that rock understand that there are many ways to achieve a given task. You only need to use one to be successful. The one that works of course.
I have used many ways in the past to create successful personal finances that rock, so I will attempt in this article to outline a few that have worked and will last.
The first thing you must understand is my definition of personal finances. In my opinion it is simply staying close to your finances. Understand everything possible detail, about every single financial decision you ever make. That begins with decisions about the smallest items to the largest.
Do personal finance research, ask people you know who have had to make those decisions. Many of them will tell you the mistakes they made so you won’t do the same.
I speak to people all the time who tell me they must consult with a salesperson about funding a retirement account. Then they ask salespersons about buying a home, which car loan to get, or if they should take out student loans.
You should have the ability to answer the above questions yourself if you are involved in your personal finances, the right way.
Contact Lois For Your Best Personal Finance Discovery Session
Do your research, talk to people close to you, get an idea of what is best for you, so at least you are in the ball park before you think about a purchase.
That way you will not let a sales person lead you a stray or someone else who is not qualified to tell you what to do. You instead, will direct him or her. Here are three suggestions for developing personal finances that rock by organizing your finances and doing personal finance research.
1. PERSONAL FINANCES THAT ROCK ARE YOUR RESPONSIBILITY
Make up your mind that it is your responsibility to get personal with your finances. There is no one out there who will cherish and adore your finances as you will. If you are having a hard time making finances personal, you can use a series of techniques to make peace with your finances.
Many of you have heard messages over the years that you can’t manage your own finances. It must be either a spouse, parent, salesperson or other person. Not true.
The More You Know, The More You Grow,Your Money ---Lois Center-Shabazz
You can change that way of thinking by changing the way you think. Use personal affirmations, and visualization.
Just like any other positive thing you want to bring into your life, you can bring in the ability to manage your finances. By writing positive affirmations about managing your finances and visualizing yourself managing your finances from daily to monthly – you will be successful.
2. GET YOUR FINANCES ORGANIZED
Get organized like you’ve never organized before. Don’t be afraid to guerrilla organize your finances. Set up a system for bill paying, saving money, and paying down debt.
Then set up a system for spending money on things you need first and things you want second. If you can’t afford to buy it, it may be that you can’t afford to buy it now. You may afford it down the road as you pay off bills, and save money for it.
In your record keeping system start with what you have and what you want to end up with in 2 years, 3 years and then 5 years.
Major purchases take a lot of research, to purchase a car correctly, a home, or an education. Realize that it takes time to get your finances in order and research is necessary.
Your personal finances will not be build up in a day or a month. But, if you organize your finances and create a plan, they will be eventually build up. You will create personal finances that rock.
3. CHANGE THE WAY YOU THINK ABOUT PERSONAL FINANCES
Get help and follow directions, remove your old ways of thinking about your personal finances that did not work. Things that don’t work are keeping too many credit cards, charging too much on credit. Also using loans to replace loans (like loan consolidation), will keep you in debt.
Work to pay off loans with money from savings or income or simply buying what you can’t afford.
Thinking that things will make you happy, when in fact the happiness with things last only a short period. This is especially true when you find you can’t afford to pay for them, major depression sets in.
Write down the advantages of getting personal with your finances. There are many
1. You save money easier
2. You will purchase what you can afford
3. You can work your way out of debt or stay out of debt
4. You can avoid getting cheated in purchases by unscrupulous salespeople 5. The peace of mind you get when your finances are in order
6. You can hedge against losses if you lose your job or the economy goes bad.
7. You can concentrate on other important things in your life that need your attention.
Summary: Now you should understand that if you want personal finances that rock there are a few things to do. You must first know the definition of personal finances. After you understand that organize your finances, then start your journey of personal finance research.
SOCIAL MEDIA STEPS YOU CAN TAKE NOW
Join me on Instagram
Lois Center-Shabazz| Money Strategist | Course Delta Agency
Get your FREE financial consultation from Lois here; let’s chat
Pick up your FREE course, delivered to you by email, now!
Like and follow “Fantastic Finances” on facebook
Follow me on Instagram
Find out how you can understand Home buying and Car buying like a pro
Ready to dig deep and get the financial life of your dreams,read more…
Join me on Pinterest
Follow my blog with Bloglovin
Get personal finances that rock with this simple eBook
5 Frequently Asked Questions About Mutual Funds For Women
Frequently asked questions about mutual funds
I have given a lot of lectures about mutual funds for women. I like mutual funds because, if you do your research you can purchase low-cost and low-risk mutual funds on your own. Mutual funds are easy to understand and invest in. You can do it yourself once you have done some research. Here are five of about twenty-five of my most frequently asked questions about mutual funds by women I lectured to. After a few decades of successfully investing in mutual funds, I felt it is only fair that I share my expertise with you.
- ARE MY MUTUAL FUND INVESTMENTS GUARANTEED AT ALL?
