Billionaire_Bunny: December 2019

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Saturday, December 14, 2019

5 Reasons Why Buying Materialistic Things Will Never Make You Happy

Do material things make us happy? This is a topic that is controversial to many people. Studies show that most people believe if they could get a new house, a new car, or some other possession, they would be happier. The media today portrays people with a huge mansion, expensive exotic cars, and the hundred-foot yacht to have a fulfilling, happy life. However, the truth is that the pursuit and purchase of physical possession will never fully satisfy our desire for happiness. It can indeed bring us joy, but that is just temporary. Happiness found in buying a new item rarely lasts longer than a few days. Researchers even have a phrase for this temporary fulfillment, which is called retail therapy

I personally experience this myself as I was quite materialistic in my early 20s. I see an expensive brand to be a symbol of success and happiness. I will also feel the need to own certain possessions so that I can show it off to my friends and others. I did this so that I can feel secure and accepted by my friends and others. But after going through with personal experience in trying to compete, who has the coolest stuff made me realize that material possession doesn’t make you happy. In this article, I would like to discuss why buying stuff will never make you happy and what you should do with the money you have.

Tuesday, December 10, 2019

7 Genius Tips to Save Money on Clothes and Still Look Fashionable

Our society has made us unconsciously distinguish people who dress well to be more attractive than those who aren't. People who dress appropriate and fashionable are perceived more positively than those who wear in unattractive clothing. By being well dressed, you instantly become more attractive and presentable. This is especially true when it comes down to women. When men see women who dress fashionably, they tend to have a different perception of her. Dressing well helps you make a considerably better first impression. This means you're more likely to make a good first impression of yourself when you approach people. You are likely to be seen positively when you have a job interview, meet someone important, or going to events such as night outs or weddings.

I personally like going shopping for clothes since I like wearing clothes that look nice on me. Moreover, my closet is filled with so many of my clothes collection to the point where I don't even have enough space for new ones. Trust me; I love good looking clothes a lot. I feel more presentable and confident when I wear clothes that look nice and fit for me. It actually makes me feel good about myself. However, the problem arises when you are on a budget and pursuing the early financial freedom you dream of. How can you save and invest if you are spending a lot of your money shopping for clothes? Studies show that average adults spend $200 per month on clothes. That's about $2,400 a year when you multiply the monthly spending by 12 months. That's a lot of money spent on clothing, but looking more fashionable isn't always about wearing the trendiest and most expensive clothes. Moreover, you don't have to spend much to look fashionable and trendy. It's all about being smart with your money when you go shopping for your clothes. I'm going to cover this topic in this article on how you can save money on clothes in order to look fashionable. Also, I will include tips and hacks to look great in your outfits.

Dollar Cost Averaging Investment Strategy

Many investors who are new to stock investing tend to worry about when to enter the market. It’s normal for new investors to feel this way since they don’t want to risk losing their hard-earned money. When I was new to the stock market, I got afraid when the stock went down in value and ended me to make an irrational investment move by selling the stock when the price was actually a bargain. I was frustrated and upset after seeing the stock I sold goes up in value years later, knowing that I would make huge returns if I have kept the stock. New investors worry if the stocks are too expensive while simultaneously fretting about missing out on market gain. The stock market price value fluctuates every day, and no one knows when the market will enter into a bear market or if the stock market is going to continue to going up. Peter Lynch, who is a successful fund investor, mentioned, “I can’t recall ever once having seen the name of a market timer on Forbes‘ annual list of the richest people in the world. If it were truly possible to predict corrections, you’d think somebody would have made billions by doing it.” What he meant by this is that it’s almost impossible to time the market.

Moreover, if you purchase a stock based on your feeling that the market will go up, that will be considered as speculating and not investing. So what’s the solution for new investors who want to start investing in the stock market? There is a simple solution for beginners who want to limit their risk while investing in the stock market. What I want to introduce to you readers is an investment strategy called Dollar Cost Averaging. Dollar-cost averaging is a popular strategy for building investment positions over time. This investing strategy is simple and can be effective for new beginners who want to start investing in the stock market. In addition, I will also explain the pros and cons of this investing strategy.

