Sunday, August 12, 2007

Accumulating Wealth Is A Lifestyle - Part 1 - Capture Savings Instantly


The large percentage of "wealthy" people were not born with it, did not happen into wealth through blind luck, are not actors or athletes, and did not get rich quick. A majority accumulated wealth through entrepreneurship - Starting a business, working smarter, working harder, and living in such a way that captured wealth like iron-filings to a magnet. I have always tried to associate with these type of successful people, to surround myself with friends and acquaintances more successful than myself. I have attempted to learn their "secrets", to pick their brains, and model their success. I learned that as the title of this article states - Accumulating wealth is a lifestyle. I decided to publish a series of articles giving you some practical everyday tips I have learned on what you can do easily and on pretty much a daily basis to integrate wealth accumulation into the fabric of your life.

I am constantly looking for ways to cut expenses, increase revenue, stop budget leaks and squeeze more money from my budget for saving and investing. I wanted to share with you some of my ideas and actions that I do to make money and accumulate wealth both online and off. Most of these things aren't hard to do and are very easy to incorporate into most individuals lives in some manner. None of these tips will allow you to "get rich quick." I have found that if you are looking for that "get rich quick" idea you will probably be very disappointed.

Capture Savings Instantly


I would have to say that my #1 recommendation and the all important first step is to have a plan and means to capture savings. Passing on a burger but spending the money on a candy bar later isn't saving money. You have to be able to capture the savings, little and big, cents and dollars, for them to do you good. My point is that it really does no good not spending the money on one thing if you simply spend it elsewhere later in the day, week, or in another budget category.

What do I mean by this? Let me give you a personal example of something that I started many many years ago and still do to this day. Let's say I'm driving down the road and for whatever reason I am feeling hungry, craving an ice cream, or could really use a coffee. There is nothing wrong with any of those mind you and I'm sure purchasing any of those wouldn't break the bank. Say though, that I decide that instead of consuming the extra calories and spending the extra money I will simply pass and continue on doing whatever it is I am doing. I just saved the $2 - $5 by not spending it, but it will do me no good if later in the evening I give in and buy the coffee, or even if I don't buy anything but simply have no means to capture that savings. Here is my solution to the problem and something I practice on a daily basis. When I make the decision to pass on the burger, or whatever, that I could have bought, I will, usually within minutes, transfer the money from my checking into another savings/investment account.

Transferring money is extremely easy these days. I do it simply and easily via my mobile phone using Paypal or via my banks iphone app. I also have my phone teller # on speed dial. When I save money I capture it almost instantly by transferring the money out of my main account and into a savings vehicle of some sort. As soon as I make a decision to not spend money pretty much wherever and whenever you will see me texting, calling or surfing to capture that savings.

It costs me nothing to transfer money from my main checking account to an online high yield savings or money market and from there to other investments. My accounts through ING earn great returns with no minimum balance either place. You don't need to have large amounts to open these accounts and start earning more on your captured savings. In fact if you are interested I can show you how to earn a quick 10% return on your initial investment with quite a few online banks. Just contact me with your email address and I can send the information to you.

You see accumulating wealth really is a lifestyle. This little "trick", if you want to call it that, helps me capture almost $2000 a year in savings that in turn earn me more money. Pass on 2 coffees a week that's $10. Do that every week and actually capture the savings, that adds up to $520 a year. Do you see how quickly this adds up? Take left-overs for lunch, while it isn't glamorous it works, 2 days a week and pass on the fast-food, that's $8 - $10. Once again these small amounts added up weekly, earning interest and compounding, over time can equal true wealth. You may ask why I am put such an emphasis on squeezing as much money as possible out of the expense side and into the investment side. Well it is because I am saving for m My Home In Belize And My New Porsche!


Well I hope this has been encouraging and helpful to all of you. Remember not spending money is not the same as SAVING money! Do you have anything like this that you practice in your daily life? Have any questions or comments? Please let me know.

later all and have a profitable and productive blogging day

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3 comments:

Bloggrrl said...

I love your savings idea--that's exactly the sort of thing that would work for me. Love your new look!

Cmanlong said...

Thanks Bloggrrl for the nice comments. It is good to see you stopping by.

I will be posting more in this series in the coming days.

later all and have a profitable productive blogging day.

DiggyDigge said...

Hey man just wandering back through and got here from your porshe article. Intersting read.