Saving Money
1. "SOS" Stay Out of Stores.
This includes shopping malls and internet stores! Stores are designed to
get you to buy more then what you came to get! When you must go to a store
have a shopping list and buy only what is on the list.
If you see something you want when you are at the store. Do not buy it
then. Go home and write it on the list for your next shopping trip. Often by
the time you get home you will have forgotten about ever wanting it in the
first place.
2. Distinguish between needs and wants.
Needs include basic food, basic shelter, basic clothing, and basic health.
One could also include the basic things needed to get and hold employment.
Everything else is a want.
3. Have an automatic savings plan
Use the 401K plan at work if they have one. Always ways put in the maximum
amount that the company will match. That is as close to "free" money
as you will ever get.
In addition to the 401K plan also have a savings account into which you
automatically transfer some money each month. Never touch that saving account!
You will be surprised to see how much it is worth in just two years.
Set up an IRA and keep making contributions to it. Your contributions to it
are tax free and all the earning are tax free until you take the money out.
See you financial advisor and set one up immediately, even if you can make
only the minimum contribution.
4. Eliminate, or at least reduce, recurring expenses.
Almost nobody really "needs" cable television. It generally costs
at about $40 a month. That is nearly $500 a year. Just think of what you could
buy with that $500!
5. Shop secondhand stores, garage, yard and estate sales.
Go to garage and yard sales in the fancy parts of town. The price of a lamp
is $5 or $10 at almost any sale. The lamp you get for $5 in the rich part of
town probably cost over the owner over $100. The one you get in the poorer
neighborhoods probably cost $35.
When you go to a garage sale follow rule 1. A $7 shop vacuum is not a bargain
if you already have one. If you buy it you just wasted $7 and the time you
spend to get it.
Many good second hand stores do not keep items more then 30 to 45 days.
Where do the left over items go? To a lower class second hand store. Be sure
to find a secondhand store or to that gets all it's items from new donations.
Also find out when rich people donate their old clothing, etc. These stores
will have the better quality items.
6. Maintain what you have.
Only buy a new item if it costs less then repairing the one you already
have. This applies to everything, clothing, furniture, computer's, appliances,
and even cars.
