Personal Finance

If you think you've done all you can to save money on gas, you might want check out these tips. There are many things you can do to cut back on your fuel costs that have nothing to do with driving less. Saving fuel benefits your wallet and the earth, so cutting as much cost as possible is an excellent choice.

We all want to save money. Even as the economy is slowly making its rebound, it seems that everyone has seen the value in cutting as much cost as possible from the household expenses. One of the biggest costs that is also easy to cut back on is the amount we spend on gas. You might think that you have already cut your costs by carpooling with the other parents in the neighborhood or with your co-workers, but there is still more that you can do to eliminate cost.

Cutting Your Gas Costs

Drive smarter - Driving less is obviously the biggest thing you can do to save money on gas. However, you should also be thinking about how to spend less while you are actually driving. Since you cannot stop using your car completely, you should be aware of how the way you drive expends gas. For starters, braking frequently and then accelerating burns more fuel. To avoid when you are stuck in traffic, practice keeping your foot off the brake and the accelerator. Doing so allows you to creep along with the traffic and only burn extra fuel when necessary. You can also anticipate stopping at traffic lights so that you can do it slowly instead of slamming on the brakes which burns more fuel. The same is true when you get moving again: do it at a slow and steady pace rather then flooring it. Even though your car can go 0 to 60 in six seconds does not mean it is the most efficient way to accelerate.

Pay attention to fuel use when you are not driving - It sounds silly, but when you are not driving you might be burning gas too. If you let your vehicle idle when you are in the parent pick up line at your children's school or while your spouse runs into the grocery store, you are basically throwing money away. Instead, turn the engine off while you wait so that you are not just sitting there burning fuel. Also, try to park in the shade as much as possible so you can avoid having any of the petrol in your tank evaporate. It is a small amount of loss, but over time it can add up.

Park in the first space you find - Driving around parking lots looking for a close space is a huge waste of fuel. Instead grab the first space you see, especially if it is in the shade, and walk the short distance to the shop or restaurant. By doing this, you will burn calories instead of burning fuel.

These money saving tips are just a few of the small ways you can cut back on your gas costs. There are loads more that do not require you to buy a new vehicle or ride your bike to work. Remember, that often it is the small things in your budget that really add up to big savings.

This article was written by William from homeloanfinder.com.au. Visit HomeLoanFinder for a range of articles and guides on home loan interest rates and variable home loans today.

Think you need an expensive gym membership to stay fit? Not according the The NYTimes' Walecia Konrad:

As the nation’s economic woes drag on, many people are rethinking their investments in pricey gym memberships and home exercise equipment. After all, the average health club membership is $750 annually, including sign-up fees and monthly dues. Treadmills can cost upwards of $1,000.

Many fitness buffs are finding that less expensive alternatives can be just as invigorating. “These days people realize you can burn the same number of calories for a lot less money,” said Beth Kobliner, personal finance expert and author of “Get a Financial Life.” “All kinds of programs have popped up post-recession that offer lower-cost ways to exercise.”
Check out the whole article here.

"Sometimes the road less traveled is less traveled for a reason." ~Seinfeld

This post has been rolling around in my head for a long time now, and I wanted to throw it out there. It may seem contradictory to a lot of the other material on Bounteo, but I'd like to at least start the discussion.

There are tons of personal finance bloggers out there, and most of them would probably point to the pattern of thrift and investing in the stock market for the long-term (usually via index funds) as the most proven way to achieve wealth. Studies have certainly born this theory out, and I have advocated the same thing on this site and elsewhere.

However, a nagging doubt at the back of my head is this: just because something worked in the past, does that mean it will work in the future? Also, just because 80% of millionaires made their money using method A, does that mean that you should take that route? Maybe methods B & C are a better fit for you, for the age we live in, or maybe they're just simply less obvious / harder so fewer people try them.

Should we take the tried-and-true route to wealth, even if it doesn't inspire us?