Insurance is provided by the SIPC, which covers fraud. In other words, if you invest your money in company “C”, a registered investment company (registration with finra should be checked), and it is stolen by the President of Company “C”, you will be covered for up to $500,000 for each account, depending on the circumstances. Example: If a husband and wife have a joint account it is covered up to $500,000, if the each have additional retirement accounts in their separate names, the retirement accounts each are covered up to $500,000. Here is the SIPC insurance breakdown.
-
WHAT ARE THE ADVANTAGES OF INVESTING IN A MUTUAL FUND?
With a mutual fund you will get professional management, diversification, an affordable investment, and it is liquid. This is one of the main reasons that I encourage investors to invest in mutual funds, after reading my frequently ask questions about mutual funds. It only takes a little research and study to master mutual funds, but because there is a learning curve I encourage you to master them first.
-
WHAT ARE THE DISADVANTAGES OF INVESTING IN A MUTUAL FUND?
You still have costs even when returns are negative, you don’t control the investments totally, you don’t know for sure if the price will go up after you purchase – but after research you can verify that you are getting a quality mutual fund where there is a good chance the price will rise in the future. If you invest on your own you can keep cost low and more money will go to you, but if you go with a broker, you will be required to pay brokers fees which are sometimes hidden and costly.
-
YOU CAN EARN MONEY FROM YOUR MUTUAL FUND IN THREE WAYS
Dividend Payments — A fund may earn income in the form of dividends and interest on the securities in its portfolio. The fund then pays its shareholders nearly all of the income (minus disclosed expenses) it has earned in the form of dividends.
Capital Gains Distributions — The price of the securities a fund owns may increase. When a fund sells a security that has increased in price, the fund has a capital gain. At the end of the year, most funds distribute these capital gains (minus any capital losses) to investors. Most mutual funds pay money into your mutual fund account yearly, a few pay on a quarterly basis. This means if you pull your money from your mutual fund that pays out capital gains and dividends at years end, you will lose your profits. So, be patient, and know your payout date.
Compounded Returns – unlike simple interest accounts the interest on top of the dividends and capital gains will compound year after year, giving you compounded interest.
-
WHAT IS THE NAV OF MY MUTUAL FUND
Increased NAV (Net Asset Value) — If the market value of a fund’s portfolio increases (from dividends and capital gains), and after deduction of expenses and liabilities, then the value (NAV) of the fund and its shares increases. The higher NAV reflects the higher value of your investment. The more the NAV increases, the more money your investment will be worth. The NAV value can fluctuate from month to month or year to year, the important point to look at is that it has a net increase over time.
You have two choices:
Let someone else manage your money and end up with little or nothing OR learn some simple basic rules that could turn a little into a lot over time. I provide you with all the help you need in my eBook on Mutual Funds. I even give a 30-minute free clarification session after you read this article. The eBook I have written is clear and concise, after you finish it you will understand how to efficiently invest in mutual funds.
Lois Center-Shabazz | Course Delta Agency
Interested in a Free Discussion about how I can help you with Fantastic Finances? Let’s Chat – Make an Appointment Here
Join my facebook group now for tips and tricks on personal finances
Get Your FREE Fantastic Finances Tips Course by eMail
How I Build Fantastic Finances ; Read More…
I cover dozens of frequently asked questions about mutual funds in this eBook. Get this eBook and 7 more when you take the “Course for fantastic Finances”
Why Women Need to Understand Investing Now
Investing Money for Beginners
There Are No Guarantees if Women Do Not Understand Investing
Women need to understand investing now because there are no guarantees you will stay married or even get married, women need to know how to take care of their finances. This is the start of investing money for beginners. This includes learning stock mutual funds, bond mutual funds and simple index funds. With these three types of funds you can buy stocks inexpensively, with low risk and learn to read charts that are not difficult.
But understanding investing now means you need to understand sane savings (my mantra), mega-money management (because everything is ultra-expensive), and investing (because you need to stay ahead of inflation to keep your money growing).
Far too many women are still taught to be financially dependent, even when you work, and many don’t get involved in family finances since you feel prince charming will be there to protect them forever. It is important to work together on finances, and staying out of family finances could have dire consequences foreither spouse. Stay involved in your family finances.
Divorce or Death Effecting Your Finances
Because you have at least a 50% chance of divorce and even greater chance of being separated from your spouse, it is imperative that you understand all the nuances of money, including investing. I focus on mutual funds because, 1. That is where my long term expertise and success is, 2. They are easy to understand once you put some “peddle to the metal” and study some of what I call, “mutual fund research”.
If you are not dependent on your husband to take care of all finances during your marriage, or an adviser if you are single, then you will know what to at any time, including with an illness, accident, or death. Dependency is not a good thing.
Many women fall victim to con artist who prey on women with money and no financial skills, because they are not familiar with the ease at which others prey on those without financial experience. Understanding stocks, bonds and mutual funds will create a knowledge bubble around you, that will keep you safe.
