All posts tagged: savings

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How to Begin Saving Money

I love investments and I consider myself lucky to find pleasure in it. It’s funny when my boyfriend Robin tries to make heads or tails of all the “financial stuff” I talk about. But at least I know he’s a good listener. The other day he asked me about investment opportunities and how to save to invest. Unfortunately, the  Millennial or Generation Y (Robin and I are contemporaries) framework of spending behaviour  leads us down a path of over consuming and spending money that didn’t exist. So, to spend less we need to change our life-style from consumers to…. something else. We need to change our routines and habits, and that’s the difficult part. The most over-consumed products for young professionals living in cities are clothing and restaurant food (Read more about other most popular spending accounts here). So, changing our life-style and spending habits means buying less of both. But, be prepared to feel a strong sense of emptiness. The power of spending is strong and when it disappears, desolation takes over. Get creative …

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Lyxfällan Top 10: Problems People have with Money

“All happy families are alike; each unhappy family is unhappy in its own way.” (Leo Tolstoy, Anna Karenina)  Even though Lev Tolstoy claimed the opposite, we can find similarities in unhappiness of financially broken families—both of which share a common starting point. After analyzing 17 Seasons of the popular Swedish TV Show LyxFällan (Luxury Trap in English), I did draw some conclusions about common money spending habits, lifestyles, and attitudes towards money. If you can relate to at least three of the following economical letdowns, consider yourself warned… Here is a list of the most popular issues that landed people in LyxFällan.  No savings – The most common feature that everybody shared was having  zero savings. This included people with an income of $2000-$6000 per month. No matter how small or large your income is, save at least 10%.  No concept of expenses and loans – Knowing how to budget and control your economy is one ability that most people from LyxFällan did not have. Here you will find The Top 5 Swedish Apps that will help you …

Source http://discovermagazine.com/~/media/Images/Issues/2013/Jan-Feb/DSC-PP0113_03.jpg

How does candy relate to your future financial independence?

 (on the main photo Evelyn Rose, // photo by J. Adam Fenster)  In 1970, Stanford University Walter Mischel and Ebbe B. Ebbesen conducted an experiment that they called the “Marshmallow Test”. They gathered about 600 kids (avg. age 4.5) and basically tempted them with a marshmallow, or some form of candy or cake.  It went something like this: a child is left alone in a room having no distractions whatsoever. A marshmallow is then placed in front of him/her and the child is given two options: to eat the marshmallow straightaway or wait fifteen minutes and receive a second marshmallow as an award. So, what does it have to do with financial independence you would ask…   Guess how many of them waited?  Many of you who follow Life as an Investment either dream to achieve financial independence, or are already on their way. According to Robert Kyosaki (read about his books here), “You are wealthy as long as you can live the lifestyle you’re used to—without having to work.” Basically, Kiyosaki is trying to tell us that …

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Top 5 Swedish apps that help you save money

If you’re like me, a young professional making a decent income and living in Scandinavia, chances are you’re not as clever as you think; that is, with your finances. You’re probably hitting the nearest convenience store on your way to work and picking up a yummy latte, or heading out for lunch on occasion. In any case, you probably also consider the money left over from your salary as “savings.” The reality is that “savings” should be invested wisely and grow, grow, grow. Eating out and consuming lattes do not pay off. For instance, you would save roughly 7000 SEK per year (about 760 EUR) “if” you didn’t stop for that latte everyday. At ten percent annually, that 7000 can grow to 10,000 SEK in only five years. How many “obvious” saving methods can you accomplish? Let’s not kid ourselves, saving is hard work. Unless you’re an accountant, and love being one (who in their right mind would do this anyway? :-), you most likely hate spreadsheets. Imagine constantly hunting for a better price, or entering all your receipts onto a spreadsheet every month. Or, evaluating your budget goals every time you make a purchase. It can be time-consuming and frustrating. Investing, on the other hand, is another …