Archive for September, 2008

Money $Smart: Spend Wisely – A Funny Story

I hope many of you got the essence of being Money Smart from my previous blog post. It is simple as it sounds to be smart about Money. In my point of view, I summarized as “Make xtra, Spend wisely, Save graciously and Manage rightly”

With all the financial chaos and uncertainity about the economy, we all need some stressing out to do. There is lot more mess to come out so take a deep breath and stay away from financial market for sometime. At this time, I just thought of lightining you all up by sharing a funny story. Some might have already heard but still good to revisit and ponder on. It emphazies one of the core aspect of being Money smart, “Spend wisely“. Read on and enjoy.

Story: Parking in New York (Courtesy: google) A gentleman walks into a bank in New York City and asks for the loan officer. He says he is going to Europe on business for two weeks and needs to borrow $5,000.

The bank officer says the bank will need some kind of security for such a loan. So the gentleman hands over the keys to a new Rolls Royce parked on the street in front of the bank. Everything checks out, and the bank agrees to accept the car as collateral for the loan. An employee drives the Rolls into the bank’s underground garage and parks it there.

Two weeks later, the gentleman returns, repays the $5,000 and the interest, which comes to $15.41. The loan officer says, “We are very happy to have had your business, and this transaction has worked out very nicely, but we are a little puzzled. While you were away, we checked you out and found that you are a multimillionaire. What puzzles us is why would you bother to borrow $5,000?”

The gentleman replied, “Where else in New York can I park my car for two weeks for 15 bucks?”

Moral of the Story: Obviously, the multi-millionaire knows the value of money who spent it real wisely and innovatively. What a bargin? His car was safe for just $15.41.

Think about it, Ponder on it. It might be really true but it is innovative and teaches us a lesson. If a multi-millionaire can spend wise for just $15, you can do it too.

Are you Money Smart$$$?

“Money Smart” – I recently came across this catchy phrase when I was checking about Houston Money Week 2008. It is a week long event put together by Federal Reserve partnered with few financial instituations in and around houston to create financial literacy. It has be cancelled because of Hurricane IKE. Lets get back on the talk about “Money Smartness”. This phrase really intrigued me because it tells the core concepts of my money really matters mantra. I even incorporated it in my slogan as “Get Money Smart, The Right way!!”


Are you Money Smart?


Let’s take a quick moment and ask some questions to ourselves and figure out.
Are you the one,
clipping coupons for every grocery item you can find in any grocery store ad?

always try to be the first in line for any door busters sale beating the crowd?

who signs up for every freebie coupons and free raffles?

who checks the internet to find the cheapest gas station nearby?


The list just goes on and on. I don’t see anything wrong in saving money in whatever way possible. I agree with phrase, “A Dollar saved is Two earned”(Check out mymoney blog for the proof). But, only these activities won’t make one a Money Smart person. It is just one part of the Pie. There are few other important portions of the Pie which is as important as Spending.


What is Money Smart?



Money Smartness$$ is about “Making extra, Spending wisely, Saving graciously and Managing rightly”


Let me dwell into it more deeply and share my perspective on each of them.

Make extra – We all know, everybody needs money for survival and we all work towards earning that very money. You ask me, we are already earning it with whatever time we have. What do you mean Make extra? How can I make extra if I can only spend certain hours a day? Answer is, Yes You can make money in lot of other easy ways even while you are working. You are earning to pay bills using your hard learned educational knowledge. You can turn your passion or hobbies as a money making machine.


Spend wisely
– We all got to spend money to live our life. We need a place to live, food to eat, clothes to dress decently, go places, do charity and list adds up as our need grows. It upto to us to sort out and prioritize which need is more essential and channel our spending to the right important ones. For example, if you really need a car to commute, instead of taking a cruise or vacation you better spend that money to buy a decent car. Spending for the right need at right the time with right price is totally wise thing to do.
 

Save graciously – Savings is like antibodies for a healthy family. If you store up health antibodies, it will help you make your body immune to bad disease. Simiarly, without any type of savings your family will sure to struggle when there is a urgent or emergency need for money. So Putting away money on periodic basis will help you save lot of frustration and save you from falling in debt. You don’t have to open a bank account to do it. You can even use your child piggy bank to start throwing away your pennies and dimies every day which will eventually grow in tens of dollars.


Manage rightly – You make the money and you should be in control of it. You shouldn’t let others make decision for you. You take their advise but you manage the way you want your money to be managed. They are not going to be living with the loss or gain. It is you and you only who is going to take the hit or miss. So Manage Money in the right way by investing in right place with proper education and guidance.

How can you become Money smart?

Getting Money smart is not just about following some tricks and tips. It is about changing your thought process and taking necessary actions which will eventually make a difference in your life style. In order for that happen, you need to start out slowly and make the change. Fast is in’t always good, Slow and steady sustains longer helping you to win your financial goals.



1. Change your attitude slowly towards Money and start thinking towards Making extra, Spending wisely, Saving graciously and Managing Righthly.


2. Try to check out things on the arena of good money managment tips and techniques from various resources like internet, expert advice and more.


3. Reguarly read books and magazines on smart money strategies, savings ideas and get updated on new financial changes. I have recommended few books which I think are real good to start out.


4. Attend free seminar or workshops arranged by resources like libraries, banks and financial institutions. Filter the marketing information, only take what you really need.


5. Implement the ideas and strategies in you real life slowly by changing your current habits and taking actions.


6. Start teaching your kids once they are at age about money and cultivate the habit of saving.



Happy reading on getting Money Smart!!!


Hurricane IKE’s impact on Houston & Galveston

Hurricane IKE showed it’s wild act by devastating Texas coast – Galveston and Houston on Saturday – Sept 13th, 2008. After a week long speculation of whereh and when IKE will be headed, it finally made the landfall on Texas coastal line with the eye just brushing Houston on Saturday inking his footprints in the history of Space city. It will be talked for years to come as one of the hurricane which devastated the city like Hurricane Alisha and Carla.

Houston, the fourth biggest city was totally devastated and halted from it regular busy schedule for the few days because of IKE’s horrifying act. It was big storm labeled as Category 2 Hurricane with 110 mph wind speed when it hits Galveston and inland it was like 60-80 mph hitting us pretty hard. I never heard a wind gust like that ever in my life. It was that bad and fast. I can see out of my window, the trees were torched and many couldn’t withstand breaking into pieces. As of Sept 16th, the death toll was 40 and expected to increase as the rescue teams move into more destructed areas of the Galveston coast.
Due to well planned Preparedness by the city officials both in Houston and Galveston compared to the never came Hurricane RITA few years ago, loss of life was reduced. Traffic Jam wasn’t bad for people who tried to evacuate the day before the storm. It was very well managed except some hicupps in getting the help for the aftermath.
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