With the ideal financial attitude, it should be known that the secret to getting rich is not so much in making money(though don’t get me wrong, it IS in making money), but it is also about saving money.
The Power of Saving to become Rich
The more money you save, the more powerful you become. Over the course of my time working on projects, I’ve had to nickel and dime my way to the top of where ever it is that I’m going, but it is not just I who will take every inch possible to get to the top or accomplish a financial goal – the professionals and financial experts will also likely tell you that keeping a tight grip on your checkbook will allow you to have money land in the bag.
A Few Financial Basics
Essentially, the way that I handle finances is simple. Number one, make sure that whatever it is you are doing that your time is being well spent.
There is an opportunity anywhere that awaits for you that will improve upon your current situation, you simply need to make time to find it. So, as a common rule of thumb, always remember to make time to search for a way to improve whatever it is you are doing that is making you money.
For me, that means spending a certain amount of time each day doing research, analyzing my traffic data, noting where my sales are coming from on the retail store, and so on and so forth.
There is a lot that goes into it, and managing the time in a way where I am not just looking at the same old stuff all the time is especially helpful so far in improving the rate of success.
Because again, as I have said in the past, there is the old saying, ‘if you always do what you’ve always done then you’ll always get what you’ve always gotten.’ It is powerfully true – always make time to look into things you may not have already thought of.
For a lot of people, this means that they may be stuck in a tight pickle. You have a job, but that job occupies all of your time, and if you spend any less time on the job then you lose money that is necessary to keep doing what it is you’re doing.
To this, I say, without mercy, always remember that where ever you are right now is a place you got based on your own choices. Though it may not always seem that way to some, I hold a firm belief that it is true.
Your own intentions, your own thoughts, your own decisions and the choices you’ve made, they all cause your current reality to become manifest.
If you’re doing something like working 50 hours a week on a job that hardly pays – do whatever it takes to break out of it, and cut whatever expenses you possibly can to give yourself the tiny inkling of cash you may need for something critical in growing and moving on.
I Learned To Love Personal Finance
In a way, you could say that I view my personal finances similar to how many business owners view their bottom line.
Now, a lot of bad things have been said about the “big business,” or corporate, bottom line concept, and granted a lot of bad things have come out of it.
There are workers living on less than a dollar a day manufacturing the clothes that most Americans wear, suffering from factory fumes, and literally, dying just so we can have clothes on our back.
This entire occurrence happens because the major corporation creating the clothes has decided that it’s best to cut their expenses by outsourcing to a foreign country where the workers are willing to do anything.
Or hey, who knows? Maybe you are one of those workers, maybe you’re on the receiving end of this business oriented bottom line. But another thing is true of business, just as it is true with you.
Businesses, especially corporations, are run by the people who support them, and your own decisions are run by your own actions. Hold up your integrity by ensuring, by your own analysis and without a doubt, that the only expenses you cut are the ones that do not harm the others around you.
Having said that, keep hold of your quarters and dimes, and even the pennies. Keep all of your coins, and your small increments of money that are given back to you as change, and yes – start keeping that penny jar.
It may not be much, but a little can add to a lot over time. After just a month or two of making sure I didn’t let more than a few cents of change slip through the cracks I had easily over $80-$120 stacked up, and much of the time I do not even need to worry about it, I can simply let it grow.
The Dangers of Debt
There are millions of people out there who appear to be very wealthy, when they are in reality extremely poor and in thousands of dollars worth of debt. As a matter of fact, it never fails that I will witness or meet someone new every single month who is in this exact situation.
Sometimes they admit their debt, other times they don’t. Though I’m not sure where he got it, I like to follow my father’s advice; if you cannot pay a credit card bill in full the instant it arrives, cut up the card into pieces and do not get another one until all of the debt is paid off. And oddly enough about credit cards – when you think about them logically, they do not seem to make much sense as a financial tool.
Purchasing something on credit is almost like saying, “I don’t have the money, but I’m getting this anyway.”
For me, the only use of credit cards is a slightly increased factor of security in making online purchases, because unlike a debit card, no one has direct access to your checking account – they have only access to the credit card company’s money. Fraud is also easier to handle, and while I’ve heard many stories, I’d like to hope the “zero fraud liability” policies on these cards hold up when the time comes. Credit is not money; it is only credit, nothing more, nothing less. Credit is essentially a substitute for cash, but if the cash does not exist, the credit should not be used, period.
On the opposing side, there are a number of people who also live in tiny little one-story homes with a small lot of land surrounding them, a cute little front yard with an earth tone painted house, who are filthy rich in their material wealth.
Yet, you’d never guess. I know of a number of millionaires who live in tiny homes, but are enjoying the ‘good life,’ without strain or worry in the financial area.
When buying a home, always remember that you do not need anything larger than what is absolutely necessary, and you need not pay a high price for property when there is a much cheaper price for the same sort of property elsewhere, unless absolutely necessary.
I suppose that at the end of it all, it all sort of comes down to a simple philosophy, a philosophy that is sort of a humble one. Do not take more than you need, do not buy what you cannot afford, do not spend what you do not have, keep track of everything you do, and do everything you possibly can to improve.
If you follow this mindset, you’re likely to be on the highway to financial success, or at least, you’ll be getting on the road. Later, I’ll talk about other ways to actually make money, including the development of multiple streams of income, the right job or occupation for you, and more.