Dollar-cost averaging 101

December 25, 2011

Dollar-cost averaging 101

Everyone knows the market goes up and down.

A common adage is to “buy low and sell high.” Trouble is, it’s next to
impossible to know exactly what the market will do in the near future.
What’s more, most individuals don’t have the discipline or courage to
try to time the market, says John Markese, president of the American
Association of Individual Investors.

“People who watch the market tend to put money in when it goes up and
never put it in when it goes down. Or if the market’s gone up, they’re
afraid they’ve missed it and they don’t do anything,” says Markese.

That’s where dollar-cost averaging comes in.
“It’s a discipline that reduces risk, not something to get rich quick.”

It’s a technique whereby you invest a set amount of money on a
systematic schedule over the long haul regardless of how the market is
performing. Because you’ve put your investing on autopilot, you’ll end
up with more shares for your money when the market is down. But if
stock prices rise, you wind up with fewer shares.

“It’s a discipline that reduces risk, not something to get rich
quick,” says Markese. “And that’s the whole point. It gets you
started. Don’t worry about where the market is. Start and put money in
on a regular basis, let’s say every month. It’s easy to do.”

In fact, if you’re enrolled in a workplace retirement plan where
earnings are automatically taken from your paycheck, then you’re
already dollar-cost averaging. But you can adopt this strategy outside
your employer’s plan by arranging for funds to be invested in other
types of retirement accounts on a regular basis.


Congratulations! You have managed to save, and quite a bit too!

Now, do you have plans for your savings? Perhaps you intend to buy a
Playstation or that expensive tennis Wilson racquet once you have
accumulated enough. It’s good to have a goal when you embark on a
savings programme because the goal encourages you to save – rather
like dangling a carrot in front of the donkey, although you are far
from being a donkey if you are clever enough to give yourself a
motivation to save.

So if you don’t have a goal, think of one. You don’t have to confine
yourself to one goal – have several goals if they help you save more,
as long as they are realistic and worthwhile objectives.

Meantime, while you save furiously towards your goal or goals, where
do you keep your savings? Stashed away in your drawer? That’s not a
wise thing to do, because there is this terrible thing called
Inflation which, figuratively speaking, is just waiting to gnaw at
idle savings. It sees your money just lying there in your drawer and
wham! it’s got your money in its jaws!

Inflation & Purchasing Power

What is Inflation? No, it’s not an insect or animal. It’s abstract.
Inflation is the economic term for rising prices, or rising cost of
living. Inflation is when the prices of things you buy are rising.
Let me give you an example. Let’s say your family takes grandmother
out to dinner at your favourite Nyonya restaurant. It’s your
grandmother’ s first visit to Kuala Lumpur or to a city for that
matter – she lives in a small town and she hardly ever ventures
beyond her garden gate.

Of course, you have to order your favourite dessert – ice kacang! You
can’t resist that pile of crushed ice rainbow-coloured by syrups and
milk, sitting on top of various beans, corn, bits of jelly, longan
and what-else-have- you, and topped with ice-cream. When your father
fishes out RM4.50 to pay for your ice kacang – watch out for grandma!
She might fall off her chair in shock! Why? Because during the time
she was a kid, ice kacang probably only cost 10 sen. TEN SEN??!! Now
it is your turn to fall off the chair!

That’s what we mean by inflation. Rising prices. Sixty years ago, an
ice kacang cost 10 sen. Today it costs RM4.50 at a proper restaurant
and RM1.50 from a hawker stall. Its price has shot skyward. Put in
another way, inflation has reduced the purchasing power of money
through time. Your granny’s 10 sen cannot buy a bowl of ice kacang
today, maybe only that bit of crushed ice. The 10 sen has lost a lot
of its buying power; it buys less than what it did 60 years ago. In
fact, today’s hawker price of ice kacang won’t stay RM1.50 forever.
It will go up and you don’t have to wait till you are a
grandmother/ grandfather to see this. By the time you are a
mother/father, we’ll bet an ice kacang would probably cost nearer to
RM2 at the stalls.

That’s inflation for you. And the sad news is that inflation does not
only attack foods. It is pervasive, sinking its claws in all things
and services that are part of living – clothes, furniture, bicycle,
house, cinema tickets, taxi fares, park rides etc. etc. That’s why it
is called the rising cost of living.

