8 Important Things to Teach Your Child About Money

8 Important Things to Teach Your Child About Money

Odds are you've had financial stress at some point in your life. If you really think about it, most of the financial stress we suffer is ultimately our own fault. We spend more than we should and save less. We buy things we don't need and fail to give money the respect it deserves. One big purchase on a credit card can result in payments that never seem to end.

If you could go back in time and eliminate all of your financial errors, your life would probably be very different. Though it's never too late to make improvements, it's much easier to prevent challenges than it is to solve them. You can help your child avoid such financial challenges.

You can give your child the gift of financial wisdom.

Consider discussing these ideas with your children:

8 Ways to Invest in Foreign Markets

8 Ways to Invest in Foreign Markets

The United States might have the largest economy in the world, but it's far from the only economy. There's a whole world out there. When the US economy is faltering, there are plenty of other economies doing well. It's much easier to invest successfully in a thriving economy than in one that's struggling.

But most investors don't know where to start. Do you get on the phone and call Tokyo when you want to invest in a Japanese stock?

In 2012, the US was less than 19% of the world economy. That's a lot for one country, but it's still a small amount compared to the combined rest of the world. Do you think there might a few good investments in that other 81%? Of course!

Fortunately, there are several easy ways to invest overseas:

Build Your Savings with Easy Spending Cuts

Build Your Savings with Easy Spending Cuts

It can be quite difficult to save money if you don't know how to reduce the amount of cash that you spend on a daily basis. Once you've made the decision to make daily budget cuts, you'll be surprised to find out just how much money you can save!

These tips will make it easy for you to make progress towards your financial goals:

1. Keep track of your spending. One of the easiest ways to track spending is to use a small notebook that you can keep handy in your pocket or purse.

* Whenever you spend some money, jot down the amount that you spent in your notebook. Most people make the mistake of skipping this important step.

* Never underestimate the power of tracking your finances. Even though your mind is incredibly powerful, it can be difficult to remember where all that money went.

* It might take awhile to get into the habit of writing down the amount of cash that you spend on a daily basis, but once you get used to it, it becomes fairly automatic.

Do Stock Prices Really Follow Earnings

Do Stock Prices Really Follow Earnings?

Stock gurus commonly claim that stock prices follow earnings. Is that an accurate statement? There's some evidence that it used to be truer in the past than it is today. The flood of armchair investors is likely the culprit. It's much easier for a stock price to be artificially inflated or deflated by investor sentiment than in the past.

Microsoft is one such example. The company has done exceedingly well over the last 13 years, but the stock price has done nothing. Revenue and earnings have increased dramatically, but the stock has been stagnant. The stock was simply overpriced many years ago, and the earnings are still struggling to support the price of the stock.

Short-Term Earnings

There is little dispute that, over longer periods of time, earnings are an excellent predictor of stock price.

How to Create a Budget Chart to Slice Expenses and Save Money

How to Create a Budget Chart to Slice Expenses and Save Money

Using a computer program to keep track of your budget is quite addicting. You start to feel proud and satisfied when you can add a new amount to the "earnings" section of the budget. Of course, the most satisfying part would be watch your earnings and savings increase as you cut back on spending

But what if you need to pay an upcoming bill and you're flat broke?

Relax, there's no need to panic. Fortunately, your handy budget chart will help you cut back on spending without losing the roof over your head.

In addition, keeping track of your expenses will help you avoid spending money unnecessarily, so more funds can be allocated to saving.

Keeping Track of Income and Expenses

This tutorial can work for any Excel style spreadsheet:

1. Open a new spreadsheet

2. In the first rows, type in the factors that you would like to track (earned, spent, saved)

3. Below the label, select the formula area, and type "=sum(A2:A30)"

This is one of the simplest formulas that can be used in Excel. It simply adds the amount of numbers that are found in column A between row 2 and 30

Income Tax Requirements When Living Out of the Country

Income Tax Requirements When Living Out of the Country

Living in a foreign country holds a lot of appeal. It gives an exotic impression and seems like a never-ending vacation. But it doesn't matter where you go, because the US government still expects you to file a tax return and pay taxes. This is true even if you become a citizen of the other country and live there full time

The United States might be the only country in the world that does this.

If you were a citizen of Italy but living and working in Argentina, Italy wouldn't expect you to pay any taxes! You would have to pay them in Argentina, though. The US would expect you to pay both.

For your peace of mind and to keep you out of jail, become familiar with the income tax rules that apply to you as a citizen of the United States living outside the country.

Income tax rules for US citizens living abroad:

1. No matter where you live, you must file a tax return. It's entirely possible that you won't owe any taxes, but you must file an income tax return each year.

2. You're still subjected to all US tax laws. This includes income tax rates and the same credits and deductions.

3. There are 2 primary ways to reduce your taxes owed in the United States. The United States has a reputation for double taxation, but in practice that only applies above certain income limits.

Want to be Wealthy Stop Swapping Your Time for Money

Want to be Wealthy? Stop Swapping Your Time for Money

Many of us were taught to do well in school, get a great job, work hard, and you'll eventually make a lot of money. This may be true, but there is a great limitation to working for someone else. Time. There are only so many hours in a week. No one can buy or create more.

Even doctors suffer from this limitation. The average physician makes a large salary, but there aren't many that make a million dollars a year. Even a physician is swapping his time for money. He only gets paid while he's seeing patients. He can't see more than one at a time and he can't see them while he's asleep. The clock ultimately limits his income.

This is also true for consultants, dentists, lawyers, and CEOs.

If you want the opportunity to make a tremendous amount of money, it's important to find ways to earn without your presence being necessary. Free yourself from the clock and your ability to earn is unlimited.

There are better ways: