Five Budget Tips to Help You Save
Saving money is much easier than earning it from scratch. But it is also much harder than it is to spend money, and as a result, most of us spend what we would rather save. In order to begin saving money, we need to have a plan, and the more automatic the plan works, the better. When we are confronted with the choice between spending money and saving it, we run the risk that we will give in to the temptation to choose instant gratification. So taking the choice out of the equation is one of the first steps to a steady savings program.
Here are five tips for budgeting and saving money, the automatic way:
1) Set up an automatic withdrawal program with your bank, so that every time you make a deposit, a percentage of the money you deposit is automatically transferred to a savings account that is harder for you to access. One way to do this is to have your bank use an automatic deposit system to put a set amount of money ñ for example, $100 ñ into your savings account each month.
2) Save your loose change and small bills. Put a piggybank in your kitchen and every time you come home, empty the change from your pockets and put it in the piggybank. Toss in a few one-dollar donations from time to time. Although it sounds juvenile, you will be surprised how much you can save with this old fashioned method. And it is so much fun to break the bank when it won’t hold another cent.
3) Write down everything ñ and that means no exceptions ñ you buy. Keep a log of every single purchase you make. Write down what you bought and how much it cost. If you left a tip, write that down too. Be diligent about keeping your log book, and if you do it well, you can just do it for a month and gather enough information to help you save even without the log book. Most people find hidden expenses, like $10 per day for coffee or $50 per month for a gym membership that is never used, and then they can easily adjust their budget to save money immediately.
4) Spend less at holidays. And entertain at home. Instead of giving expensive gifts at Christmas, give handcrafted items, poems, or pledges to do errands or barter with friends. One fellow we know agreed to shovel his friends’ sidewalks during one snow season. His friends got a great gift, and he saved some cash to spend once the snow and ice thawed. Instead of going out to eat in restaurants, cook at home or invite friends for a potluck dinner. Rent DVD’s instead of going to the movies.
5) Don’t shop hungry. Scientific studies show that people who have a strong appetite will not only eat more, but they will consume more of everything else, too. Many of us know that if we go grocery shopping while hungry, we will buy more than we need. So don’t do it. Eat first, then shop. But since studies show that it applies to all sorts of shopping, always have a satisfying snack before going to the mall, the clothing boutique, or the sports store. You’ll spend less, and save more.
6 Proven Wealth Building Strategies
Building wealth is as simple as saving a little bit here and a little bit there. You need not have great riches in order to accumulate wealth, but you need to have the drive, determination, and discipline to successfully increase your wealth. Letís look at 6 proven wealth building strategies you can put to use today.
1. Pay Yourself First. If you do not set aside money before you start paying your bills, chances are you will never save any many after you pay these same bills. If your employer has a 401(k) or 403(b) plan, enroll in it and set up a reasonable percentage to invest. The money will come out before you see your paycheck, therefore the ìlossî of discretionary income will be less noticeable to you. Maximize your contribution if you are able, especially if your employer matches your contribution.
2. Save Now. The earlier you start to save in your life, the more you will have later in life. Of course, if you arenít able to save much until after your children are grown, you can step up your savings until you retire and still have a decent nest egg.
3. Get Rid of Debt. Even before you build up your savings it is best to get rid of your debt first before starting a wealth building campaign. If your credit card rate is 14% you will find it difficult to find any investment that gives you a return that exceeds that rate. It would be better for you to pay down your debt first and then implement an investment strategy.
4. Pick The Right Mortgage. If you plan on holding onto your home for a short period of time, select an adjustable rate mortgage as your rate will be lower than a fixed rate mortgage. Use the amount saved to pay down your mortgage quicker; refinance your home if rates begin to climb.
5. Build An Emergency Fund. Nothing wrecks the best laid plan more than an emergency, particularly one that costs you money. Set aside up to six months of your income to live on in case catastrophe hits. Without an emergency fund you will be tempted to take on debt, cash in your retirement accounts, and sell valuable investments. Try recovering quickly from this sort of hit to your wealth without an effective back up plan!
6. Protect Your Assets. You can have a healthy portfolio and see it disappear quickly if you are not properly insured. Make sure that your health/dental, homeowner, life, and disability insurance coverage is adequate to meet your needs. All it takes is one legal judgment against you to wipe out your assets.
Instance riches come to a few, but most riches are realized after careful planning and effective management of your resources. You can properly prepare for the days ahead by implementing these six proven wealth building strategies today.
The Way To Wealth ñ Three Principles Examined
Do you dream to attain riches beyond your wildest imagination? Greed when taken in the right context acts as an impetus to go into the unknown and challenge the existing state of things. While many people over the years have written many books on the pursuit of wealth and many people have spent their lives in the pursuit of wealth, this article attempts to explain a simple three step process that you can use to empower yourself and be on your way to wealth.