So what does this mean for your savings? Simply that if you just
stash away your savings – let’s assume that you have saved RM100 – in
a drawer, your RM100 just remains RM100 until you want to use it.
Meanwhile inflation is nibbling away at the value of your RM100 so
that when you actually use it much, much later, your RM100 is not
going to be able to buy you as much as when you started to save it.
This is because – depending on how long you keep your money – prices
of things would have risen in the meantime. Of course, if you
immediately use your savings, inflation probably won’t have a chance
to work yet. But then, we are talking about a savings programme here,
and that means a long enough time frame for your savings to grow –
and for inflation to kick in.

So what must you do? To fight inflation, you must make your savings
grow in value, faster than the inflation rate. If you just let the
RM100 of your savings stay the same, you know that through time the
purchasing power of your RM100 will not be RM100, but less – because
the prices of things are continuously rising. However, if your RM100
savings could grow to, say, RM150; then in future you can not only
buy the same things that your RM100 could at the start of your
savings, you can also buy more things.

Investing is the way to go

To make your money grow, you certainly do not leave your cash in your
drawer or stuff it under the mattress or anywhere else where it just
stays put, and forget about it until you want to use it. To make your
money grow, you must do a second smart thing – your first smart move
was to save – you must invest it.

Investing is defined as using your money (in this case, your savings)
to make more money. Grown-ups, the wise ones, do that. They invest to
make money with their money and when this has grown, they re-invest
the bigger sum and in the process of re-investing again and again,
their money is doubled, tripled or multiplied many times more. That’s
how people get rich – not through winning the lottery (you have one
chance in 7 million or something like that) but through saving and
investing. You can do the same with your small sum of savings and
watch it grow.

There are different ways to invest your money so as to earn a return.
A return is the amount of earnings or income that you get from your
investment. The easiest and most common way is to put your savings
into a bank savings account or fixed deposit. Your savings will grow
because the bank pays you a certain sum of money (your return) called
interest, as long as your money stays with the bank. This way your
savings grows until you want to use it and when you withdraw it from
your bank account, the amount of money that you have now will be your
original savings plus the interest it has accumulated. It is no
longer just your RM100 but a bigger sum.

So bank accounts are one type of investment. Another is investing in
the stock market by buying shares of companies. Many adults do this.
We shall explain more about shares in another article. For now, know
that people invest in shares, hoping to earn a return in two ways.
One is from receiving dividends, which is simply the monetary reward
that companies pay out to shareholders when the companies perform
well. The second is from realising a profit when they sell off their
shares. Profit is the gain in money between what you paid for the
shares and what you get when you sell the shares. Simple Maths will
explain profit. For instance, if you had a savings of RM600 and
bought 200 shares for RM3 a share, and three months later, you sold
your 200 shares at RM4 a share, you would make a profit of RM200.

Here’s how:

Cost of buying 200 shares at RM3 a share = 200 x RM3= RM600.
Amount of money received from selling 200 shares at RM4 a share = 200
x RM4 = RM800.
Profit = Sale minus Purchase = RM800 – RM600 = RM200.

The profit has made your savings swell from RM600 to RM800.

There are other ways of investing your money.

You could even buy a house, if you have loads and loads of money
(say, through inheriting a fortune from your favourite aunt who
passed away). If you rent out your house, your return will be the
amount of rental income you receive from your tenant. Which
investment method you choose depends on factors like how much savings
you have and how much returns you want to make. Each investment has
its pros and cons.
For instance, investing in shares can earn you more returns than bank
accounts, but it is riskier. If you put your savings into a bank
account, your money is safeguarded. You can’t lose it like you can
lose your money in shares if you pick the wrong share to buy. Even if
the bank gets robbed, or burnt down or goes bankrupt, the law of the
country provides that you will get your money back. Not so with
shares investing. However the return from the bank interest is rather

Investing in property like a house could earn you massive returns,
but it is a long-term investment. It would be years and years before
the prices of houses rise for you to sell your house and make a
profit. (Remember? Profit equals Sale minus Purchase.) Getting your
return from investing in shares is much, much faster but like we said
before, you must be smart (and lucky enough) to select the right
share to buy or else you could lose your money invested.