Here are some examples of taking the road less traveled in terms of wealth:

Dropping out of college or skipping college to start a business
Probably not a ton of people who would advocate this, but it's a common story among the super-rich. Bill Gates, Steve Jobs, Mark Zuckerberg, Michael Dell, the list goes on and on. Now, please understand, I'm a huge advocate of college, but lots of people have succeeded without it. Maybe there's something else that works better for you.

Leveraging your investments by buying on margin, trading stock options, or day trading
Are you likely to succeed at this? Statistically, absolutely not. However, I personally know some people who have done very well in these areas. I have a hard time thinking of circumstances where I would encourage it, but why should you listen to me? ;-)

Skipping the stock market altogether and just focusing on real estate
Real estate is a proven path to wealth, so perhaps it doesn't belong in this category, but for whatever reason, I see a lot of personal finance bloggers making the argument that real estate is too advanced for most people or offers inferior returns to those of index funds. Neither are necessarily true. Unlike index funds, real estate is an investment that you can directly improve through hard work and dedication. Returns that are orders of magnitude larger than the stock market are not uncommon for professional real estate investors. "But I'm not a professional", you say? Well, do you want to be? All those professionals started somewhere, too.

Bootstrapping a business with your credit cards
Does this path carry a lot of risk? Absolutely. Are there other ways to accomplish the same thing? Yes, there usually are, but what if this is the only option you have? Should you not take it just because some blogger said it was a bad idea? Lots of businesses have been started this way, and while it's not an ideal start, if it's this or no start, it may be worth it.

Borrowing from your 401k to fund investments
Why not?

Becoming a bank robber
Just kidding. Getting wealth through dishonest means is never worth it.

I say all that to say this: there are many paths to wealth, beyond just the old "save and invest in things that are boring" routine that is often bandied about, even here on Bounteo. That plan is a great one for the vast majority of people, and it's certainly better than no plan at all for 100% of people, but what about those people who are driven to do more? Well, if you're determined to go your own way and explore the road that's even less traveled, here's some advice for the journey:

1. Don't lie to yourself - Be honest about the risks you're taking
2. Manage the risk - Just because you're taking extra risk doesn't mean you can't control or manage it
3. Don't be risky - There's a difference between taking risk and being risky (aka reckless)
4. Have a plan - Before you jump in, think about your path and how you'll deal with different scenarios
5. Seek advice - You're probably not the first to travel down this road, so get advice from those who have
6. Don't abandon the basics - Do what you can to cover your downside and provide an insurance plan if things go south
7. Stay involved - Nothing good ever just happens to people on the road less traveled; you have to make it happen.

Bonus #8: Know when to call it quits - There's no shame in giving it your best and failing. What's sad is people who stumble on in a zombie state for years, wasting valuable time that they could spend on their next attempt.

The last few months have been incredibly busy, but I'm ready to dive in again and get back to Bounteo. I wanted to highlight a few of the great articles I've read recently around the web:

The College Degree is Not Dead - Good post over at Free Money Finance about how the value of a college degree, while declining, is still very high.

Should You Look For A New Job? - Blueprint for Financial Prosperity gives some reasons why you might want to look for a new job, and some reasons why you might not.

Simplicity and being cheap - Philip over at Wise Bread has some great thoughts on simplicity and how living a life without a lot of stuff will help you attain financial freedom.

In a recent blog post, Seth Godin posts some good advice regarding personal finance. Check it out!

http://sethgodin.typepad.com/seths_blog/2008/06/urgent-personal.html

Here's a few good articles and posts on other sites that I thought readers might find interesting:

How to recover from a (big) mistake at work
Jay over at Dumb Little Man has a pretty interesting post about getting past a mistake at work without letting it do too much damage. The advice is basic but helpful and could be applied to other areas of life beyond just work.

