Comments on: The Best Time to Start is Now http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm Building Wealth through Saving and Investing Sat, 21 Nov 2009 03:00:37 -0500 http://wordpress.org/?v=abc hourly 1 By: The KISS Principle | Million Dollar Journey http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-31545 The KISS Principle | Million Dollar Journey Thu, 17 Apr 2008 09:30:40 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-31545 [...] you can subscribe to the RSS feed via reader or E-mail. Continuing on from my post about "The best time to start is now", I'm going to expand on the concept with the KISS [...]

[...] you can subscribe to the RSS feed via reader or E-mail. Continuing on from my post about "The best time to start is now", I'm going to expand on the concept with the KISS [...]

]]> By: 148th Edition of the Carnival of Personal Finance » Your Finish Rich Plan http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-31457 148th Edition of the Carnival of Personal Finance » Your Finish Rich Plan Wed, 16 Apr 2008 17:56:09 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-31457 [...] The Best Time to Start is NOW by Million Dollar Journey [...]

[...] The Best Time to Start is NOW by Million Dollar Journey [...]

]]> By: Jagdu Fresno http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-31148 Jagdu Fresno Mon, 14 Apr 2008 17:18:44 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-31148 Just starting is definitely the most important. Even if you can only start with $50 per month, you can try to raise that by 10% every month and you'll not notice the slight increases as much. Just starting is definitely the most important. Even if you can only start with $50 per month, you can try to raise that by 10% every month and you’ll not notice the slight increases as much.

]]> By: Links: New Redesign Edition http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-31033 Links: New Redesign Edition Sun, 13 Apr 2008 16:40:13 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-31033 [...] Million Dollar Journey says this is the best time to start investing [...]

[...] Million Dollar Journey says this is the best time to start investing [...]

]]> By: Isabelle http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-30831 Isabelle Fri, 11 Apr 2008 17:02:20 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-30831 PatMunits Good strategy... You can also estimate what that amount of money would be worth down the road? I often ask myself questions like do I want to spend $500 on cable tv this year, or would I prefer to let it grow into an estimated $6,633.84 (I used a 9% interest rate) over the next 30 years? PatMunits
Good strategy… You can also estimate what that amount of money would be worth down the road? I often ask myself questions like do I want to spend $500 on cable tv this year, or would I prefer to let it grow into an estimated $6,633.84 (I used a 9% interest rate) over the next 30 years?

]]> By: Friday Finance Findings For April 11th - SmartyPig Winners Edition : Generation X Finance http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-30821 Friday Finance Findings For April 11th - SmartyPig Winners Edition : Generation X Finance Fri, 11 Apr 2008 15:04:28 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-30821 [...] The Best Time to Start is Now - It doesn’t matter what stage of life you’re in, but the best time to start is now. Whether it is getting out of debt, saving for the future–the sooner you take action, the better off you’ll be. [...]

[...] The Best Time to Start is Now – It doesn’t matter what stage of life you’re in, but the best time to start is now. Whether it is getting out of debt, saving for the future–the sooner you take action, the better off you’ll be. [...]

]]> By: Dividends4Life http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-30688 Dividends4Life Thu, 10 Apr 2008 02:47:31 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-30688 Sometimes you just have to quit talking about it, thinking about it and just do it. Planning is great, but it has to lead to execution before you can enjoy success. Best Wishes, D4L Sometimes you just have to quit talking about it, thinking about it and just do it. Planning is great, but it has to lead to execution before you can enjoy success.

Best Wishes,
D4L

]]> By: Financial Jungle http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-30682 Financial Jungle Thu, 10 Apr 2008 00:32:58 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-30682 This may be too drastic for most, but ever since moving from suburb to a small downtown condo, our discretionary spending is virtually halted. Every time we want to buy something new off a store, we're always reminded of our new minimalist life-style. There's no space for that giant TV, second couch, large painting, pool table, and etc. It's also comforting to know that we're living smaller footprints in our environment. This may be too drastic for most, but ever since moving from suburb to a small downtown condo, our discretionary spending is virtually halted. Every time we want to buy something new off a store, we’re always reminded of our new minimalist life-style. There’s no space for that giant TV, second couch, large painting, pool table, and etc. It’s also comforting to know that we’re living smaller footprints in our environment.

]]> By: Canadian Capitalist http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-30678 Canadian Capitalist Wed, 09 Apr 2008 22:56:18 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-30678 The first step is the hardest to take. Once it's taken it's much easier to maintain the momentum. The first step is the hardest to take. Once it’s taken it’s much easier to maintain the momentum.