In fact with all types of investment (except perhaps for bank
accounts), there is always a possibility of losing your savings, much
less about getting a return. If you invest unwisely, you could lose
both your original sum of savings and get no returns at all.

However, there’s no mistake about this: investing is the way to build
your wealth.

You just have to invest wisely.

Source: financial- compounding- effect.html
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Understand the Compounding Effect of Money

The compounding effect of money is extremely important when making
any financial decision. The compounding effect of money is often
overlooked or underestimated by people when making decisions. When
applied to all of your financial decisions, this effect is the KEY to
long-term success! To illustrate the compounding effect of money, let
me use some financial examples:

Suppose you had invested $1,000 today in a 5% savings account. In one
year, that account would be worth $1,050 [$1,000 + ($1,000 x 5%)],
yielding a $50 gain. However, in year two, that same initial
investment would be worth $1,102.50 [$1,000 + ($1,000 x 5%) + ($1,050
x 5%)], yielding a $52.50 gain. And in year three, the same $1,000
would be worth $1,157.63, yielding a $55.13 gain. By year ten, the
initial $1,000 investment would be worth $1,629 and by year 25 it
would be worth $3,386.

From looking at this example, you can see that investing $1,000 today
is much more valuable than investing $1,000 even a couple of years
from now. To accumulate wealth, you MUST use the time value of money
and the compounding effect of money to your advantage. Click here to
see how long it will take to save a million dollars.

This second example shows how the compounding effect can work against

Suppose you borrowed $20,000 to purchase a car and your auto loan was
at a 10% interest rate (for 5 years). Your monthly payments would be
$424.94. Because the $20,000 loan continues to compound over the life
of the loan, you actually pay $25,496.45 over the five-year period,
meaning that you’ve in essence paid $5,496.45 because you spent the
money before you had it. In fact, in your initial payments, the
interest alone will account for almost 40% of your monthly payments.
In this case, the bank or lender that gave you the loan uses the time
value of money to their advantage.

Now look at this scenario, where instead of making the $424.94 car
payment, you invest that payment at the same rate as what your car
loan was (granted it’s a little high for a savings rate, but not
unreasonable for other investments) . Now, instead of paying the bank,
you are actually earning interest and compounding the benefit
yourself. After one year you will have saved $5,340 and have earned
$240 in interest. After two years, you will have saved $11,239 and
have earned $1,039 in interest. By the third year, your investments
will be worth almost $18,000 and you will have earned $2,457 in
interest. By month 40, you will have enough money to purchase a
$20,000 car in cash!

So let’s weigh the differences between the two scenarios above. In
the first case you paid the bank $5,496 to borrow the money and in
the second case you earned $2,457 and could buy the car in cash after
just 40 months (just over 3 years)! The opportunity cost of the first
alternative versus the second alternative results in a net difference
of $7,953 (a $2,457 gain versus a $5,496 loss). That means that by
making a simple deferral decision (buying the car in 3 years versus
today), you can get ahead by almost $8,000!

When should I start saving?

December 25, 2011

When should I start saving?

The answer is simple: as soon as you can. Ideally, you’d start saving
in your 20s, when you first leave school and begin earning paychecks.
That’s because the sooner you begin saving, the more time your money
has to grow. Each year’s gains can generate their own gains the next
year – a powerful wealth-building phenomenon known as compounding.

Here’s an example of what a big difference starting young can make.
Say you start at age 25, and put aside $3,000 a year in a tax-deferred
retirement account for 10 years – and then you stop saving –
completely. By the time you reach 65, your $30,000 investment will
have grown to more than $472,000, (assuming an 8% annual return), even
though you didn’t contribute a dime beyond age 35.

Now let’s say you put off saving until you turn 35, and then save
$3,000 a year for 30 years. By the time you reach 65, you will have
set aside $90,000 of your own money, but it will grow to only about
$367,000, assuming the same 8% annual return. That’s a huge difference.

