Posts Tagged ‘reason’

In my local town, most of the stores have set sales days. The closest grocery store has sales every Tuesday and Sunday. If you shop Sunday, you also get a coupon for 5% off valid on Tuesday. Now a lot of people tend not too worry about such small savings. But over time, these small consistent savings add up to large amounts of money. Not only the money we directly save on groceries, but also the money we save in gas and time.

As you can see, only being able to shop two days a week, or sometimes only once does take a little more planning. Not only planning out our meals, but also planning out where we will store it (our refrigerator is tiny). It will however, save you time overall since you will spend less time in the store and less time going back and forth. Creating a list of the items you need for a set period of time will also help you from buying things you don’t really need. Helping both your wallet and your diet.

Another great way to save money is to buy at the end of the season. If it is something you know you will be using again next season, then purchasing it at the end of the season is one of the best savings you can make. Most holiday items will go on sale from 50-70% off once the holiday is over. If we could make that kind of money in the stock market, we would all be rich by now. Sure you will need to store it for a while, but you also get to purchase it when everyone is already done with their buying.

Additional tips

• Keep records of the prices you are paying. Just because it says “SALE” doesn’t necessarily mean it’s a good buy
• When you find something you use on a regular basis really cheap, buy as much as you can store
• When possible and reasonable, buy in bulk to save extra.

Helpful links

• Recession Eating
• Saving Money Around The Holidays
• Save Money on Groceries
• Time Management

Most people view obtaining wealth and riches as the final goal in life. They feel that if they can get more money then they will be happier and have a more fulfilling life. That with a little extra money the worries will start to disappear and with a lot of money the worries will be gone. i don’t think this is the case. it all depends on how you view wealth and riches.

To me, wealth means freedom. As Robert Kiyosaki discussed in Rich Dad Poor Dad, wealth is measured in time. It is how long you can maintain the lifestyle you want without having to work. I agree with this. Working 40 hours a week, even if you like your job, takes away your freedom.

However, you don’t have to have a lot of money to be wealthy. You can also obtain wealth by reducing your costs and spending. The lower your average cost of living, and the greater your savings, the longer you can live wealthy outside of work. For Example, someone who makes $30,000 a year, and only has an average monthly cost of living (including expenses and spending income) of $1,500 would accumulate an average of 8 months of wealth (8 months maintaining current life style without working) each year. Someone earning $70,000 a year with an average monthly costs of $4000 would only accumulate an average wealth of 5.5 months after one year of working.

$1,500 X 12 months=$18,000 $30,000-$18,000=$12,000 $12,000/$1,500=8 Months

$4,000 X 12 months=$48,000 $70,000-$48,000=$22,000 $22,000/$4,000=5.5 Months

One of the biggest reasons why people never seem to be able to get a head is because there spending increases in proportion (or more) with their increase in earnings. When they get a raise, they buy a more expensive car, a bigger house, a bigger tv, get satellite, and eat out more often at expensive restaurants. No I am not saying that you should save every penny and give up having any fun. What I am recommending is that you decrease your spending overall, and never let your living costs increase by a larger or equal percentage than your increases in salary.

In part two I will cover 5 easy ways to increase your wealth and savings.