Financial Independence Compilation

Welcome to the September 3, 2010 edition of financial independence.


The Science of Getting Rich


You can get rich with mathematical certainty. It is not a get rich quickly scheme, it is based on proven tactics to acquire wealth, it includes developing relationships, thinking in the right way and much more.

We are offering you a free gift that we are sure it will inspire you on your road to success. The book the Science of getting rich has inspired me and started me on my road to financial independence. I encourage you to download the book and join the SOGR network. You have nothing to lose. Click here to download your free book.
 
Your Financial Independence Articles

Credit card debt - how to avoid it - "It is a fact that many of us in our current society are accumulating a lot of debt due to credit card usage.

It is so easy to get a credit card these days. It is not only easy to get a new one but they also keep on increasing your credit limit.

The trick of the credit card is that you don't notice it as you use. The cash stays in your savings account and you may see all of your money there and decide to use it. Why not go for a nice dinner or why not buy that nice little product that some flash advertisement is being forced upon you?

As time goes buy if you continue to do that and only pay the minimum amount on your card, you will very quickly get into trouble.

Here is how it goes:"

Buying my first home and financial independence - "About 2 years ago I got really sick of paying rent. I live in Sydney, Australia, where house prices are ridiculous. My rent was continually increasing up until the beginning of 2008 where interest rates started to fall really quickly due to the global financial crises.

At that time I was really interested in learning everything about financial independence. I was reading like crazy. I read a book called the Science of Getting Rich about 3 times in a week and I was also reading Robert Kiosaki's books really quickly. I wanted to take control of my finances..."

A couple of financial independence articles - I have done a quick research on youtube to find some videos on making money. There is some gold advice in there. Enjoy them.


Reader's Sponsored Articles



BackTaxesHelp.com presents Guide to Records Retention For Tax Purposes posted at Back Taxes Help.



Nissim Ziv presents How to Introduce Yourself in an Interview posted at Job Interview Guide, saying, "Don’t skip preparing your answer to this question. A well prepared answer can put you, as a candidate, in the right direction right from the beginning of the interview. You have a good opportunity to sell yourself effectively in few words and it allows you to set the tone for the rest of the interview"



Thomas John Carter presents Are There Any Home Businesses That Really Work – Discover The Top Three Myths posted at Lee McIntyre's FREE DVD.



Silicon Valley Blogger presents Peer To Peer Lending: Lend Money And Invest posted at The Digerati Life, saying, "Interesting way to invest."




Christien presents Avoid Online Payday Loan Scams ? Your Checklist posted at Online Payday Loan Companies Reviewed For Your Safety.



Alexander presents How to Enroll in a DRIP Program posted at Dividend Stocks, saying, "DRIP programs automatically reinvest your dividend by buying more shares an increasing your holding"



Tim Chen presents Chase Sapphire Preferred Card Review | Is the 25k Point Bonus Worth It? posted at NerdWallet Blog - Credit Card Watch, saying, "Chase is now offering the Sapphire Preferred credit card in addition to the normal Chase Sapphire card. The main difference is that Sapphire Preferred has an $85 annual fee (waived the first year), while Sapphire does not. What's the catch? Is it worth it?"



Daniel M. Wood presents How to Use Motivation to Accomplish Your Goals and Start Living Your Dream Life posted at Looking to Business, saying, "To all of us wishing to succeed, motivation is the bread and butter in which we will forge our success.
If we don’t have the motivation to work hard, day in and day out towards our goals we will fail (or at least not succeed as quickly or well as we otherwise would have)."



Hussein Sumar presents Tax Saving Tips for IRA Investors - After Tax Contributions (Basis), Income in Respect of Descendent, 10% Excess Tax & Substantially Equal Periodic Payments (SEPPs) posted at Roth IRA, saying, "Thousands of IRA investors miss out on important tax benefits each year because they are not familiar with the Tax Act and laws. Others make crucial errors when filing their tax returns. For instance, IRA investors may pay taxes on monies that should have been tax free or pay excise taxes on IRA distributions when these distributions should be free of tax. Our aim in this article is to highlight some IRA tax laws and how you can benefit from them."



Luke Lee presents 10 Ways to Eliminate Credit Card Debt posted at Credit Card Debt Relief | Right Start LLC.



Rob presents IRA Hardship Withdrawal posted at Stock Tips, saying, "Are you going through hardships and need to withdrawal money from your IRA? Familiarizing yourself about the IRA withdrawal rules is crucial to avoid penalties and fees."



Neal Frankle presents Best Small Business Ideas 2010 And Beyond posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery Plan & Resources, saying, "The best small business ideas are easily within your grasp."



Aileen Black presents Debt Consolidation Advice – Makes You Debt Free « Debt Relief Blog posted at Debt Relief Blog, saying, "Every individual is managing one debt or the other these days. With the easy availability of loans and misuse of credit cards, most people find themselves knee-deep in debts before they even realize it."



Broderick Durisseau presents Discovering Hidden Beliefs About Identity posted at Personal Growth From the Bottom Up, saying, "Some of the deep, hidden beliefs you have about your identity could be sabotaging your financial success! Here I share a process of discovering hidden beliefs and exactly how this process has impacted me."



Christina Crowe presents 17 Practical Ways to Make a Living Online posted at Cash Campfire, saying, "Could entrepreneurs really be taking over the economy? This was one question Amy Cosper, Editor-in-Chief of Entrepreneur Magazine, posted in the December 2009 issue of the publication.