How to Determine the Amount of Life Insurance You Need
Good post from Free Money Finance about how to determine the optimal amount of life insurance. I know that when you're 25, life insurance isn't at the top of your priority list, but there are times when it's important, depending on your circumstances. Take a quick look at the article and see if it's something you should look into further.

You must file a tax return to get economic stimulus tax rebate
Finally, Wise Bread has a post about the upcoming economic stimulus package rebates and how you need to file a tax return to get your cash. I'm posting it here because some college students may not make enough to need to file a tax return, but should definitely consider filing anyway this year. The post also has some good info about the dates that you can expect to receive your rebate.

And that's it! Please send me any links you might have and I'll try and include them in the next Links post.

Now that Bounteo.com is up and running (though we still are working on a design for the site), I want to start things off well, so I'm looking for post ideas and guest bloggers. Please contact me with any ideas you might have for posts and if you're interested in posting a guest post here, please send in any ideas you have. I would love to get some perspectives from other bloggers and authors about how young people can make good choices and make progress towards a life of success.

Bounteo.com is site that explores the pursuit of a life more abundant, particularly as it applies to young adults in their twenties.  However, readers of every age are certainly encouraged to interact and share their opinions and perspectives.  In subsequent posts, I'll explore a bit more about my own definition of success, the topics that I think are relevant to its pursuit, and why I've chosen to focus on young adults.  But first, a short introduction is in order.

My name is Ryan Waggoner, and for some time I've blogged at my personal website about personal finance, including a 12-part series for young adults on how to start investing for the future.  That content will form the genesis of Bounteo, but as we progress, I hope to add content in areas other than personal finance and investing, such as career development, entrepreneurship, time management, personal development and motivation, and other topics related to the pursuit of success in our lives.

Finally, I would like to say that I myself am a young adult (25 years old) and possess little in the way of credentials and professional experience that would qualify me as an authority of many of the topics we'll discuss.  I'm just a guy with a burning curiosity, a passion for learning, and a willingness to see others succeed.  I will do my best to ensure that I provide sources and solid logic and reasoning for the content on this site, but I hope that my readers will do their part to scrutinize my words and conclusions and challenge me where my own reasoning or research has fallen short.  In this way, perhaps we can actually accomplish something in our pursuit of the truth and a life more abundant.

MSN Money had an interesting post awhile ago about an annual survey of millionaires. They classified the millionaires into six categories, according to how they made their money, their risk tolerance, attitudes about wealth, etc.

Satisfied Savers (24% of Total)

• Average age: 60
• Built wealth through hard work, by living below their means and taking moderate risks
• Financially savvy
• Lost relatively little in the bear market
• Know how to make their money work for them
• Enjoy making a difference through charitable efforts

Status Chasers (18% of Total)

• Average age: 55
• Achieved wealth through work and some inheritance
• Want it all but haven't been able to achieve their major goals yet
• Define wealth as a level three times their current net worth
• Pessimistic about their own financial future
• Less financially knowledgeable than their counterparts
• Think of financial situation daily as a source of concern

Altruistic Achievers (17% of Total)

• Average age: 54
• Achieved wealth through work, some inheritance, good investments, owning a business, and living below their means
• Self-made, driven to succeed, work hard, take risks
• Use their wealth to help the less fortunate
• Lack the time, interest and know-how to manage finances; rely on professional management
• Lost the most in the bear market
• Only one-quarter plan to retire completely

Secret Succeeders (17% of Total)

• Average age: 55

My parents didn't do a great job at demonstrating good financial habits for me, and as a result, I've been thinking about how I'd like to teach my kids to be more fiscally responsible.  I ran across a great post today over at Get Rich Slowly with some good tips and links to helpful articles about allowances, teaching kids about the value of hard work, and more.  I don't have kids yet, so I don't have a lot of commentary here, except to say that it's definitely the job of parents to teach their kids about this.  The schools sure aren't going to do it, and judging by the pile of debt that the average American has, people don't usually fall into a pattern of good financial habits on their own.