Acting rich is a good thing. Acting how you think rich people act is a bad thing. One of the most common misconceptions about rich folks is that they spend their money frivolously because they are so wealthy that they don’t have to worry about it. While it is true that some wealthy people, professional athletes in particular, live an over-extravagant lifestyle, the majority of rich people got to where they are by living below their means and persistently investing money. Once you learn to act rich, you will hear the phrase, “You spend money like a millionaire”, and take it as a compliment.
One of the most eye opening money experiences I have ever had came when I asked myself, “Why doesn’t my paycheck get any bigger from week to week?” I would get paid every Friday and for some reason, I would expect the amount on the check to be different. Not because I felt entitled to more money, but because I was finally realizing that if I continued living the way that I was, I wouldn’t be able to reach my financial goals. It was at that moment that I realized I had to do something drastically different to reach my goal of financial freedom.
Almost everyone has monthly fees of some sort, and if you don’t, then we should be the ones reading your blog. From a mortgage and car insurance to gym memberships and pet health plans, monthly expenses are one of the major factors keeping us from saving money. There are only two ways to get rid of your monthly fees, and only one of those ways will make a substantial impact on your ability to save. By continually and thoroughly evaluating your monthly fees, you will be able to decrease your expenses, allowing you the freedom to utilize your money more effectively.
Coming from a background in marketing, it is obviously helpful to see what kinds of advertising tactics lead to more sales. More and more creative ideas are tried every day in an effort to sell more products.
Advertising is basically a way for a company to trick you into giving them your money. No matter what they say, the sole purpose of these gimmicks is to get into your wallet. By understanding some of the most common strategies that companies use, you will be able to make an informed decision about whether or not it’s really a good idea to buy something.
I first heard of lifestyle inflation in an article at the wonderful personal finance blog, Budgets Are Sexy, and it really got me thinking. Having gotten a raise at each new job I’ve worked at, shouldn’t my rate of saving increased exponentially. If I was as financially savvy back then as I am now, I would venture to say that the answer would be yes. Then why am I not saving as much as I could be? The answer is lifestyle inflation.
Now that I have you wondering if this blog is just one big sick joke, let me explain.
There are literally thousands of methods for saving money. No one method works for each person in every situation, but by knowing and trying different methods, you can quickly find one that works for you.
By learning what works for you, saving will become second nature and you will begin to see progress.
Every month I am going to post the things that my wife and I have done to eliminate our spending while increasing our income. Many debt reduction blogs will post the progress they’ve made towards escaping debt, but I’d like to look at the bigger picture, which is life far beyond paying off debt.
Everybody pays for certain wants in life. It can be a good thing, but you must come to realize that you can’t have everything you want and expect to be where you want to be financially as well, at least not in the beginning.
Buy everything you want. That’s it, that’s the secret. It seems obvious, but the more you look at it, the more you’ll realize that you do it every day.
See that laptop over there? Charge it, you’ll pay it off eventually. See those new designer shoes? It’s buy one get one half off right? You might as well get the extra large drink; after all, it’s only $1 more.
Have you ever felt like the money in your bank account was disappearing faster than you could even keep track of? There are plenty of things in life that seem to drain our wallets faster than than we can open them ourselves, but by knowing what some of the major sources are, you can save your self a good chunk of money every month.