Many people have gone from broke to multi-millionaire by following some simple concepts that allow anyone to move from debt to wealth, on any income. One thing you will note about money mistakes; they deal more about attitudes, beliefs and values, versus failing to review a restaurant receipt for errors. In the Biggest Money Mistakes series you will find the six most common attitude errors that prevent people from creating wealth, and the solutions to that faulty thinking.
Mistake #1. There is no reason to track my cash spending because it doesn’t add up to enough money.
People have the attitude that only large amounts of money are important and that small amounts of money are not. They will not be concerned about how invest a few hundred dollars, but only thousands of dollars. They will think nothing of spending $5 a pack of cigarettes or a cup of coffee and muffin at Starbucks when they can make the same things at home for 50 cents. The fallacy is you can’t get to the large amounts of money to invest if you spend all the small amounts. You must have respect for the small amounts too. Over a 30-year time frame, $5 per day can create a $1,000,000 portfolio when invested appropriately.
Solution: Use a small notebook or spending register to track all cash spending. You cannot create a change in your behavior you are unaware of it. Create awareness by tracking your cash spending. Track everything from 25 cents in the parking meter to a fancy dinner and tip.
Rennie Gabriel – Rennie@RennieGabriel.com
Author of Wealth on Any Income: 12 Steps to Freedom
Friday, May 29, 2009
Monday, May 18, 2009
Donate Catered Food
Did you know that if you have a party catered at a hotel or other venue that you can have the leftover food donated to a charity or homeless shelter?
However, you will not find any caterer offering to do this for you. They will cite fears of lawsuits over spoiled food, inconvenience of arranging pick-up, or some other excuse. The bottom line is this; people are starving all over the world, and when there is so much left over food from all sorts of parties and events, it makes sense that left-over food should be donated.
We even have a federal law that protects restaurants and caterers from the fear of lawsuits. There are no valid excuses. The Emerson Good Samaritan Food Donation Act was signed into law (PL 104-210) on 10-1-96 by then President Bill Clinton.
California State Senator, Jenny Oropeza has sponsored a bill to require the notification that food can be donated, but has met strong resistance from restaurants.
You can make a difference. Tell whoever caters your next event, or one that you attend, that the left-over food should be donated. Be prepared with a charity or homeless shelter in mind with the contact information of the individual responsible to receive the food. People do not have to go hungry.
For more details, please see the article from the Los Angeles Times dated March 25, 2009 by David Lazarus.
Rennie
However, you will not find any caterer offering to do this for you. They will cite fears of lawsuits over spoiled food, inconvenience of arranging pick-up, or some other excuse. The bottom line is this; people are starving all over the world, and when there is so much left over food from all sorts of parties and events, it makes sense that left-over food should be donated.
We even have a federal law that protects restaurants and caterers from the fear of lawsuits. There are no valid excuses. The Emerson Good Samaritan Food Donation Act was signed into law (PL 104-210) on 10-1-96 by then President Bill Clinton.
California State Senator, Jenny Oropeza has sponsored a bill to require the notification that food can be donated, but has met strong resistance from restaurants.
You can make a difference. Tell whoever caters your next event, or one that you attend, that the left-over food should be donated. Be prepared with a charity or homeless shelter in mind with the contact information of the individual responsible to receive the food. People do not have to go hungry.
For more details, please see the article from the Los Angeles Times dated March 25, 2009 by David Lazarus.
Rennie
Tuesday, March 17, 2009
Meltdown for Beginners
It has been months since my last blog, and the bad news on the economy has been coming fast and furiously. With the latest bailout of AIG insurance, now totaling $170 Billion, I was lucky to find a great blog site that explains how the problem was created in simple examples designed for beginners to understand at Financial Crisis for Beginners and a broadcast from NPR that you can listen to at http://www.thisamericanlife.org/Radio_Episode.aspx?sched=1242.
