Thursday, May 24, 2012

How to live below your mean?

My neighbor was a medicine public company officer; meanwhile my father just a public private officer. My neighbor's child is my classmate and he is clever as mine. Unfortunately, he cannot continue to study at the university; on the other hand, I have passed my graduate.

My friend's life is not simple as mine and he has a more expensive house and more expensive vehicles. He used to wear expensive shirt, shoes, and bag.

Live below your means is important for you. Do not afraid your friend will mock you. You need money in future so keep your money for the future.

Here some example to live below your means

1. Use simple shirt. Do not buy the mark name brand buy the comfortable.

2. Do not buy luxurious car if cheap car could pick you to office or school

3. Do not use credit card because it will load you with high interest. If you are late to pay the bill, you should pay the fine.

4. Do not often to eat outside. Cook your food by yourself because it is cheaper and more health.

5. Buy anything at groceries to thrift some dollar. As consequently, you should buy more products. For example, you should buy a dozen shirt at the groceries because the groceries do not allow you to buy a shirt.

6. Buy DVD Movie than going to cinema. It will cut you some bucks.

7. Hire book from the public library than buying it at bookstore.

8. Do not buy the expensive cell phone if you do not need it. Use simple phone that is able for communicate and sms.

9. Go to office or school with public transportation such as subway, train, bus or tram.

Wednesday, May 23, 2012

How to teach kid about money

I think teaching your children early about money is good. This skill is very useful for their future. They could manage money and then be rich. Do not spoil your children with much money so they just know how to spend money.

The parent should teach the kid about money. The kid should know that finding a penny is not easy. Explain them that they will need more money when they enter to the college.

1. Give them some money to your child. It is impossible to save if he/she has no any money. Do not be misery to your child.

2. Save a part of his/her income. Some article advise to save 50%. I think it is depend on the amount of money and the child need. For example, the child who has income 1000 dollar a month could save more money than the child who has income $ 100.

3. Plan to buy a things for next two years. For example, Buy an electric car toys for your kids.

4. Give your children piggy bank so they can put some penny into there. You do not have to buy a beautiful piggy bank. The simple piggy bank is enough to your kid.

5. If the piggy bank has been full, you may save the money to mutual fund or stock. You may buy some part of the money for the child toy. It will motivate the children to save more money.

6. The important is the parent behavior. If the parent has bad behavior in spending money, the child will follow what parents do.