“It’s better to give than receive”

When I was a child, I didn’t understand this statement, but now as an adult I realize the satisfaction in knowing the difference I am making. The holiday season is filled with family, friends and other loved ones. Although, I am all but guaranteed to eat too much and end up in a turkey induced coma, many families struggle with keeping food on the table. You can give thanks in many ways and help others in the process. You can donate food or better yet, your time to the local food bank. A personal favorite of mine is Second Harvest Food Bank of Orange County, which you can visit here. I have seen the difference they are making in the lives of the hungry first hand.

You should always know how your charity is spending their money. To research how much actually is put into the hands of the needy, go to Charity Watch . If less money is being spent on administration and fundraising, more money can be spent helping those that really need it. Also, keep in mind that your donations are tax deductible. You should always keep receipts or canceled checks for your donations since the IRS can audit donations. All clothing and furniture donations need to be in good or better condition in order to receive a tax deduction. If you have any interest in seeing the IRS rules regarding charitable donations, visit here.

Have a happy and safe Thanksgiving…

Wishing You Wealth in all its Greatest Forms,

Alex

A Rags to Riches Story...

They say one man's junk is another man's treasure. In my case, that was all too common. Growing up, much of my wardrobe was from second hand stores or garage sales. I rarely received brand new clothes and can still remember getting up early on Saturday to go to yard sales with my mom. Was I envious of my friends nicer clothes, bikes, toys? Nope. My mom did a good job of explaining to me that whether you have little or you have lots, someone will always have more than you and someone else will have less. But, all you NEED is enough. I think part of going to garage sales was to allow her to splurge and not feel limited by the cost. We were a working class family living in Anaheim, next to the happiest place on earth(Disneyland).

Last year I read this article from the International Herald Tribune on the "Queen of Trash." It may not be a very glamorous title, but she will take it...all the way to the bank. From driving a used Dodge Caravan collecting cardboard years ago, she has become one of the richest women in the world. She is richer than Oprah Winfrey, Martha Stewart and the CEO of eBay, Meg Whitman. From meager beginnings great possibility still exists. Your future wealth is not related to a history of lack...if it existed for you. We are all born with different opportunities and disadvantages, but it's what you do with those every day that define you as a person.

Wishing You Wealth in all its Greatest Forms,

Alex

College Tuition Inflation

The real expense of educating children has become one of the greatest financial burdens facing parents today. A college education was once a privilege reserved for aristocrats. The value of a college education is higher today than ever before. The demands of our global economy over the years will be for more educated people. Between 1993 and 2003, there was an increase of 40% of college graduates, bringing it to 40,621,000 per the National Science Foundation study.

In current times, employers are looking for increasing amounts of education to compete for today's jobs. Except for the purchase of a home and the accumulation of assets for a retirement fund, paying for higher education is one of the highest priorities and also one of the most expensive, that parents will ever make.
Excerpted from the College Board website, the education costs have experienced extraordinary inflation year over year.

SECTOR	2008-09	2007-08	% CHANGE
Public 2-Year	$2,402	$2,294	4.7%
Public 4-Year	$17,452	$16,586	5.2%
Private 4-Year	$25,143	$23,745	5.9%

*excerpted from www.collegeboard.com

There is going to be a greater need and better planning to provide the education needed to compete successfully in the workforce of tomorrow. In later posts, I will discuss the various options to create a college fund.

Wishing You Wealth in all its Greatest Forms,

Alex

Types of Insurance You Might Need...

I promise you that this will not be the most interesting post, but it will be informative. We all know we will have different types of insurance in our lifetime, but it can be so confusing. I will provide a brief overview of the different types of insurance, including:

• Auto Insurance
  
• Homeowner's Insurance
  
• Renter's Insurance
  
• Life Insurance
  
• Disability Insurance
  
• Health Insurance
  
• Long Term Care Insurance
  

Auto insurance is the most common type of insurance and pays for damages to persons and property when automobiles are involved in accidents, fires, thefts etc. Homeowner's and renter's insurance covers dwelling and/or personal property from fires, floods, thefts and even volcanoes if you live in Hawaii. Life insurance provides financial protection from a person's death so that dependents do not suffer hardship as a direct result from the loss of life. Businesses also use life insurance to protect against the death of a key person in the firm. Disability insurance pays a percentage of a person's wage when they are unable to work…think AFLAC. Health insurance covers the medical bills for the treatment of illnesses. Long term care insurance is used to pay for individualized care beyond medical and nursing care for people with disabilities.

When you own insurance, you have a contract with the insurance company that you will be compensated for "covered losses." For instance, I am covered for $100,000 in the case of my death(loss). The typical losses include death, destruction or theft of property, disability, illness and so on. Even if you have made only one premium payment, their contract will specify that the insurance company pay the policy amount. The goal of insurance is to reduce your risk and provide a smaller loss (premium payments) in exchange for a larger loss (death, property damage, medical bills).

I don't like paying for insurance, but it sure is nice having the "peace of mind" of being covered. These are the basic types of insurance you will probably see in your lifetime. I will spend more time on each different type of insurance in future posts.

Wishing You Wealth in all its Greatest Forms

Alex

Get the Vote Out...

Tomorrow is the day that you get to put democracy into action. I dislike the media making every election "The most important election of our lifetime." Democracy I love, sensationalism...not so much. Whether you are a "McCainiac" or an "Obamatron,"
this is your opportunity to be heard.

If you are unsure of your polling place in Orange County, look it up here. I believe that both candidates truly want to do what's best for this county. This is a great article on CNN Political that provides a nice break from the madness."If you can’t (or can) say anything nice. . ."

Wishing You Wealth in all its Greatest Forms

Alex

Your "Hour of Power" is Here

I just got wonderful news. Have you received something unexpected lately?
Maybe, it was extra time on the parking meter or finding money in the back pocket of your favorite jeans or getting an extra hour in your day? Today, I got just that. I had no idea that today was the end of daylight savings time and would be given the gift of time. Being so, I didn't make grand plans...like sleeping in an extra hour. Instead, I have decided to spend it connecting with old friends that have really made a difference in my life.

You can spend it however you like, but I recommend using the extra time and find ways to create more wealth in your life. Whether that means wealth in friendship or wealth in financial terms, like doing that budget that you have been putting off. Either way, I hope you make this extra hour count.

Wishing You Wealth in all its Greatest Forms

Alex