* When should I start saving for retirement?
* Where should I save my retirement money?
* How should I invest the money?
* How should my strategy change as I get older?
* How much money will I need in retirement?
* Will pensions and Social Security be enough?
* How much should I save?
* What if I can’t save enough?
* How can I reduce the amount I’ll need?
* What if I’m running out of time?
* I’m saving a lot but will still fall short – what now?
* When can I retire?

http://money. nt/guide/ basics_basics. moneymag/ index.htm? postversion= 2008090815

Savings to Wealth Or Poverty

December 25, 2011

Savings to Wealth Or Poverty
By Olumuyiwa Johnson


Savings is the act of putting aside, for sometime certain portion or
percentage of your income to either buy an item, prepare for some
unexpected expenses, or for investment purposes. For the purpose of
this write-up, we would be considering savings for investment
purposes. Most people would advice you to save up to 10% of your
income, but taking a look at the biblical story of Joseph in Egypt,
where he saved one fifth or 20% in the year of abundant, which was
their saving grace in the year of famine. I believe there is a divine
wisdom in paying yourself 20% of your income, if you can afford it.


Some people believe that their income is too small, and not sufficient
to meet all their basic needs, so they use this as an reason not to
save. This shows that they do not understand the commandment, you
shall love your neighbour as yourself, and not you shall love your
neighbour more than yourself. Whenever you spend money, you are paying
someone else, rent your landlord, transport fair the owner of the
means of transport, school fees the proprietor and buying food or
cloths the retailer. As you continue to do this, you are helping all
those you paid financially, but when you spend all your income, you
are not helping yourself. It is the little that you pay yourself by
saving, that would empower you (enable) to take advantage of
opportunities, when it they come.

It is the first step out of poverty and rat race. Many people believe
that the first step to wealth is getting a good job or starting a good
business. But what has been discovered overtime is that your expenses
and taste will increase as your income increases, so the only way out
is for you to put a certain portion of your income aside for
investment purpose. Do you know that a seed in your hands today can
become a tree tomorrow, and a tree a forest? Likewise that small
amount of money with you today has the potential of becoming millions
and billions if, it is allowed to grow and multiply with time.


In as much that it is good to save, make sure that it does not exceed
six month before you put it to productive use, if not, the effect of
inflation would reduce the economic value of your savings. No matter
how small your savings is, find something to invest in. All savings
that are not made for investment purpose cannot empower you to create



Savings itself has a spirit, the spirit of being sensitive to
investment opportunities. As you begin to save, you should become more
interested in what in the stock market, real estate and so many other
opportunities offline and on the Internet. Seek for information,
subscribe to some financial journals or site on stock, to get updated
information on investment opportunities, and when necessary please be
prepared paid for such information, proverb 4:7 Wisdom is supreme,
therefore get wisdom, though it cost all you have, get understanding.
As you begin to gather and analyses information on difference
investment opportunities, you will discover that there are some, in
which you could start small, like buying into penny stock. Please do
not wait until you have about half of your monthly income, before you
invest, start small. Continue to do this and watch your investment
grow and grow, until it turns into a well, where you can always draw from.

———— ——— ——— ——— —
Article Source: http://EzineArticle Olumuyiwa_ Johnson

Success Quotes

December 5, 2011

Perseverance, n.: A lowly virtue whereby mediocrity achieves a glorious success.
– Ambrose Bierce

Success for the striver washes away the effort of striving.
– Pindar

The penalty of success is to be bored by people who used to snub you.
– Nancy, Lady Astor

The secret of success is constancy to purpose.
– Benjamin Disraeli

There are few successful adults who were not first successful children.
– Alexander Chase

What is success? To laugh often and much; To win the respect of intelligent people and the affection of children; To earn the appreciation of honest critics and endure the betrayal of false friends; To appreciate beauty; To find the best in others; To leave the world a bit better, whether by a healthy child, a garden patch or a redeemed social condition; To know even one life has breathed easier because you have lived; That is to have succeeded.
– Ralph Waldo Emerson

If one advances confidently in the direction of his dreams, and endeavours to live the life which he has imagined, he will meet with a success unexpected in common hours.
– Henry David Thoreau

The world belongs to the enthusiast who keeps cool.
– William McFee

Out of every fruition of success, no matter what, comes forth something to make a new effort necessary.
– Walt Whitman

Though a tree grow ever so high, the falling leaves return to the root.
– Malay proverb

