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Yielding Wealth | Personal Finance:

Starting today, the money you make is yours.

Okay. Whose was it before?

Well, according to some number crunchers, all the money you’ve been earning for nearly four months has been going to the government. It’s the amount, on average, that Americans are paying in taxes.

So, today, celebrate. It’s Tax Freedom Day, and what you make for the rest of the year is yours.

Spend it wisely.

Tags: personal finance blog, personal-finances, Tax Freedom Day, Taxes, working for you, yielding wealth

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Yielding Wealth | Personal Finance:

Trent, over at The Simple Dollar, has a very interesting post up regarding net worth. He looks at how to move from having a budget mentality to developing a mentality that focuses on net worth. This got me thinking about the differences between making a budget and focusing on net worth.

Budget v. net worth

While a budget can be a useful tool, it is important to note that a budget is really more about teaching yourself to be disciplined and to look seriously at your cash flow. The idea is to try an set up a system where you are living within your means. But it really doesn’t do much in terms of advancing your wealth because it focuses you on the minutae of your cash flow and your expenses.

When you focus on your net worth, you are looking at what you have now, in terms of assets minus your liabilities (debts and other obligations). This means that you can get a snapshot of where you are at in terms of building wealth. When you have a net worth mentality, you focus on creating goals that will help you increase your wealth (which is not the same thing as income) and/or decrease your obligations.

The idea is to set goals that will allow you attain financial freedom with wealth, rather than merely managing your resources with a budget.

What financial goals do you set for yourself?

image credit: Oxxo

Tags: budget, making a budget, net-worth, personal finance blog, presonal finances, The…

Yielding Wealth | Personal Finance:

SO, I couldn’t resist using this 1939 video on the free market economy. Great stuff. Do you want a widget? Just go buy one!

Is this better or worse than our current system of socialized capitalism?

Happy Friday!

Tags: free market economy, Friday Fun Video, happy friday, personal finance blog, personal-finances, socialized capitalism, yielding wealth

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Yielding Wealth | Personal Finance:

Today the final post in my guest series over on Talk Stock Trading is up. In it, I offer 3 ideas for investing in a down economy:

Value stocks.
Dollar-cost averaging.
Index funds.

Tags: dollar-cost-averaging, ideas investing, index funds, Investing, investing down economy, personal finance blog, stock trading, value stocks

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