As a guy in my early 20′s, the scope of my financial concerns does not extend far beyond myself and my immediate family. Being the independent person that I am, I seem to have adopted a selfish outlook when it comes to my future with money.

When I look at my parents, hard working immigrants who spent the last 23 years in the U.S., their family has often placed them in tough positions when it comes to money.

Through their experiences, I can see the many impending financial obstacles that would trouble me as well.

The Typical Thought Process
Not yet introduced to the many other burdens of life, I disregard them when I go off planning for retirement. Evidently, I’m not the only one who puts little thought into the financial situations that our futures will present. Most young adults coming out of college think of climbing the corporate ladder, becoming rich, and splurging on the many luxuries offered in life.

Many are not even thinking about retirement – those that do, often think about themselves and themselves only, just like me. Now that I’m conscientious about what the future may hold, I need to account for the twists and turns along the road towards retirement.

A Very Bumpy Road Ahead
For those who like to set goals, one of them may sound like this:

“I want to become a millionaire by the age of X.”

Well… throw these people into your calculations and figure the probability of that statement coming true.

• The spouse. Retirement will become a worry for two people. We must take account of contributions that each person will make towards the desired retirement lifestyle. Should the wife stay at home? Should I take a second job? The dynamics of financial planning changes every time another person enters the picture. A spouse can delay or accelerate the realization of retirement. From the time the relationship starts getting serious, one’s money no longer concerns only one person.
• The parents. Turning away those who raised you is a despicable act. So when mom and dad needs money, it’s nearly impossible to say “no”. The major financial responsibilities arise when elderly parents begin suffering the health problems that come with old age. Should the parents have difficulty paying the medical bill, it’s up to the children. And not to forget, this applies to the in-laws as well.
• The children. The word on the street is that the average cost to raise a child in the United States from birth to 18 years of age is roughly $250,000. That amount doesn’t include a college education. And, that’s only for one child – dare you have two? A small sigh of relief results from the possibility that your children may help support you when you reach your later years.

I expect to have all these people in my life so I better be prepared. I won’t be surprised to find out in the future that my efforts to grow my Roth IRA would help pay for my child(ren). While we must not elude the fact that these people will pose a financial threat, they are also the source of love, joy, and happiness.

So, remain optimistic!

(Photo credit: Hey Paul)

If you follow me on Twitter, you will find that I often cheer when the stock market falls a few hundred points. Some investors will think that I was drunk and cursing me in their minds as their investment portfolios bleed money.

But, I have investments in my portfolio too. Shouldn’t I be sulking like most other people?

No, Because that is the time when the stock market goes on sale and I buy in every time it does so – essentially, I dollar-cost average whenever a discount stock market presents itself. Obviously, I’m not the only one who lurks in the bushes. There are plenty of other prospective investors ready to pounce on a sale.

What is dollar-cost averaging?
Dollar-cost averaging is an investing technique where you invest in increments over time. You would buy more as prices drop and buy less as prices go up.

This attitude applies the same way for a trip at the supermarket. If you are confident and steadfast with a particular item, there is no doubt that you’d buy it. It just comes to how much of it you will buy – which is often determined by its cost. Once in a while, you may find a 12-pack of Coke or a box of Cheerios on sale. You know you found a deal and these goods can last quite a while, so you buy multiples of them at a discount price. But when it isn’t on sale, you’ll still buy them but much less in quantity.

If you trust your selection in a stock, ETF, or mutual fund for the long-term, you’d prefer to purchase shares with as little cost to you as possible. When the share price ringing in a profit but you feel that the company still has room to grow, you’d continue to invest in it – but less. And finally, if you feel the share price has reached its maximum potential, it may be the time to sell.

An example of dollar-cost averaging by buying shares of Company X with $10,000:

• 400 shares at $5/share
• 500 shares at $4/share
• 800 shares at $2.50/share
• 500 shares at $4/share
• 800 shares at $2.50/share

You acquired 3,000 shares of Company X at $3.333/share. A one-time purchase of Company X at $5/share would have resulted in only 2,000 shares (1,000 less).

Since you are confident in Company X’s long-term growth, the current price only dictates the rate at which you can accumulate shares. If you figure Company X’s value to be $6/share and the business has no major negative changes to its operations, then you’d probably expect the share price to reach that level sometime in the future. Any price you pay under $6/share is considered a discount.

The Arguments Against It
The biggest factor to employ this technique successfully is the ability to shun emotion from investing. Watching my stock portfolio drop and in the red is not a pleasant site. As a human being we all feel fear when we lose something, especially money.

I conquered my fear of investing by educating myself and learning that a stock market slump isn’t a bad thing. Nevertheless, it’s not surprising that an investor doesn’t want to continue buying a stock that went from $50 to $10.

Dollar-cost averaging will never beat the guy who can time a stock’s trend. An investor who does make that one-time purchase at or near the bottom will make much more money. This person could be someone who did his homework or is plain old lucky. This person also saves on trading fees while making the most out of dividend payouts (if any). But, are you or can you be this person?

Who Should Dollar-Cost Average?
This method of investing is ideal for anyone who is incapable of, or doesn’t want to try, timing the stock market.

