Strategies for Surviving Hard Times

Rule 1
Don't Buy What You Can't Afford

Rule 2
If You Can't Pay Cash, You Probably Can't Afford It

Rule 3
Paying Interest on Anything Makes Somebody Else Rich

Rule 4
If You Are in Debt, stop Spending Money

Rule 5
Don't Count on Somebody Else to Save You

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Tips for Credit Card Holders

Here's the secret. This is a strategy constantly advocated by financial advisers: Pay off credit cards expeditiously and entirely each month. Never go beyond the interest-free 30-day grace period. Then you will be taking what the card company executives sneeringly refer to as a "free ride" - you get to use their money without paying them anything for the privilege.

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Money!!!

Money- Thats what everyone is thinking most of the time... Especially more so recently :) Cost of living has soared like anything. Fuel, food and home prices are hiking at an amazing rate and I know for a fact that everyone is in some context thinking about how to make more money.

The main point here is not to think of how to make more money but really its all about how to save more without starving to death and without compromising the actual necessary quality of life.

I'm a avid reader of the Financial Sections. And every time I find any interesting article it acts like a wake up call for me. By interesting I mean articles on budgeting, savings, retirement plans etc etc. Budgeting and savings is not too much of an issue coz I have a Personal Reminder who does all the necessary reminding... I love to call her Mom :). She is really good with numbers and I personally think that she's gifted. I cannot stretch a dollar to buy things and save some of it. But she can. I have always aspired to be like her but I don't think I've succeeded much.

Anyways what I want to highlight here is - Retirement!!! When I first read about this my first thought was that I'm still very young to be seriously thinking about it. But then I really started re-visiting the thoughts and started reading more and more. For someone who is like me - who does not believe in any large inheritances (no rich benefactor waiting in the wings) and knows the chances of winning any lottery (near to zero) it is like a jolt out of the blue. Really it is worthwhile to at least think about it. I've summarized the gist of it... To me it makes sense.

20 to 29

You're young; you're starting your career; you're broke.

1. Start your super at work. In Fiji, it’s a legal requirement to have SUPER.
2. You can tap your Super for a first-time home purchase, for small loans and for education
3. Start an emergency fund. If you don't have a bit saved for a rainy day, you'll have to go into debt for emergencies — or tap your retirement fund.
4. Emergency Fund should equal 3 to 4 months of expenses.
5. Make a living will, so your family will know your wishes in case of a health emergency. You'll need one when you retire, but you never know what will happen in the meantime.

30 to 39

You're still young; you're starting a family; you're in debt up to your eyeballs.

1. Don't reduce your retirement savings for college savings. You can finance college; you can't finance retirement.
2. Use your SUPER to help you save.
3. Write your will. You never know.

40 to 49

You're middle-aged; you're doing OK; you're starting to get worried.

1. If you plan to remain in your home, refinance to make sure your mortgage will end when you stop working.
2. Update your living will and make sure someone has power of attorney. You never know.

50 to 59

You're nearing retirement; you're at the peak of your career; you're terrified.

1. If the kids are out of college, consider reducing your life insurance and increasing your savings.
2. At 55, start reviewing your Pension Scheme you might receive. See how much your savings will have to be tapped to meet your expenses.
3. Update your will. You never know.

I'll be writing more on this and will link it to this post. At this level I think finances should be an important aspect in our thinking process. In mine at least!!!

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Business Ideas

My friend had asked me a question and it got me thinking. Actually it wasn’t about rocket science or anything of that nature but a very simple question.

Question: If I had the chance to start a business what would it be? And the amount needed for it…

Here is a list of my top 10 choices…

• Real estate. Buy and rent houses and flats or start a Back Packer Resort $$$$
• Open a Flower Shop- Only glitch is the supply of flowers. $$
• Start a landscaping business $$
• Start a Boutique or just simply design clothes $$
• Catering Business $
• Open a Bookshop $$
• Open a Part-Time School to provide Tuition to students $
• Housekeeping for Executives – Provide staff to manage duties $$
• Open a Coffee House $$
• Open a Restaurant (with a twist) $$$
• Etc etc etc…

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