GOLF - More Than Just a Long walk for No Good Reason!

The game of golf is described by critics as “a long walk for no good reason,” but actually there are a number of reasons why taking up the sport could help keep you in tip-top condition.

First of all, of course golf does involve a good deal of walking, and walking is one of the best forms of exercise that we can get.  In fact, a round of golf will typically see you having to walk for around four miles – and that’s if you play well!  Keep sending the ball off in entirely the wrong direction and you could probably add an appreciable distance on top of that.  The great thing about it, though, is that if you’re engrossed in the game, you barely even notice how far you have traveled on foot.

Not only does golf give your legs a good workout, the arms and upper body get plenty of exercise with all those long (and hopefully accurate) drives down the fairway.  Like many sports, the focus and concentration also mean that it’s good mental exercise.

Many people take up golf when they are in their 40s and older, and in fact the older age groups derive tremendous benefit from the workout that they get from the sport by increasing muscle strength and bone density, two things that often dwindle naturally with age.



Is Being in the Company of Big Spenders Hitting Your Pocketbook?

Keeping hold of your cash can feel difficult at the best of times, but when you’re in the company of big spenders, it can become all but impossible. 

Although you might not normally be the type to be influenced by the behavior of others, there are actually three main reasons why people are sometimes tempted to emulate the spending habits of others.

The “keeping up with the Jones’s” effect.  They don’t want to be seen as any less affluent than the people they associate with and so they not only match the latter’s spending, but even outdo it.

Watching others spend freely gives them a sense of entitlement, even though they may not be able to afford the expenditure.  They tend to think, “If they can, then why shouldn’t I be able to?”

The loss of self-control.  Although it’s often easy for people when they’re alone to talk themselves out of spending their hard-earned cash on things they don’t really need, being in the company of big spenders can tempt some people to think only of today and deal with the consequences later.

Think about the people you associate with and whether any of them have any of these effects on you.  If so, you might want to think carefully about the situations in which you meet with them to reduce your chances of letting yourself be led astray.

Financial Resolutions for 2012

Here’s the thing about most financial resolutions: They don’t usually last even until the end of January. That’s because making a permanent change in our behavior requires both time and a steely resolve. But I’ve found that we can develop financial character one action at a time.

So in that vein, here are some financial practices to take you from pauper to prince or princess if you add one each year. If you’ve already got one down, move to the next on the list.

#1 MOST CRITICAL: Resolve to become (and stay) debt free. Now, I’m not Dave Ramsey, but there’s a reason why he’s become so popular: his approach works. I’d say that you can have a fixed-rate fixed-year traditional mortgage on your house — but nothing else, please. No equity line of credit on your house. No car payments. Certainly no credit card debt. Because you simply have to learn to live within your income — which, unfortunately, sometimes means going without. The millionaires among us really are frugal. So learn to enjoy that process, and it’s a fantastic start.

#2 Automate your savings (AKA Pay Yourself First). You can start by getting the entire match if your company offers a 401(k) plan. Usually this translates to saving 5% of your salary while the company contributes a 4% match, which is the fastest way to get an 80% return on your money. Most Americans forgo this match, believing they need to spend 100% of their salary. But you can learn to think like a millionaire and live well on 95% of what you make. If you don’t have a 401(k) plan, act like you do, and sock away 5% automatically.

#3 Fully fund your 2012 Roth IRA. This is $5,000 in 2012 and $6,000 if you are older than age 50. If you can’t manage the entire amount in January, put in $416 monthly. Automating deposits in an employer-defined contribution plan is easy. Fortunately, automating saving in a Roth IRA or a taxable savings plan is equally painless. Most brokers offer an automatic money link between your checking account and an investment account. Set your savings on autopilot, baby!

Remember — these steps build off one another, so if you already have done the first 3, here’s your next step:

#4 Save another 5% in a taxable investment account. Automating savings is great, automating investment is even greater. Key word here: automate. At this point, you’re hitting a mark of saving 15-20% of your income. That’s a fast-track to long-term prosperity.