Dave Ramsey's 7 Baby Steps Financial Guide of Getting Out of Debt and Becoming Wealthy

Many people out there are always trying to figure out how to get out of their debt and become wealthy. They tiredly work so hard in their job but felt like they are going nowhere financially. Dave Ramsey, who is a financial mentor that wrote a book which title is "The Total Money Makeover: A Proven Plan for Financial Fitness" had inspired many on how to get out of debt and become wealthy. Before he became a financial guru, he went through the same mistakes many people go through, which is to use debt. At the age of 26, Dave Ramsey was a millionaire who used leverage (debt) to finance his real estate investment strategy. He has a real estate portfolio asset of $4 million dollars, which $3 million dollars of the asset is financed with debt. However, he lost everything two years later. He had to downgrade his financial lifestyle and felt humiliated for his downfall. It was a very tough moment for his life, which eventually changes his perspective of how he wants to live later life. He eventually worked his way out of his financial problem and became wealthy again (has a net worth of $240 million as of 2019). Now he became a multi-millionaire personal money management expert that mentors many people the problem of using debt as a tool through his talk show host and TV personality. Moreover, he has helped many people to get out debt through budgeting and invests gradually to build wealth.

I read his book and often listen to his radio talk shows on YouTube. I had learned a lot about how many Americans are stuck in debt and have difficulty getting out of the rat race. His book preaches about the simple 7 Baby Steps technique that many can easily follow to get out of debt and build wealth. Following his technique to get out of debt and acquire wealth is not a get quick rich scheme, but discipline steps that people need to follow. People who are wealthy didn't become a millionaire overnight, but through discipline spending habits, budgeting, and of course, frequent investing. I felt his teachings in his books and radio talk shows on YouTube are excellent for people who are sick and tired of being lost financially. Anyways, I know some readers here don't want to go through the hassle to read his book. Because of that, I want to point out the 7 Baby Steps that Dave Ramsey preaches that help many people get out of debt and build wealth.

Why Many New Businesses Fail and What to do About It

Many people dream of starting their own business ventures. These people dream of wanting to become their own boss and not have to work for others. Moreover, starting a business on the side may help a person build different sources of alternative income in order to generate more wealth and have a lifestyle that many dreams of. The vast majority of wealthy people started businesses and built them from nothing. In the last 20th century, businesses and fortunes have been built by people like Bill Gates, Mark Zuckerberg, Sam Walton, and Larry Ellison. These people started with almost nothing and became wealthy by building their businesses from scratch. Knowing the benefits of owning your own business inspires me to have something of my own, aside from just working at my dad's home appliance manufacturing company. I am currently working on my own side business ventures such as my finance blog that you are reading right now, and my other online venture such as my online e-commerce business called Cash Flow Hobby. Starting a business that turns out to be income-generating assets is awesome since it can give you the freedom to pursue other things in life. However, the problem arises when the business venture actually fails. According to the Small Business Association (SBA) states, 30% of new businesses fail during the first two years of being open, 50% during the first five years, and 66% during the first ten years. The SBA goes on to state that only 25% made it to 15 years or more. These high percentages of people who fail in starting their own business have lost not only their valuable time but the money they have invested in their business.

I personally have seen many businesses opening, and end up having them close in just a matter of time. I'm not here to discourage you readers from starting your own business, but to create a successfully running business is not simple. Even my business ventures such as my finance blog and my online e-commerce business that I'm currently working on the side is not generating me any income (not a single dime). This shows that starting a business is not as easy as it sounds. To create a successful business requires huge dedication and strategy. Even my dad, whose manufacturing business is now considered to be successful, has to undergo many challenges and difficulties to be where he is right now. In this article, I would like to share with you readers the reasons why many new businesses fail and what to do about it to prevent them from making fatal mistakes that can turn your business venture into a nightmare.