From: Land Holdings
I was listening to the Oprah talk show the other day and the topic was ordinary people, extraordinary wealth. Of course it was pushing a new book that someone had just written, however they had these people on the show who were earning low to medium amounts of money and had managed to save a HUGE amount. (Admittedly they did this through managed funds and the like but the lessons are still applicable.)
The main theme was 'Pay yourself first' One man said he paid himself 20% of whatever he was earning. (I'm still trying to work out if this was before or after tax.)
Here are the other 10 points:
1. Don't spend your change. Pay for everything in notes and put the change straight into your savings jar. One man saved $53,000 this way over 19 years for his son's college fund.
2. When you save money from discounts, SAVE it - ie put the equivalent money into your savings.
3. Cancel your cable.
4. Take your lunch to work. You can save enormous amounts of money doing this - do the maths!
5. Limit magazine and newspaper purchases. Read someone else's discarded newspaper - its cheaper!
6. Increase your insurance deductibles. Which means increase the amount that you will pay your first in the event of an accident eg You pay the first $500 not $250 if something happens. You will save more than the difference.
7. Lower your thermostat (Perhaps this is an American thing but we could just sweat it out in summer instead of over using the air conditioning!)
8. Set up auto-paying for your bills. (I don't think this one does much since we can B-Pay bills anyway without wasting a cheque and postage on bills)
9. Stop using the ATM. Draw out the month's money ONCE then budget down from there. One woman on the show actually split her spending money into things like "Groceries" into different envelopes to make it easier.
10. Buy less soda. This means stop spending money on soft drinks, gum, candy, coffee... all the the little things can add up to a lot. You can save thousands a year this way.
I thought this show was really worthwhile. One guy who was a dry cleaner and on a salary of 70 - 100 thousand (US$ of course) managed to save 1 - 3 million by being frugal but of course it is in managed funds.
Imagine what they could have done if they had put some of it into investment property!
Hope this helps all you budding multi-millionaires!
Cheers!
LH.
I was listening to the Oprah talk show the other day and the topic was ordinary people, extraordinary wealth. Of course it was pushing a new book that someone had just written, however they had these people on the show who were earning low to medium amounts of money and had managed to save a HUGE amount. (Admittedly they did this through managed funds and the like but the lessons are still applicable.)
The main theme was 'Pay yourself first' One man said he paid himself 20% of whatever he was earning. (I'm still trying to work out if this was before or after tax.)
Here are the other 10 points:
1. Don't spend your change. Pay for everything in notes and put the change straight into your savings jar. One man saved $53,000 this way over 19 years for his son's college fund.
2. When you save money from discounts, SAVE it - ie put the equivalent money into your savings.
3. Cancel your cable.
4. Take your lunch to work. You can save enormous amounts of money doing this - do the maths!
5. Limit magazine and newspaper purchases. Read someone else's discarded newspaper - its cheaper!
6. Increase your insurance deductibles. Which means increase the amount that you will pay your first in the event of an accident eg You pay the first $500 not $250 if something happens. You will save more than the difference.
7. Lower your thermostat (Perhaps this is an American thing but we could just sweat it out in summer instead of over using the air conditioning!)
8. Set up auto-paying for your bills. (I don't think this one does much since we can B-Pay bills anyway without wasting a cheque and postage on bills)
9. Stop using the ATM. Draw out the month's money ONCE then budget down from there. One woman on the show actually split her spending money into things like "Groceries" into different envelopes to make it easier.
10. Buy less soda. This means stop spending money on soft drinks, gum, candy, coffee... all the the little things can add up to a lot. You can save thousands a year this way.
I thought this show was really worthwhile. One guy who was a dry cleaner and on a salary of 70 - 100 thousand (US$ of course) managed to save 1 - 3 million by being frugal but of course it is in managed funds.
Imagine what they could have done if they had put some of it into investment property!
Hope this helps all you budding multi-millionaires!
Cheers!
LH.
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