This guide is meant to be a resource to help you make a living online. A simple list of ideas or suggestions to help you achieve your online goals, if you will, that will point you on to the right path. Test them, practice them or devote your time to them. You can control your own future."



Roshawn Watson presents Is Extreme Frugality For You? posted at Watson Inc, saying, "Regardless of the size of that paycheck, for most people it is never quite enough. This is commonly referred to as the rat race. Recently, I read that nothing could be more insulting to the rat. Even rats know better than to stay in this silly model"



PT presents Kids Can Make Extra Money: 5 Businesses Your Money-Wise Kids Can Start Today posted at Prime Time Money, saying, "Ideas for kids to make extra money."




That concludes this edition. Submit your blog article to the next edition of financial independence using our
carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

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A couple of videos on making money - there is some gold in there

I have done a quick research on youtube to find some videos on making money. There is some gold advice in there. Enjoy them.



The Road to Financial Independence

The guy on the video tries to be a bit humorous, hang in there because in the second half of the video he has some good advice.

Credit card debt - how to avoid it.

It is a fact that many of us in our current society are accumulating a lot of debt due to credit card usage.

It is so easy to get a credit card these days. It is not only easy to get a new one but they also keep on increasing your credit limit.

The trick of the credit card is that you don't notice it as you use. The cash stays in your savings account and you may see all of your money there and decide to use it. Why not go for a nice dinner or why not buy that nice little product that some flash advertisement is being forced upon you?

As time goes buy if you continue to do that and only pay the minimum amount on your card, you will very quickly get into trouble.

Here is how it goes:

(1) You start using your credit card instead of your cash.

(2) When the credit card statement comes around you can't afford to pay it all of or, even worse, you can only afford to pay the minimum amount.

(3) Because you are using your credit card for most of your purchases, there is a whole lot of cash sitting in your back account. You then use that cash to buy stuff or have nice dinners and other things.

The cycle continues until you cannot afford to pay more than the minimum amount or, even worse, you can only afford to pay the minimum amount.

So the question is, how can you prevent this from happening?

(1) Always pay off the entire balance on your credit card at the end of the period.

(2) Save cash for big purchases. Don't use your credit cards to buy anything unless you have the cash to pay the entire balance off.

(3) Have a emergency fund. It is of vital importance that you have an emergency fund for ... I guess emergencies. If you are living from pay to pay you should save some cash to pay for emergencies such as medical or your hot water system breaking down. If you don't have an emergency fund then it is likely that you will use the credit card and then you will not be able to pay the balance off. The trouble will then start.

(4) Spend less than you earn. In other words, manage your cash flow properly. This not only relates to avoiding credit card fund but it is the single most important financial advice you can get.

(5) Cancel the cards you don't need. I don't like to give advice that says to cancel the credit cards. If you are in debt and you don't have an emergency fund it is probably a good idea to keep your cards in case of emergency. Having said that, if your cash flow allows you to comfortably cancel a card then go ahead and cancel it. You will fell better for it and it reduces the risk of you acquiring more debt.

Buying my first home and financial independence

About 2 years ago I got really sick of paying rent. I live in Sydney, Australia, where house prices are ridiculous. My rent was continually increasing up until the beginning of 2008 where interest rates started to fall really quickly due to the global financial crises.

At that time I was really interested in learning everything about financial independence. I was reading like crazy. I read a book called the Science of Getting Rich about 3 times in a week and I was also reading Robert Kiosaki's books really quickly. I wanted to take control of my finances.

My job was going really well and my pay had increased a total of AU$42,000 in a period of 12 months (to find out how click here). At the time I had a bit of debt but it was serviceable.

I started looking around for more affordable places that I could own a home. At the same time I was reading about several advices on whether to own a home or not. The advices were not consistent depending on what book I picked up so I realised that, REALLY, no one has an answer that makes sense.  Following are the advices I got:

• Your own home is not an asset (I agree with this) unless you can make money from it. So don't buy one until you are free from debt and well on your way to financial independence (I disagree with the second half of this advice).

• Rent is dead money, you are paying someone else's mortgage. Therefore it is better to own your own home and pay your own mortgage rather than someone else's.   

• Only buy a home if it puts money in your pocket to help paying the mortgage. Buy places that have granny-flats attached to the house so you can rent out the granny-flat and use the money to pay the mortgage (I agree with this but it is hard to execute).

With regards to affordability, I could not afford to  buy a home in Sydney where I wanted because when interest rates were low the mortgage would a be about 1 and half times the amount I was paying in rent. Because interest rates were low I know they were going up so the answer was no, not to buy in Sydney.

I started looking at satellite  suburbs and we found a home about 1 and 1/2 hours from my work in Sydney. This did  not stop us from buying it. It has been about 2 years since we have moved and though I get tired of commuting, every time I pay the mortgage I know that I am putting money in my own pocket and, in the long term, it will benefit myself and my family.

The road towards financial independence is not easy, there are many sacrifices to be made and we decided to sacrifice my time for the long term benefit of owning our own house.

We also know that this situation is temporary until we finish paying a bit of debt that we have and the situation changes. At that point we hope to keep this house as an investment property and buy another property for us about 1 hour from my work.

That is the goal for about 3 years from now. We will work towards it with the steadfast knowledge that we can do it. With this attitude and working hard we know we will achieve it.