Success is that old ABC- ability, breaks and courage.
– Charles Luckman

How can they say my life isn’t a success? Have I not for more than sixty years got enough to eat and escaped being eaten?
– Logan Pearsall Smith

You always pass failure on the way to success.
– Mickey Rooney

Of course there is no formula for success except perhaps, an unconditional acceptance of life and what it brings.
– Artur Rubinstein

High station in life is earned by the gallantry with which appalling experiences are survived with grace.
– Tennessee Williams

Everything bows to success, even grammar.
– Victor Hugo

Never having been able to succeed in the world, he took his revenge by speaking ill of it.
– Voltaire

The successful people are the ones who think up things for the rest of the world to keep busy at.
– Don Marquis

It is no use saying ‘we are doing our best.’ You have got to succeed in doing what is necessary.
– Winston Churchill

Survival is triumph enough.
– Harry Crews

It takes time to be a success, but time is all it takes.
– Anonymous

There is a passion for perfection which you will rarely see fully developed; but you may note this fact, that in successful lives it is never wholly lacking.
– Bliss Carman

Nothing fails like success; nothing is so defeated as yesterday’s triumphant cause.
– Phyllis McGinley

The toughest thing about success is that you’ve got to keep on being a success.
– Irving Berlin

Nothing fails like success because we don’t learn from it. We learn only from failure.
– Kenneth Boulding

Get place and wealth, if possible with grace; If not, by any means get wealth and place.
– Alexander Pope

Success is not so much what you are, but rather what you appear to be.
– Anonymous

I cannot give you the formula for success, but I can give you the formula for failure, which is – try to please everybody.
– Herbert Bayard Swope

Success has made failures of many men.
– Cindy Adams

A successful man is he who receives a great deal from his fellow men, usually incomparably more than corresponds to his service to them. The value of a man, however, should be seen in what he gives and not in what he is able to receive.
– Albert Einstein

Success is not the result of spontaneous combustion. You must set yourself on fire.
– Reggie Leach

Success is the progressive realization of a worthy ideal.
– Earl Nightingale

A great secret of success is to go through life as a man who never gets used up.
– Albert Schweitzer

Failure changes for the better, success for the worse.
– Seneca

Behind every successful man there’s a lot of unsuccessful years.
– Bob Brown

If people knew what they had to do to be successful, most people wouldn’t.
– Lord Thomson of Fleet

The secret of all victory lies in the organization of the non-obvious.
– Oswald Spengler

Snowflakes are one of nature’s most fragile things, but just look what they can do when they stick together.
– Vesta M. Kelly

Damon Runyon. A day-coach boy in a parlor car seat.
– Damon Runyon

There is only one success – to be able to spend your life in your own way.
– Christopher Morley

Find a need and fill it.
– Ruth Stafford Peale

The successful person is the individual who forms the habit of doing what the failing person doesn’t like to do.
– Donald Riggs

The victory of success is half done when one gains the habit of work.
– Sarah Knowles Bolton

The secret of every man who has ever been successful lies in the fact that he formed the bait of doing those things that failures don’t like to do.
– A. Jackson King

Nature gave men two ends-one to sit on, and one to think with. Ever since then man’s success or failure has been dependent on the one he used most.
– George R. Kirkpatrick

Make yourself indispensable and you’ll be moved up. Act as if you’re indispensable and you’ll be moved out.
– Anonymous

What is the recipe for successful achievement? To my mind there are just four essential ingredients: Choose a career you love. … Give it the best there is in you…. Seize your opportunities. … And be a member of the team.
– Benjamin F. Fairless

Vacillating people seldom succeed. They seldom win the solid respect of their fellows. Successful men and women are very careful in reaching decisions, and very persistent and determined in action thereafter.
– L. G. Elliott

Many people have the ambition to succeed; they may even have a special aptitude for their job. And yet they do not move ahead. Why? Perhaps they think that since they can master the job, there is no need to master themselves.
– John Stevenson

I’ve been polite and I’ve always shown up. Somebody asked me if I had any advice for young people entering the business. I said: “Yeah, show up.”
– Tom T. Hall

The wise man puts all his eggs in one basket and watches the basket.
– Andrew Carnegie

I know the price of success: dedication, hard work and an unremitting devotion to the things you want to see happen.
– Frank Lloyd Wright

