Can using percentages help you save money? Can it help you build wealth? Yes.
It’s time to start thinking like a strong business person when it comes to your personal finances. You can utilize tactics used by business people to limit and reduce expenses while building value if you follow some simple guidelines.
1. Credit card debt. You can’t own credit cards. CREDIT CARDS OWN YOU. Make sure you know the interest being charged for each debt (and especially credit card counts) you owe. If you can, shift debt to the lowest interest rate credit card or out of credit cards altogether. Work with your remaining credit card companies to try to get your interest rate lowered or reduced to zero for a period of time. You’ve hear the phrase “Never give up.” Call back again and again until you chip away at them. Plead for their help. Your goal is to eventually eliminate credit debt. Split those remaining debts by the percentage interest you are being charged and pay minimum amounts on all but the highest interest rate. Make certain you are not charged an annual fee. If you are being charged an annual fee, push to have them drop the annual fee. Be persistent. Ask for supervisors. Wear them down. If you have credit card debt, this could be the #1 issue standing between you and the production or true wealth.
2. All existing bills. Get each bill that comes to your house. Take a look at each one. Call each company. Tell them you have been hit by the recession and you need to reduce your bills by 12 – 15%. Ask them how they can reduce their bill by 15%. Expect some resistance. Tell them you are willing to compromise. However, you must be “open” to suggestion. Some will suggest bundling services or reducing services. Your goal is to crush your spending on hard bills down 12 – 15%. Take that 12 – 15% and establish regular savings. Remember: If you don’t put what you save in savings vehicles (primarily an FDIC insured bank of some kind or credit union), you have not saved.
3. Negotiation. If you don’t use negotiation in your regular daily life, you are allowing your money to foolishly leave you. Some people are embarrassed to haggle over money – don’t be. Smart people always ask for a discount. Wise savers always push for extra savings, and you can get it. Once you get a percentage off, stick that money in savings. Don’t just smile and move on.
4. Your life should not be only about saving money, but a percentage of your life should be about continuous, automatic and regular savings and additional savings boosters to help you build wealth.
Should you use coupons? You should use them if they are truly a deal. Check the unit price. If you use a coupon to purchase something not on your regular shopping list, you have participated only in MARKETING.
If you save money using a coupon, pretend you paid full price and stick the savings in – you guessed it – SAVINGS! That is a path to wealth.
You can help your family get ahead in this economy (or any economy). It’s all about the percentages. Focus on pushing small percentages to savings all the time. It can be like a game – and you’ll be the winner!
SAVE MORE THAN MONEY
In this country we don’t do enough to teach our children about money, managing money, saving regularly (and automatically), compound interest and steady investing for a long-term future. As a parent, we are always concerned that they get a good education and go to a good college so they can make a lot of money or have a valued career path. The truth is that we could do our children the biggest favor and one of the best things by sharing with them sound saving and investing principles.
You can join our free Facebook group (or have your children do it, too) by searching in the Facebook bar on your “wall” for “Live The Lifestyle Your Family Deserves.” Click on “become a fan.” It’s free and it ties our free blogs into that group.
If you want to give your children the same information we are giving ours, you can purchase the only thing we sell on any of our blogs or groups. It’s called “How To Survive Any Financial Crisis” and you can get it for only $4.95 at http://www.middleclassmoney.com.
Thank you for reading our blog and good luck!