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7 Rules of Wealth
By The Net Analyst | July 5, 2008
Where to Start?
Everyone who wants to find financial security in life needs to start somewhere, but beginning on this road seems to be impossible for a large portion of American Society. Our consumer driven society is influenced heavily by hip hop superstars, NBA all-stars, and reality television.
The Basic Philosophy for Success
This drive for fancy cars, trips to the day spa, pricey tattoos, and a glamorous lifestyle lead to mass financing of purchases or living paycheck-to-paycheck resulting in the largest consumer debt load in the history of mankind. Both of these ultimate endpoints rob an individual of meaning and happiness due to the immense burden that debt and uncertainty can place on a person.
With this in mind, we offer a few tips to avoid this fate, become enlightened, and accumulate some additional wealth.
Rule #1 - Put life in perspective
The quickest way that you can do this is by visiting the website Miniature Earth. This will cost you nothing and show you that even if you have poor spending habits or an inability to save, you are still one of the wealthiest 25% of people in the world! It is simply amazing how lucky we are to live in a safe country and have food on a daily basis.
Rule #2 - Stop complaining
If you were able to watch the video above with home internet access then you are fortunate to be in an elite 3% of the world’s entire poplulation. If your boss is jerk, be happy that our country operates near full employment. If you don’t even have a job you are still very fortunate. Complaining about what you don’t have will get you nowhere and will only drag others down with you!
Consider that the government provides millions with a place to live, food to eat, and practically free access to healthcare for the under-privilaged and even illegal immigrants (the emergency dept. can’t turn down anyone). Although not easy, you do have the opportunity to get out of a bad situation and climb your way up the economic ladder in this country.
Rule #3 - It Doesn’t Take a Genius
It doesn’t take a genius to make money. You simply need to provide people with something that they need. If they don’t need it, then create a need for it. Have you heard ever heard of Famous Amos? He started his business by selling cookies out of a shopping cart! A good attitude, determination, and some common sense will go a long way.
Rule #4 - Buy on Sale
Why spend $80 on a pair of sneakers, when they may go on sale for $60. Better yet, why buy $80 sneakers when you can get a pair of well made sneakers at TJ Maxx for $30 to $40. So what if you don’t have a $120 pair of Air Jordans or a $200 cell phone. The same goes for everything from laundry detergent to household furniture. Just consider how much you can save simply buy only purchasing groceries when they are on sale (got to love the BOGO free sales).
This alone adds up to thousands of dollars saved in just a few short years. The benefit of shopping on sale far outweighs the cost of immediate gratification. Take some time to differentiate between the things you want in life (designer handbags, video game systems, and sports cars) and the things you need in life (food, clothing, and shelter). Simply realizing this difference can drastically cut down on your cost of living and provide you with the means to apply Rule #4.
Rule #5 - Get Paid to Save
Everyone knows that they get paid for work, but did you ever realize that you get paid to save. One of the principle rules of any profitable business is that “it takes money to make money.” In essence, saving your money will provide you with and additional way to get paid.
So think about that for a minute… If your money pays you… and your job pays you… wouldn’t it be nice to just eliminate your job and get paid by your money? The obvious answer here is “Yes! I would love to quit my job and get paid by my money!” So, what are you waiting for? Start saving a couple bucks every day and you’ll easily be able to retire one day.
Simply by using the money that you save by shopping on sale and the other saving techniques focused on here, anyone can open a high interest yielding online checking or savings account. These online accounts can easily be found in our banking website reviews, and many require only low minimum balance to open an account with rates around 5% annually. What this means is for every $100 that you save you will get $5 free!
Rule #6 - Invest in Stocks
If you’re up for taking an additional risk, then the stock market is an excellent investment vehicle. The average market returns are around 8-10% and a good mutual fund can go a long way with “dollar cost averaging.” Just google the term if you’re not familiar with it, but it really works.
The best way to start an investment plan is with a 401K through your employer or an IRA since your money will accumulate tax free. The best low cost brokers with decent features are Trade King and Zecco. Trade King offers free dividend reinvestment and $5 trades while Zecco will give you 10 free trades per month with a minimun balance!
Rule #7 - Get a Credit Card
“What is this you now say? Get a credit card? “For God’s sake man, are you mad?”
“Why, not at all!” I respond.
“But, don’t credit cards charge exorbitant interest rates over 20%!?
Why yes they do; and due to the thousands of fools who carry a balance on their charge cards, credit card companies such as American Experess, Chase, and Discover are willing to give you as much as a 3% to 10% rebate by means of cash back or giftcards on purchases made simply by using credit instead of paying cash.
Specifically, Discover has a card that gives you 5% cash back on any auto maintenance or gasoline purchases with the ability to double your bonus by trading it in for gift cards from over 50 major retailers.
Chase also offers a new rebate card (as of October 2007) that will reimburse you extensively for purchases at drug stores, super markets, fast food restaurants, utilities, department store purchases and cell phone bills with a total of 15 major expenditure categories. You get a $50 bonus for signing up and another $50 bonus whenever you accumulate $200 in rewards!
Best Financial Wishes,
The Net Analyst
Topics: Money & Finance |