Wealth. Too many of us are chasing the almighty dollar. I learned a couple things from mistakes I have made regarding money. 1) Don't chase money, let money chase you. Live right and you will have sufficient for your needs. 2) Most people think they need to make major changes in order to build wealth. While many may need change, most can build wealth while in their current situation...if they build the necessary habits. If these habits are in place at the time of major changes, we simply put ourselves in a position to build wealth at a quicker pace. Yahoo finance included a few tips on how to build wealth in 2009. I thought I would share them with you. Some may be applicable with a little discipline while others may not.
- Grow your own food. (This will more than likely not be done in the Trosper household).
- Set limits and stick to them. (budget, savings, etc)
- Buy savings bonds.
- Redirect or split your raises. (This is a big one, and this is what I mean by having good habits in place at the time changes like raises, promotions or opportunities arise. Stay within the budget you made prior to your new fortune and save the difference for retirement or pay off debt. Most American's spend what they earn and more. If their earnings go up, so do their spendings).
- Track spending. This is one that Sarah and I need to improve on.
- Spend less. (Easier said than done).
- Do not carry cash.
- Plan spending with rewards in mind (cash back, points, etc).
- Use coupons.
- Use direct depositing to establish a savings account.
- Track progress. (Saving money and building wealth can be fun and addictive).
I hope 2009 brings our family and friends prosperity this year. Remember, prosperity will not just land on your lap, but with simple planning and discipline, you can achieve financial independence in your retirement.
11 comments:
I'll vouch for the coupons. I started using them the beginning of Sept. and my new way of shopping has saved me between $500-$1000 a month ( used to spend between $1000-$1500 depending on the month, now it's right around $500). I also have so much more to show for the money I have spent. It's a takes a little time to figure it all out and a little more work each week, but it's worth it!
Great job, Melissa. The key now is to take the money you are saving and put it away for retirement or pay off debt. If you can manage to do that, then you are really getting somewhere! I hope all is well for you and yours there in AZ.
Great Advice!!! Be careful you may become part of the Quorum of the Twelve with this kind of speech!
Thanks for sharing!
I disagree with #7 Do not cary cash. I suggest that you decide how much you need for lunches & small misc needs for the week and carry that cash around with you. I find it more difficult to give up the only cash I have for mickey mouse things and will think twice about it.
I was going to say I agreed with all of them but one, and hope to improve on all of them but one.
I find I spend less if I am spending cash. It feels more real and I have a harder time parting with it than I do if I just hand someone plastic or check.
My additional tip: Use Quicken Religiously (I just upgraded to Quicken Premier 2009). It will track any financial related accounts and most financial institutions will allow Quicken to automagically download them. I spend less than 10 minutes a week keeping my accounts updated.
You will find trouble spots with in a few weeks. You can track trends over time that you wouldn't ever see without it. I can compare costs of my whatever over time. IE: why is my gas more than last month, last year or whatever.
Great advice from all. Of course we each need to do what works for each of us. The main thing is to make it a deliberate habit. I need to use Quicken. I am sure I will love it.
Hey Q,
I'm down here on the island enjoying the 80+ degree weather and a nice warm southernly breeze. Sounds like you are enjoying the same!
I've been thinking a lot about the discrepancy around the "Don't carry cash" suggestion.. I have to say for me I don't carry cash..
For example if I have cash I am more willing to spend it. If I am tempted to stop say for fast food and I have cash, there is no record really. I don't have to own up to the fact I stopped and wasted money there. If I have to use my card and it's going to come back at me in writing on my statement so I am less likely to stop and use my card... Just my two cents.
Hey Deena, I can't get into your blog anymore. Does this mean we are not friends?
I've sent you an invite to Sarah's email address 2 times now since Christmas.. I figured you weren't our friends anymore cuz you never accepted.. I will send another one... Just know you're the ones that have been avoiding us!!! :0)
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