7 Ways to NOT Become Rich

7 Ways to Not Become Rich

Now we all know money can’t buy everything. In fact, sometimes money can be more of a hindrance than a help.  So, for those who say they never want to be rich because of the headaches and hassles that come with the territory, here is how you make sure to succeed.

Don’t sign up for 401k – Employers who offer 401k will match your contributions up to a certain percentage. This is a sure way to at least double, possibly even triple or more because of stock and bond increases.

Don’t create financial goals – Financial goals can cause stress and confusion.  Might as well live for the day and not worry about tomorrow.

Don’t track your spending – Tracking your spending shows you where each dollar goes.  It can bring on buyer’s remorse and can cause you to decrease your spending habits.

Don’t clip coupons – Coupon clipping can save a ton of money but can also take some time. Is all that time really worth it?

Don’t live like you are poor – Spend all of the money you earned and enjoy your spoils. You earned it. Now go relax with a drink.

Max out your credit cards – What a concept, using tomorrow’s money to pay for today’s fun.  And since tomorrow never comes, the credit card bill won’t either right?

Eat fast food or at restaurants – Let’s face it, food that somebody else prepares tastes so much better than the standard home cooked mean.

Now you may be wondering if I’m crazy for suggesting all of this. Well yes, I am crazy but if you remember the basic fundamentals of how we were all raised, you will understand. It has been engrained in many people since childhood to go on their own path and not follow the norm. Or, simply, do the exact opposite of what people tell you to do. Especially if those people are your parents. So all we need to do is mix the signals of what is the norm and what is being unique and we create success.

 

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Say Goodbye to Living Paycheck to Paycheck: Beginning Growth

Say Goodbye to Living Paycheck to Paycheck Beginning Growth

This post is part of a series.  To start the series from the beginning, click here.  To browse through the series, click here.

The pre-teen years are great for reinforcing budgeting skills learned throughout childhood.  This is when the need for money becomes a bit more prevalent. Kids may want to go to the movies with their friends, run to the local candy shop, or buy that new trendy item.

One method to use to reinforce budgeting is to remind your pre-teen about the 50/50 rule. Half of money they make from allowance, dog-walking, babysitting, or any other side jobs needs to be put into savings and the other half can be spent.  This not only helps improve their financial responsibility, it helps set them up for success when they need a down payment on a car, need the first and last month for rent deposits, or even purchasing their first home.

I highly encourage all pre-teens to get a savings account if they haven’t already.  That way they have a safe place to put their saved money where it also won’t be a temptation.  While having a savings account is a big step in the right direction, knowing how to care for a savings account is also just as important.  The pre-teen should be taught how to reconcile their account monthly so they know how much they are saving and so they can double check that the bank didn’t hit them with any fees.  It should not cost any money to have a savings account.  If it does, look for an account elsewhere.

The other 50% of the money they earn can be spent however they want.  The most valuable lesson for the spending percentage is saving up for something that takes a bit of time to get to.  This is a very rewarding task and teaches a work ethic as well.

For the parents, it is also important to decide what types of things you will require your child to use their own money for.  While you may pay for your child to go to the movies, maybe any movie theater snacks are their own responsibility.  It’s important to start slow as they are still dependents.

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Low Spend September – 5 Tips

Low Spend September

Every year around early fall and also in mid winter, I get the bug to stop spending money.  This is probably because I’m so into my home projects that I go crazy in the warm and sunny months completing as many projects as I can.

This summer was no different.  I completely re-decorated my downstairs and also redid all non-carpeted flooring in my house and one bathroom.  While I made sure to never go negative on my spending, I’m ready to go positive for a few months and get that savings back up.

Here’s what I’ve done in the past and plan on doing again.  Let me know if you have tips as well!

  • No large purchases – At this point most of my spending is because of large items, tables, couches, etc.  Since there is really no room in my house for any new items, I’m saying no large purchases (which includes outdoor furniture which is my next project area).
  • Limit random spending to $25/weekend – I’ve learned that since having my house I’m always ‘needing’ something new.  I also know it’s impossible to knock out all of my spending, so I’m giving myself a small limit to get random items that come up.  –I finally found placemats and towels that match my kitchen after looking for five months!  That’s where my money went this weekend.
  • Take advantage of freebies and rewards – With all of my redecorating earlier this year, I racked up some rewards points at Wayfair and was actually notified that my points would be expiring soon.  So, I looked around the site and found bought a kitchen knife (we’ve been looking for good knifes).  The rewards I had covered the expense and shipping!  I also signed up for some of those mail freebies which is something I did last year and got quite a bit of stuff.  The main things that stand out are 5 packages of Nesquick mix and 4 tea k-cups.
  • Clean out the cupboard and freezer (and use the items) – Like most people, I’ve gotten in the rut of buying groceries without using all of the groceries I have in my house.  Many times, the items I’m restocking are processed easy to prepare foods which is not good on so many levels.  So part of my savings this month is to use up as much of the food I have on hand without going to the store except for a few perishable items.  I’ve done this in the past and it’s very helpful to save from spending and helps me to eat healthier, and helps with refreshing the cabinets and avoiding expiration dates.
  • Ditching recurring payments – Some other things I’ve done or plan on doing once contracts are up is unsubscribing from television, Netflix, and security monthly recurring fees.  With videos, there are so many ways to watch that there is no need to pay a recurring fee for methods I don’t ever use.  And with the security, I feel that managing on my own will be just as safe as if it was managed by a company because I really just need to know if something has gotten into my house before me so I don’t walk in.  If I’m already home then either way I’d be out of luck.

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