Buy versus Rent

The last housing bubble and subsequent real estate crash have many folks asking ... is it better to buy or rent? Its a good question, with large numbers of folks underwater on their home loans. In other words their existing loan balance exceeds their current home value.

Finding oneself in a negative equity position is never a fun place to be. However  ownership  typically wins out over the long haul. And the reason is  systematic principle payments made over time. Few have the discipline to save regularly year in and year out.  Although many manage to achieve like result via monthly house payments over decades.                                   

                                                        Roger L. Caron

Income Management

We live in difficult economic times and living on marginal means is no small challenge. Yet today most folks have access to some form of income, be it employment or otherwise. It could be in the form of Cash Assistance, Unemployment Benefits, Disability Income, Social Security, etc. While the income provided by social programs may be minimal, it is none the less income. And where there is income, there is opportunity. The source and size of the income is not what matters, but rather how the available income is managed. The trick is to find ways to create surplus, however small, regardless of circumstance.

 

                                             Roger L. Caron

Written Goals 

 

Accomplished people are goal oriented. They know how to set goals and work toward clearly defined results. In order to be effective, goals need to be concise, specific and in written form. If you find yourself reticent to write down your personal goals.  Mark well, written goals are to success what wings are to an airplane, as they provide the lift to turn your dreams into reality.

                                                                                    
                                                                                      Roger L. Caron

                                                         
                                                              Money Games

Casinos use chips or tokens in lieu of cash ... because people spend more freely than they would using actual greenbacks. Gambling houses are not alone in the use of this ploy to encourage added spending. Recent financial studies indicate consumers tend to spend up to fifty percent more on fast food and other purchases when they pay with debit or credit cards. Why? because parting with hard earned cash has a stronger mental impact.

                                                                                 
                                                                                         Roger L. Caron

Simplicity

When you get down to basics, most things in life are pretty simple.  Live beneath your income, save and invest the difference over time, and prosperity will  follow. Its about understanding fundamentals and not allowing ourselves to become overly confused. While the input of a competent adviser can be of  considerable value,  recognize those with expertise are often vested in making things  sound complex. Professions across the board tend to utilize jargon incomprehensible to the lay person. Why? Because the more complicated things appear, the more likely we are to use their services ... simple as that! 

                                           Roger L Caron

                                                            Perspective

The next millionaire could be you or someone you love. What does it require? Small regular saving and prudent investment over time. Getting to retirement age with a million dollar nest egg requires commitment and perseverance. Oddly it's less about investment acumen than it is about being disciplined with available financial resources. While starting early can ease the challenge, advanced age shouldn't be viewed as a deterrent.

Financial advisers now routinely use age 90 for planning purposes due to increased life expectancy. Thus even for those nearing retirement, decades could remain for wealth building. Making the commitment to save a portion of all income received, regardless of source or size, is the portal to prosperity at any age.

                                                                        Roger L. Caron                       

Post Work Years

Having sufficient financial resources for a comfortable retirement is a much sought after goal. Yet for many it remains elusive despite decades of working for a living.  Unfortunately this can lead to a defeatist attitude and acceptance of the erroneous idea its too late to do anything about it. As noted in the previous post, where there is income, opportunity exists.

Living a bit beneath available income, regardless of source or size, is the key to a brighter financial future. For some reason folks tend to think that once they stop working the “ball game” is over ... when its not. Given extended longevity, earning years and post work years may not be as dissimilar as one might imagine. Saving for a better future is an option worthy of consideration regardless of age or circumstance.

                                                        Roger L. Caron