Investor Interest Growing For Online Savings Accounts

A recent HSBC Direct survey says that 58% of investors are considering cash as an investment. Many investors are a bit concerned with recently market volatility. Even with the Dow Jones Index scoring a one-day gain of 200+ points near the end of June - the highest single-day gain since March 2003 - the Dow also dropped by well over 200+ in several straight days only recently. This is bad news for any small investors considering entering the market. Hence, cash investments - including money market funds and online savings accounts - are very hot right now.

Secrets To Spending Money

My last post was about some secrets to saving money. This one is about spending money wisely, so that you either save, or make an investment that pays off later. Here's an example, albeit an extreme one.

One secret about acquiring wealth is to not think linearly. Just because you make "this much" does not mean that you cannot enjoy luxuries. It's question of whether you can learn to wait on your purchases. It's not a matter of frugality per se, but of figuring out ways to "multiply your talents" and your money.

Secrets To Saving Money

Here's a secret about saving money that I learned a long time ago but which took me many years to actually implement: it doesn't matter how much you make, just how much you save.

If you read any of the other personal finance sites, you'll see that a lot of people are saying that right now. It's a pretty well-known "secret". But knowing something and making use of that information are distinctly different. Are you making use of your financial knowledge? Or are you keeping it a secret from yourself?

Does Anyone Stick To Their Budget?

Budgets are an emotional drain for some people, and just a chore for others. Devising a budget is bad enough. Balancing them is even less fun. But managing the finances of a family is really not that different than managing the finances of a business. It's not easy, but it's a necessity.

While some people prefer good old paper and pencil, I like to use a Microsoft Excel spreadsheet. It's easy to track past expenses, as well as chart changes in total or specific expenses. And the more income and/or family members there are, the more likely you are going to want to track changes in expenditures.

Financial Freedom On $5 A Day?

About a decade ago, when the investing bug first struck me, a nice little book called Financial Freedom On $5 A Day (Chuck Chakrapani, M.Sc., Ph.D., C.I.M., Self-Counsel Press) was fed to  my voracious investment-reading appetite. The book is aimed at "small investors" and shows people how can achieve financial freedom through investing, but can start small by saving just $5 a day. While the book was originally published in 1983, my copy was dated 1996. Still, I think that the wisdom presented therein are still relevant today. In fact, a quick Googling shows that the book seems to have been revised since.

Does Saving Money Require Discipline?

After recently browsing through dozens of personal finance websites and several hundred articles, one conclusion leaped to my mind: most people have a difficult time saving money. They often focus on the feeling that they are chasing their tail, keeping up with the Joneses.

I'd have to agree with this, from both my own experience, as well as that of close friends. On the far end of the spectrum, there are those people that save and save but never give themselves an opportunity to enjoy the fruits of their labor, and thus end up becoming miserable. What can be done about this?