A meme that floated around personal finance blogs last year asked the question, "What's in your wallet?" Every blog that had anything to do with personal finance shared their contents for all to see as though it made any difference.

But I'm here to suggest that maybe it does.

Just maybe, the contents of your wallet reveal a little more about the psyche of the person. And just maybe, what you do or don't have in your wallet could determine whether you become rich or remain in the grips of mediocrity.

Here are some of the contents and what they may tell you about yourself;

1. Photo of your spouse - If one of these are predominantly displayed in your wallet you're starting well. Being married is not the most essential key to being successful but it is a positive. Being able to remain faithful to one partner and trust them, including the area of finances, can only be a good thing. Many divorces attribute money as a determining factor for the split.


2. Photo of your kids - If this is in isolation to a photo of your spouse then it would probably mean that you're no longer living with their mother/father. Which probably means a portion of your income and wealth is being separated from you beyond your control - not a positive factor.

   If the photo is in addition to one of your spouse, then you're more likely to strike it rich. A healthy family is far more likely to succeed in life than one which isn't. Your family is also a great motivator to ensure that success is attainable.



3. Photo of your girlfriend/ boyfriend - while this could be a long term positive the short term truth is that you're likely to be handing out money hand-over-fist trying to impress them. Consider it an investment providing you have long term ambitions.


4. Condom - Many guys carry one of these in their wallets for that special occasion. However, trying to determine what it could mean for your financial success is difficult. On the one hand, it could mean that your safe and willing to insure the things that are essential. On the other, maybe your frivolous and not willing to commit. Therefore, opportunities are only seen as short-term gains.


5. Business Cards - If you carry your own business cards in your wallet this is a definite positive. It means that you're prepared for opportunity and willing to grasp it when it presents.

   If you carry other people's business cards it can also be seen as a positive measurement. It displays your willingness to network and hold opportunities close for when the time might become right.

   However, if you carry other people's cards without your own you can gauge this as detrimental to your prospects. It shows that you're not ready for opportunities but your holding on to a chance just in case it comes good. Risky and fate-reserving. A definite no-no.



6. Credit cards - A platinum Amex may say "wealth-on-a-stick" but it can also mean "employee-related". If the cards are not your own they will give you good lifestyle, while you're working for your boss, but they sure don't display that you're on your own and able to handle money wisely.

   In fact, if you have more than 2 cards your chances for becoming wealthy diminish with each extra one. Managing credit cards, especially multiple, can take away serious time from creating long-lasting wealth. I would even go so far as to question why you would need more than one.



7. Cash - Cash is good. It shows that you budget and that you have control. The larger the denominations that reside in your wallet demonstrate how much more control you have and the ability to restrain yourself from spontaneous and unnecessary purchases. This is very positive.


8. Tickets to an upcoming show - very positive. Ticket stubs to a show you went to 3 weeks ago - a big downer. It shows that you're not willing to unclutter your life and move on. You hold on to things which no longer have value or you're too slack to deal with minor things.


9. Library Card - a huge positive. Your library card demonstrates your willingness to read and therefore learn. It also shows that you esteem frugality over ownership.

Your wallet could hide the secrets to making it in this life because it is one of the most personal things we hold tightly to. It shows us a little piece of our world and what we hold dear. And, it gives us a glimpse of what me might become.

Check your wallet. Have you got what it takes?

Posted by Stuart at 6:01 AM | Permalink | Comments (5)

Experienced People have just produced a great post offering 101 ideas to generate some extra income online. And we're not just talking about which affiliate companies to add to your blog.

No, most of these ideas are bona fide possibilities. Ranging from offering brand name companies your service to police wikipedia entries that may be detrimental to their reputation, mining sleeping DMOZ listed sites for relevant content, and starting your own country.

All seem a little far-fetched. Not at all. I've bookmarked this page for later reference as dealing with all 101 in a limited space of time would be missing the effort these guys have put into creating this great list.

Kudos guys.

Posted by Stuart at 6:22 AM | Permalink | Comments (1)

The problem with inheritances is that old people aren't dying quick enough. They're living longer and enjoying a greater level of health than at any time in history.

Prior to our parents generation, our grandparents saw an inheritance as a major windfall. They could finally pay off the home, travel to that exotic destination they had always dreamed of and maybe buy a new car.

But our parents are too wealthy already and most have a greater financial base than their parents. So when a grandparent finally carcs it the inheritance becomes like a ripple in the next generations finances, barely rating a mention on the Richter scale of appreciation.

This then causes an adjustment, a paradigm shift if you like, as the older generations consider what to do with their accumulated wealth. Here's the options as I see it;

1. Give it away to charity - Your children will only flitter it away as if it were pocket change anyway. It's far better to give it to those who need it than leave the family in a quandary wondering where it should go.

