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Step 1
Saving Adds Up!FIND EVERY POSSIBLE WAY TO SAVE MONEY.
You make more money when you save, than when you earn. Here is what I mean. When you make more money you pay more taxes. So finding a way to save ten dollars is better than finding a way to make ten dollars. If you save ten dollars it earns interest. My high interest savings account gives me 4% in a recession. So if I save ten dollars I really save 10.40 over the year. If I earn ten dollars I pay taxes. For the normal tax payer that means you earned $8. I will include some related articles down and to the right, and more articles in the resources section on how to save money. Here are some ideas to get you started:
- Go to an envelope budget for groceries and eating out. Give yourself a certain amount of cash each week and when it is gone, don't spend any more.
- Get a cash back credit card like American Express Blue Cash. I get 1.5% back on everything, and 5% back on groceries and gas. That's a lot of savings over a year. I received $800 this year since I buy things I can sell...that's like making $1000. How would you like a $1000 dollar raise?
- Turn off lights in the house, turn the thermostat down to 68 in the winter and up to 75 in the summer.
- Eat more brown rice. It is healthy and cheaper than bread or meat.
- Ride your bike to work. Save on gas and get in shape.
Most ideas on saving money require little if any extra time...they just give you extra money. -
Step 2
TAKE THE EXTRA HOUR AT WORK TO INCREASE YOUR INCOME.
If you get paid by the hour this is a no brainer. Come in early and leave late if you can. This increases your value to the company. They know you are willing to work and committed to your job. It also increases your pay. If you do this every day for a month, your income will increase significantly.
If you are a commissions based salesperson go in early to make email contacts and fill out paper work. Benjamin Franklin said 'there is gold in the mouth of every morning.' Stay later to make phone calls or have a dinner appointment. Many sales are made after business hours. Make one extra sale a day and you know the difference that can make. -
Step 3
Make Money Work for You!INVEST YOUR MONEY AND LET IT WORK FOR YOU.
Increase your income by making your savings work for you. This is why you have to start with saving money! If you have an emergency fund, put it in a relatively liquid but interest bearing savings account. I use the Wesleyan Investment Foundation since they provide 3-4% interest (5% in a strong economy) and I can have my money in two days any time I need it. I make $700 year that way. That's a $900 raise. This only takes an hour out of one week and then it earns for you.
If you have enough cash and the know how, get started in the rental business. If you area has enough rental demand you can make more in rentals than in stocks.
Even if you break even on rentals you will put money in an equity bank and save money on taxes. I know a gentleman very well who pays of $4000 of equity off every year on his rentals, breaks even on his houses, and receives a $5000 tax rebate this year because his income looks low to the IRS. On paper it says he lost $5000 in real estate. He didn't lose, he made money. He put a lot of time into purchasing the properties. But now he only puts in an hour a week.
Consider reading Phil Towns book on Rule #1 investing and wisely and carefully invest in stocks. Just be determined to pull out the minute it looks like you might lose any money. A recession is the perfect time to buy stocks if you don't need the money for a long time. Once you know the system this doesn't take much more than an hour a week. -
Step 4
SELL STUFF YOU DON'T USE OR NEED.
Get familiar with craigslist and online auction sites (look for alternatives to ebay--they charge too much). Then hold an online garage sale. You can often make more money selling your stuff online than selling it in your front yard. It just takes a few minutes to take a picture, create the listing, and then to ship the item when it sells. Look through old books, clothes, and toys. Basically money is sitting all over your house in the form of clutter and unused stuff. It is sitting in boxes in the basement or attic. Go pull out your money! -
Step 5
MAKE MONEY ONLINE IN JUST AN HOUR A DAY.
You can make money writing articles for ehow like I am doing right now. This article will probably make $1 a month. That doesn't sound like much. But I wrote four articles this morning while I was up early with a baby. $4 doesn't sound like much I know. But I write two to four articles a day in one to two hours a day. That's sixty articles a month. if every article makes a dollar a month do you get the picture?
You can also earn money blogging with google adsense or Amazon affiliate networks.
***See more tips below.
Comments
sandybassett said
on 12/9/2009 Thanks for the great tips, step 5 really caught my eye.
5 stars & rec.
zapped said
on 12/5/2009 Informative article on saving, how I wish I had did just one of those things many years ago.
cobrakai said
on 11/12/2009 wow, this really puts $$ and savings in perspective. Great great article. 5* and I recommend you.
suzmwick said
on 11/3/2009 Excellent tips - may seem like common sense, but we're all guilty of NOT doing anything. Eating out is killer. Really like the concept of 10 dollars saved is better than 10 earned. Good point!
jaxicat said
on 11/1/2009 Really, really good article! Thanks! :) 5*