1. Misunderstanding that only dorky people use coupons; rich people use coupons and coupon codes.
2. Misunderstanding that coupons or coupon codes always save you money; they don’t. When using coupons, you should ALWAYS compare unit costs or price to non-coupon choices. Sometimes coupons are just marketing. Use them wisely and push what you “saved” to actual savings….or you haven’t saved anything.
3. Misunderstanding that negotiation is dorky. Negotiation makes you cool in today’s economy. Take pride in the fact that you can negotiate practically ANYTHING. And if you can’t negotiate something, TAKE YOUR BUSINESS to another place where you can negotiate. Oh, and push the money you save NEGOTIATING to actual savings (or you are not actually saving anything).
4. Misunderstanding that credit is king; the truth is – only cash is king. Steady savings to boost emergency savings first and then investment should be a constant priority.
5. Misunderstanding that credit card companies are a friend to your family; they are not. See them as your enemy and you will live a better life. Don’t be intimidated by them. Engage them in negotiating down your interest rates, pay off your credit cards and stop using credit cards. Credit is the path to the death of personal wealth.
6. Misunderstanding by thinking your checking account is YOUR money. It isn’t. Checking accounts are money LAUNDERING accounts for other people’s money. Use any excuse you can to remove money from checking and push it to savings REGULARLY.
7. Misunderstanding the relationship that time has with money. The earlier you start regularly and steadily saving 15 – 20% of your regular paycheck, the sooner you will become wealthy. No high math needed. It is regular savings that paves the way. Don’t think you can save 20% of your after tax income? Try our “1% Savings Plan” (see “How To Survive Any Financial Crisis” at http://www.MiddleClassMoney.com or check out our past blog entries on this subject).
8. Misunderstanding that emergency savings is 3 to 6 months of your expenses in money market savings or certificates of deposit. That is not the standard for 2010; build your emergency savings through steady savings to 15 to 18 months of expenses in money market and certificates of deposit. If you develop a serious commitment to saving regularly, you can do it. Savings grows faster than you think when you save REGULARLY.
9. Misunderstanding that your role as the parent in the child-parent relationship is to shield your children from the stresses of being an adult. Include them in brainstorming and making the actual “battle plan” to save regularly and invest regularly. It will give them a potential twenty year head start on the other kids. That’s worth doing.
10. Misunderstanding that you cannot change where you are today. Ever heard of slow and steady wins the race? It’s still true. There is a reason that Warren Buffett is a rich old happy guy who seems kinda dorky. He doesn’t believe you have to cheat your way to the top or lie to build wealth. What you have to have is a PLAN.
Don’t accept no as an answer. Don’t let your personal wealth be unattainable. You can do it. What do you need? A plan. Don’t allow yourself or your family to become overwhelmed and simply give up. Building wealth is not about being rich for you and me. It is about giving your family options for their future.
You can do it.
Dedicate some time to building a plan. Find unique ways to save money regularly.
Don’t listen to people who say you cannot build wealth. These people are the folks that want you to stay with them. If you show you can build wealth, there must be something to slow and steady strategy wins the race. They won’t like that.
Building savings takes time. Building wealth takes time, too. However, your savings will build faster than you think. Your wealth will grow faster than you think, too.
You can do it.
HELPING YOUR KIDS GET AHEAD
If you think I was born saving money, you are wrong. My own family didn’t believe in saving. They don’t believe in having a 401k. They have had “emergencies” all their lives. These emergencies always get in the way of saving money regularly. I was not brought up to save and invest regularly and I have made every mistake you can think about when it comes to money. My parents thought they were shielding me from the realities of bills and worry. In fact, they were isolating me. I learned nothing until I had made many of the mistakes they made. I have had to learn the absolute hard way how to get savings on track and make it a part of your life without killing your lifestyle. I have had to learn the hard way how companies mislead with marketing. It is my mission to share what I have learned about regularly saving with my own children and also share it with you. That’s why we have a lot of “free” (blogs like http://www.boostmywealth.wordpress.com and http://www.stickyasset.com/blog and groups on Facebook like “Coupons & Coupon Codes”)!
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!
Connect with us on Facebook with these free groups:
“Coupons & Coupon Codes”
“Live The Lifestyle Your Family Deserves”
“The Money Store”
All on Facebook – join. It’s free.