Wrapping Up

 

I hope you've enjoyed this look at building wealth. You are able to successfully formulate passive revenue; it just calls for patience, doggedness, and care. And while I'll be the first one to tell you that much work might be demanded, particularly if you don't already have a lot of revenue to invest and therefore have to invest your time and energy.

 

But I'll likewise be the first to tell you simply how energizing and rewarding it may be to start producing multiple streams of revenue that earn you income day-and-night. Start now to plant seeds of automatic revenue and watch as your financial freedom starts to fly.

 

Save some Money

 

1. Budget

 

Everyone should create a budget. Even if you aren't good with money or don't know where to begin with starting a budget, many businesses such as H&R Block, offer free financial consulting to help you put a budget together. Knowing where you are spending your money is by far the best way to save. In most cases, people have no idea where

Their money is really going and once they see it on paper, not only are they surprised but they also decide to change their spending habits.

 

 

2. What Matters to You

 

Grab a piece of paper and a pen. Make a list of the 10 most important things in your life. Next to each one, rank them in order of importance using numbers 1 through 10. The purpose of this exercise is to help you see the things you consider the most and least important. This will provide you with a visual of why you need to save. Some examples of things that a person might put on their list are buying a new home or car, a big vacation, starting a business, or paying off debts.

 

3. You MUST Set Goals

 

Break your goals into short-term, intermediate-term, and long-term. Being able to see your accomplishments is a great motivator for you to work hard at saving. If you set a short-term goal of saving for a bigger TV for your family room and reach that goal, you will be encouraged to keep saving for the intermediate and long-term goals.

 

4. Be Realistic

 

When it comes to saving money, make sure the goals you set for yourself are realistic. If you set your goals to high and never achieve them, you will become discouraged. If you earn $50,000 a year, saving $20,000 would be nice but it is very unrealistic. Make your goals attainable or you will never save.

 

5. Flexibility

 

Once you have set your goal for saving, realize that things can and will change. The secret is learning ways to be flexible. If you normally save $150 a month, when something unexpected happens, you may only be able to save $50 that month. This is fine as long as you focus on getting back on track. When faced with having to change your goals, be sure that you get back on track immediately. It's too easy to slip back into those habits of not saving money.

 

6. Have a Plan

 

Planning is a great way to save. Before you go to the grocery store, make a list and stick with it. It was very hard for me to do this. Especially when going to places like Wal-Mart. If considering a vacation, plan everything. Taking a vacation with no set direction will certainly lead you to impulsive spending.

 

7. Patience

 

Be patient when it comes to saving. This means that you need to accept that it will take time to save and good planning. Be patient and remember that just because you want something, do not rush to buy just to satisfy your urge. Instead, wait for sales in order to get the best price, which in turn will save you money.

 

 

8. Allowance

 

Do not forget to give yourself an allowance for things you enjoy. Even if on a tight budget, buy something that you enjoy, which could be as simple as buying a new shirt or grabbing lunch at your favorite café. If you do not allow yourself this small "splurge", you could find yourself in the same position as if dieting. Total deprivation leads to overindulgence.

 

9. Break old Habits

 

Take time to learn the various things that "trigger" your spending. When you are depressed, lonely, sad, anxious, excited, whatever it may be, do you spend more? Once you can identify these triggers then you can learn how to control them. As an example, if you were just laid off from your job, although money is tight, you may have an overwhelming "need" to spend money. Perhaps you notice that when you are bored, you head for the shops. Knowing what affects you will help you to discipline yourself to find other ways of comfort.

 

10. Don't give up the Good Stuff

 

A misconception is that while trying to save money you have to deal with sub-par merchandise, which is untrue. If you love fresh breads and pastries, visit a bakery thrift store. For your fresh fruits and vegetables, visit your local farmer's market. Try eBay or other auction sites to buy top quality merchandise for a huge discount.

 

Watch for neighborhood garage sales or estate sales and auctions to find items you need. Just because you are looking for bargains as a way of saving money does not mean you have to skimp on quality.

 

11. Wants versus Needs

 

Make sure the thing you want to spend your money on is a "need" and not a "want." Sometimes this can seem like a fine gray line but if you stick to the need list, you will spend a lot less.

