Wednesday, December 30, 2015

I Will Teach You To Be Rich And Get Ready To Invest

I Will Teach You To Be Rich And Get Ready To Invest
 
Welcome to This is me…..Then!  If you like what you see, subscribe here for free updates, or you can “like” my Facebook page here and receive new posts in your news stream.  Once you like my page, you can choose to see posts in your newsfeed first or receive a notification for each post made.  Thanks for visiting!  This post may contain affiliate links.

 
Week 3: Get Ready To Invest
Open your 401(k) and Roth IRA -- even with just $50
 

I am reading I Will Teach You To Be Rich by Ramit Sethi.  This book provides a 6-week step-by-step guide to getting your finances in order to become rich. 


Week 1 focused on optimizing your credit.
Week 2 focused on opening and optimizing your bank account.
Week 3 focuses on teaching you to get ready to invest.

This chapter will discuss why you should invest and the best way to start investing your money and how to set up the process in a week.

THE WHY
A millionaire is not a person who makes $1 million or more per year.  A millionaire is someone who's net worth is $1 million or more.

On average, millionaires invest 20 percent of their household income each year.  Their wealth isn't measured by the amount they make each year, but by how much they've saved and invested over time. 

Investing is the single most effective way to get rich!

THE HOW
Step 1: If your employer offers a 401(k) match, invest to take full advantage of it and contribute just enough to get 100% of the match.  This is free money and there is, quite simply, no better deal.

Step 2: Pay off your credit card and any other debt (excluding any primary home loans you may have outstanding).  If you can't pay this off immediately, set up a plan to pay off your debt within a specific amount of time.

Step 3: Open up a Roth IRA and contribute as much money as possible to it, up to the maximum allowed by the Internal Revenue Service.

Step 4: If you have money left over, go back to your 401(k) and contribute as much as possible to it, up to the maximum allowed by the Internal Revenue Service.

Step 5: If you still have money left to invest, open a regular nonretirement account and put as much as possible there.  Also, pay extra on any mortgage debt you have, and consider investing in yourself: Whether it's starting a company or getting an additional degree, there's often no better investment than your own career.

*Please note that my philosophy varies slightly from what Ramit suggests in his book.  My how, which takes into account Dave Ramsey's Baby Steps, would be the following.

Step 1: If your employer offers a 401(k) match, invest to take full advantage of it and contribute just enough to get 100% of the match.  This is free money and there is, quite simply, no better deal.

Step 2: Pay off your credit card and any other debt (excluding any primary home loans you may have outstanding).  If you can't pay this off immediately, set up a plan to pay off your debt within a specific amount of time.

Step 3: Open up a Roth IRA and contribute as much money as possible to it, up to the maximum allowed by the Internal Revenue Service, but no more than 15% (minus the % you have already contributed to 401(k)) of your income.

Step 4: If you have money left over, go back to your 401(k) and contribute as much as possible to it, up to the maximum allowed by the Internal Revenue Service, but no more than 15% (minus the % you have already contributed to 401(k) and Roth IRA) of your income.

Step 5: If you still have money left to invest, open a regular nonretirement account  and put as much as possible there.  Also, pay extra on any mortgage debt you have, and consider investing in yourself: Whether it's starting a company or getting an additional degree, there's often no better investment than your own career.
              5a: If you have children, open an ESA or 529 plan to save for their college education.  If not, skip to 5b.
             5b: Use all extra money to pay off your home early.  If you don't have a mortgage, skip to 5c.
             5c: Open a regular nonretirement account and put as much as possible there.  Also, consider investing in yourself: Whether it's starting a company or getting an additional degree, there's often no better investment than your own career.


BUY BOOKS HERE:

Tuesday, December 29, 2015

Amazing Deal Flash - VideoSecu ML531BE TV Wall Mount


Welcome to This is me…..Then!  If you like what you see, subscribe here for free updates, or you can “like” my Facebook page here and receive new posts in your news stream.  Once you like my page, you can choose to see posts in your newsfeed first or receive a notification for each post made.  Thanks for visiting!  This post may contain affiliate links.

 

VideoSecu ML531BE TV Wall Mount for most 22"-55" LED LCD Plasma Flat Screen - up to 88 lb VESA 400x400 mm with Full Motion Swivel Articulating Arm, 20 in Extension, for Monitor (Black) WP5

List Price:$125.00
Price:$24.99 Free Shipping for Prime Members
You Save:$100.01 (80%)

 

Heavy guage steel supports screens up to 88 lbs. compatible with VESA (mounting hole pattern) 400x400mm/400x300mm/400x200mm/300x300mm/300x200mm/200x200mm/200x100mm/100x100mm (16"x16"/16"x12"/16"x8"/12"x12"/12"x8"/8"x8"/8"x4"/4"x4")
  • Post-installation level adjustment allows the TV to perfectly level
  • Tilt, swivel and rotate for maximum viewing flexibility; VESA plate can be taken off for easy installation by one person
  • Low Profile mount retracts to 1.9" to save space, Extends 20" from the wall
  • Standard mounting hardware,10 ft HDMI Cable and 6" 3-Axis Magnetic Bubble Level included
  • Friday, December 25, 2015

    Merry Christmas! And the winner is......

