A Modest Janitor Built $8 Million Fortune - So Can You

In short, it took nothing less than an ironclad will. His return on investment, making very broad assumptions, was probably not as good as the performance of the leading market indexes over time. But his discipline, determination and attention to detail set him apart. Read amassed an $8 million fortune, according to reports.

Laurie Rowell, Read's lawyer, said her client had a knack for picking stocks, according to various news outlets. His holdings included shares of AT&T, Bank of America, General Electric and General Motors, she said. "He only invested in what he knew and what paid dividends," Rowell said, according to Business Insider.

Today, we don't know the details of Read's investment strategy, only that he apparently favored a long-term, buy-and-hold approach. But his story is not just a lesson in investing. It's also a lesson in life. If you do things the right way, you'll reap the rewards.

I always tell my clients, if you want to look like a bodybuilder, the first thing you have to do is go to the gym. Not just today and tomorrow, but every day going forward for years to come. Nobody would logically expect anything less.

Investing is similar - it demands a consistent, long-term strategy. Still, many people expect the "magic diet pill" or "next big thing." The problem is that it doesn't exist and you won't know it until it's too late. If you can come to grips with that, then being the next Ronald Read is just a matter of when, not if. You could get started today on an investing path similar to Read's, especially if you're in your 20s and have many years ahead of you to invest. Read was a child during the Great Depression. He graduated from high school in 1940, served in World War II and, upon his return to Brattleboro, went to work at a local gasoline station. He stayed there for nearly 35 years, retired and then discovered he didn't like being idle. So he took a part-time job as a janitor at J.C. Penney, where he worked for another 17 years. Read lived through the powerful and turbulent decades of the 1940s, '50s, '60s, '70s, '80s, '90s and beyond.

Think about it: He witnessed the Cold War, the assassinations of the 1960s, the resignation of President Nixon in 1974, the "Black Monday" stock market plunge in October 1987, the tech bubble of the late 1990s, the attacks on America on Sept. 11, 2001, and the Great Recession of 2008-2009.

Throughout all those decades, which included all the ups and downs of the U.S. financial markets, Read remained faithful to his overall investment vision.

He also lived modestly and shunned the trappings of success. He drove a Toyota Yaris around town and, according to reports, wore an old winter coat held together with safety pins. I don't know if you would want to live that frugally. But as far as investing, I'd suggest starting small, as Read did, and building your wealth steadily over time.

Think about starting with an initial investment of $1,000 and adding just $50 per month, or $600 annually. You could put your money into a solid index fund, such as one that tracks the S&P 500, which gained about 12% in 2014.If you had done just that in the past five years, your total investment of $4,000 would have almost doubled.

Like Read, don't get rattled or thrown off by the market's inevitable swings. Stay the course, and stay focused on your long-term goals. Perhaps one day you, too, can be an $8 million investor.

Credit Card Charge Offs and Their Impact on Your Credit Score

If you are of the opinion that paying your bills late won't have an impact on your credit score, think again. The late payment of bills under any circumstances can tarnish your credit history. Initially (for the first 180 days),the longer the debt goes unpaid, the more it will affect your credit score. In case the unpaid credit card debt reaches a point where the lender thinks that it will be irretrievable, it will be known as a "charge off".

A charge off enables creditors to write off the debt and claim a tax exemption. Typically, an unpaid amount is recorded as a charge off when you don't pay the bill for at least six months. However, the tenure varies from lender to lender.

Why Avoid Charge Offs?

A charge off means that you have been delinquent in making payment on the debts that you owe. After a debt is charged off, it is no longer considered as a revolving debt. It becomes a balance that is due to be paid. If possible, it is always advisable to avoid a charge off. This is because when your account is revolving, you still have the chances to pay off the debt and bring your credit score to a good position.

Even if you pay the due amount in full, a charge off will stay on your credit report for the next seven years. This is because your past record for payments is considered as an indicator of your future behavior. In case you settle the charge off by paying an amount that is less than what you owe, both the transactions will reflect on your credit report.