There are literally millions who have lost millions due to being trusting and naive. Don’t make yourself a victim by keeping your financial knowledge and skills very low. The potential for divorce or death from a spouse are a major reason why women need to understand investing.
Protect Yourself Now and in The Future and Protect Your Money
There are many women who never write a check or pay a bill, after getting married. That is hard to imagine, but it exists. Writing checks and paying bills are a powerful way to keep yourself aware of family finances and the limitations of money.
Then you monitor investments in mutual funds, or other investments for savings, college, or retirement, this gives you another layer of awareness and will help protect your finances now and in the future. I speak to beginning investors all the time who can’t analyze the simplest investments. This is not acceptable. Teaching investing for beginngers is something I am passionate about so you can protect specialty finances.
GET YOUR FREE DOWNLOADABLE PRINTABLES HERE
Therefore, women need to understand investing. Social security is meant to be a supplement, that is why the payout is very low for most people. Your 401k can be overrun with success if you know investing money for beginners. If you have a pension or get your husbands pension from death or divorce you can still benefit from know how it invest money.
When you understand investing, the chances are good you will also understand how to grow your investment retirement account and hold on to the accounts build by you or your spouse. Understanding why women need to understand investing will create an entire class of new and capable investors, who can also teach their daughters.
Lois Center-Shabazz | Course Delta Agency
Interested in a Free Discussion about how I can help you with Fantastic Finances? Let’s Chat – Make an Appointment Here
Get Your FREE Fantastic Finances Tips Course by eMail
How I Build Fantastic Finances ; Read More…
Join my Personal Finance Facebook Group For Tips and Tricks on Finance
Get this ebook and 7 more with the “course for fantastic finances”
9 Great Ways to Understand Mutual Funds
How to Understand Mutual Funds
Understand mutual funds by beginning with the definition of a mutual fund, and then going on to understand the different types of mutual funds.
A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt.
The combined holdings of the mutual fund are known as its portfolio. Investors buy shares in mutual funds. Each share represents an investor’s part
ownership in the fund and the income it generates.
What Are Mutual Funds Used For?
Mutual funds are investments that are generally long-term investments that are used for general savings, retirement savings, and college fund savings.
Mutual funds are purchased because they are professionally managed, diversified investments, an affordable investment, and liquid.
Some have up front fees to purchase and or sell called loads. Some have no-loads, but all have yearly management fees from as low as .2 to 8%.
I prefer fees less than 1% with no-loads. There are good mutual funds that fall into all categories.
Mutual funds make money when dividends are paid, usually every 3 months to every 12 months. Capital gains are usually every 12 months. Mutual funds also make money when the NAV value of the fund increases. The NAV is the Net Asset Value of the mutual fund, similar to the price of a single share of stock.
There are many types of mutual funds within these nine types of mutual funds. Here are the 9 different major types of mutual funds. The risks of mutual fund investing runs the gamut of very low to very high and many levels in between within one type of fund. Do your research thoroughly before investing in order to understand mutual funds.
I have invested in mutual funds for at least 30 years now, and they have served me well.
The 9 Different Types of Mutual Funds:
1. Allocation
Risk: Low to Medium
Allocation funds are a combination of stock and fixed income securities and are subject to the risks involved in each of these security types. Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. In general, the bond market
is volatile and fixed income securities that carry the interest rate, inflation, price volatility and other risks.
2. Alternative
Risk: From Low Risk to High
The fund may invest in securities that may have a leveraging effect (such as derivative and forward-settling securities) which may increase market exposure, magnify investment risks, and cause losses to be realized more quickly.
3. Commodities
Risk: High
The commodities industry can be significantly affected by commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.
4. International Equity
Risk: Medium to High
Foreign markets can be more volatile than U.S. markets due to increased risks of adverse issuer, political, market, or economic developments, all of which are magnified in emerging markets. These risks are particularly significant for funds that focus on a single country or region.
Make absolutely sure your budget is in order before you begin to understand mutual funds and start investing.
5. Money Market Mutual Funds
Risk: Very Low
A money market mutual fund is a type of fixed income mutual fund that invests in debt securities characterized by their short maturities and minimal credit risk. You could lose money by investing in a money market fund. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Before investing always read a money market fund’s prospectus for policies specific to that fund.
6. Municipal Bond Mutual Funds
Risk: Very Low to Low
The municipal market can be affected by adverse tax, legislative or political changes and the financial condition of the issuers of municipal securities. Interest rate increases can cause the price of a municipal bond to decrease.
7. Sector Equity Mutual Funds
Risk: Medium to High
Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Sector funds can be more volatile because of their narrow concentration in a specific industry.
8. Taxable Bond Mutual Funds
Risk: Very Low to Medium
In general, the bond market is volatile, and fixed income securities carry interest rate risk. As interest rates rise, bond prices usually fall, and vice versa. Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
9. U.S. Equity Stock Mutual Funds
Risk: Low to Medium
Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal.
