Turn $1,000 into (fill in the blank).

So, I’m reading the home page of the Fool today and I see a blood red Ferrari with the headline “How to Turn a Water Heater into a Ferrari” next to it. So, since I’m a die-hard car guy and a Ferrari fanatic, I had to click thru to see what the story was.

Turns out that was an article by James Early about turning $1,000 into enough money that it’ll blow your mind by following these 3 steps:
1. Ignore the hype that you secretly want to believe
2. Befriend the dorkiest guys you know
3. Decide whether you’re a man or a mouse

It’s a pretty interesting piece. I know that many times in my life I’ve turn $1,000 into $0 without really trying. So, this article taught me a few things. Check it out. And give us your take.

Build Your Savings by Paying a “Bill”.

We all know that the more we save, the more we have to use to build our wealth. And we all know that we should “Pay ourselves first.”

But, a lot of us, especially me, find that keeping to a regular savings schedule is pretty tough. Even with “automatic” savings, I can’t seem to save as much as I need to save.

Then I read this pretty cool article today by Walter Updegrave on CNNMoney.com that talks about treating your savings contribution as a “bill” that you pay every month or week. This way, every time you pay your bills, you pay a “bill” in the form of a deposit to your savings account.

Now, this is a pretty easy way to pay yourself first. I think I’m gonna give it a try. I think I can fit it in between my Verizon Wireless bill and my ConEd bill. What about you? How do you build up your savings? Let us know.

Thinking of dipping into your 401(k)? Think again.

I just read a great article by Lauren Tara LaCapra on today’s TheStreet.com the consequences of withdrawing money from your 401(k) when you’re in your 20’s or 30’s.

I just wish she wrote it – and I read it – 25 years ago instead of today.

You see, dipping into my 401(k) during my 20’s and 30’s wiped out my nest egg - TWICE.

Just like the young people Lauren writes about who view their 401(k)s as kind of a regular saving account, I was short-sighted about my finances and my retirement plan. I lost all of those years of tax-deferred compounded interest. UGH!! It kills me that I was so stupid.

If you’re thinking of taking out money out of your 401(k), and you’re younger than 59 1/2, please read Lauren’s article. It could save you more than just a few bucks. It could save your retirement.

Elvis for Orphans

One of my major beliefs is that Giving is part of living a wealthy life. Giving of your time, your money and your self in service to others.

This past Saturday night, I had a chance to give in a pretty fun way. I took part in an “Elvis Pub Crawl for Orphans International”.

Now, you’re probably asking yourself “What the heck does Elvis have to do with Orphans?” Well, the answer is “Nothing”.

But when you have a bunch of guys and girls dressed up like Elvis, going from bar to bar in New York City’s Greenwich Village, asking people to donate to Orphans International, you get a lot of attention.

And that’s what we wanted to do – bring attention to the plight of orphans in Sri Lanka, Haiti, Indonesia and other places around the world.

On Saturday, we raised over $1200 in small cash donations. Not bad for a few hours of bar-hopping. We also handed out hundreds of donation cards, so hopefully we’ll get a few more bucks in the mail.

Since it costs $600 per year to feed and care for one orphan, we made sure that at least 2 kids will be taken care of this year. Next year, we’ll raise a whole lot more. Until then, we’ll give our time, money and selves to help orphans throughout the world. And we won’t even have to dress like Elvis.

Credit Card? Debit Card? What’s Best?

Are you as confused by the differences between Credit Cards and Debit Cards as I am? Do you wonder which one you should use in which situation? And which one is costing you a load of money?

Well, if you’d like to really know what’s going on in the Credit vs. Debit Card battle, then take a few minutes and take look at Peter McDougall’s article on today’s TheStreet.com. Right after you pay for your coffee and donut with a Debit Card. Or is that a Credit Card?

Peter clearly shows the difference between the 2 types of Cards. And some of the things I learned were pretty eye-opening. For instance, I always thought that one of the benefits of using a Debit Card at a checkout was that I wouldn’t be charged a fee, like I would if I used it at an ATM. But now, I see that some banks actually charge a fee – from a dime to a dollar or more – when we use our Debit Cards at a checkout. That’s crazy!

Check out Peter’s article and let us know what you think. Who knows? You just might find that some of those little pieces of plastic that you’re carrying around are really doing a number on your finances. And your nerves.

What’s Stopping Me from Being Rich?

This is a question I’ve asked myself, oh, about 7 million times. It’s also the topic of a pretty good article by Jeffrey Strain on today’s TheStreet.com.

After years of asking this question, I’m sure that it has something to do with the fact that I’m just not doing EVERYTHING I need to be doing to change my habits.

So, after reading the article, it seems that my reason is part of the answer. But it’s not the whole answer. It goes on to take out HOW to change your current lifestyle. The fact that it’ll take time and effort. And the changes that I do make can’t be temporary.

Give it a read for yourself and let us know what you think. You might find your answer to that age-old question: What’s Stopping Me from Being Rich?”

Take a Break: It’s Leisure Time

I don’t know about you, but I’d rather be hanging out on a beach instead of sitting in an office.

To me, and to a lot of us, playing is a lot more fun than working. But there never seems to be enough time to really enjoy our leisure time to its full extent.

Now, Marci Alboher’s article on today’s NYTimes.com talks about why we NEED leisure time.

It touches on a bunch of topics, like:
- how a lot of us use our leisure time to do one thing to excess
- how a lot us define ourselves through our work (I’m guilty of this)
- how we can really plan for leisure time.

It’s kind of an academic study about our relationship to leisure time. But I think it’s worth a read. Check it out and let us know what you think.

Don’t Bet the House. Especially Your House.

At times like these, when the stock market is low, there are tons of opportunities to buy stocks at a discount. Right?

And when mortgage rates are low, it’s a great time to borrow against your home equity. Right?

Now, what if you borrow against your home equity to buy discount stocks. That would be smart, wouldn’t it?

Well, according to a great article today on TheStreet.com by Peter McDougall, the answer to the last 2 questions is NO. NO. NO. NO. NO.

I’ve never heard of homeowners borrowing against their houses to invest in the stock market. But according to Peter, some do. And the risks are tremendous.

What happens if the return on your investment doesn’t cover your mortgage? What if your investment goes down? Then what? You’ll lose money. And you could lose your house!

It doesn’t make sense to me. But that’s just me.

If you’ve ever thought about doing this, you might want to read Peter’s article first. Then give us your take.

Can You Learn How to be an Entrepreneur?

I’ve always felt that being an entrepreneur was something that you were born with. That’s probably because I came from a family of employees. Everybody in my immediate family worked for someone else. No one had their own business.

But then something strange happened to me within the last year - I started-up 3 different businesses with friends. Businesses that are in the infant stage, but they’re moving forward.

This feeling that I could be an entrepreneur began during my 3 days in the amazing Millionaire Mind Intensive last May 10-12. Something inside of me just lit up. I’ve always wanted my own businesses, but I was too scared to really try.

Now, I’m not just trying, I’m DOING.

But during the last year, I always wondered what would’ve happened to me if I could’ve taken an Entrepreneur class in college 30 years ago. Well, according to a story by Glenn Rifkin on today’s NYTimes.com, over 2,000 colleges now offer classes in Entrepreneurship.

This piece talks about a group of students from Monmouth University in NJ who started up a business called Nanina’s Gourmet Pasta Sauce. It’s a pretty inspiring piece. Take a look at it and let us know if you think that people can be taught how to be entrepreneurs.

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