Saturday, September 15, 2007

Fun Blog, Good Advice

Not long ago I stumbled across a relatively new blog, Millionaire Mommy Next Door. She uses treasure maps as a means of growing her money, which sound kooky, but I've used it and find it's a very effective tool for bringing money or whatever into your life. I make no claims as to understanding how it works - I suspect it's because it focuses your brain to look for opportunities, but some people view it as a form of prayer.

Anyway, I wanted to point out an excellent post titled "How to Make Money Management a Family Affair." The title is a bit too broad, since it doesn't really talk about getting the whole family involved in financial decisions so much as it focuses on teaching your child about money.

She mentions you can make a five-year-old a millionaire by 65 with a one time contribution of $9875 OR a monthly contribution of only $57. She provides a link, which also says you can achieve it with a $98 monthly contribution through age 18.

Right now, I put aside $30 a month for a college fund. Not enough, probably, but it should be about $7200 by the time she goes to college, at 8 percent. I'd love to make my child a millionaire, but I also would love to retire. So, maybe I'll focus more on the other tips so she can make her own million!

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Anonymous Anonymous said...

Thanks, Loraine, for discussing my blog on yours and providing links!

I love your blog's vision statement (in header). I'm looking forward to reading your observations and ideas!

Quick feedback re: your comments about saving for your kids' college education-- In the long run, I (and many financial advisers as well) recommend making your retirement savings top priority. Your kids will have other means for college money if needed (like low interest loans, grants), they'll be young (time on their side), and have a full career life ahead of them. At retirement, you won't have these things. Save for your kids education once you have your retirement figured out first. Besides, your kids will find it easier to pay for college than to pay for your care during your retirement-- all while trying to save for their own retirement.

That said, if you can afford to save for both at the same time, do it!

10:29 AM  

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