]]> By: Little Ms.Scrooge http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-30675 Little Ms.Scrooge Wed, 09 Apr 2008 19:20:14 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-30675 Dear readers, My dad encouraged us to keep a check on splureges with this strategy and it has worked for me till now. (I still do give in at times!)He said if you see some thing you like, take a good look at the price, and come back in a few days time- typically a week. If you have lived well without it, it means you din't need it in the first place and you can live without it for future too. This distinction between wants and needs is an important financial lesson for children nowadays, (It is a concept that my kids are yet to learn!)especially when they are surrounded by TV ads and peer pressure to keep up with the little Joneses. Dear readers,
My dad encouraged us to keep a check on splureges with this strategy and it has worked for me till now. (I still do give in at times!)He said if you see some thing you like, take a good look at the price, and come back in a few days time- typically a week. If you have lived well without it, it means you din’t need it in the first place and you can live without it for future too. This distinction between wants and needs is an important financial lesson for children nowadays, (It is a concept that my kids are yet to learn!)especially when they are surrounded by TV ads and peer pressure to keep up with the little Joneses.

]]> By: Gates VP http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-30670 Gates VP Wed, 09 Apr 2008 18:10:58 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-30670 <b>Peter:</b> <i>For most people it’s much better to just do “something” and (like you say) do it now.</i> Thank you! FP got it and I'm really happy that <b>FT</b> made this post. I've posted about this before, but it's important to reiterate from time-to-time: We in the PF blogosphere are talking about optimizing the last percentage points of an already optimized system. The average person has so many they can work on that it's just time to start. It's all just constant refinement, most of the people in this blogosphere have been studying and working with money for so long that we're dealing in details that are simply too much for the average person. I'm OK with that, completely, it's what keeps me coming back. It's just good to give a hello to those 2600 blog readers that don't comment every week :) So FT, may I add: <b>If you're new to this and you've decided to turn your financial life around, just pick the worst financial offender in your life and fix it up. Rinse and repeat. Expect to be at it for a year or two, especially if you have a complex life with kids and cars and mortgages and two jobs and credit card debt.</b> Peter:
For most people it’s much better to just do “something” and (like you say) do it now.

Thank you!

FP got it and I’m really happy that FT made this post. I’ve posted about this before, but it’s important to reiterate from time-to-time:

We in the PF blogosphere are talking about optimizing the last percentage points of an already optimized system. The average person has so many they can work on that it’s just time to start.

It’s all just constant refinement, most of the people in this blogosphere have been studying and working with money for so long that we’re dealing in details that are simply too much for the average person. I’m OK with that, completely, it’s what keeps me coming back. It’s just good to give a hello to those 2600 blog readers that don’t comment every week :)

So FT, may I add:

If you’re new to this and you’ve decided to turn your financial life around, just pick the worst financial offender in your life and fix it up. Rinse and repeat. Expect to be at it for a year or two, especially if you have a complex life with kids and cars and mortgages and two jobs and credit card debt.

]]> By: Four Pillars http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-30668 Four Pillars Wed, 09 Apr 2008 17:53:02 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-30668 <i>I think one of the things that prevents people from getting started with improving their finances is spending too much time trying to figure out the “best” or “optimum” thing to do. They get caught up in calculations and complex strategies to try to shave a tiny bit off their debt or to squeeze an extra 0.5% return out of their investments over 20 years.</i> lol - Peter, you've just described the entire personal finance blogosphere perfectly! Mike I think one of the things that prevents people from getting started with improving their finances is spending too much time trying to figure out the “best” or “optimum” thing to do. They get caught up in calculations and complex strategies to try to shave a tiny bit off their debt or to squeeze an extra 0.5% return out of their investments over 20 years.

lol – Peter, you’ve just described the entire personal finance blogosphere perfectly!

Mike

]]> By: Cheap Canuck http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-30659 Cheap Canuck Wed, 09 Apr 2008 16:16:08 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-30659 I think for anyone who isn't investment savvy the best move is to pay down debt. With such a variety of investment options, and the volatility of markets these days, making an investment just for the sake of doing something might actually result in a loss (even with a long time horizon). In the meantime, educate yourself. Don't bother with investments until you fully understand them. In the meantime you are getting a guaranteed rate of return, risk free by paying down your debt. I think for anyone who isn’t investment savvy the best move is to pay down debt. With such a variety of investment options, and the volatility of markets these days, making an investment just for the sake of doing something might actually result in a loss (even with a long time horizon). In the meantime, educate yourself. Don’t bother with investments until you fully understand them. In the meantime you are getting a guaranteed rate of return, risk free by paying down your debt.

]]> By: Peter @ Plan Your Escape http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-30654 Peter @ Plan Your Escape Wed, 09 Apr 2008 15:33:40 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-30654 I think one of the things that prevents people from getting started with improving their finances is spending too much time trying to figure out the "best" or "optimum" thing to do. They get caught up in calculations and complex strategies to try to shave a tiny bit off their debt or to squeeze an extra 0.5% return out of their investments over 20 years. For most people it's much better to just do "something" and (like you say) do it now. Anything at all to get them headed in the right direction is better than agonizing over whether you'd be slightly better off buying or renting, or contributing to an RRSP or a TFSA, or investing in fund X versus fund Y. Just start saving, paying off your debt, reducing expenses and worry about the complicated stuff later. Peter I think one of the things that prevents people from getting started with improving their finances is spending too much time trying to figure out the “best” or “optimum” thing to do. They get caught up in calculations and complex strategies to try to shave a tiny bit off their debt or to squeeze an extra 0.5% return out of their investments over 20 years.