 

12. Written Plan

 

When a person goes into business, they create a Business Plan, which becomes the blueprint of their business. The same should apply if you are trying to save money. Create a master plan that the entire family can get involved with and learn their role. When you start to spend too much, go back and look at your plan to see where you are messing up and how you can fix it.

 

13. Attitude

 

Good money management is an acquired skill. As you go forward with the process of saving money, you need to have a good, positive attitude, which is often what will keep you and your family heading in the right direction. If you think you  cannot save, then you probably will not. Be determined and stay positive about saving.

 

14. Organization

 

You may be wondering what being organized has to do with saving money but in reality, it has a lot to do with it. For example, if you miss a credit card due date by one day, you will be charged anywhere from a 15% to 25% penalty. The same would be true for taxes. Missing one simple date can cost thousands. You need to be organized so you know the exact dates your bills are due as well as keep all receipts, contracts, etc. in an orderly manner.

 

 

15. Coordinate Efforts

 

If you are married, make sure you and your spouse are working on the same agenda. If one is trying to save money while the other is busy spending, what is the point? When you work as a team, you can encourage each other to keep on track with your saving.

 

16. Life Satisfaction

 

Learn how to enjoy life and nature rather than possessions. The next time you feel like spending money, head to your local park  where you can enjoy the warm sun, green grass, and towering trees without spending a dime. Being happy in life is far better than buying item after item. Having an inner peace is better than having a house filled with "things." That does not mean you cannot enjoy some of the finer things in life it just means learning how to be happy with yourself and not "things."

 

17. Live Within your Means

 

The quickest way to get in debt is to live beyond your means. Sure, most people want more than they have but life is not all about spending money. Be thankful for what you do have and learn how to enjoy the financial position you are in. This is where your budget will help identify the amount of money coming in against the amount of debt going out.

 

 

Finances  and Bill Paying

 

1. Credit Cards Are a Huge Often Time Unnecessary Expense

 

Use credit cards only for emergency. Although convenient, credit cards are dangerous and damaging. In addition, if you have a credit card that has a $1,000 balance and you pay only the minimum payment each month, it will take you between 20 and 30 years to pay off that $1,000 balance since the majority of money is going strictly toward the interest and not the principal amount. If you have credit cards and your credit is in good standing, call your credit card company, and ask for your interest rate to be lowered. It is truly that simple. Unfortunately, most people do not even realize this is an option so they never make the call. Just tell the representative that you want a better rate on your credit card and they will take care of your request.

 

2. Mortgage Payment

 

Paying one additional mortgage payment each year, whether in a lump sum or monthly increments, can lower a 30-year loan down to 18 years. Knowing that information is enough to make anyone use this technique. If you pay more than one extra payment, the number of years will decrease even more. Since this additional payment will be applied only to the principal and not the interest, you end up saving thousands and thousands of dollars once the home is paid off.

 

3. Insurance

 

Shop around for insurance and work with a good agent that can provide information on discounts such as good student, multi-car discount, etc. Some people think the price of insurance is the same from one company to the next. However, prices can vary  dramatically and to ensure you get the best deal, you need to consider all your options.

 

4. Utilities

 

Set up some rules in your home such as turning lights off when leaving the room, having only a parent adjust the air or heat, leaving the doors or windows open when letting either cold or hot air into the house. Utilities are expensive and a great money saver is to monitor how they are used in your home. Another great idea is the investment of buying an energy-efficient hot water heater. If you cannot afford one, lower the setting so you Are not heating water so hot. The hotter the setting, the more energy used. If you go away on away from the house for several days, considering turning your heat or air off. If just going away for the day or night, this is not recommended. It's more efficient is used for times when you will be away from the house three or more days.

 

5. Unsecured Creditors

 

 

Make a list of all your unsecured debts along with creditor contact information and payoff amount so you can have an accurate record of how much you owe. Choose one creditor, possibly a credit card, and focus on paying off that bill. Once you have achieved that goal, choose another. Start with the debt that has the highest interest rate since it is the one costing you the most money. Be sure not to make this a vicious cycle. Once you have paid off a bill, don't run out and make another one just because you have paid one off.