With the global economic growth around the turn of the century, new wealth was created. This new wealth, about $35 Trillion, started chasing investments that could not keep up with the demand. The mortgage backed securities expanded at a rate that was ridiculous in an attempt to keep up with the demand. Loan standards were tossed out the window so that more mortgages could be issued and mortgage backed securities could be created. They were then sold to countries around the globe and insured by various investment banks and AIG.
To protect against default, banks and AIG sold Credit Default Swaps (CDS). Unfortunately, there were no reserves set aside in the event of default. While a 12% default rate was used for the calculations of risk, we are entering a 40% default rate. AIG alone insured about $500 Billion of these. There is no way they could stay in business and cover these global losses. 460 employees of AIG were responsible for the creation and sale of the CDS, but 30,000 employees of the company are painted with the dirty brush.
Again, for a more detailed explanation of the financial meltdown, please visit the NPR link and the blog site mentioned above.
Rennie Gabriel
With the global economic growth around the turn of the century, new wealth was created. This new wealth, about $35 Trillion, started chasing investments that could not keep up with the demand. The mortgage backed securities expanded at a rate that was ridiculous in an attempt to keep up with the demand. Loan standards were tossed out the window so that more mortgages could be issued and mortgage backed securities could be created. They were then sold to countries around the globe and insured by various investment banks and AIG.
To protect against default, banks and AIG sold Credit Default Swaps (CDS). Unfortunately, there were no reserves set aside in the event of default. While a 12% default rate was used for the calculations of risk, we are entering a 40% default rate. AIG alone insured about $500 Billion of these. There is no way they could stay in business and cover these global losses. 460 employees of AIG were responsible for the creation and sale of the CDS, but 30,000 employees of the company are painted with the dirty brush.
Again, for a more detailed explanation of the financial meltdown, please visit the NPR link and the blog site mentioned above.
Rennie Gabriel
Monday, October 6, 2008
Radio appearance November 14
On November 14 I will be on the Jessie Bowen blogtalk Internet radio show discussing my Wealth On Any Income book. Please tune in. Here is how to get the information:
Click Here for show time and call in information.
Sunday, September 14, 2008
Fiancial Meltdown
It has been over three months since my last post and I have come to the realization that I would rather read media publications than write. But, I am a published author, and I do have opinions that matter to others, so I have made myself sit down and post another blog article.
I was inspired by the newest financial collapse: Lehman Brothers investment bank.It was known for months in many financial circles that Lehman was struggling. Lehman's stock had plunged 95 percent from its 52-week high to $3.65 on Friday, September 12, 2008. This wiped out nearly $35 billion in shareholder wealth in just 10 months. That is $35,000,000,000 that evaporated in 10 months from one brokerage firm’s value. This was despite Lehman’s CEO, Richard Fuld’s reassurances of Lehman’s strength.
Bear Stearns came as a surprise, but Lehman was expected. The latest is that Barclays Bank has backed out of it's offer to save Lehman, but Bank of America might still be a player to buy up the pieces, just like they did for Countrywide, the mortgage lender.
It is likely there will be more fallout in the financial services industry before this mortgage crisis is complete. From Daniel Alpert, Managing Director of Westwood Capital, LLC, it is estimated that banks and lenders have recognized about $550 billion of the $1.25 trillion in losses that he expects to be attributed to the mortgage meltdown.
The problem is the financial landscape is changing so often it is hard to keep up with the bad news. On this Sunday at 11 a.m. I wrote about the possible purchase of Lehman by either Bank of America or Barclays Bank. By 5 p.m., Barclays had already backed out.
I have been working on updating my best selling "Wealth On Any Income" book for several months now, and I just cannot keep up with the awful financial landscape. My new book will have the title "Thriving from the Economic Meltdown" so that readers can see what they need to do in these difficult times.
Regardless of how bad it gets for the banks, brokerage firms, and mortgage industry, there are still basic concepts that will keep the average person financial solvent. Ten "galley proof" copies of "Thriving from the Economic Meltdown" have been printed up, and it should be ready for release in another month or so. I will keep you posted.
