Category Archives: News You Can Use

News You Can Use

You Can Never Save Money by Spending Money!

Money Lesson Number #129: You Can never save money by spending money!

Don’t let the Geico ad with that cute little talking and dancing  gecko lizard fool you–the only truth about that commercial is that every fifteen minutes, you and millions of people are just adding more money to Warren Buffet’s already $70-plus billion; he owns the Geico Insurance Company.

The-Geico-Gecko1

Always remember this: if you are spending any money, you are not saving, no matter how good the deal is, even if it is on sale for 99.99% sale off.

You did not save money if you bought it, you spent money (more often than not wasting money on junk that you will not need in a month), your money is going from your pocket to someone else’s pocket and, usually it is a billionaire or a multi-billion dollar company.

The only time you save money is when your hard-earned money stays in your pocket, whether it just sits at your home, in your checking account or in a portfolio that you own.

Learn the little tricks that corporations use to get your money.  Every time you see any kind of ad, such as TV commercials, printed ads, a sponsor page on your Smartphone via Facebook or Google, they have one goal in mind; to take your money from you forever!

The old saying is true: “A fool and his money are soon parted,” or even worse, “A fool and his money are soon partying.” But there is even a much better saying: “A Penny Saved is a Penny Earned.”

My favorite stratagem is to pay yourself first. Each time money comes into your hand, save/invest twenty percent (20%) and spend the other eighty percent (80%).

I know at times you must buy goods and services, but what you should know is that each time you spend money, it is going to make a large multinational corporation or someone wealthier and you poorer

(Please see one of my earlier  blog: Get Rich off the Very Companies You Pay Each Month for Goods and Services [Gas, Electricity, and Water Companies]). 

Most people have been duped into spending money. All ads no matter how simple or sophisticated are designed to wire your brain to make you give up your money to someone else. It is not easy, but you have to rewire your brain to know when you are getting duped.

A good way to start is with your children by letting them know that most TV and other commercial advertising are not 100% true. Our seven-year-old now always asks us each time he sees a TV ad, “Is it true?” and rarely are any of them true!

But, you can also always ask yourself by saying, “Can I go one day without it?” and the next day, ask the same question and most of the time, you will keep you hard earn money. The products or services are often things that you can live comfortably without.

Here is a quote from one of the first book ever written about money that will never change, The Richest  Man in Babylon“; Ten percent of what you earn is yours to keep.” 

buffet20My hope is that one day, people will realize that they have been tricked emotionally always to turn over their money to billionaire or people who already have more money than they do. 

“Too many people spend money they earned..to buy things they don’t want..to impress people that they don’t like”. –Will Rogers

Thank you for reading, please share my blogs and books with someone you love.

Love Always

www.sherwinpbrown.com

Two Financial Headlines That Will Shock You

Here are two money news headlines that will have you shaking your head

Breaking News

1) Per CNN Money.com: Only 48% of Americans have invested in the Stock Markets, this includes 401(k) money. That means 52% are missing out on the over 200% return in the past six years. There will be a lot of broke retired people in the future.

2) Per NPR.org:  So much money is going into Swiss Banks that the Swiss government is paying a negative rate of return, in other words, people are paying the Swiss Government to hold their own money … that is stupid.

Here is the great news; sooner than later, they have to come back in the stock market, and this will push the markets higher. I will make a prediction that within less than 18 months, the DOW (the 30 industrial stocks) will move from 18,000 to over 20,000!

In addition, these people are who work for a company that matches their employees’ contributions are actually saying to their employer, “That extra money that you are paying me so I do not have to work for forever and will have better much better financial life when I retire? Keep you money I do not want it, I want to be a worker bee for the rest of my life.”

Per CNBC .com:  Seventy-three percent of employers who have a 401(k) Plans for their employees match their employees contributions. Companies such as Wal-Mart Google, Medtronic, Starbucks will match 100% of your first 4-6% contribution.

So simple math: if you are earning $50,000 and you contribute 10% each year ($5,000), then your employer will contribute a matching amount the first 6% that is $3,000. So now you have a total of $8,000 starting to work for you each year.

But, say you work there 20 years and do not contribute a dime, then you gave up over $60,000! And if that $3,000 only compounded at 7% per year with dividends plus growth, you are missing out on $122,986, not to mention the tens of thousands of dollar of taxes savings that will be working for you if you are an intelligent investor.

And keep you money in a traditional 401(k) Plan and not a Roth.

4fatcat 001

Please do note: Each company has different vesting periods on the money they match, for example the first year is 20% vested, second year is 60% vested then, after three years you are 100% vested. However, there are no vesting periods on the money you contributed for yourself–you are 100% immediately vested, and you can rollover/take this money with you any time you leave the company. In addition, the IRS and sometimes your employer set the limits each year on how much you can contribute each year.

 As of 2015, the limited by the IRS is $18,000 if you are under age 50, but if you are 50 or older (up to age 71-and-a-half), you can do an additional $6,000 for a total of $24,000 per year.

You can read more about investing in one of my very easy to read investment books that are sold everywhere in paperbacks and eBooks such as on Amazon .com, Google play. iTunes Kobo book and Barnes and Noble,  just to name a few

 www.sherwinpbrown.com

Last Minute Tax Tip To Get A Bigger Refund!

Here is a quick and very easy way to get a bigger refund (or owe fewer taxes) while saving for your retirement at the same time!