Success is that old ABC-Ability, Breaks and Courage.
– Charles Luckman

The secret of success in life is for a man to be ready for his opportunity when it comes.
– Benjamin Disraeli

If one advances confidently in the direction of his dreams, and endeavors to live the life which he has imaged, he will meet with success unexpected in common hours.
– Henry David Thoreau

Before everything else, getting ready is the secret of success.
– Henry Ford

To be ambitious for wealth, and yet always expecting to be poor; to be always doubting your ability to get what you long for, is like trying to reach east by traveling west. There is no philosophy which will help man to succeed when he is always doubting his ability to do so, and thus attracting failure. No matter how hard you work for success, if your thought is saturated with the fear of failure, it will kill your efforts, neutralize your endeavors and make success impossible.
– Charles Baudouin

I cannot give you the formula for success, but I can give you the formula for failure, which is-try to please everybody.
– Herbert Bayard Swope

We may fail of our happiness, strive we ever so bravely, but we are less likely to fail if we measure with judgement our chances and our capabilities.
– Agnes Repplier

A double-minded man is unstable in all his ways…. A determinate purpose in life and a steady adhesion to it through all disadvantages are indispensable conditions of success.
– William M. Punshion

The conditions of conquest are always easy. We have but to toil awhile, endure awhile, believe always, and never turn back.
– Marcus Annaeus Seneca
The very first step towards success in any occupation is to become interested in it.
– Sir William Osier

I studied the lives of great men and famous women; and I found that the men and women who got to the top were those who did the jobs they had in hand, with everything they had of energy and enthusiasm and hard work.
– Harry S. Truman
Without ambition one starts nothing. Without work one finishes nothing. The prize will not be sent to you. As to methods there may be a million and then some, but the principles are few. The man who grasps principles can successfully select his own methods. The man who tries methods, ignoring principles, is sure to have trouble.
– Ralph Waldo Emerson

There are no secrets to success. It is the result of preparation, hard work, learning from failure.
– General Colin L. Powell

Success is blocked by concentrating on it and planning for it…. Success is shy-it won’t come out while you’re watching.
– Tennessee Williams

Three outstanding qualities make for success: judgement, industry, health. And the greatest of these is judgement.
– William Maxwell Aitken

Thirteen virtues necessary for true success: temperance, silence, order, resolution, frugality, industry, sincerity, justice, moderation, cleanliness, tranquility, chastity, and humility.
– Benjamin Franklin

Find a need and fill it.
– Ruth Stafford Peale

Put your heart, mind, intellect and soul even to your smallest acts. This is the secret of success.
– Swami Sivananda

Four steps to achievement: plan purposefully, prepare prayerfully, proceed positively, pursue persistently.
– William A. Ward

Success follows doing what you want to do. There is no other way to be successful.
– Malcolm Forbes

Always aim for achievement, and forget about success.
– Helen Hayes

Success, which is something so simple in the end, is made up of thousands of things, we never fully know what.
– Rainer Maria Rilke

Self-trust is the first secret of success.
– Ralph Waldo Emerson

The man who will use his skill and constructive imagination to see how much he can give for a dollar, instead of how little he can give for a dollar, is bound to succeed.
– Henry Ford

So once I shut down my privilege of disliking anyone I choose and holding myself aloof if I could manage it, greater understanding, growing compassion came to me.
– Catharine Marshall

The most important single ingredient in the formula of success is knowing how to get along with people.
– Theodore Roosevelt

Remember, the bread you meet each day is still rising. Don’t scare the dough.
– Macrina Wiederkehr

The art of dealing with people is the foremost secret of successful men. A man’s success in handling people is the very yardstick by which the outcome of his whole life’s work is measured.
– Paul C. Packe

The ability to form friendships, to make people believe in you and trust you is one of the few absolutely fundamental qualities of success. Selling, buying, negotiating are so much smoother and easier when the parties enjoy each other’s confidence. The young man who can make friends quickly will find that he will glide, instead of stumble, through life.
– John J. McGuirk

Networking is an enrichment program, not an entitlement program.
– Susan RoAne

Respect for people is the cornerstone of communication and networking.
– Susan RoAne

No matter how much a man can do, no matter how engaging his personality may be, he will not advance far in business if he cannot work through others.
– John Craig

