An easy way to save $1,000

According to research by Harris Interactive, 45% of U.S. adults packed their lunches last fall. A 12-inch turkey-breast-and-ham sub with chips and a drink runs about $8 at Subway. Buy a loaf of bread, lunchmeat, cheese, and fruit or chips for the week and you’ll spend just $3 or so a day. Annual savings (packing four days a week): $1,040.

In today’s economy, packing a lunch is what smart people do. I have been brown bagging my lunch for years. Not only will you save money, but you will eat healthier, tastier food. What works for me is this: I brown bag my lunch daily and then buy lunch on paydays (I get paid every two weeks). This routine lets me save money and splurge a little, too.

I recommend packing fresh fruits and vegetables with deli-style sandwiches. Soups and salads are great as are bagels and cream cheese. So I don’t have to rush, I prepare my lunch the night before and store in the refrigerator.

Do you brown bag for lunch? What’s your favorite meal? What benefits have you found with making your lunch?

Get out of debt for only $1.99

Have you tried to save money and failed?

• Are you struggling to get out of debt?
• Are your bills out of control?
• Do you lay awake at night stressed over money problems?
• Does your income not meet your financial needs?

If so, How to Create a Budget and Use a Spending Plan will help. In these difficult economic times, getting out of debt and having more money available is the name of the game. In my indispensable e-book, I present simple, reliable, and practical strategies for getting out of debt, having more money available, and saving hundreds if not thousands of dollars each year.

Written in an easy-to-understand way, I teach consumers how to get their financial house in order. How to Create a Budget and Use a Spending Plan helps you leverage one of the most powerful financial tools available-knowledge.

Only “you” can change your life. Don’t you owe it to yourself and to your family? Remember, your debt affects them as well.

Note: this is a downloadable e-book, not a book made of paper.

Click here to buy on Smashwords.com http://www.smashwords.com/books/view/51739

Invest like Warren Buffett

Did you know that a $10,000 investment in Berkshire Hathaway in 1965, the year Warren Buffett took control of it, would be worth over $40 million today? Berkshire Hathaway has sustained an average return of over 20% for the past 45 years. How does Buffett do it?

Buffett believes in value investing. Value investors look for securities that are unjustifiably low based on their intrinsic worth. Buffett holds stocks for decades, not for months. Here is the basic methodology used by value investors. For more detailed information, I highly recommend the book, The Intelligent Investor by Benjamin Graham.

1. Has the company performed well? Look at return on investment (ROE) for the last five to ten years. ROE = net income/shareholder’s equity.
2. Has the company avoided excess debt? Large debt can result in volatile earnings and interest expenses.
3. Are profit margins high? Are they increasing? A high profit margin indicates the company is executing its business well.
4. How long has the company been public? Buffett usually considers companies that have been around for at least 10 years.
5. Economic moat? Does the company have a sustainable competitive advantage by having a well known brand name, pricing power, or a large portion of market demand?
6. Is the stock undervalued? Is the stock selling for at least 25% less than its intrinsic value?

 

Value investors are concerned with fundamentals such as earnings growth, dividends, cash flow, etc and this requires research and hard work. Value investors buy and hold for the long term, often for decades. Unless you are willing to do the research and understand business fundamentals, value investing is probably not for you. Buffett recommends buying low-cost index funds instead. “A very low cost-index fund is going to beat a majority of professionally managed funds,” says Buffett.

Watch the short video on Warren Buffett’s advice on investing and index funds.

Homes for less than $1,000?

Would you buy a home for $1,000? Housing still hurting and new home sales are nearing 50 year lows, according to the latest HUD report. No place has been hit as hard as Detroit.

I’ve found 39 properties listed for sale from $500 to $1,000. Obviously, these properties need some work, but they might make a terrific buying opportunity for the right investor or a nightmare for the wrong investor http://www.realtor.com/realestateandhomes-search/Detroit_MI/price-500-1000.

Last month, I wrote about a $7 house for sale. Here’s the link if you missed it http://moneyprovidesfreedom.wordpress.com/2011/03/04/house-for-sale-7/.

Turn your House into a Billboard, get free Mortgage

                                                                                                                                                                                                                           Would you turn your house into a billboard to be free of mortgage payments for a year? Startup advertising firm Adzookie will pay your mortgage if you let them turn your house into a billboard.

If you own your home, don’t mind bright colors and stares from your neighbors, you might want to check this out. http://money.cnn.com/2011/04/05/technology/adzookie/index.htm

My Money Jar

Guess what’s on my dresser? It’s a money jar. Inside is all my spare change that I collect each day. Instead of putting spare change into a vending machine, I keep it in my pocket. If I see a penny on the ground, I pick it up. All spare change goes into my money jar.

When the money jar gets full, I take it to the Coinstar machine at the local grocery store or to the bank using coin-wraps. From there, I deposit the money into my checking account. Eventually, the money is transferred to my kids 529 College Savings Plan where it grows over time. If it works better for you, deposit the money into a savings account that earns interest. This is a simple and easy way to build up a little extra money.

What Everybody Ought to Know About Millionaires

More than four out of ten American millionaires surveyed by Fidelity say they do not feel wealthy. Many said they would need to have at least $7.5 million to feel rich. Just imagine how the rest of us non millionaires feel. I would feel wealthy with less than $7.5 million. You?

Article from Reuters.com.  http://www.reuters.com/article/2011/03/14/us-fidelity-survey-idUSTRE72D3RK20110314

Here’s a cool Money Money Money video by Abba.