Strategies To Save Money That Rich People Use All The Time
Rich people use special strategies to save money and invest it. By learning what they do, and copying them, you too can be on a wealth-building path.
1. Pay yourself first. This is THE strategy to make money. Rich people have been doing this since the beginning of time. It makes absolute sense, and if you establish this habit, you’ll be amazed by the results.
What most people do to save money–which is totally backwards–generally works like this…
- They get paid from their job or business
- They pay their bills and live (i.e. spend money)
- They save whatever’s left-over
What rich people do to save money–which is absolutely brilliant–generally works like this…
- They get paid from their job or business
- They sock-away a a specific, predetermined amount into their savings (usually about 10%)
- They pay their bills and live (i.e. spend money)
Do you see the difference in the strategies to save money? Rich people pay themselves first. No matter what, they’re making a deposit in their account this month.
Now you may say, “Well I’m living paycheck-to-paycheck. If I did that, I wouldn’t have enough money to pay my bills!”
To which I would respond, “Believe me, if you start saving like that, your bills will adapt themselves to your new lifestyle.”
This is absolutely true. Think about it. You could lower your bills if you had to. That’s where some other strategies to save money come into play.
2. Lower your bills. I guarantee that you’re paying money right now to “the man” that you could be saving for yourself.
- Do you have cable?
Some people have these fancy-shmancy cable packages that cost upwards of 100 bucks a month. Do you really like TV that much? You know that reading a book, or playing racquetball or something is a lot more fun, healthy, and valuable?
If you really love TV, can’t you get away with just basic cable? Or better yet, watch your favorite shows for free online, in HD, with no commercial interruptions. C’mon, now.
- Do you drive to work?
Gas is crazy-expensive. And unless they come out with some hydrogen-powered cars, I don’t see that changing anytime soon. Most people don’t realize how expensive it is to drive. Especially if you drive a long commute.
Spend a few hours researching the public transportation in your area and find a bus or a metro that goes where you’re going. Or find some people you could car-pool with.
My brother did this and went from spending $100/week to $25/week. He’s going to save over $3,500 this year th at he can put into his retirement account. (Plus, who wants to battle traffic?)
Cable and gas are just two examples. But for other strategies to save money, take a look at your other bills. Your cell phone, car insurance, rent/mortgage, credit card payments, all of them could probably be lowered if you put some work into it. Have you thought of refinancing a loan?
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