The way to rise is to obey and please.
– Ben Johnson

Skill is fine, and genius is splendid, but the right contacts are more valuable than either.
– Sir Archibald Mclndoe

Whatever your grade or position, if you know how and when to speak, and when to remain silent, your chances of real success are proportionately increased.
– Ralph C. Smedley

That they can strengthen through the empowerment of others is essential wisdom often gathered by women.
– Mary Field Belenky

A man can succeed at almost anything for which he has unlimited enthusiasm.
– Charles M. Schwab

You have to block everything out and be extremely focused and be relaxed and mellow too.
– Jennifer Capriati

I’ve never sought success in order to get fame and money; it’s the talent and the passion that count in success.
– Ingrid Bergman

Flaming enthusiasm, backed up by horse sense and persistence, is the quality that most frequently makes for success.
– Dale Carnegie

5 Ways to Make Extra Money From Your Home… Literally
February 15, 2011

If you own a house and need a bit of extra cash there are several options that you could consider to make money. Here are 5 ways to make extra money from your home… literally!

Rent Your Parking Spot – If you live in a dense urban area you can rent out your parking spot. When I lived in Hawaii parking was at such a premium that people could fetch several hundred dollars for their parking stall, especially towards the downtown area. There are several sites which offer parking spot arrangements which include and

Swap Your House – This isn’t necessarily making money from your home, but you can save money on your next vacation by eliminating the costs associated with hotels or staying in a different state or even country. You may have watched the movie the movie, The Holiday, which was a great, yet romantic, version of a housing swap in action. Although it may seem weird to have strangers in your house, by using Skype to communicate, getting references first, and making sure any valuables and important paperwork are locked up, you should be good to go.

Get a Roommate – Ah roommates, they’re not glamorous, but they do provide you with some extra rent money if times get tight (that is, if they pay their bills). I’ve used roommates as a living arrangement the majority of my adult life and find that it’s a great way to significantly lower my living expenses. I even have a few single dad friends who live together so that they can better handle raising their kids because of their schedules. Roommates could also entail living in a communal arrangement, but you might have to move homes in order to accomplish that.

Power up Your House – Use your roof and power grid as a way to shoot power back to the grid. Although solar is still an expensive alternative, it is possible for those who are handy to build their own solar panels and place them on their roof. You can even used damaged solar cells from ebay and save a ton of money. If you’ve got the time you could tinker around and build your own by following some simple instructions on the internet.

Convert Your Backyard to an Edible Paradise – If you’ve got a lawn in your backyard, you’re not using your land for the highest and best use. There’s a family in Pasadena California that uses their yard on a quarter of an acre lot to raise all their own food and also sell some for the extra produce for tens of thousands of dollars each year. Local restaurants in the upscale market are demanding fresh organic produce which this family offers. Sure they may work a bit harder than all of us, but they do it in a beautiful environment that allows them to stay at home. Check out the video below to see how they do it.

If you need some extra cash and have a house with some extra space that isn’t being utilized there are many options for you. Your creativity and willingness to work to save some money will be the factors in which you can make money from your home, literally!

Ryan is a personal finance blogger who writes about financial freedom at He also builds niche websites ranging from travel, to technology, to Roth IRA information.

The Blanket With Sleeves
I have to start with the Snuggie. It’s a cheap, polyester blanket with sleeves worn backwards, that also has the effect of making you look like an extra in a B-movie cult film. The best part is that while the Snuggie might be popular, they copied the idea from a small business owner. We might laugh at the commercials (have you seen the Macarena one?) but the company is laughing all the way to the bank with something like 4-5 million sold. That’s at a price of $19.95 plus shipping and handling. Personally, I think they ripped off Yoda. Let’s not leave your pets out, because there’s a Snuggie for dogs too.

Billy Bob Teeth
Halloween is coming and costume stores will be popping up. You might have used Billy Bob Teeth to complete your costume without realizing it. This company makes teeth overlays to make it appear as if you have (usually) bad teeth. I want to slap myself every time I see these things because I know that they probably cost 50 cents to make in China but they sell here start at $9.99 here. Someone is wearing those fake teeth all the way to the cashier window, and it’s not me.