You will understand mutual funds when you begin with understanding the different types of mutual funds.
Lois Center-Shabazz | Course Delta Agency
Personal Finance: Author, Blogger, Course Creator, Money Strategist
Interested in a Free Discussion about how I can help you with Fantastic Finances? Let’s Chat – Make an Appointment Here
GET YOUR FREE Fantastic Finances Tips Course by eMail
7 STEPS OF NEW INVESTORS FREE PDF
YOUR FREE PRINTABLES FOR HOME OR BUSINESS MORE FREE PDFS
JOIN MY Personal Finance FACEBOOK PAGE
How a Budget Can Create Financial Freedom in 5 Ways
Financial Freedom
Know Where Your Finances Are First
Since the most important aspect of financial freedom is no or low debt, I will start with debt.
There are those who are in horrific debt and they don’t know it, as high debt is a major robber baron of financial freedom – it is important to understand it’s implications. The main reason is because they don’t know what high debt is.
They have somehow gotten the wrong message about money and debt. They feel the more debt they have, the more money they have. Well, I am here to tell you that the more debt you have, is simply the more debt you have.
If you don’t have enough money to pay your debts every month, that is a sign that you have too much debt for your income. If you are making your debt payments, but it is difficult to pay your debts, you still have too much debt, and need to find ways of getting your debt down.
Low debt is one of the five major factors credit reporting agencies use to determine a high credit score. A high credit score is important because it saves you money when you get loans. The better your credit score, the lower the interest will be on your loans, in some cases, you may not get a loan at all, if your credit score is too low. One way to start down the road to financial freedom is creating a scripted budget.
Write 5 Steps to Getting What You Need to Start a Scripted Budget
Write down the most important things you need immediately. Then, write down the things you need long term. Examples of immediate things you need may be 1. pay off student loans in 3-5 years, 2. purchasing an affordable car after paying off student loans, 3. saving for an affordable vacation after doing number 1 and 2.
Then you will concentrate on long term goals, like finding a higher paying job after you get experience or getting an apartment or home in a better neighborhood.
Write 5 Steps to Getting What You Want in a Different Scripted Budget
Write down what you want short term, but is not necessary. Then ask yourself if you really want it and what feeling you will have if you get it. Then write down a budget and stick to that budget for everything you want.
It is imperative to create and stick to a budget with your wants, since wants sometimes to become emotional and emotions create an easy window to overspend. Example of wants are 1. a new dress for you cousins wedding, 2. going out of town for the weekend by plane to a friend’s graduation etc.
Use the Top Three Steps from Your Budget Scripts to Meet Your Goals
Of the five steps, you write down for both needs and wants, focus on the top 3 on each list. Focus on those top steps with laser precision. Narrowing your focus to the top three and the top 1 on your list will make it easy to make your goals in your time frame.
It will also make it easier to do. Many times, people give up because they feel the task is too hard, this comes when the task feels too overwhelming, the focus will relieve you of the overwhelm feeling.
Every Month Analyze Your Steps and Decide What You Need to Change in Your Budget
Somethings you do will work well, some won’t work at all, and as you use your current list you will also find better ways of meeting your goals. Because of this, you will change your steps by rearranging them or rewriting them.
Look at this article as one of many lessons in financial freedom, the more conscious you are about your budget, the more likely you will achieve financial freedom in the future. If you feel you have financial freedom now and you don’t live within scripted steps, as recommended, it would be wise to start so you can remain financially free.
Media propaganda to buy products we don’t need confuses people into thinking they need them, they buy them, then they get deeply in debt. Don’t allow yourself to be defined by product propaganda, but instead use conscious scripts to achieve low debt.
Use these eBooks to get started right on the road to financial freedom.
Join my facebook group for lessons on financial freedom.
Lois Center-Shabazz | Course Delta Agency
Author, Blogger, Course Creator, Investor, and Money Strategist
Interested in a Free Discussion about how I can help you with Fantastic Finances? Let’s Chat – Make an Appointment Here
Get Your FREE Fantastic Finances Tips Course by eMail
How I Build Fantastic Finances ; Read More…
Your 7-Year-Old Child’s Budget
If a 7-year-old has a great child’s budget, will that make him a frugal adult? It may, and it may not. But, we do have lots of evidence to suggest that spoiled children often become over spending and greedy adults. What happens at 7 could easily happen at 70, since good and bad habits grow over time, so why not start growing good habits with a child’s budget early.
Psychologist say the earlier you teach someone a skill the better chance they will perfect it overtime. That is seen in teaching skills such as music, sports and education. In my humble opinion, that also works with budgeting skills.
Some folks can’t figure out why their kids constantly beg for everything in sight, then they look back at the fact that they did not set proper limits on spending early. They felt that a happy child was a child that had everything they wanted, until of course, the child hit their teens and then twenties, and their begging for “things” and spending money developed into out of control behavior.