Rennie
I was inspired by the newest financial collapse: Lehman Brothers investment bank.It was known for months in many financial circles that Lehman was struggling. Lehman's stock had plunged 95 percent from its 52-week high to $3.65 on Friday, September 12, 2008. This wiped out nearly $35 billion in shareholder wealth in just 10 months. That is $35,000,000,000 that evaporated in 10 months from one brokerage firm’s value. This was despite Lehman’s CEO, Richard Fuld’s reassurances of Lehman’s strength.
Bear Stearns came as a surprise, but Lehman was expected. The latest is that Barclays Bank has backed out of it's offer to save Lehman, but Bank of America might still be a player to buy up the pieces, just like they did for Countrywide, the mortgage lender.
It is likely there will be more fallout in the financial services industry before this mortgage crisis is complete. From Daniel Alpert, Managing Director of Westwood Capital, LLC, it is estimated that banks and lenders have recognized about $550 billion of the $1.25 trillion in losses that he expects to be attributed to the mortgage meltdown.
The problem is the financial landscape is changing so often it is hard to keep up with the bad news. On this Sunday at 11 a.m. I wrote about the possible purchase of Lehman by either Bank of America or Barclays Bank. By 5 p.m., Barclays had already backed out.
I have been working on updating my best selling "Wealth On Any Income" book for several months now, and I just cannot keep up with the awful financial landscape. My new book will have the title "Thriving from the Economic Meltdown" so that readers can see what they need to do in these difficult times.
Regardless of how bad it gets for the banks, brokerage firms, and mortgage industry, there are still basic concepts that will keep the average person financial solvent. Ten "galley proof" copies of "Thriving from the Economic Meltdown" have been printed up, and it should be ready for release in another month or so. I will keep you posted.
Rennie
Tuesday, May 27, 2008
Vote for Proposition 98 on June 3, 2008
It is odd how our attention can miss the obvious. I have not written a new post recently, and I have been complaining to my wife of the deceptive ads that support Proposition 99 against Proposition 98. What I missed is that I should be writing about this in my blog.
What do I mean by deceptive? It is clear from a Los Angeles Times article on Tuesday, May 27, 2008, Section B, page 4, that AARP is promoting a lie about Prop 98. IT WILL NOT ELIMINATE RENT CONTROL. It will phase it out by allowing apartments to rise to market level AFTER a tenant under rent control moves out, is evicted for non-payment of rent, or dies. That could be years. For some tenants, they would benefit from rent control for the rest of their lives if Prop 98 were to pass.
It DOES have more stringent eminent domain restrictions than Prop 99, because it protects the property of more individuals and businesses and makes it harder for the government to seize property for redevelopment by private business. This is why Governor Schwarzenegger is supporting Prop 99; it makes is easier for the government to seize property.
Prop 98 is the ballot measure that should be passed, not Prop 99. Whether you are a property owner or a renter, I recommend the passage of Prop 98. As a property owner or a renter, you are protected under Prop 98. Please do not believe the deceptive ads by AARP and vote for Prop 98.
You can read the full text of the Initiative submitted to the Attorney General at
http://ag.ca.gov/cms_attachments/initiatives/pdfs/i684_2007-05-03_07-0015_Initiative.pdf
But here is the section directly from the Initiative dealing with rent control:
SECTION 6. EFFECTIVE DATE
The provisions of this Act shall become effective on the day following the election ("effective date"); except that any statute, charter provision, ordinance, or regulation by a public agency enacted prior to January 1,2007, that limits the price a rental property owner may charge a tenant to occupy a residential rental unit ("unit") or mobile home space ("space") may remain in effect as to such unit or space after the effective date for so long as, but only so long as, at least one of the tenants of such unit or space as of the effective date ("qualified tenant") continues to live in such unit or space as his or her principal place of residence. At such time as a unit or space no longer is used by any qualified tenant as his or her principal place of residence because, as to such unit or space, he or she has: (a) voluntarily vacated; (b) assigned, sublet, sold or transferred his or her tenancy rights either voluntarily or by court order; (c) abandoned; (d) died; or he or she has (e) been evicted pursuant to paragraph (2), (3), (4) or (5) of Section 1161 of the Code of Civil Procedure or Section 798.56 of the Civil Code as in effect on January 1,2007; then, and in such event, the provisions of this Act $hall be effective immediately as to such unit or space.
