And you know what that means! Time to start investing!!

Whoa, wait a tic there Scott. What the hell do you mean start investing?!? The economy is in the tank, the housing market is a smoking wasteland, the dollar is worthless and gas and oil prices are through the roof! I can’t afford my regular monthly bills, never mind start investing. Well, you’re right. The recent economy woes and high oil prices have caused a lot of people to cinch their money belts tighter and tighter. Maybe jumping straight into investing is a bit premature.

The fact is that you need money to make money. So we need to think about accumulating some money first. I’m willing to bet… hell I’m willing to guarantee that everyone reading this can manage to find $25-$50 every month to put toward savings. Impossible, you think. Well I’m also willing to bet that everyone reading this, doesn’t really know where every penny of their money goes each month. It’s amazing how people treat their money. Personal finances are often listed as one of the top five reasons for stress and causes for divorce. People fret and worry and agonize about money, and yet when they actually get cash in their hands, they go temporarily insane. The “smart” thing to do is pay down debt with the cash. The “not quite as smart, but still smart” thing to do with the extra cash is buy that plasma TV you’ve been wanting. Yet people consistently ignore the smart things to do, and think, “Now with this extra cash, I can put the plasma TV on credit, AND get a new couch!” Now you’ve got more stuff you don’t truly need, AND you’re deeper in debt! Two strikes with one pitch. Now is the time to take control of your money. The first step is finding out exactly where every red penny of your money is currently going.

And that my friends, is where most of us say, “Screw this counting pennies crap. I’m going to apply for another credit card.” Well, counting pennies and writing down and categorizing every single purchase is so last decade. You’re in the information age now, baby!!

(more…)

Cyanide and Happiness :
Another Web Comic Strip

Deadly Women :
Women Kick Much Ass in the U.S. Air Force
Are you a chick fighter pilot? Are you a chick who wants to be a fighter pilot? Visit the CFPA (Chick Fighter Pilot Association)

Rudimental Technique :
Free Drumming Rudiment Lessons

Get Out of Debt Foolishly :
Free “Get Out of Debt” Seminar from The Motley Fool

I read something interesting on a financial site I Stumbled Upon the other day. I didn’t agree with much of what they had to say about saving money, but they mentioned the importance of short term, tangible goals and that really made me think.

I’m constantly telling my airmen and my family members to start saving for retirement. “Save for retirement!” I say. “You need to start now! It’s vitally important you do this!” I tell them. Save for retirement. Sounds good, but what’s the goal? What if I was to tell you that your goal is to have $2 million dollars by the time you’re 55 years old? Well, right there with that statement, most people instantly stop believing that I’m trying to give advice and instead expect a punch-line or wait for me to start slobbering and yipping and punching myself in the face. Two million dollars is simply a fictional number for most folks. And telling someone in their 20’s, “… when you’re 55 years old,” is the same as saying, “When we made peace with the Klingons.” It’s science fiction. So after reading about setting short term goals, I started thinking that maybe I should start suggesting 3-5 year plans to introduce the concept of saving money. Something a little more tangible to a 20 year old than “retirement.” It was at that point that I realized that I didn’t have a 5-year plan of my own!

So I came up with my 5-year plan. In 5 years I will be eligible to retire from the Air Force, so by then my plan is to have the house I own in South Carolina paid off. Set your goals high I say. It’s a 30 year fixed rate mortgage and I’ve been paying about 7 years. I originally financed $72,000 and currently owe $66,000. To do this I’ve committed a personal sin and stopped adding money to my investments. All of that will go toward paying off my car within the next year. After that I’ll turn on my investments again, and put all the money that was going to the car note, onto the mortgage. Plus any extra that I might scrape up from time to time.

Set a 3 or 5 year goal for yourself. Set your goal high, but make it tangible and obtainable. Say… buy a new car with cash. Or get a plasma TV. After that, start working on goals a little more intangible, but much more financially beneficial. The first one should be getting out of debt. Once you get used to saving it starts to become addictive, and then you can really start improving your financial health and save for retirement. To me, financial health is second only to physical health in importance for a long, less stressful life.