For most people it’s much better to just do “something” and (like you say) do it now. Anything at all to get them headed in the right direction is better than agonizing over whether you’d be slightly better off buying or renting, or contributing to an RRSP or a TFSA, or investing in fund X versus fund Y.

Just start saving, paying off your debt, reducing expenses and worry about the complicated stuff later.

Peter

]]> By: DAvid http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-30650 DAvid Wed, 09 Apr 2008 15:17:04 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-30650 WDAMMG said <i>"You could call your card provider and ask them to reduce your credit limit as you pay it down."</i> Be careful with this option. If your credit consumption is too close to your credit limits, it raises a red flag on your credit report. That is one of the reasons the CC companies raise your limit when your spending increases. No matter how you accomplish the goal, you need to find the way to change your behaviour. My suggestion is to obtain an amortized loan for the consolidated debt with a regular payment tied to your paycheque, then close the credit card account if necessary. DAvid WDAMMG said “You could call your card provider and ask them to reduce your credit limit as you pay it down.”

Be careful with this option. If your credit consumption is too close to your credit limits, it raises a red flag on your credit report. That is one of the reasons the CC companies raise your limit when your spending increases.

No matter how you accomplish the goal, you need to find the way to change your behaviour. My suggestion is to obtain an amortized loan for the consolidated debt with a regular payment tied to your paycheque, then close the credit card account if necessary.

DAvid

]]> By: Daniel http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-30649 Daniel Wed, 09 Apr 2008 15:08:46 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-30649 You can report your card(s) lost. Then when they send you new one(s) Keep them in the envelope. You can report your card(s) lost. Then when they send you new one(s) Keep them in the envelope.

]]> By: PatMunits http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-30643 PatMunits Wed, 09 Apr 2008 14:10:42 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-30643 To calm down your online spending start doing this: - every time you come across the deal of the month/year/century on some website think whether you can actually continue to live without the item. Consider also that the price you pay now, is not how much it actually costs you. This is because you'll still need to add to the price at least as much interest charges as you currently pay on your highest-interest-rate debt. So, is it really worth it to save $12 bucks on a hard drive deal of the month, if you already have one, and it's not yet full, and you pay 18% interest on your credit card? To calm down your online spending start doing this:
- every time you come across the deal of the month/year/century on some website think whether you can actually continue to live without the item.

Consider also that the price you pay now, is not how much it actually costs you. This is because you’ll still need to add to the price at least as much interest charges as you currently pay on your highest-interest-rate debt. So, is it really worth it to save $12 bucks on a hard drive deal of the month, if you already have one, and it’s not yet full, and you pay 18% interest on your credit card?

]]> By: Dividendgrowth http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-30642 Dividendgrowth Wed, 09 Apr 2008 14:04:47 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-30642 I liked the second suggestion. So many young people are unaware of the power of compounding. If you invest 15,500 in a 401k now and 4000 in a ROTH IRa and you are under 26, you will be expected do acheive $1,000,000 by the time you retire.. I liked the second suggestion. So many young people are unaware of the power of compounding. If you invest 15,500 in a 401k now and 4000 in a ROTH IRa and you are under 26, you will be expected do acheive $1,000,000 by the time you retire..

]]> By: WhereDoesAllMyMoneyGo.com http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-30639 WhereDoesAllMyMoneyGo.com Wed, 09 Apr 2008 13:28:27 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-30639 You could call your card provider and ask them to reduce your credit limit as you pay it down. But like any method, it's going to require discipline more than anything. You could call your card provider and ask them to reduce your credit limit as you pay it down. But like any method, it’s going to require discipline more than anything.

]]> By: FrugalTrader http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm/comment-page-1#comment-30638 FrugalTrader Wed, 09 Apr 2008 13:25:31 +0000 http://www.milliondollarjourney.com/the-best-time-to-start-is-now.htm#comment-30638 Caitlin, good point. I was thinking to cancel the credit card, but then how would one pay it back? I wonder if credit card companies will allow the balance to be converted into a term loan and have the credit card cancelled. Perhaps a better solution would be to get a line of credit with a decent interest rate and pay off the credit card balance. Then cancel the credit card and pay off the LOC as aggressively as possible. Caitlin, good point. I was thinking to cancel the credit card, but then how would one pay it back? I wonder if credit card companies will allow the balance to be converted into a term loan and have the credit card cancelled.

Perhaps a better solution would be to get a line of credit with a decent interest rate and pay off the credit card balance. Then cancel the credit card and pay off the LOC as aggressively as possible.

]]>