Again, the ad running on the TV from AARP is completely deceptive. Please vote for Prop. 98
Rennie
What do I mean by deceptive? It is clear from a Los Angeles Times article on Tuesday, May 27, 2008, Section B, page 4, that AARP is promoting a lie about Prop 98. IT WILL NOT ELIMINATE RENT CONTROL. It will phase it out by allowing apartments to rise to market level AFTER a tenant under rent control moves out, is evicted for non-payment of rent, or dies. That could be years. For some tenants, they would benefit from rent control for the rest of their lives if Prop 98 were to pass.
It DOES have more stringent eminent domain restrictions than Prop 99, because it protects the property of more individuals and businesses and makes it harder for the government to seize property for redevelopment by private business. This is why Governor Schwarzenegger is supporting Prop 99; it makes is easier for the government to seize property.
Prop 98 is the ballot measure that should be passed, not Prop 99. Whether you are a property owner or a renter, I recommend the passage of Prop 98. As a property owner or a renter, you are protected under Prop 98. Please do not believe the deceptive ads by AARP and vote for Prop 98.
You can read the full text of the Initiative submitted to the Attorney General at
http://ag.ca.gov/cms_attachments/initiatives/pdfs/i684_2007-05-03_07-0015_Initiative.pdf
But here is the section directly from the Initiative dealing with rent control:
SECTION 6. EFFECTIVE DATE
The provisions of this Act shall become effective on the day following the election ("effective date"); except that any statute, charter provision, ordinance, or regulation by a public agency enacted prior to January 1,2007, that limits the price a rental property owner may charge a tenant to occupy a residential rental unit ("unit") or mobile home space ("space") may remain in effect as to such unit or space after the effective date for so long as, but only so long as, at least one of the tenants of such unit or space as of the effective date ("qualified tenant") continues to live in such unit or space as his or her principal place of residence. At such time as a unit or space no longer is used by any qualified tenant as his or her principal place of residence because, as to such unit or space, he or she has: (a) voluntarily vacated; (b) assigned, sublet, sold or transferred his or her tenancy rights either voluntarily or by court order; (c) abandoned; (d) died; or he or she has (e) been evicted pursuant to paragraph (2), (3), (4) or (5) of Section 1161 of the Code of Civil Procedure or Section 798.56 of the Civil Code as in effect on January 1,2007; then, and in such event, the provisions of this Act $hall be effective immediately as to such unit or space.
Again, the ad running on the TV from AARP is completely deceptive. Please vote for Prop. 98
Rennie
Monday, March 24, 2008
Consumerism is going to backfire
Consumerism is going to backfire
I just saw a 20-minute video on “Stuff.” The point is to educate all of us on what it takes to not only bring a product to market, but what the costs are that we do not see; the cost to our children, our planet, and ourselves. This goes way beyond why it is nice to recycle, but how we must fundamentally change our attitudes about buying stuff. This is a fit in how to create personal wealth. There is so much stuff we buy out of guilt, planned obsolescence, advertising pressure and so on, that this video will help you understand why we do NOT need to buy so much stuff.
Please see it at
http://www.storyofstuff.com/
Rennie
I just saw a 20-minute video on “Stuff.” The point is to educate all of us on what it takes to not only bring a product to market, but what the costs are that we do not see; the cost to our children, our planet, and ourselves. This goes way beyond why it is nice to recycle, but how we must fundamentally change our attitudes about buying stuff. This is a fit in how to create personal wealth. There is so much stuff we buy out of guilt, planned obsolescence, advertising pressure and so on, that this video will help you understand why we do NOT need to buy so much stuff.
Please see it at
http://www.storyofstuff.com/
Rennie
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