Right Thinking

The average worker spends decades toiling for wages. All this effort should bring financial security, but it seldom turns out that way. As only a small percentage of folks can sustain themselves comfortably solely from their own resources. Why does it happen? No one sets out with the intention of working their life away with little or nothing to show for it. It begs the question … how does one achieve long term financial success in our increasingly complex world?

The answer lies in developing the ability to discern the important from the trivial. Looking first and foremost to fundamental cause, for once discovered things tends to fall into place. Success with money is not happenstance. Its the result of right thinking and behavior consistent with such an end. What a person earns is of far less important than you might think. Its the way we use our resources over time that determines the outcome.

                                             Roger L Caron

Mentality

When you think about saving, do variety, satisfaction and prosperous living come to mind? Or do you have a “sacrifice mentality”, thinking instead, deprivation and limitation? A sacrifice mentality is the belief you need to deprive yourself in order to save. With thoughts focused on what you don't have rather than what could be in the future.

In order to break this mentality, think of saving not as restrictive living, but as a total management plan designed to dramatically increase your total life income. A management plan offering flexibility, not rigidity. It should allow you to choose from a variety of options, and include some of your favorite activities. The key to success in saving is moderation … not deprivation.

                                          Roger L Caron

Penny Wise

The idea that significant wealth can be derived from small change might sound fanciful. Yet a handful of coins can yield immense rewards. Set aside four quarters daily starting at age twenty-five, compound it at eight percent, and it will increase to more than one hundred thousand dollars by age sixty-five. The time is considerable, but then so is the result. It’s rather amazing when you think about it.

                                             

                                  Roger L. Caron

US Debt

Our national debt currently exceeds $14 trillion dollars, with much of this money owed to other countries and foreign investors. The interest payments on this debt are immense, exceeding $200 billion in 2010 alone. Over the course of the next decade our payments are expected to quadruple, with ever more tax dollars flowing to our overseas creditors. Debt be it public or private, is akin to an old time prison “ball & chain” ... for it shackles the debtor and impedes forward progress.

                                                        Roger L. Caron

Financial Cushion

What would happen if you lost your job? Would the bank foreclose on your house? Would you get evicted from your apartment? Could you afford to keep the utilities on? How long could you afford groceries? What would happen if you got hit with a big bill for an unexpected expense? If you are on solid financial footing ...  you can bear the burden of a short term loss or major unexpected expense because you are prepared for it. 

For example could you afford to replace a failed transmission in your car. If such an unplanned expense would throw your life into disarray, it's time to take a hard look at your present lifestyle. While you may be doing fine today ... if a single expense is all that stands between you and financial disaster, now is the time for action. 

Creating an emergency fund is a critical part of sound planning. Putting several months' worth of income in the bank so that you have it on hand should you need it, provides an essential cushion for unexpected events or a temporary halt to you income.

                                                                                                   

                                       Roger L. Caron

Retirement Savings

The Employee Benefit Research Institute conducts an annual retirement confidence survey to gauge how prepared Americans are for retirement. Their 2010 survey found that 54 percent of workers have less than $25,000 saved, excluding the value of their home and any pension plans.

The good news is Americans are squirreling away more of their hard earned money, with saving rates rising from near zero to six-percent over the the past few years. The ramifications of this shift in saving, can be immense ... as illustrated in my new book: Save & Grow Rich “How to Turn Small Change into Large Fortune”. 
                                                     

                                                    Roger L. Caron