From Rags to Riches
66The Thing About Money
Money can't buy you happiness. How many times have we heard that one? But unless you're Bill Gates or Donald Trump, a little extra cash flow sure could make things easier.
The problem is, where do you find that extra cash flow? How do you write your own success story and go from rags to riches?
The answer might be easier than you think.
Great Saving Tips
- Buy second-hand. Yes, we might all our things to be nice and shiny new, but there are plenty of things you can get "gently used" and save a bundle in the process. Kids' clothing for example, can cost an arm and a leg if you buy it from the mall but pick it up at a thrift store and you'll pay loads less. Plus, it doesn't hurt as bad when your child outgrows the item after only two wearings. Other items to buy used? Cars (you'll save a ton on depreciation), books, DVD's and video games. You should also check out local garage sales on a regular basis. There's no end to the treasures you can find!
- Subscribe - instead of paying cover price for your favorite magazines, subscribe. You'll pay on average about 1/3 to 1/2 of the retail price.
- Clean out your car. If you're cringing every time you go to the pump, you're not alone. But the better gas mileage you get, the less you'll have to fill up so clean out your car and stop toting around all that extra weight. The more weight your car has to move, the more gas its going to use.
- Recycle. I don't just mean cans and paper - I'm talking about things in your house. Turn a worn out towel into a dish rag or cut off a pair of old jeans to make a new pair of shorts. Get the most from everything you have by finding new ways to use it.
- Use coupons. Compare the manufacturer's coupons to see if you'll get a better deal by buying their brand. If you will, don't be afraid to pull those coupons out in the checkout line.
- Buy in bulk. Wholesale clubs offer great discounts when you buy bulk items so stock up on canned goods, paper towels, frozen foods and the like. Just be sure what you buy either has a long shelf life or that you'll use it up before it spoils.
- Cook. Don't be so quick to grab fast food or go out to a restaurant. Instead, expand your skills and learn to cook.
- Garden. You can save a nice little chunk of change just by growing your own tomatoes, peppers, onions and the like. Plus, just think of how great those home-grown fruits and veggies will taste.
- Pay your bills on time. One of the biggest money-wasters is those late fees you get when you don't pay your bills on time. Get yourself a budget and know exactly when your bills are due so that you never miss the date.
Save
The only way you're ever really going to get ahead is to learn to save your money. I don't just mean the $50 you put in that savings account every month (although, yea! for you if you already do that :). What I'm talking about is learning to spend wisely. Cut costs where you can. Get rid of unnecessary expenditures and curb that urge to buy something every time you come into a little cash.
Your goal is to maximize every single dollar you make. That might mean setting up a budget, opening a money market account, cutting your expenses or all of the above.
Whatever the solution, find the holes in your money bag and plug them as best you can
Invest
Now that you're saving money, its time to put that money to work. Don't just leave it in a traditional savings account (or worse, a no-interest checking account *gasp*).
Instead, funnel your extra cash into some investing vehicles such as money market accounts (try ING and Emigrant Savings for starters) and yes, even your own IRA. The more interest your money is earning, the closer you get to the "riches" part of your equation.
So, where do you start?
Investing can be a scary thing, especially if you've never done it before. But not to fear... there are plenty of tools and resources to help you out.
Motely Fool - This brilliant website offers articles and posts on anything and everything about personal finance. Find out which stocks are hot (and which ones aren't), which brokers to use, which bonds to buy... you get the idea.
The Working Girl's Guide to Financial Freedom - Written by yours truly, this little ebook has all the basics to get you started. Find out the difference between a junk bond and a treasury bond. Discover why annuities might be worth looking into. And see where your money could take you if you just give it the chance.
About.com - The Investing for Begginers Guide has some great tips to get you investing in no time flat. Learn about REIT's, mutual funds, and all about dividends.
Start out slow... learn what you need to know, and then take your first step. You CAN become your own investing guru... it just takes a little effort from you.
Spend
Yes, that's right... spend.
My husband has this unique knack for turning $100 into $500 and $500 into $1,000. How does he do it? He spends it.
The thing is though, he spends it on things of value. Everything he buys has a decent resale value so if we get into a bind or he wants to buy something else, he can sell some of his "toys" without taking a financial hit.
Remember, investing isn't always about stocks and bonds. There are a number of things you can invest your money in that will bring you pleasure as well as profit. Look around... how can you make your money grow?
Great Books to Go From Rags to Riches
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Sell
Don't throw that old grill away. Sell it! Besides garage sales, you also have two great online venues that can help you reach thousands and thousands of people at once eBay and Craigslist.org.
What can you sell?
- Knick knacks
- Clothing
- Cars
- Bicycles
- Roller skates
- Sports equipment
- Toys
- Playground items
- Books
- DVD's
- CD's
- Candles
- Quilts
- Lawn equipment
- Pictures
- Frames
- Dishes
- Appliances
- Motorcycles
- Furniture
- Linens
- Garden decor
- Fishing tack
- Pool tables
Grow
The best way to grow your money is to make more of it. That might mean finding a better job, getting a promotion or starting your own business.
Whatever your desires, start taking steps now to turn those dreams into a reality. Do you need to go back to college? Do you need to learn a new skill? Are you just a website away from running your own show?
Put it down on paper. What do you need to do to get from here to there? Now, which of those steps can you do right now?
Put your plans in motion and watch the extra green roll in.
CommentsLoading...
Thanks! Glad you liked it... the problem is, these to-do's are easy to say... its quite another thing to stick to them all the time :)
A Good Article.
Wow! Great article.
Great hub. I think alot of people need to start with the basics first. If you understand it inside and out the better off you are. I think everyone is on information overload when it comes to finances.
I am now on a mission to save as many people as I can get out of debt. With valuabe information! You might want to join me! you sound like you know your stuff!
Thanks for your hub.
mskzalameda 4 years ago
I agree with the things to do you've posted. we need to save, sell spend.. blah blah.. things and ways to earn money. this is a nice article. thanks for sharing it. :)