    Wishing you a Merry Christmas!
    May the New Year bring joy, laughter and good health to you and your family!
     


    And the winner of the black 2016 Passion Planner (size: compact) is.........
    STEPHANIE B.
     
    Congratulations, Stephanie!  I will be contacting you shortly to arrange for delivery of the prize package.
     
     
    Thank you to everyone who entered the drawing, shared the post and liked my page.  I am so happy that all of you participated.  Thank you for your support.  Look for updates  and additional prize drawings in the coming year.
     
     
    Sincerely,
    This is me.....Then
    Faunya Estrada
    

    Monday, December 21, 2015

    My Passion Planner and Improptu Giveaway

    I just received two compact (5.5"x8.5") Passion Planners in the mail over the weekend and want to give away one copy before the beginning of 2016.
    The Passion Planner is a weekly planner that helps people break down their long and short terms goals into more actionable steps and gives them a place to incorporate these steps into their daily lives.
    To learn more about the Passion Planner, visit their website at http://www.passionplanner.com.

    To enter my contest to win a Passion Planner, do the following by Thursday, 24 December 2015 at 11:59pm:
    1) Fill out the entry form here.
    2) Like my Facebook page here.
    3) Invite others to do the same.

    *You may only enter the giveaway one time.....unless someone you refer also enters the giveaway and enters your name into the "Referred by" box on the entry form.

    Why am I doing this?  Because I have more Passion Planners than I can use.  Because I brought my very first Passion Planner in the beginning to 2015 and I absolutely loved it.  Because I'd rather give my extra planner away to someone who'd actually love to have one.  Because giving something away is actually on my Christmas list.  Because I thought is was a great idea to do on my blog.

    I will be announcing the winner on my blog on December 25th, 2015.  It is my Christmas present to you.  I plan to mail the Passion Planner shortly after, so that I can try to get it to the winner before New Years Day.


    Sunday, December 20, 2015

    Christmas Gifts for an 18-Month Old Girl

     
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    Meet Selah.  She is 18 months old and one of the most loving, beautiful, dramatic, silly and intelligent little girls that I have ever met.  She is also my daughter (No, I am not biased). 


    Christmas is coming up and I am so excited about how she will react when she opens her gifts.  We brought her gifts for Christmas last year, but she was too young to really understand what was going on.  This year is the first year that she will 'really' be able to understand that she is getting something new and this year she has a better idea of what she does/does not like.

    Firstly, I would like to point out that we have two family traditions that my husband and I have been doing ever since we've been married (5 years). 

    Tradition #1: We always buy each other pajamas, wrap them and put them under the tree or wherever we are storing our gifts for that particular year.  On Christmas Eve we gather around the 'tree,' open the gift and put it on before bed.

    Tradition #2: We also buy each other a book that we think the other person would enjoy or benefit from, wrap them and put them under the 'tree.'  This gift is also opened on Christmas Eve.

    * Tradition # 2 is new and this is something that we just instituted last year.  We each buy each other a gift and then we buy Selah's gifts together.


    If you have read any of my previous blogs on preparing for the holiday, then you know that we have a holiday spending budget.  The dollar amount saved for Selah's gifts is $100. 

    GIFT #1
    Elmo Play All Day
    BUY HERE

    Thus far, we have spent $40 on the Elmo Play All Day.  This toy is regularly priced at $59.99, but is currently $45.99 on Amazon.com.  We purchased her toy from ShopRite on Black Friday.  Elmo Play All Day is a plush cuddly toy, featuring 8 games/activities and 150+ responses.  Selah is obsessed with Elmo, as is most toddlers her age, so I know that she will LOOOVE this toy.

    GIFT #2
    
    Melissa & Doug Jumbo Triangular Crayons
    BUY HERE
    Melissa & Doug Jumbo Coloring Pad
    BUY HERE

    Selah absolutely loves to write.  She writes in coloring books.  She writes in regular books.  She writes on cardboard and she writes on the floor.  She writes on skin and she writes on walls.  It's only natural that we would choose to get her a) Melissa & Doug Jumbo Triangular Crayons and b) Melissa & Doug Jumbo Coloring Book.  Both products cost a little under $5 each on Amazon.

    GIFT #3
    Pajamas: We haven't picked out the exact pajamas we will get her yet, so I don't have much detail available.  However, I was in Gymboree earlier today and they had really cute pajama sets on sale. (Click on Gymboree link to receive 25% off your first order.)

    GIFT #4
    Gift #4 is up in the air.  Assuming the pajamas cost between $10-$20, we have approximately $30-$40 left to spend on Selah's Christmas gifts. 

    Since her ears are not pierced, I am considering a bracelet.  However, when I mentioned it to her dad, he didn't seem that enthused.