   More and more charitable organisations are targeting older people to include them in their will. On the surface it may appear like a scavenger circling overhead a rotting corpse but it makes common sense. This money if given to families will predominantly spend on materialistic items whereas this option gives a sense of legacy.



2. Give it to the second generation - the parents don't need it. The kids on the other hand are only just setting out in life and a sizable inheritance could be the kick start they need. Buying a piece of property, paying for their kids tuition and maybe buying a decent car are options that the lower generations will invest in.

   They realise that a holiday or new Jaguar are far too frivolous too spend someone's lifetime wealth accumulation. While an inheritance would only be a ripple in the 2nd generations pockets it would be a small Tsunami for the younger ones.



3. Spend it yourself - Well, why not? You earned it. Inheritances have far less importance these days so saving your money to pass on to future generations is less required. Better than splitting it between your kids why not selfishly enjoy it while you still have your health and wits about you?

   In Australia, we refer to them as "Grey Nomads" - the baby boomer generation that retires at 55, sells up and buys a large 4WD and caravan and traverses the nation for the next x years. They even sport bumper stickers stating "Spending the Kid's Inheritance".

Regardless, it's your money and you can do what you like with it.

Posted by Stuart at 6:11 AM | Permalink | Comments (2)

You've thought long and hard about buying that house or starting that business and now it's time to get some finance organised to pay for it. But what loan options do you have? And, is one option better than another?

Unless you have a rich uncle that's just passed away leaving you the enviable task of paying cash for your venture, chances are that you will require a loan of some description. And banks and credit lenders offer a plethora of debt instruments that can seem like a minefield of options.

The opportunity cost of selecting one loan option is leaving the others. Which one costs the most? Which one has hidden charges? Which loan can I refinance later?

Well, here are seven loan options you may want to investigate further...

Continue reading "Seven loan options to get you started" »

Posted by Stuart at 5:43 AM | Permalink

Jenna from Moneybucks Coffee recently wrote a great article on how to use your loose change.

I have so many issues when it comes to using the coins that roll around my car's console. Why? I'm not sure. I feel somehow that it's just play money and that vendors would rather me doll out a 50 than contemplate me opening my wallet for change.

I think it's the scrounging around in the coin compartment that I really struggle with. It seems so...so miserly.

So I relegate my loose change to a place that can't be seen by others, like behind a bookshelf, under the sofa, or even in the fridge. Then when it becomes too much to conceal any longer I sort it all out and take it to the bank so that they can turn it back into notes for me.

I honestly believe they made coins for poor people. You never see rich people diving for a coin on the street.

Posted by Stuart at 7:11 AM | Permalink

It pops into your mind every so often, that niggling thought that you still haven't tied up all those loose ends you planned to three years ago - or was it four? It's not that it isn't a high priority it's just that it's so easy to procrastinate on writing your last will and testament.

The reason I'm posting this very topic is because having a legal will has once again risen it's ugly head in our household. We have four children, a mortgage, lease on our car and several other assorted assets including home furnishings for which there is no designated benefactor.

If Deb and I were both to die tomorrow our financial situation could be tied up in bureaucratic red tape for months. The situation is even more exaggerated because there is currently no guardian to protect our children and I could envisage a major family bun-fight for who would step into this role.

So, it's time to clean up our act and get a legal will in place. Here's what I've found;

Continue reading "Legal Wills: Is your last will and testament finished?" »

Posted by Stuart at 7:38 AM | Permalink

It seems that every new piece of technology that arrives on the scene has the enhanced ability to save us money. We can buy an iPod and download tunes at cheaper prices than buying the CD replacement equivalent (which BTW replaced our now defunct audio tape collection, which also superseded our LP and EP collections).

Continuing the example, the iPod can store anywhere between 1000 and 5000 songs depending on the size of the hard-drive, which of course depends on how much you're willing to spend. But, will an iPod be all that I need 5-10 years from now.

As a teenager, the SONY Walkman was the biggest thing since sliced bread and every teen hankered after it. Today you can pick them up for less than $5 at a garage sale and the audio tapes they played will probably be included in the deal.

Technology is moving at such a fast rate with every consumer chasing the next big item that will change the comfort levels of their own lives. It wasn't that long ago that the 5¼in. storage disk was replaced by the 3½in. disks. My new computer doesn't even have a slot for the 3½'s.

Which brings me to the dilemma facing some students in the web report, "High Schoolers Pick Web Yearbook". Teenagers are turning to the web to store their yearbook photos and therefore hopefully save $70. Makes a great amount of sense but what if the technology has changed so much when they hold their 25-year school reunion the pictures are no longer accessible.

It's possible. Why do you think so many companies are now popping up offering to convert your VHS movies onto DVD. It wasn't that long ago those VHS movies were being created from Super 8 reels.

And what do you think the cost of all this transferring to the next form of technology is costing?

Continue reading "Will technology actually save us money?" »

Posted by Stuart at 7:20 AM | Permalink