Myths About Charge Offs

A myth that most people may have heard is that charge offs can be removed from your credit report. You may find it surprising to learn that your responsibility to pay off the debt does not end when it has been charged off. When your debt has been transferred to a collection agency, the contract that you signed to repay debt will stay in effect until you settle the account. An important point that you should remember when your debt is charged off, is that you may not be able to settle the payment with the original creditor, but with the company that is responsible for collection.

The Impact on Your Credit Score

Charge offs can hurt your credit score to a great extent. Whether you owe $100 or $1,000, charge offs can pose a big threat to your future investment plans. A charge off can make your credit score plunge dramatically. Like some of the other flaws in your credit report, a charge off can be a major setback in the case that you are making an effort to improve your credit score.

It is advisable to consult a credit repair company that will help you in evaluating your credit score regularly and detect any flaws or inaccuracies that may be present in the credit report. Such a company can also advise you to the various steps that will help you in improving your credit score.

Car Sales on Finance - What You Need to Know

Buying a used or new vehicle on finance gives you the freedom to purchase what you want and pay the vehicle off in monthly instalments. Once you have completed all the payments, the vehicle becomes yours.

This can be very beneficial when it comes to working with a limited budget. Not everyone has the financial freedom to purchase a vehicle for cash, especially when looking at younger models which comes with all the latest technology and safety features.

One of the benefits to looking at car sales on finance is that you can trade in your current vehicle as a part exchange. This enables you to get a value on your current vehicle, which is deducted from the asking price of the new vehicle. This gives you a lower amount which needs to be financed, helping to reduce the monthly instalments and helping you match your monthly budget on what you can afford.

When looking at car sales on finance you get to make regular monthly payments for the vehicle, rather than paying the amount in one large sum. This gives you wider freedom to find what you are looking for. Further if you do your budget before you start shopping around, you will have indication on what you can afford to pay each month, if you qualify, you can buy a vehicle based on the monthly payment amount after trade in, rather than the overall price, and you may be pleasantly surprised.

In addition to this, you have the flexibility to determine how long you want to make your payments for. This is normally twelve to sixty months. Of course taking it over a longer period will mean you pay more interest, but your monthly repayments will be considerably less than if you only take the finance for twelve months. Be realistic in your decision, based on your current working situation and what you feel you can afford in the long term.

The car dealer you are looking at that offers car sales on finance should give you the ability to apply for credit either online or over the phone. This does require a credit check, so it may be worthwhile obtaining a copy of your credit report to identify what your score is. Don't worry not everyone has a perfect score, but obviously the better it is the higher your chances are of obtaining the credit you need.

If you have a tarnished credit score due to problems years ago, advise the car dealer before going ahead with the application. Some car sales on finance do take this into consideration and are willing to provide finance to those with a poor credit rating.

Another thing you will find when choosing a reputable company offering car sales on finance is that you can enjoy an instant decision. Five minutes online or a quick phone call can give you the answer you need. If approved, you could be driving away in your new vehicle within the hour.

Always ensure that you only select a reputable car dealership that has built up a good name in the industry. You want a company that is going to provide you with a complete service, helping you find the best vehicle to meet your need with a flexible finance package that also suits your budget.

Do your research to learn as much about the company as possible. Double check the vehicle comes with some form of warranty and identify who they use for the credit solutions.

Read through the paperwork in detail before signing, ensuring you know what to expect and what your monthly repayments are moving forward.

Withnell Car Sales is a family run business with over twenty five years' experience. This well-established company provides car credit and finance to everyone looking for a good quality second hand car. The company offers a choice of used cars which are updated on a regular basis, all of which are advertised with photographs to help customers identify the best choice for them. Withnell Car Sales also offer a range of credit packages to meet their customer's personal needs and a five minute credit check is also available on their easy to use and secure website. Customers can apply for finance, choose their vehicle and drive away within an hour.