    We are also considering a learning tablet.  Since she loves the iPad and our cellphone, I would love to get her a tablet specifically designed to increase her intellectual ability.  However, we don't know if we'd be able to find a quality tablet for the price range mentioned above.

    Clothing, toys or extra books are always an option, if we can't figure out anything else.  I also like the idea of spending money on 'an experience' rather than material things.  Only time will tell.....and suggestions are more than welcome!

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    If interested in learning more about the products listed in this blog, please click on the affiliate links below:
    - Elmo Play All Day
    - Melissa & Doug Jumbo Triangular Crayons
    - Melissa & Doug Jumbo Coloring Pad
    - Gymboree (Click on link to receive 25% off your first order.)

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    Popular articles/blog posts on Christmas gifts for toddlers are listed below:
    1. 100 Frugal or Free Christmas Gifts for Toddlers
    2. Gifts Toddlers Actually Want for Christmas
    3. All I Want for Christmas Are These Gifts For My Toddler

    Tuesday, December 8, 2015

    I Will Teach You To Be Rich And Beat The Banks



    Welcome to This is me…..Then!  If you like what you see, subscribe here for free updates, or you can “like” my Facebook page here and receive new posts in your news stream.  Once you like my page, you can choose to see posts in your newsfeed first or receive a notification for each post made.  Thanks for visiting!  This post may contain affiliate links.

    I Will Teach You To Be Rich

    Week 2: Beat The Banks

    Open high-interest, low-hassle accounts and negotiate fees like an Indian

    -----------------------------

    I am reading I Will Teach You To Be Rich by Ramit Sethi.  This book provides a 6-week step-by-step guide to getting your finances in order to become rich. 
     
    Last week, I covered the first chapter, which focused on optimizing your credit.  Week 2 promises to teach you how to beat the banks.




    In order to beat the banks, you must first learn about the different types of accounts available at banks and what they are used for.  In this chapter, Ramit discusses checking and savings accounts.

    Checking accounts are transactional and mainly used to hold money that will not be touched for a time period between 1 month and 5 years.  It is suggested that you should invest money (to be discussed at a later time) that you do not plan to touch for 5 or more years, instead of having it stashed in a savings account.

    Ramit outlines three different ways that you can set-up and optimize your bank accounts.
    - MOST BASIC OPTION: A checking and savings account at any local bank (or credit union).
    - BASIC + SMALL OPTIMIZATION OPTION: A no-fee checking account at your local bank and a high-yield online savings account.
    - ADVANCED + FULL OPTIMIZATION OPTION: Several checking and savings accounts at different banks.

    I currently have an advanced set-up, but am working towards simplifying my account process.  I have a checking and savings account at a large local bank (Citi).  My account is free because I keep a minimum balance ($1,500) in my savings account.  This is considered to be my emergency fund.  I also have a joint checking and savings account (with my husband) at a large local bank (Bank of America).  This account is free for us because this is where we both direct deposit our paychecks.  On top of this, I have a checking, multiple savings and ROTH IRA account through Capital One 360, an online account.  In addition, I have a few savings goals set-up through SmartyPig, another online savings account.

    The steps to beat the banks are as follows:
    1) Assess your current checking account(s)
    Make sure that you are not paying any fees and determine under what circumstances your would be charged a fee at that bank.  If there are fees that you cannot avoid under normal circumstances, find another bank.  No one should be paying monthly fees at banks, ever.  Most local banks and credit unions will waive the monthly fee if you use direct deposit (I would suggest that you set-up direct deposit into your main checking account.) or maintain a minimum balance.  Most online banks (such as Capital One 360) do not charge a monthly fee under any circumstance.  Ramit also mentions Charles Schwab as a viable online checking option.

    2) Open an online savings account.
    I have a couple of online savings accounts and find them to be extremely beneficial.  The interest rate is higher than any traditional savings account and the requirement that you transfer the money into your checking account in order to access it (which can often take up to 3 business days) discourages you from spending your savings on impulse buys.  However, I do think a portion of your savings should be available immediately.  If you have an online checking and savings account, you can easily transfer the money to your online checking account and use/withdraw the money immediately.  If you have a traditional checking account only, I would encourage you to open a traditional savings account at that same bank and save approximately $1,000 in that account to cover urgent emergencies.  Amounts over the $1,000 can be saved in your online savings account.

    3) Fund your accounts.
    Leave one and a half months of expenses in your checking account.  The extra half month of expenses are left in your account to prevent any overdraft fees, as you are getting used to paying bills and transferring money between your various accounts.
    Any remaining monies should be transferred to savings.  The first $1,000 should go into an easily accessible savings, while any leftover funds in excess of that amount should go into a high-yield online savings account.
     
     

    *If you are interested in purchasing a copy of I Will Teach you to Be Rich, you can pick up a copy by clicking on the link below. 
    **Ramit Sethi has a blog of the same name.  If interested, you can check it out here.
    *** If your interested in opening an online account with Capital One 360 (formerly ING Direct), click here.