Today I Learn… I make a point of learning something new everyday. This is what I learn each day

1, May 9, 2011

Avoid these Wasteful Habits, Part II

Filed under: Economy — admin @ 12:02 am

Continued from previous posting on this topic

16. Not reading the fine print.
17. Mismanaging your flexible spending account.
18. Being an inflexible traveler.
19. Sticking with the same service plans and the same service providers year after year.
20. Making impulse purchases, when on second thought you don’t really need or you can get it cheaper elsewhere.
21. Dining out frequently.
22. Trying to time the stock market. In trying to buy low and sell high, many people actually do the opposite. Instead, employ the simple strategy of “dollar-cost-averaging.” By investing a fixed dollar amount at regular intervals, you smooth out the ups and downs of the market over time. If you take out the emotion and guesswork, investing can become less stressful, less wasteful and more successful.

23. Buying insurance you don’t need, e.g liability for an old car.
24. Buying new instead of used. Cars lose 20% of their value the moment they’re driven off the lot and 65% in the first five years.
25. Procrastinating. Time is an asset money can’t buy. Start investing for retirement as soon as possible. For instance, if a 40-year-old saves $300 a month with an 8% return per year, he’ll have $287,000 by age 65. If he had started saving 15 years earlier at age 25, he’d have more than $1 million.

P.S. my son called yesterday morning. He sounded rather sleepy, not fully awaken. I was concerned, as he seldom called this early, “What is the matter, son?” He said, “Happy Mother’s Day, mom.” On occasions like this, both of my children know not to upset me by squandering unnecessarily on my behalf. Indeed, a call phone like this will make my day.

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