 

6. Buy versus Rent or Lease

 

 

When looking at homes or automobiles check the rent and lease options. Depending on your particular situation, renting or leasing may be a better financial decision. Weigh all your options and see which choice makes the best sense from a financial standpoint.

 

7. Proper Maintenance

 

Purchase an annual home warranty policy. These policies can run from $350 to $500 a year and offer extremely valuable options. The way most of these policies work is that if you have something break, such as your garage door, dishwasher, air conditioner, etc., for a minimal fee, usually $50 to $100, a serviceperson will come to your home to fix the item. Best of all, if you have five things broken and the same serviceperson is qualified To fix all of them, you are still charged the $50 to $100 fee once, not five times. For your automobile, you might look into purchasing an extended warranty. If you ever need either one of these policies, they will save you tremendous value.

 

 

8. Company Stock / 401K

 

Contributing to employee stock options or a 401K plan is a wonderful opportunity to save. Most companies will match your contribution, sometimes dollar for dollar, up to a maximum, generally 6%. From each paycheck, you can have a small amount of money deducted (1%) and up. Over time, that money grows and since the business is providing a match, you get free money.

 

9. Pay on Time

 

For every payment you pay late, you are charged a late fee, which can range from $25 to $50 or more depending on the company. Therefore, if you just made a $50 payment but It was paid late, nothing was paid toward the debt. Instead, the entire $50 went toward an unnecessary fee. To avoid spending unnecessary money, be sure you mail your check in time to avoid these fees.

 

10. Selling your Home

 

If considering putting your home on the market, make sure you work with a reputable realtor. A good realtor versus one that is not as experienced can be the difference of thousands of dollars. A good realtor will know exactly what you need to do to your home to get it in the bestselling condition, which in turn will get you more money. In addition, experienced realtors know all the best methods for advertising and selling your home while saving you the most money.

 

11. Check Receipts and Statements

 

If you were to check your grocery or store receipt, approximately 50% of the time you would find an overcharge. This happens all the time and in some cases, the charge can be substantial. The same is true for credit card statements, bank statements, phone bills, etc. Check the detail because it is quite common to find errors. These mistakes can easily be corrected simply by asking and providing a copy of the receipt or statement.

 

12. Challenge the Doctor/Hospital

 

 

If you have stayed in the hospital recently, you know the outrageous charges associated with everything used. While you could buy a box of bandages for a small cut in the drug store for $5.00, at the hospital, they will charge you $10 for one bandage. While the government and insurance companies are cracking down on these charges, you should check things closely and challenge anything that is ridiculously priced. The same is true for your doctor. One woman having a hysterectomy was asked by her doctor if she wanted her appendix removed at the same time. The patient thought it was a good idea and agreed. However, after the surgery when the bill came, there was an additional $1,200 for the removal of the appendix although the doctor never mentioned an extra charge. The woman called her doctor to  discuss and the doctor removed the charge. If something seems way out of balance, question it. Something else that most people do not know about is what is called "professional courtesy." If you are having financial difficulties, you can ask your doctor if they will write off any balance owed as a professional courtesy. Many will and if not the full amount, at least some.

 

13. Overdraft Protection

 

Almost everyone has at one point or another had an insufficient check. Most banks charge $20 per returned check, which if not careful with your account, can quickly add Up to a lot of money. If you have a savings account, consider adding overdraft protection onto your checking account so if you ever go into a negative balance, the money would automatically be covered by your savings. Most banks offer this service free.

 

14. Bank Accounts

 

Make sure you work with a qualified banker that can set up the "right" kind of account for your type of spending. There are numerous options specifically designed for people that write a good number of checks versus those who do not. Check with your existing bank to ensure you have what you really need and if they are not willing to work with you, change banks. In general, credit unions are good options. Their rates are typically lower and because they are employee owned, you can find better options

 

15. Appropriate Deductions

 

Rather than spending money just for the sake of spending, change the amount of deductions you have taken from your paycheck for your 401K or stock options. This is especially great if your company offers a competitive matching program. Increasing the amount you have deducted can quickly add up to a nice savings and is especially nice for retirement.

 

16. Christmas Fund

 

Many banks and financial institutions offer a Christmas Fund program. This is an excellent way to put aside some money for your holiday shopping so you do not end up with a ton of spending. With these programs, you do not even miss the money and better yet, less stress around the holidays.

