Here are 5 steps that will allow
you to earn more, owe less, save more, and keep enjoying life every year.
1) Live within your means.
If you make $100.00 then $100.00 is your means, not $110.00. Accept the
fact that $100.00 is what you have to spend, even though lenders may tell
you that you can live like you make $110.00 with their loans and credit
2) Grow your income.
When your means are $100.00, but you want to live a $150.00 lifestyle, you
need to expand your means, not your credit limit. You can grow your income
by marketing something of value and leveraging it into income. Think about
how you can earn more by marketing yourself (your skill or expertise),
your product, your service, or your solution to a problem.
3) Pay less than everyone else.
Regardless of what it is you want to buy, it or its’ equivalent, can often
be found somewhere else for less than most other people are paying. Paying
less than everyone else is a big part of advancing financially. There are
many resources to help you find a better deal while meeting your needs.
Click here to learn how to pay less.
4) Be financially proactive.
Letting things go is a great way to lose ground financially. Appliances,
cars, shoes, hard drives and even you wear out. Yes, preventative
maintenance takes time and effort. However, the financial costs of
unexpected breakdowns, replacements, and missed opportunities far outweigh
the maintenance efforts you make.
5) Solve costly problems (without money).
The government has often been accused of throwing more money at problems
in order to solve them. Unfortunately, many people do the same thing. All
of us will be challenged with problems, but how much we each spend to
solve them makes a big difference in our financial well being. Learning
“do it yourself” skills can save you from many expenses. Get creative in
finding non-monetary solutions to problems that arise.
Turned Cookie Dough Into Dollar Dough!
Sally G. in Cleveland, Ohio took a
non-credit cookie decorating class at the community college in
May for $35.00. She loved the class and was told she seemed to
have a real knack for unique cookie themes! She practiced her
new craft all summer long, much to her family’s delight.
In early December she made 10 dozen of her
creations to sell at her church’s seasonal fundraiser. While
complimented her creations, her cookies were sold out within
the first 2 hours! One of the purchasers was a local
grocer. He asked Sally if she would be willing to sell
Christmas cookies in his store during the week of Christmas on
consignment. She agreed. By the end of the week she had sold
over 1,200 cookies.
Her cookies sold for $6.00 per dozen. Each
dozen cost her $2.00 to make, $2.00 went to the grocer, and
dozen was Sally’s profit! She made $200.00 that week. Sally
had increased her “means”, was paying less then everyone else
for cookies (her actual cost per dozen was $2.00, customers
paid $6.00), and had solved a costly problem without using
more of her own money (she gave her highly coveted Christmas
cookie trays as gifts)!