Here are 3 things you can do to put your 7-year-old on the right path for life.
- Give him an allowance, a piggy bank and chores to begin his child’s budget
Some parents think children should not be paid for the chores they do around the house. I am of the camp that feels there is nothing wrong with giving a child an allowance for working around the house if it is in line with age and chores.
The child does their chores on a schedule, they are paid on a schedule and they are encouraged to save a portion of their allowance and budget the remainder. It teaches them early that we all must work for money, and money has a limit.
- Discuss value, which is the pinnacle of a child’s budget
Some products appear cheap, but they will not last after the first usage or wash. So, teach them there is a difference between expensive, cheap and value for a product. You can purchase a product that appears cheap, but has very low value because it is made with low quality materials or craftsmanship, and quickly falls apart and becomes useless.
An example is buying a computer that is very inexpensive but it only last for 3 years, versus paying slightly more, say 30% more for a computer that last for 12 years — the savings is obvious. On the other hand, you can purchase an extremely expensive car, the upkeep is extremely expensive, and the breakdowns are frequent. That car may look good and go fast, but has little value for practical use and longevity. The maintenance cost out way the looks and performance.
- Teach your child about budgeting, savings and costs to round out your child’s budget
The earlier a child understands what a budget is, how to budget out the total sum of the money they receive, and how cost effects their savings, the better they will be in the future.
Sit down and decide with your child what is important for them, you can look at the internet or newspapers and find the prices of items they are interested in. Inform them that prices change from time to time, but this will give them an idea of what they must save. Allow them to set short term savings goals – a sports item like a basketball or doll, and a long-term savings goal like a more expensive game.
When you buy their more expensive items like bicycles, ATF’s, computers, and clothes, use this time to also discuss value, longevity, and cost.
Using steps 1,2, and 3 will allow your child to start early to process a functional child’s budget, so they can take budgeting into their adult life as an expert.
Grab Your Free Money Tips Course Below!
Lois Center-Shabazz | Course Delta Agency
Personal Finance: Author, Blogger, Course Creator, Money Strategist
Interested in a Free Discussion about how I can help you with Fantastic Finances? Let’s Chat – Make an Appointment Here
GET YOUR FREE Fantastic Finances Tips Course by eMail
7 STEPS OF NEW INVESTORS FREE PDF
YOUR FREE PRINTABLES FOR HOME OR BUSINESS MORE FREE PDFS
JOIN MY PERSONAL FINANCE FACEBOOK PAGE
How I Build Fantastic Finances ; Read More…
Personal Finances Should be Personal
Your Personal Finances
I was speaking at a women’s meeting about personal finances and a young woman, about 35 came up to me and ask me what are “personal finances”. I was really shocked since being there meant that she was in some way affiliated with a business she owned.
She looked me in the eye with a very serious face. I pointed to her and said “your – personal – finances”. Your finances that you take very personal. You monitor, you manage, and constantly improve your finances yourself, even if you have help. It’s crucial that you understand your own finances.
It seems like it would be common sense to understand the term personal finance. But, the definition seems to elude some of the most intelligent, and highly successful people. The proof is in the finances of many.
The workplace embezzlements of high-level employees, the bankruptcies of high-income people, the general personal finance mismanagement of people which becomes evident when they lose a job and lose all or most of their assets due to mismanagement.
I CAN SUM IT UP IN 3 WAYS:
-
RANDOM SPENDING
Take your finances serious – don’t randomly spend money. This is the most important aspect of personal finances. Some folks act as though the money they have in their checking account belongs to someone else, so they spend it until it is gone or before all bills are paid.
Then they go to the credit cards, when those run out, they go to others to borrow money and make up the difference. Then they lose relationships, which is can be more serious than wasting their money.
-
TRACKING YOUR SPENDING
Keeping track of your spending is getting very personal with your finances. Most people don’t understand how fast money goes when it is spent randomly. You can see this also when you charge on credit cards the balance escalates rapidly.
A major aspect of getting personal finance maintenance is paying cash as much as possible unless you use a credit card for points and you have the money and discipline to pay off the balance once a month. With frequent credit card use, many tend to lose track of spending, and their finances become very impersonal.
-
BUDGETING YOUR MONEY
I talk to people all the time who tell me they thought they were budgeting until they read many of my budgeting articles and the advice I give on budgeting. My program includes guerrilla budgeting.
With all the distractions, we have – advertising – expensive products – overpriced cars and high maintenance homes- getting personal with your finances means that you must create a guerrilla budget to survive no matter what your income.
Some folks think all they must do is make more money until they find out they spend more for things and get more expenses, so they are either in the same place or worse financially, as income goes up. They realize the problem is they did not get personal with their finances.