 

Save Money While Shopping

 

1. Shop Online

 

 

Many online businesses offer great bargains and in some cases, free shipping. Since the Internet is such a competitive market, you can usually find fantastic deals. In addition, many of your favorite businesses where you shop in person have websites that offer even greater savings. Bookstores such as Amazon.com will sell books up to 70% off the original price. Overstock.com is another online business that sells closeout items for fantastic bargains.

 

2. Consignment Shops

 

Rather than throw out or sell slightly worn clothing or other household items in a garage sale, consider selling them through a consignment shop. You will get a better price for your items and consignment shops are always looking for quality merchandise. Check out Half.com, which is an online consignment shop offering books, movies, computer software, and much more in either new or used condition.

 

3. Take a close look at the clearance racks!

 

Always head straight for the clearance rack where you can find amazing bargains. Sometimes you may have to dig a little to find the right item but the savings will be well-worth your time. Most clearance racks offer variety, current trends, and great value. For example, Bed, Bath & Beyond has a clearance section where you can find all kinds of wonderful household items for a fraction of the original cost. I have teenage daughters so buying name brand clothing is very important to them. When we shop at the big department stores, we always find great deals on the clearance rack.

 

4. Reuse

 

When you shop, look for items that can be reused. Rechargeable batteries are a perfect example. Even though the initial purchase may be more than non-rechargeable batteries, there is a definite savings over a long period. Stop buying paper plates, paper cups, and plastic eating utensils. I know a lot of people who wash them and reuse them, but I don't

 

 

Like that idea. I only buy these items if we are going to a cookout or a picnic. There is no reason to buy them for birthday parties, or family get together. Just use the plates, glasses, and utensils in your cabinets. You may have to wash a few more dishes, but it is well worth the effort.

 

5. Buy in Bulk

 

It is true that warehouse shopping can save a lot of money. Even if you have a small family, you can always split large quantities. The price of items in bulk is generally a great bargain. If you are single, you might go in with friends or family on bulk items. Be sure to watch the prices though. Warehouses and shopping clubs are sometimes more expensive.

 

Okay, maybe you used to laugh as you watched people pull out their coupons at stores but the truth is that using coupons can save you hundreds of dollars every year. Coupons can be used at grocery stores, retail chains, and any store where the item is sold. Some stores offer double coupon days, which is an extra bonus. On average, you could easily save from 5% to 15% on a bill for $100 simply by presenting a coupon. Coupons are not just for food items and by scouring your local newspaper you can find coupons for all sorts of merchandise. You can even buy coupons on EBay! You can get 100's of dollars’ worth of coupons for just a few dollars on EBay. Even if you can't use them all, you will save HUGE on your grocery bill! I have saved up to $75 on a $225 grocery bill. I paid $150 for $225 worth of groceries. If I did that twice a month, I would save $1800 a YEAR!

 

7. The Right Time to Shop

 

Studies have proven that when shopping while hungry, depressed, tired, and stressed, you buy more. Before you head to the grocery store, eat something. If you are upset or feeling a little blue, calm yourself down or wait until you feel better before you head out to shop. As funny as it may sound, having a clear mind is important when it comes to shopping and spending money efficiently.

 

8. Comparison Shop

 

Comparison-shopping can make a big difference in the price you pay. You might be looking at a barbecue grill at one place for $350.00 and by making two more stops, find the exact grill or one comparable for $300. In addition, consider the price of items assembled versus unassembled. For example, you might find the barbecue grill unassembled for $250. A couple of hours of "fun" assembling the grill is certainly worth a $100 saving.

 

 

9. Dollar Stores

 

Many years ago, dollar stores offered only off brand products or poorly made merchandise. However, that has completely changed. Now you can walk into a dollar store and find the same name brand laundry soap, cleaning supplies, clothing, school supplies, everything for a fraction of the cost. Where a store name brand bottle of laundry detergent might cost $6.50 at a grocery store, you can find the identical product and size at the dollar store for $2.50. Check out your local dollar store and enjoy the mountains of savings.

