Spend Money to Make Money II

Hey guys I hope by now you are more informed of what tools you need to defeat personal finance issues you may be having. Simple fixes now can pay off tremendously later, for example starting early with investing, paying yourself first, and having a sizeable emergency fund. All of these things should be a natural component of our personal finance world, but an important factor some of us forget to do on the journey is to spend the money in the right places. For example imagine you could spend money to make money, would you do it? Of course you would.

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Top Ten Reasons not to Save Money

Hey today we have a light-hearted post for you guys. I am going to share the Top ten reasons why you should not save money ever. If you agree then you are facing one of these things below or thinking about one of these ten reasons, but if you disagree then you are a fan of the savings mantra. I think from time to time it is fun to joke around a bit.

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Frugal Tips

OK I have read everywhere that people all of a sudden think it’s cool to be frugal. What they do not know is that many people have been living the frugal life for a long time. I understand why those individuals are finally taking a different perspective with money management, because of the current state of the economy. Basically we are on the cliff and about to enter another recession in addition to experiencing high unemployment. This has inevitably sparked a changed in peoples way of thinking. But for me I have always been frugal and I am here to share with you a few of my cool frugal tips to saving those dimes, nickels, and pennies.

Frugal Tips:

Eating out as less as possible.
Combine errands in two or more stops when you have to drive.
Search for online discount codes for those necessary purchases, like shoes or clothes.
Avoid upgrading your cell phone every two years, just switch companies to save dollars.
Eat less processed food at home, learn how to make things from scratch.
Always get more than 1 price Quote for service repairs.
If you buy a grocery product often, buy it in bulk size and pay wholesale price.*
Save up for large purchases, but if you get 0% financing, take it and save the money.
Getting together with family/ friends have a potluck dinner gathering.

Definition of Frugal: prudently saving or sparing; not wasteful.

These are some of the many ways you can save a few dollars. If you just stop and ask yourself a simple question before any financially related task; what alternative way can I do this while saving some dollars? This is what many people who are well off do, but the secret is they will never show it publicly. Once you master this sort of thinking you can do it subconsciously and be as efficient as possible. I believe using frugal tips is not being cheap, but rather being smart money wise. I think the definition should be, how a person finds alternative ways to master watching your money. This is what I want you to do so that you can spend the majority of your dollars on investing opportunities and living life.

RichUncle EL

*Be mindful of expiration dates when buying in bulk.

Saving Money Tactics

As we all know saving money tends to be an extremely difficult task with all the bills and expenses we accumulate throughout the years. How can you fight back and defeat the non-savings bug? By utilizing smart money tactics and creating a barrier between you and your money.

Anyone can do it as the system is not prejudice to race, but favors towards stubborn minded people who stick to a system of always paying themselves first. Most people are set in their ways and do not want to embark on a mission to better themselves by trying new financial tactics. What new savings tricks have you done recently? If you have not gone out of you’re comfort zone, try a few of the tips below:

Saving Tactics:
*Open an online only savings account and direct deposit a set amount per paycheck (Barrier 1)
*Apply for your employers retirement plan with at least the employer match or up to 15%
*Open another checking, savings account and do not get checks/debit card(Direct Deposit Also, Barrier 2)
*Open an online brokerage account for scenarios if you see a cheap stock or mutual fund( For Investing )

This is system will utilize the two other accounts aside from your main checking account to use for 1. Goal Savings, 2. Emergency Savings. They will both have a direct deposit from your paycheck unless you can be diligent and transfer the money yourself every pay period. Most people will eventually forget or decide after three deposits that they need the money for something else. If you set it up for direct deposit through your employer then you will be less likely to remove the system. It will continue indefinitely and grow over time to help you achieve that emergency fund you have been dying to fund for a long while. A automatic system like this is just the beginning steps as you can add even more layers to the mix with DRIP’S and DSPP’s. (Dividend reinvestment plans and Dividend stock purchase plans)

Saving Money Tactics:

-Match your Friday spending and save the same amount

-When you go out to dinner, save the same amount of the bill in online savings

-Get the biggest piggy bank and attempt to fill it with all the loose change you can find

-Pay yourself first every pay period, even before bills.

-Sign up for all employer sponsored savings / retirement / profit sharing plans. (Start small, then increase)

If you do all these steps you will have a great online saving money system that can not be stopped easily. Systematic barriers will help you grow your accounts without you ever interrupting it. Simple steps can lead you to a better more relaxed financial life. Also very important to consider always set up a beneficiary for all your accounts just in case an emergency occurs.

Contact me if you have any questions regarding setting up a system like this. But really all it takes is a desire to begin by guiding yourself to complete all the Saving Money Tactics.

Rich Uncle EL

Pic is courtesy of moneywatch101.com of a typical Bank in the old days.