Get Budgeting and Savings Right With the Budgeting Bundle
Lois Center-Shabazz | Course Delta Agency
Interested in a Free Discussion about how I can help you with Fantastic Finances? Let’s Chat – Make an Appointment Here
Get Your FREE Fantastic Finances Tips Course by eMail
How I Build Fantastic Finances ; Read More…
Get a Quality Home or Mortgage With Big Thing Buying Skills
Home or Mortgage; Buying an Affordable Low Maintenance Home and Get a Quality Mortgage
YOUR BUDGET
The first thing you have to ask is, “How much house can we afford” The payments include P+I+T+I (principle+interest+taxes+insurance). Most of your payment will be principle and interest, taxes vary according to state, and insurance is not a very big cost.
But, you can figure it out with most online calculators. You have to know how to calculate P+I+T+I to get a quality home or mortgage.
You should be stable in your job or with your business before you decide to take the leap to sign on with a mortgage.
Most banks want you to be on your job or in your business for a solid two years. Set up a file system for steps 1-8, don’t rush and do your research.
Step 1
MORTGAGE COST
Below is a typical cost analysis of a home or mortgage with average tax state, always find out how much typical insurance and taxes are in your state before you decide your budget.
Choose a home price you think you can qualify for based on total payment. You will keep adjusting home price until you can find one that is close to your budget. Use my mortgage amortization calculator at LiveRichCalculators.
Say your home or mortgage costs are as follow:
$300,000 price of home
at, 4% interest
30 year
Taxes=6000/yr
Insurance=500/yr
Monthly Payment and Interest=1,432.5
Monthly Taxes and Insurance=541.67
Total Payment=$1,973.92
Step 2
DOWN PAYMENT AND ESCROW COST
Find out what a typical down payment is at your credit union, bank, or mortgage company. Now, make sure you have the savings or start a savings account with the down payment and escrow cost.
If you find a buyer who is anxious to sell and they have a lot of equity in their home sometimes you can negotiate that they pay your buyer’s escrow cost.
For the example above the downpayment is:
5%=$15,000
A 1% escrow cost = $3000
Step 3
MAINTENANCE COST
Allow a monthly saving account for maintenance cost, most homes have maintenance repairs from time to time.
Old homes usually have a higher maintenance cost than newer homes, unless all electrical, plumbing and other major items replaced. The important aspect of a good home is a good inspection, preferably by tradesmen.
I prefer hiring an actual plumber, electrician, and carpenter to inspect your new home instead of one single home inspector. Some of those home inspectors only take a 6 month home inspection course.
The tradesmen work in the field every day for years. You should also do your own inspection with a moisture meter and electrical meter to see if there are any glaring defects.
If you place a marble on the floor does it roll or stay put, if it rolls you could have a damaged foundation. That is extremely expensive to repair. If you know the repairs you may be able to add those into your mortgage and fix after your move in.
Step 4
CREDIT REPORT
Get a copy of your credit report before you start to look for a home. Read it carefully. Some people are shocked at the mistakes that get on their credit report. Make sure you document the mistakes on your credit report and challenge them with Experian credit bureau.
Experian will usually send the corrections to the other bureaus. When all corrections are in place, get another copy of your credit report, and credit score. Getting an affordable, quality home or mortgage starts with a good credit report and high credit score.
Step 5
PAY OFF BILLS
You know what your bills are, and you know if they are excessive. You will need to find room in your budget for a mortgage. You don’t want a mortgage that increases your current bills per month too much.
Like you don’t want to get from $500 per month of rent to $1900 per month for a mortgage unless you have been saving at least $2500 per month so that savings will go into your mortgage.
You should also still have room for a savings account or two after you get a mortgage. You will need savings for home maintenance, car maintenance, and general emergencies. Pay off as many bills as possible before you start a mortgage.
Step 6
SAVE FOR A DOWN PAYMENT AND CLOSING COST
Down payments are ranging anywhere from 5% to 10% down. The more you put down, of course, the lower your monthly payment will be. Then, there are buyers closing cost you must pay also. This is usually a surprise to new home buyers.
Closing cost is typically 2 to 5 percent of the purchase price. So, for a $300,000 home, the closing cost would be about $9,000.
Step 7
MORTGAGE RESEARCH
Before you decide to use a financial institute, do your research. If you have a credit union or local bank you do business with and you have good credit, it is usually relatively easy to get a loan at one of those places and you will save on additional cost that is charged by mortgage companies.
If you can’t get financing from your credit union or bank, research the best mortgage companies in your area. You can also ask friends and family who they had good luck with.
Before your visit anyone for a mortgage. Research mortgages, make absolutely sure you understand what a quality mortgage is. Know what the current rates are for a 15 year or 30-year mortgage.
Don’t allow anyone to give you a low-quality mortgage, if they think you have not done your research, some will try to give you a low-quality mortgage, even if you qualify for a high-quality mortgage.