Mutual fund and index fund investors can dollar-cost average with less work since their funds’ performance is often based on a large, diversified selection of stocks. If the general belief is that the stock market or specific industry is bound to go up, investors simply have to follow market or industry news. When financial advisors tell clients to rebalance their portfolio by selling the funds that made money and buy more of the funds that lost money, it is essentially dollar-cost averaging.

Investors in individual stocks would have to remain informed on a company’s activity to make sure that there isn’t loss in value. And if there is, the investor’s dollar-cost averaging may not yield profitable results as expected. The entire stock market breathes more confidence in investors versus a single stock. But, individuals stocks have more growth potential.

(Photo credit: mvhargan)

If you are starting a new job, you have probably already thought about what you will wear on your first day at work.

Most of us spend hours figuring out what we will wear on a date because we want to make an excellent first impression. The first day on the job should not be any different.

Because this will be your first introduction to your fellow co-workers, many of your superiors, and your clients, you want to make sure that they take you seriously and respect your right from the beginning.

Tips to Make a Great First Impression

• Be appropriately dressed. It goes without saying that overtly sexy and revealing attire is inappropriate for the workplace. Additionally, an artist accustomed to wearing colorful and flowing clothes would not be dressed appropriately to work at a bank. Not only must you don the proper attire for your job, your attire should also compliment the standards of your company and industry.
• Be consistent. It is not enough to dress appropriately once in a while. You have to dress the right way for every day you step into your office doors. If you don’t, you leave others with ambiguous assumptions of your role and your professionalism.
• Pay attention to color. There has been plenty of research claiming that different colors convey different messages, moods, and vibes. Color choices can say a lot about you and say a lot to others.
• Watch for fit. We have to be honest here – not every body type can wear every kind of clothing. Choose clothes that best suit your actual body type and not the one you had five years ago or the body you wish you had. Make sure you dress in a way that best suits your physical attributes while sending out the right message.
• Buy quality clothing. To some, wearing clothes that are high quality exhibits the appreciation of high standards and expectations. Even if you can only afford to build a wardrobe piece by piece, having a small selection of high quality attire will keep you looking good for a long time.
• Watch your grooming. There is nothing more unpleasant than repulsive body odor, unkempt hair, excessive make up, or torn clothing. Pay close attention to details and it will pay off in the attention people pay to you.
• Dress up a bit. If you are working directly with clients, this is increasingly important. The small effort to add to your presentation gives an air of professionalism that you simply cannot find elsewhere.
• Keep it current. You need to look like you bought your wardrobe in this century. Say goodbye to those shoulder pads or loud prints that will date you back ten years. The world, the companies, the businesses, and the people are evolving so it would tell them that you can keep up with all that.
• Dress for your goals. If you dream of being the chairman of the board, then try to assimilate him or her in your attire. It will make you feel like you are headed up the ladder. And, if you feel that way, then your attitude will lead you on your way up too.
• Ask for help. This is especially true for students who are new to the professional world. Ask your new employer what attire is expected and pay attention to how the other people who work there are dressed when you go in for your interview. If you are still confused, don’t be afraid to ask.

We all know that we need to dress for success but not everyone knows exactly what that means. Hopefully, with the help of these tips, your first day on the job will be one that everyone remembers for all of the right reasons.

(Photo credit: karsten.planz)

This article was written by William Eve, a regular personal finance writer for Home Loan Finder, a 100% free mortgage comparison and application service. Whether you are buying your first home, upgraded or property investor, visit the Home Loan Find website for more quality information and guides on competitive mortgage products.

This week’s hot topic wasn’t Apple or BP, it was Lebron James. Despite rapidly rising to become one of the elite players in the NBA, Lebron and the Cleveland Cavaliers have been unable to accomplish the great feat of securing a championship ring.

Now that he reigns loose from the confines of Cleveland, he chose the Miami Heat as the next team for which he’ll play – accompanied by Dwyane Wade and Chris Bosh.

To fit all three superstars into the team, they’ll have to cut their salary and they’ve all agreed to do so if necessary. The team chemistry and roles are of the most concern at this point.

All the hype and media on Lebron’s decision is warranted as it will change the NBA league and the game of basketball. Right now, their goal is to win a championship – something money cannot buy. Many people are willing to take a job with a lower salary if they know that it’s what they love to do and want to do.

Would you take a salary paycut when an opportunity offers the chance to collaborate with great people who will help you reach your goals?

Some other thought-provoking articles around the blogosphere:

• Poverty or Simplicity: The Choice is Yours at Christian PF. Choosing to have less doesn’t imply your lack of wealth. Clutter has always added to worry and stress. Minimalism, whether it was result of poverty or not, is a choice that may lead to a more fulfilling life.
• Traditional vs. Roth IRA: Decide Which is Best for You at Good Financial Cents. This is a decision that troubles many people looking to build their nest egg. I’ve sounded out my reason for choosing a Roth IRA over a traditional IRA. You probably want to check out the beautiful infographic if you have this decision to make.
• Automate or Unautomate Your Finances? at Free From Broke. Personal financial management has seen a breakthrough with automation, but it has its own drawbacks. I automate part of my finances and actively manage the other. But, you may have your own method that works for you.

Check out the recent carnivals in which Realm of Prosperity participated:

• Carnival of Money Stories Independence Day Edition at Out of Debt Again

(Photo credit: Keith Allison)