Six Tips to Live on Half Your Income

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Have you ever heard of the book “The Millionaire Next Door”? It describes several common denominators based on research on real millionaires. In other words, what are the common traits of many “common” millionaires. Turns out, the book shows us, that what makes so many millionaires rich is not so “common” at all. Many of us are too busy trying to make ends meet, or maybe we’re too busy “keeping up with the Joneses” to adopt the habits of the highly wealthy.

The other revealing thing about that book is that it reveals that so many who have money act and look like so many of us everyday Joes. How is this possible? Well, I came across a really neat article which offers Six Tips to Live on Half Your Income. Not only are these tips practical and feasible, but you’d be surprised at the truly revolutionary affect they could have on your life.

Again, the article mentions six different tips, but I’m gonna give you my favorite two tips, and you can get the rest HERE. 

1/Buying used should be your first impulse. You may be surprised to know that many things we purchase in life have incredible mark ups. When you buy things like cars and furniture, the minute you leave the store or the car lot, their value drops astronomically. Not only that, but most people won’t be able to tell the difference between a brand new sofa and a 2 year old sofa in good condition. Now granted, many things you shouldn’t expect to buy used, like paper towels, sheets, toilet paper, etc. However, a large majority of the things you use every day could and should be bought used.

2/Shift your social life away from businesses. The average markup on food and beverages at restaurants and bars is 3-4 times the retail price. Why pay that markup all the time when you can eat and drink the same quality stuff at your friend’s dinner party instead of a restaurant? Try shifting away from always going out and toward organizing events at people’s homes or nearby public areas. From backyard decks to pools to parks and beyond, there are plenty of places you can congregate without needing to pay the steep markup charged by businesses.

Get more creative and stop just defaulting to the same old patterns of going to businesses for your social life.

Millionaires didn’t get to be millionaires by doing things like everyone else, so if you aspire to have some measure of financial independence and freedom (and who doesn’t), then you might try implementing these tips, and pass them on to your friends and family too!

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3 Ways to Save Cash This Year!

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We all want to save money, but the fact remains that many Americans are one or two paychecks away from serious financial ruin. What if you lost your job? What if you or someone in your immediate family had a prolonged hospital stay? These two and many other scenarios could wreck your financial picture. We don’t want to think about these kinds of eventualities, but isn’t it better to be able to be ready for them?

Living in America, we all have the tendency to want to “keep up with the Jones'”, right? At Christmas time, we spend like no other time of the year. Many of us, myself included, tend to be pretty irresponsible in our spending habits. Fact is, we can’t take it with us when we leave this earth, so what are we leaving behind? Stuff. Stuff for our family to fight over. Stuff that will disposed of at an estate sale. Stuff that will be thrown away. Fact is, many times when we spend our money, we are just postponing the inevitable, because we are just throwing our money away.

So, what do you do about it? Save! Save, save, and save some more. A penny saved is a penny earned, right? Don’t we feel better when we SAVE money than when we spend it? The security of saving lasts a lot longer than the initial thrill of buying that thing that we just “had to have.”

Luckily, resources are boundless when it comes to HOW to save money. How do rich people get rich, and more importantly, STAY rich? By saving. By being frugal. I came across a cool little article from CNBC quoting Mark Cuban on 3 Ways to Save More Money in 2018. These are some great common sense tips, like pay OFF your credit cards and DON’T use them unless you can pay off the balance each month. Or, watch your spending. Clip coupons. Stock up big time when stores have deals on things you use everyday. That kind of thing.

To those, I’ll add 3 MORE Ways To Save This Year:

1/Save and Stash Every Day. Set aside $1 a day, working your way up throughout the week—so on Sunday, you save $1, $2 on Monday, $3 on Tuesday, and continue on until Saturday, when you put aside $7. Then, every Sunday, start over at the $1 mark. That’s a total of $28 per week, or $112 per month. If you do it for the full 52 weeks, you’ll have $1,456 saved up by the end of the year!

2/Keep a Cash Jar. This may sound silly and old fashioned, but it works.
Some people feel more productive, savings-wise, if they use cash. If that’s you, and you’d prefer to physically put a dollar (or however many you’re supposed to put aside depending on which day of the week it is) aside every day, try keeping a money jar in a place you’ll remember to drop cash into every day, like on top of your dresser—you’ll see it when you’re getting ready, so you won’t forget. At the end of the week (or month, if you prefer), just deposit the cash into your savings account.

3/Use a Money App.If you’d rather keep things digital (or, if like me, you rarely carry cash on you) a money app like Qapital—or Acorns, if you want to invest your money-can be your best friend. Qapital lets you set up automatic transfers in the same dollar amount every day, every week, or every month, and has the traditional 52 Week Challenge transfer rule.

If you don’t mind remembering to put aside money every day, you can simply transfer the dollar amount for that day into your account with your preferred app—think of it like a digital cash jar, no deposits required. Or, if you’d rather set it and forget it, you can simply set up a recurring automatic weekly transfer of $28, and let your money basically save itself. That’s well over $1,500 a year saved with minimal effort.

However, you do it, you should at a MINIMUM, have a $1,000 emergency fund (in case of emergencies) that won’t charge you interest like a credit card. After that, you should try to save enough for 6 months wages, so you are set if financial disaster strikes.

BONUS: Once you’ve cleared those savings hurdles, strive like there’s no tomorrow to accomplish Dave Ramsey’s “7 Baby Steps to Financial Peace”….two of which I just listed. Once you accomplish those, then you can have some serious financial security!

You Can Do It!!

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