If you qualify for a low-interest high quality conventional low-interest rate 30-year mortgage, make sure you get one. The industry is full of nice, dishonest people, protect yourself.
Step 8
MORTGAGE RATES AND QUALITY
Call your local credit union or bank to get current rates on quality mortgages.
Use my mortgage calculators at LiveRichCalculators.
Use the department of housing website to read about various types of Mortgage Issues.
This is most of the information you need to purchase a quality home or mortgage if it is your first home or your second or third.
Get all the facts to buy a quality affordable home with low maintenance.
Lois Center-Shabazz | Course Delta Agency
Interested in a Free Discussion about how I can help you with Fantastic Finances? Let’s Chat – Make an Appointment Here
Get Your FREE Fantastic Finances Tips Course by eMail
How I Build Fantastic Finances ; Read More…
Don’t forget | JOIN ME ON MY FACEBOOK PAGE AND LIKE MY PAGE AT:
Lois page
Summary
Remember that buying a home is a serious process. You should take your time and be very methodical.
Some places have home prices that are outrageous – in that case, you may have to drive a long distance to get to work, by living in an affordable area further from your center of town.
Some towns have affordable housing compared to income. Take your time it may take anywhere from 6 months to 5 years to go through the process I list above. Article Updated 2019
An Excerpt From My Mutual Funds eBook
Introduction to Basic Investing
Would you give your baby to a stranger and tell them, I will be back to pick up my baby in 21 years? Make sure you take good care of him or her. Your answer should be an emphatic “no”, if you care about yourself, your baby, or your lives.
The same should hold with your financial future. Your saving and retirement investments. If you want to be successful accumulating money for future use, either the near future or the far future. Just like your children, you must know who is managing your money and what they are doing with your money, what the risk are and what the investment costs; rather stocks, mutual funds, CD’s, money markets, real estate or annuities. It all cost money to invest money, in terms of fees.
Online Investment Portals
Because of online investment portals, it is relatively easy to research and learn about investing well enough to analyze investments that your broker recommends. You can also monitor your investments at online portals and study the latest information about investments and investing.
Why I Wrote My Mutual Funds eBook
Some folks think you have to be rich to invest money. That is not true, and why I wrote the mutual funds eBook. You have choices of investing in your employee retirement account. You can save for college in an investment account, you can save for an individual retirement account, and save for general savings. All of these require basic investing knowledge by first reading this eBook and then going online to study investing in the online portals, then you can set up an account and monitor the progress.
I started investing a long time ago. First, I used brokers at brick and mortar companies. But, quickly became discouraged because I didn’t know what they were doing with my money. I worked hard for that money. I never had the fear that I was involved in a Madoff type investment firm (as you recall Bernie Madoff stole billions of dollars from investors in an illegal firm), because I used major investment companies.
But, you can still lose your principle with major firms, if you use investment advisers who invest your money in high risk investments that go under. First of all, there are low risk investments that pay good returns over time, and very low cost investments, where the cost don’t eat up your returns.
After I used brick and mortar companies that didn’t tell me what they were doing with money, I started using online companies. I took classes, I read quality investment magazines, I read books, and then I talked to online investment advisers associated with my online investment company.
Investment Research
I also read a lot of investment research in my online investment portal. Knowing my investments, monitoring my investments, and getting top notch advice when I need it made all the difference in my bottom line.
By the time you finish this eBook you should know the difference between a high risk and low risk investment, a bond, mutual fund and money market account, and money market investment, and a stock. By the way, most investments and most areas of life are based on stocks. Stocks are the basic investment. Pretty much everything you use is derived from a company that invests your goods or services in “stocks”.
Mutual Funds Origin
Mutual funds are based on stocks, annuities are based on stocks. The other vehicle is bonds, the opposite of stocks. With both stocks and bonds — you have high risk and low risk in each category and you have high cost and low cost in each category.
There are other types of investments as well. The main caveat I always used is, “I don’t ever invest in anything I don’t fully understand”. I don’t care what ANYONE says, “if I can’t research it and understand it, I don’t invest in it”. I also make sure that any company I use is a registered investment company with a verifiable good reputation.
My Primary Investments
My primary investments are in mutual funds. They are especially good for beginners and busy people since they are professionally managed, you can find low risk funds, and low cost funds to invest in.
Do you want to be a vulnerable and confused person? or a Knowledgeable, happy and self-assured investor? You can start with my complete, easy to read and understand mutual funds eBook. Contact me with questions when you are done. Learn investing; From Stocks to Mutual Funds in 47 Ways.
Since mutual funds consist of a basket of stocks, I start the conversation with beginner stock knowledge.