1) Contribute $5,500 ($6,500 if you are 50 or older) to a traditional IRA … do not do a ROTH

2) Invest the money in FIVE different dividend paying companies for at least the next TWENTY years

Make sure these companies are companies that you and millions of other people must use their products and services every day. Here are some great examples of stocks & companies I’m talking about:

  • Your utilities company (Gas and Electric) you pay every month
  • a freight train companies such as CSX
  • Visa or Master if you use those cards daily or weekly
  • Food companies such as Sysco Corp.
  • The very company you pay for mobile phone service every month such as AT&T or Verizon
  • And last but not least, the gas company where you fill up your car bi-weekly, such as Chevron, Exxon Mobile, Marathon Oil, etc. (please read this very short blog)

Stop Paying your Electric Bill

3) Make sure that your quarterly (or monthly) dividends are enrolled in a Dividend Reinvestment Plan, also known as a DRIP.

4) Do not invest your money in Mutual Funds–over the long run, you will just get an average return and will not do as well as the top 5% of intelligent investors.

5) Here is how you will benefit; you pay fewer taxes now, and you should have a lot more money in 20 years from now because the taxes you did not pay are working for you!

6 You can thank me by downloading a copy of my book far as low as $4.99 at www.sherwinpbrown.com

7) *** Please READ DISCLAIMER ON MY WEBSITE AT www.sherwinpbrown.com

Stop Paying Your Electric Bill

How to get your current gas and electric company to eventually pay you more than you’re paying them each month.

 

nexteraenergya23Did you know if you live in Florida and you pay your utility company, such as FLP {real name is Nexta Energy—(NEE)}, at the average monthly cost of $183 for 32 years, it will cost you a total of $70,272 ?

 

But, if you had just invested only two years of the same payment $4,392 ($183 x 12 x 2 = $,4,392), it would now be worth $251,376 as today. At a dividend yield of 3% per year, you would now be earning  $ 7,541 per year–that is $628 per month. You would now be getting $445 per month more than the $183 you are paying them.

Here is a second example: If you live in Chicago, and you pay COM Ed (ED). Culling data from Yahoo Finance for the past 45 years, and using the current average $135-per-month x 45 years, your total bills paid would amount to $72,900.

mYXT0ThmBut, if you had just invested only two years of the current annual cost $3,240 ($135 x 12 x 2 =$3,240), your investment with growth and enrolled in a Dividend Reinvestment Program (DRIP), it would now be worth $579, 292 and  with a current dividend yield a 4.2 percent.

Your current yearly investment income from them would be $24,330 or $2,027 per month. That is; you are now getting $1,892 more than you are paying them.

How much do you pay your utility company and how long have you been paying them?

What other company do you buy something from each day?

Are you a Starbucks junkie? Do you pay about $2.50 per cup twice per day? Plus tip?

starbucks_1798272c That is at least $1,825 per year, or in 23 years you will have spent $41,975. But, that is okay if you just had put one year of your coffee cost of $1,825 twenty-three years ago and let it compound via growth and dividend

The value of that $1,825 as of today would be worth be $282,521 with a cash dividend yield of 1.3%, and  it would be paying you $3,672 per year or $10.06 per day. You could still enjoy your two cups per day and have $5.06 more than you are paying them.

Money Lesson #140: As it says in my book “Simpler, Safer Investing”, invest where millions of people such as yourself buy and use the companies’ products and services each day, such as your electric and gas company, or your favorite coffee chain.

To lean more on this subject, please check  my book on my web site www.sherwinpbrown.com  or an Apple ITunes,  Amazon .com,  Google play, Barnes and Noble, Kobo Book are anywhere books are sold.

News you can use

No Tricks, No Gimmicks, No Sales Pitch Here!

JUST FREE NEWS and TIPS you can put to use today to start saving money and becoming happy, healthy, wealthier!

Here is Today’s News You Can Use:

Your walk of money “What Is Your Walk Of “?

If you sell off Everything you own and Pay off Everyone you owe, how much is your walk off amount $?

Yes, what is your Net worth? If you sell off all you assets and pay off all you liabilities, how much would you have to take with you to you Paradise dream Island such as Jamaica or Tahiti?

This is a Number you must know if you truly want to be wealthy :

1) Mutual Fund v. Individual Stocks: 

Which one did better? Fidelity, the largest Mutual Fund at $108.50 billion or an Individual online retailer stock? 

If you had invested $10,000 in Fidelity’s largest Mega Fund, The Fidelity Contra (FCNTX) [Net Asset Value of $108.50 Billion] in May 16,1997 – Mar. 1, 2014, (16 years and 10 months), you would now have $51,897.

But, say you put that same $10,000 in an Online Retailer Stock Company: Amazon.com  (AMNZN). You would now have $2,081,676: YES, over 2 million US dollars – that’s over 40 times more than if you had invested in Fidelity Contra Fund!  

 $51,897.00 v. $2,081,676.00.00! Need I say more?

2)Mutual Fund   VS   Individual Stocks:

Which would you want?  $39,889.64 or $200,000 

Vanguard, the largest Mutual Fund (VTSMX) or an Individual Real Estate Stock?

If you had invested $10,000 invested in Vanguard, the largest Mega Fund (VTSMX) [Net Asset Value of $301.98 Billion] in June 20,1996 (Now Feb. 25,2014, just under 18 years), you would now have $39,889.64!

But, say you put that same $10,000 in a Dividend Real Estate Company: REIT Realty Income Corporation (O). You would now have $200,000.00—that’s over 5 times more than if you had invested in Vanguard. Do you still like Mutual Funds? Or will you keep your head in the sand while these fund companies just keep nibbling away at your hard earn money with fees?

Try this for yourself: Pick any individual company that pays increasing dividends. This is very simple; think of a company where you and millions of people use their products and services on a daily basis, like toothpaste or soap and go back as far as you can (be warned: the Mutual Fund companies try to hide their bad historical years) and run a test against the Mutual Fund you have in your 401(k), IRA or other investment instruments. 

Thanks and have a Magical day!
Love Always,
Sherwin Presley Brown
International Author, Professional Public Speaker, Investment Guru, and Financial Expert