 

10. Go Generic

 

When buying food, try some of the generic items. Unless you or your guests are connoisseurs of fine dining, they will not know if the green beans were generic or a top name brand. Once you add some butter, salt, and pepper, no one will know the difference except you - $.79 per can versus $.33 per can! People do not realize that many generic brands are actually manufactured by name brand companies, just branded with a different name. In fact, companies such as those that make snack foods will have conveyor belts that run side-by-side - one for the name brand and one for the generic brand. This is Quite common and the only difference is the label and price.

 

11. Stock Up

 

As you shop, if you notice that a brand you and your family use on a consistent basis is on sale for a great bargain, stock up. As an example, if you use a particular type of shampoo costing $4.50 per bottle and you find it on sale for $2.50, go ahead and buy two bottles. You should only do this on items you know will be used. If you just purchase an item because it's on sale, you are not saving money if you don't use it.

 

12. Shopping for Clothes

 

There are many secrets relating to saving money on clothing. As a perfect example, rather than buy a matched suit for $450, buy the pieces separate. This will save you about $100 to $150. Additionally, buy several pieces that can be mixed and matched, giving you six outfits out of four pieces.

 

13. Trendy Fashion

 

Most people love to dress in the most up-to-date fashion but for those fashions, you pay big bucks. Consider dressing with basics and then emphasis them with trendy accessories. This will save you money on the clothing that is less expensive while allowing you to dress it up.

 

14. Stay out of the Malls

 

If possible, stay away from shopping malls. High-dollar shopping malls have expensive overhead and are designed to sell, sell, and sell. Prices are generally higher and in most cases, people walk out with more than they anticipated buying. It is better to shop at stand-alone shops or on the Internet.

 

15. Car Shopping

 

Shop around for the best price. While you may have your eye on that "perfect" car and want it now, by waiting and looking around, you could be saving yourself a lot of money. In addition, check out other states. If you live within a few hours’ drive from other cities, check out the price difference. The five hours it takes to drive may be worth the money saved.

 

16. Plan Menus

 

Although it will take some time initially, after you have planned a week's menu once, it will become much easier and best of all, it will save you money. Knowing exactly what you will be making  helps you to shop for foods that can be used more than once. As an example, if you are going to have spaghetti on Tuesday, you could buy bulk ground beef at a better price and then use the other half for tacos on Saturday. Another option would be buying round steak where one night you fix Salisbury steak and then a few days later, you use the leftovers for breakfast hash. This will help you stretch meals and avoid last minute or impulse buying.

 

17. Dining Out

 

Eating out can be expensive. Rather than stop eating out, simply cut back and look for options of two-for-one. Restaurants of all calibers offer weekly specials and if you check in your Sunday paper, you can often find special bargains. You might even think about signing up as a Mystery Shopper on the Internet where you can eat at fine restaurants free

 

 

Or at a huge discount just for writing a report on the food, service, and cleanliness.

 

18. Freeze Foods

 

When you grocery shop, look for bargains on items that can be frozen. Most people do not even think about shredding block cheese and freezing it. Did you know that you could even freeze eggs? You can as long as you give them a little room to expand. When ready to use, simply set them out at room temperature. If you find apples on sale, Make your own apple pies and freeze them or make applesauce. Many food items can be frozen with no problem. Therefore, the next time you see a great bargain think about freezing. (Dairy products other than cheese do not generally freeze well).

 

19. Baby Food

 

Instead of buying expensive baby food, make your own. You can use fresh vegetables such as peas, green beans, or corn, run it through the blender, and then freeze individual servings in ice cube trays. When it comes time to feed the baby, simply pop out a cube of food, defrost, and you have instant food. This is a real time and money saver. Most Foods can be frozen. In fact, if you make family foods like spaghetti or soups simply make a smaller portion with less salt and spice, puree, freeze just like the vegetables.

 

20. Squelch the Smoking

 

This is probably the hardest habit to break but in addition to saving your health, you will also save money. Cigarettes have  become quite expensive and if you can quit smoking, you will enjoy breathing easier and having more to put away for a rainy day.

 

21. Seasonal Buys

 

One to three days after a holiday, stores mark their holiday items from 50% to 75% off. This is an ideal way to stock up on next year's Christmas or Halloween decorations. This is true for stores that sell seasonal clothing as well. Shopping for jackets or sweaters in the summer will provide you with gre