You Are What You Eat, Read, Watch and Hear

You Are What You Eat, Watch, Read, And Hear.

Just like what you eat affects your health and overall appearance, the same can be said for what you watch, read and hear. You are what you watch, read or hear because, everything that you absorb has an impact on who you are and how you view the important things in life.

When I was young, I saw a feature on an evening news show. The program got my attention because, the newsman said “you will earn over a million dollars in your working lifetime”, and then he laid out in detail how the choices you make affect your financial outcome.

That bit of information stuck with me. When I got an opportunity, I did an independent study on personal finance. After reading many books and articles, I became quite knowledgeable. My current passion is to share the things that I learned with the youth in my life, and in my program, My Village Project.

If I had not stumbled across that news show, I would not be able to instruct the young people in my life, on personal money matters. More important, the knowledge that I gained affected how I view and handle my own money.

Here’s an assignment for you, have a young person in your life do a simple math problem:

$25k per year x 40 years. As an adult, we know that no reasonable employment pays only $25k per year forever. So there is a good chance that the young person you talk to will earn over $1M during their working lifetime.

This assignment is a good opportunity to teach the lessons of planning and saving, I encourage the young people in my life to have at least 3 accounts, 1 for daily expenses, 1,with $200 to $500, because “IT” happens, and 1 with about $2000 because you need a little cushion, after that, there is the emergency savings fund, with 6 to 12 months of living expenses and retirement savings.

By understanding early, that they will earn over $1M in their life, young people can prepare themselves, because how they handle their money is more important than how much money they earn.

This simple money lesson can transfer to other parts of life, we can share with our youth, the importance of good character and values. We can share history and teach life lessons. We can encourage effort and acknowledge accomplishments. We can “feed” them all the good stuff we know and “hopefully” watch them thrive and grow.

It takes a village to raise a child and this is My Village Project

Take care of your village

The Village Mother

Below is an article on saving and spending.

Spend $10 Today, Be Out $100K Tomorrow

by Jeffrey Strain The

Monday,May 5,2008

Little amounts can make a large difference to your finances. As gasoline and food prices

continue to rise, the squeeze to make family budgets balance each month becomes more of

a struggle. After the big savings have been found and taken, smaller savings have to be

found to make ends meet.

This can be frustrating as it can feel like everyone is being nickled and dimed to death.

That’s why it’s important to realize how these small amounts can make a huge difference

in your overall financial health.

You’ve likely heard about the little ways to save money a million times. Money-saving advice

includes standards like packing your lunch instead of buying it at work, skipping the

Starbucks and making your coffee at home and watching videos at home instead of going

out to the movies. While you may have grown tired of hearing them, they are still as true as

ever and even more important when the economy is struggling.

Saving small amounts of money is good advice for everyone, it’s not as essential for

people that are currently living well below their means. If you spend $5 on a cup of

coffee each day, but you’re still able to put away five times that amount toward your

savings, that coffee splurge isn’t going to hurt as much as for someone who isn’t saving

anything. For those that are barely making ends meet, spending small amounts of money

can be the difference between deep debt and a nice retirement account.

When you are faced with a budget that isn’t balancing, you have two main choices: earn

more money or cut more expenses. Unfortunately, many turn to a third alternative. When

they can’t seem to make their budget balance, they decide that it’s acceptable to place the

difference onto a credit card. Even though the monthly shortfall in the budget is small,

placing it onto credit cards is one of the worst financial moves that a person can make. The

result will be a downward cycle that will not only keep you in debt, but also create a

tremendous amount of stress.

There is often a false assumption that saving $10 and spending $10, although opposite, are

relatively the same. For example, if a person saves $10 a day, after a month their account

will have $300 while if a person spends $10 a day, that will result in a debt of $300. While on

the surface this makes perfect sense, the problem lies in that these numbers fail to take into

account the interest that can be gained or charged on this money. It is this failure to

understand the concept of compound interest and the dramatic effect it can have that greatly

changes these results.

It’s important to understand that it takes very little to start sinking into debt. For most

people, spending $10 a day would not be considered extravagant spending by any means,

but $10 can result in tens of thousands of dollar of debt. It’s simple to see when you

compare the results of what happens when one person saves $10 a day while the other

spends $10 a day that he doesn’t have.

If a person were to save $300 a month (approx. $10 a day) and invest it to get a 5%

yearly return, that person would have $20,402 in the bank after five years. On the other

hand, if a person ends up spending $300 a month more than he has and puts it onto a

credit card that he doesn’t pay off over the same 5 year period, that person will owe

$36,259, assuming a 26% credit card interest rate. After five years, the difference

between saving $10 and spending $10 each day results in a $56,661 gap in net worth

between the two.

Add another five years to the same patterns, and the results are even more dramatic. After

10 years, the person who saved $10 a day would have $46,585 in the bank, whereas the

person whop spent the $10 he didn’t have would be $167,470 in debt, resulting in a net

worth difference of over $210,000.

Of course, there are many other factors that could alter these calculations. The interest

you can earn and what your credit card interest rates are will vary from this example.

There is a minimum amount that the person would need to pay on a credit card each

month. If debt to this extent began to occur, the person would have their credit cut off

long before this amount accumulated and would likely need to declare bankruptcy. The

point is that over time, small amounts added to debt can result in far more debt than most

people realize.

Once you learn that saving a small amount and overspending a small amount aren’t

simple opposites, you understand the importance of having a budget and strictly sticking

with it. If you are able to fight through the hard times and keep your budget balanced,

then you set yourself to reap great financial rewards when the economy finally turns

around. Copyrighted, All rights reserved.


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