Learn How to Get All of These Personal Finance and Investing Books Free
Join my Personal Finance Facebook Space
Lois Center-Shabazz | Course Delta Agency
Author, Blogger, Course Creator, Investor, & Money Strategist
Interested in a Free Discussion about how I can help you with Fantastic Finances and talk about how mutual funds can help you? Let’s Chat – Make an Appointment Here
Get Your FREE Fantastic Finances Tips Course by eMail
How I Build Fantastic Finances ; Read More…
3 Reasons I teach Women to Invest in Mutual Funds
1. I teach women how to invest in mutual funds because women frequently do not have knowledge of Investments
Investing and particularly how to invest in mutual funds, are generally not taught in grammar school or college. When investing is taught by parents or schools, boys are usually the target for investing in education since they are the ones they feel will be the family wage earners.
Unfortunately, women are not encouraged to learn to invest, instead, they are taught the mantra, “don’t bother your pretty little head attitude”. I had a male vendor visiting my office noticing investing bulletins on my desk and ask me, “how did you learn about investing”.
I told him, the same way men do. Then, he says “No, I mean, really how did YOU learn”. I ignored him since I knew that he was referring to the male stereotype of investing. I did not feel that was an appropriate question.
Some women are partly to blame because they have the “Prince Charming Syndrome”. Even though women have made many advances in education, some women and their Dads are convinced that they don’t have to bother their “pretty little heads”.
The theory is that Prince Charming is bound to come into their lives, even though it usually doesn’t work that way.
-
Women Usually Live Longer Than Men
According to multiple news sources, women make less than men generally and that makes it even more essential to concentrate on understanding investments you can choose for your retirement. 401k accounts are made of mutual funds directly or in annuities that contain many mutual funds.
Either way, the more you know about mutual funds, the better your 401k will be since you can choose quality mutual funds in your account.
We all know that women usually live longer than men. This means that if you inherit your husbands’ investment account you can manage it with impunity, you don’t have to rely on an outside person. This is especially important since elderly people are frequently the target of unscrupulous investment advisors.
Remember Bernie Madoff, there are many mini-Madoff’s, as I call them, known as lower-level investment scammers. This is a critical reason I teach women to invest in mutual funds.
-
Women Usually Invest in Simple Low-Profit Investments
Because women don’t usually get investment education, they don’t have quality investment knowledge. The consequence is that they frequently choose low-interest simple investments like CD’s and Money Market accounts losing out on years of high-interest quality accounts like mutual funds, blue-chip stocks, and bonds.
The difference in your balance can amount to hundreds of thousands to millions in losses.
Understanding mutual funds are not difficult when you get the right information.
Learn How I can teach you to understand mutual funds like a pro
JOIN OUR ENEWS AND GET A 60-DAY MsFinancialSavvy Tips! ECOURSE
Lois Center-Shabazz | Course Delta Agency
Personal Finance: Author, Blogger, Course Creator, Money Strategist
Interested in a Free Discussion about how I can help you with Fantastic Finances? Let’s Chat – Make an Appointment Here
GET YOUR FREE Fantastic Finances Tips Course by eMail
7 STEPS OF NEW INVESTORS FREE PDF
YOUR FREE PRINTABLES FOR HOME OR BUSINESS MORE FREE PDFS
JOIN MY PERSONAL FINANCE FACEBOOK PAGE
JOIN OUR ENEWS AND GET A 60-DAY MsFinancialSavvy Tips! COURSE
3 Common Types of Mutual Funds
Types of Mutual Funds
There are many types of mutual funds within these three types of mutual funds. Here are the 3 different major types of mutual funds. The risks of mutual fund investing runs the gamut. There are very low risk to very high and many levels in between, within one type of fund.
Do your research thoroughly before investing, use my easy to understand ebook and course for research. Your understanding of mutual funds will skyrocket.
My experience with mutual funds is long and wide. The information I share with you reflects my decades long experience.
Get 6 Weeks of Fantastic Finances Tips Here
1. Allocation Mutual Funds
Risk: Low to Medium
Allocation mutual funds are a combination of stock and fixed income securities and are subject to the risks involved in each of these security types.
Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. In general, the bond market is volatile with fixed income securities that carry the interest rate, inflation, price volatility and other risks. Another way to invest in mutual funds is in bond mutual funds.
2. Alternative Mutual Funds
Risk: From Low Risk to High
The mutual fund may invest in securities that may have a leveraging effect (such as derivative and forward-settling securities). This may increase market exposure, magnify investment risks, and cause losses to be realized more quickly.
3. Money Market Mutual Funds
Risk: Very Low
A money market mutual fund is a type of fixed income mutual fund that invests in debt securities. They are characterized by their short maturities and minimal credit risk. You could lose money by investing in a money market fund, but the chances are nominal.
Pick Up Your Free Downloadable Financial Printables Here
An investment in a money market fund (different from a money market saving account), is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Before investing in mutual funds always read a money market fund’s prospectus for policies specific to that fund.
There are many types of mutual funds which I cover in my full Fantastic Finances Course.
Learn to Invest: From Stocks to Mutual Funds in 47 Ways Will Clarify Mutual Funds for You.
