I was watching an interesting documentary today of a person who was expressing how he thought he had everything backwards in life where he was so focused in making money and that his personal health was usually at the bottom of his list. He would always invest a lot of money into making more money but when it came to things like the food he ate he would simply just eat anything and filled him up. It was interesting as because of this unhealthy lifestyle he would often rely on pills and such to make him feel better which in the end would cost him a lot of money.

Afterwards, he started to seriously put a budget into things such as eating healthier and there were even comparisons on how much it costs him to say buy those fresh fruits and vegetables versus the junk and pills he was relying on. Not surprisingly, he got better as time went on and it was so much cheaper. Kind of interesting how we easily overlook simple things like these during our hectic lifestyles. As always, learn to take care of yourself first.

I was reading that story today on how various billionaires have pledged to giveaway about half of their wealth in an act of philanthropy. There is a site about it too at http://www.givingpledge.org/ . It was interesting reading the reasons on why they have decided to giveaway their money. One comment that kind of stuck out was that leaving your family with too much money could wreck their lives as you want them to accomplish things on their own.

It was funny when I read that as so many times people just want money by say winning the lottery. But when you think about it, if you never had to truly work for your wealth you won’t have that experience and discipline on how to manage that much money in the first place. Hence, it is not surprising why you see so many instant millionaires just crash and burn so quick.

For things like an inheritance I have personally only seen a small fraction of people use the “don’t want to spoil” factor in regards to how much money they leave people. Usually it’s more about wanting to divide things equally amongst a select few. Interesting thing to think about though if you are someone that has the ability to completely change a person’s financial situation. Especially if it is a family member.

I was reading some interesting comments the other day about making a lot of money where some people mentioned that they never want to be exceedingly wealthy as they will lose their privacy. Example, a billionaire of a large company or a famous entertainer that gets millions per job.

That pretty much comes with the territory I’d say and is something a lot of people neglect to think about. You often hear how many rich people say they would trade their money back to just live a “normal life” where it usually comes down to privacy as everyone is on you like a hawk afterwards.

The funny thing I was thinking about too is that if you are trying to think of an idea to make a lot of money, technically the reverse should hold true where more than likely openly putting yourself in the spotlight in some way can help you acquire that if that is truly what you are looking for. If you think about it, there are things where some people simply share information about their daily lives and make thousands every month doing it.

Kind of fits the trading privacy for wealth mold. Course, it should come own to passion though as you have to be doing something that you enjoy.

So today is Chinese new years and this year it is the year of the Ox. Usually with this day comes money as well for all the people like myself. This is actually one of the ways I have developed my financial skills and my way of thinking when it comes to money.

Essentially, what I was taught was that people would give you money as a form of good luck, so to speak, and at the same time it is suppose to be a notion on how the wealthier/established people are helping the younger people establish themselves by giving them some of their fortune.

With that in mind, usually when I receive money from others in this way I always try to treat it as an investment rather than simply spending money on just anything. Example, you won’t see me running off to the store to buy a new toy or divulging in some fancy restaurant with it. It usually goes straight to the savings to be spent on something wisely.

At the same time, the thought of the wealthier people helping out people who aren’t as fortunate has helped to keep me in check when it comes to money. Example, some people will do anything just to increase the size of their bank account by any means necessary as for them money simply represents power and control. Because of things like this Chinese new year money, my thought is that in end I want to use it to help others back too. Therefore, for me money is simply a tool to help accomplish the end means.

Gotta give yourself a bigger reason to be making money in the first place I’d say. It is usually true too where if you are doing something for yourself you tend to be more lax whereas if you put a third party into the mix it can change your perspective to do better. Something to think about too if you are trying to change your financial situation and are currently in a “me me me” type of mindset.

Happy Chinese new years all!

So I tuned in to the Oprah show today as I was reading how there was a segment about financial management. Her guest speaker was Suze Orman who I think is a regular on that show. For the most part, it looked like it revolved around debt and how everyone in the audience had some form of bad debt. There were some crazy scenarios such as an accountant who was in tens of thousands dollars in debt. How does that happen huh?

One thing though, in the show they mentioned that you can get a copy of Suze Orman’s book “2009 Acton Plan” for free at the Oprah site until January 15th at http://media.oprah.com/sterm/action_plan_english.pdf. Haven’t read it myself, but figured others would be interested in it.

Some interesting things from the show was to see other people’s strategies when it comes to how much they think you should have in the savings before you can spend it on wants. In Suze Orman’s case, she said everyone should have about 8 times the amount in their savings compared to what they intend to spend. When I think about it, I use the same concept except the figure is a little different. But basically, the mentality is $100 in savings doesn’t mean you can say afford to buy that $100 item.

One point I heard in the show was how her “Action Plan” book was apparently titled that way as in her view 2009 is the make it or break it year when it comes to finances for people based on what happened in 2008. I was just thinking about that and in my opinion everyday should be a make it or break it day.

What I mean by that is everyday you should be doing something anyways when it comes to improving your financial situation. Whether it is finding ways to save or make more money, it should just be a part of your routine as oppose to waiting for a disaster to happen before doing something. Her plan was the following too for people to follow which made me think:

1) Don’t Spend Money For A Day

-For myself, I don’t restrict myself to not spending as I don’t like to spend money in general if there isn’t a good reason to do so.

2) Don’t Use a Credit Card For A Day

-Again, I’m one of those people who encourage the use of a credit card as much as possible due to the way you can earn free points and money. I always found that it is a great way for you to review your expenses each month too. Of course, like the first point I don’t simply buy things without a good reason. But if I had to buy say food everyday for some reason, then I would not hesitate to use the card if the option was available.

3) Don’t Eat At Restaurants For A Month

-I usually don’t dine at restaurants too much unless it is for a gathering or special occasion. Just from doings things like shopping and life experience from working at various jobs before, you develop this sense of “the value of a dollar”. Like wanting the best deals at a retail store for various items, many times dining out at a restaurant simply for a meal seems like a rip-off money wise compared to what you can buy at the supermarket and learn to do yourself.

So what does this all mean to me? Basically, it’s about knowing that you control your own finances and while your methods may be different from others, everyone shares a similar attitude I’d say which is the important point.