Mindset of wealth
Priming your mind for success is one of the keys explained in the law of attraction. This concept states that for you to attract wealth into your life, you need to believe in the abundance of wealth. This works at a subconscious level and once you believe that you can be wealthy, you are actually priming your mind to spot greater business opportunity and focus on actions on a daily basis that can bring your closer to your goal. People with closed minds would not dare take the next step for fear of the unknown. This mindset will give you the belief that would help tide you through your next period of doubt.
Plan and Strategize
Any step towards financial success involves a great thought out plan. Where do you see yourself in three years and how are you going to get there? What concrete steps do you intend to take and how will you know if you have success in your plans? Also strategize what type of industry contacts you would need to break into the circle of the industry that you want to enter into. Do you need to join some business association to gain some valuable business contacts or do you need to attend some conference to learn about the latest deals in the market and network with other industry level people.
Take action
Lastly, the way to wealth does not lie in quiet bouts of inaction. Once you have tested your idea or product with a sizeable test market, spend some time talking to venture capitalist and relatives and see if your product can be taken nationwide. A single thought when coupled with some action can result in powerful results. Having all the ideas and thoughts if not acted upon will end in nought. The journey of a thousands steps begins with a single step.
Thus, the way to wealth can be said to be fraught with many dangers and perils but in action will be your biggest obstacle. After testing the potential profitability of your product, there will come a time when all indicators from all around that your idea or product is feasible. It will be at this moment where it would fall on you to ensure that I hope that you have what it takes to take massive action to achieve your financial future. Carpe Diem!
Think Rich And Grow Wealth
We are starkly set today to be in the glimpse of great wealth. Today, successful people are finding endless opportunities to advance their financial freedom while helping a lot of people. However, while these stories are inspiring, most see it as impossible or ìout of their realm.î This thinking is a reflection of the plight of people in the bins. Our effort in achieving wealth therefore starts with changing that mindset.
Napoleon Hillís Think and Grow Rich is a good initial action to change that mindset. Although this book was written more than 70 years ago, it still communicates the same shout that by the most successful people today; that achieving financial freedom is an exercise of continuing shift in thinking.
This is a book of conceiving and achieving. It first argues that ìwhatever your mind can conceive and believe it can achieve.î This argument is the essence of Napoleon Hillís interview with the 500 richest men in America during his time. This is certainly the idea that has come across the likes of Thomas Edison, Alexander Graham Bell, Henry Ford, Elmer Gates, Theodore Roosevelt, Woodrow Wilson and many more. Hillís book is therefore the summation of the thoughts of these great men.
Background of Think and Grow Rich
Think and Grow Rich was borne out of the efforts of the famous Andrew Carnegie. As a Swedish immigrant that grew from poverty, Andrew Carnegie saw the need for communicating the practicalities of money making. Carnegie tabbed Napoleon Hill for such ambitious project. Today, the book has sold over 7 million books and is the main source of inspiration for highly successful people 70 years after it was written.
This book outlines thirteen steps to achieve financial freedom. Napoleon Hill first talks about desire as the starting point of all achievement. In this book, desire is not a wish, a dream, or a leaning. Instead, desire talks about the emblem of passion, which allows one to focus on his goal at all cost. For Edison, the desire to invent allowed him to be what he is. In short, desire is burning, not just a silly figment of our actions.
Secondly, he talks about faith or the belief that desire can be attained. Faith allows us to be continually focused on our desire because we know that we can achieve in the future. Napoleon Hill implied that faith makes miracles. In a parallel view, in order for a desire to be all encompassing, it must border on miracles. Thus, faith and desire are strong suggestions in achieving financial freedom.
A Step by Step Approach to Changing Mindset
While there are thirteen very helpful steps to achieve wealth creation, Napoleon Hill also outlines action within our fundamental minds. Thus, in Think and Grow Rich, the art of decision making and the mastery of procrastination are discussed. Procrastination and decision go hand in hand. Most people tend to hold decisions because they lack a sense of judgment, or they do not like risk taking. However, every pause that we make is time lost in what could have been a productive action. Napoleon Hill states that most successful people do act quickly and decide often. Therefore procrastination is not a problem of laziness but a myopic view on the value of decision making. It should be our attitude to put action ahead of us.
This book is definitely a must read for people who have not grasped what thinking rich means. While most people will continue to believe their status quo which puts them at the bottom of the financial chain, Think and Grow Rich will help you change a lot of your values and help you see the world in a different light. Taking steps to financial freedom as set out by a timeless book starts from our heads. After that, you will be surprised what a change of perspective will do to you.