The Pottery That Grows
Ch-ch-ch-chia! You’ve seen the commercials. You spread some seeds on the outside of a figure (President Obama head anyone) or sprinkle them in a small pot, water it, and then it magically grows! Chia seeds are actually edible (maybe not the ones that come with your “pet”) and are high in Omega-3 fatty acids. You can find the seeds or chia flour at your local health food stores. A chia pet is about $17.99 at your local drug store. A pound of high quality organic chia seeds is around $15 retail. You get just a few ounces with your “pet” and they pay wholesale. By the way, those chia seeds will grow on just about any surface. Drop some onto a plate, add water and watch them grow. Man, am I in the wrong business.

Slip ‘n Slide
If you were a kid in the last three decades, then you know this one. It’s the Slip ‘n Slide. For those of you that have no clue what this is, it’s a long, thin piece of plastic to which you attach your garden hose. Somewhere in the plastic are little holes that allows water to escape and the plastic to get wet. You’re expected to take a running start and leap onto this wet plastic and slide your way to heaven. Well, not you, but your kid is. Now, I think of myself as a smart person, so I don’t know why I didn’t think of putting down a tarp, greasing or soaping it up to make it slippery, then setting my garden hose on it for hours of fun, but someone else did, and now they’re rich. I’m not mad.
I bet that one surprised you, didn’t it? Do you want to know what’s actually in the stuff? It’s made from sodium percarbonate mixed with a bleaching agent called sodium carbonate (washing soda). And here I thought my dual biology and chemistry degrees wouldn’t come in handy. You’re thinking that this must be some magic chemical? Nope. If you own a pool, sodium percarbonate is the stuff that you drop in there to keep the pool clean. You can get bucket loads of it for cheap. When mixed together and dissolved in water, the two chemical form hydrogen peroxide in water. Yes, good ‘ole hydrogen peroxide that you have in your medicine cabinet and sprinkle on cuts. Hydrogen peroxide acts sort of like a bleach because it is a strong oxidizing substance. You can make your own version of this at home with the following recipe:

1 cup water
1/2 cup baking soda (or washing soda for really bad stains)
1/2 cup hydrogen peroxide
You can find washing soda at your local hardware store. Arm & Hammer makes some.

So that’s it folks. Those are my top five. Someone is going to disagree with me for some things on my list, but it’s my list! You can also check out some more dumb ideas that made people rich. Can you think of some more dumb things that made someone a heck of a lot of money?

Indian top most 50 powerful peoples
November 14, 2009 by The Editor

Lakshmi Mittal richest Indian; Gates tops Forbes list
Dharam Shourie , New York: Steel tycoon Lakshmi Mittal is the richest Indian and Microsoft Corporation Chairman Bill Gates with an estimated net worth of USD 50 billion retains his title as the richest man in the world for the twelfth consecutive year.

According to the Forbes magazine annual survey, Gates fortune increased 7.5 per cent from USD 46.6 billion last year.

The magazine said strong markets around the world contributed to the increase in wealth and the total net worth of the list jumped to USD 2.6 trillion.

Gates is followed by 75-year old investor Warren Buffett of the United States with net worth of USD 42 billion and Mexican telecom magnate Carlos Slim Helu with USD 30 billion and Ingvar Kamprad of Sweden, founder of Ikea, the world’s biggest home furnishing retailer, with USD 28 billion.

Non-resident Indian steel tycoon Mittal finds fifth place among the world’s richest with a net worth of more than USD 20 billion. The 55-year-old dropped two places to fifth with USD 23.5 billion dollars, down USD 1.5 billion.

Azim Premji, who owns 82 per cent of the New York listed Information Technology giant Wipro is second richest Indian with an estimated net worth of 11 billion dollars.

Mukesh Ambani with net worth of 7 billion dollars, army officer turned property baron Kushal Pal Singh (5 billion dollars), Sunil Mittal, who built his Bharti Group into India’s largest mobile phone operator with 14 million customers (4.9 billion dollars) and Kumar Birla (4.4 billion dollars) are among those who find place among the top ten richest persons in India.

Dear Boss:
I’m resigning effective immediately! The reason for my resignation is that I cleaned my aunt’s garage this morning before coming to work and realized I don’t feel like working anymore.

See for yourself!!