Saving is one of the easiest ways to slowly and steadily build your wealth. It is too easy for some people and they want other "not so easy ways" to get wealth. So many people today are running in negative credit card debt. Negative means you stole the money from the bank and not returning it now. It means that you stole the money that belonged to someone else. It isn't any less than a bank robbery.
Now start saving because Banks are giving good interest rates and any money you save is the money you earned.
Saving money aside in a bank account with high interest rate will make your money worth what it really is worth. Let me give you an example: The average rate of inflation is 3%. Which means if you have a thousand dollars next year they will be worth $970. But if you put the same amount of money in a savings account or bank account with high interest rate your money will grow to $1040, assuming the interest rate is 4%. This $1040 is only worth $1010 due to the inflation. Now you see that saving money and putting it into a bank makes sense.
Many people don't realize that they are losing money by not spending it and keeping it at home or in a piggy bank. Now of course I used only a $1000 example so most people could understand the concept of inflation and realize that any spare cash at home is losing its value without even being spent.
How to save? is the next big question. You have to realize that every dollar you save every day is worth a lot of money. If you addicted to smoking and smoke pack a day, you are paying heavy price to kill yourself. It is stupid when people buy $7 cigarette packs every single day. Have you ever calculated the cost?
365 x $7= $2555, Smoking for 30 years? = $76650! You spent $76k on doing something that would kill you.
If you don't smoke then you are already $76k richer than smokers. Now for an average person who doesn't smoke. Cut on simple costs of food. Food costs variate a lot as you go from town to town and people often spend money on fast food when they could purchase many better things.
Morning coffee= $2, you drink it everyday till retirement= 365 x $2 x 50 = $36500. Now lets say instead of drinking coffee from a coffee shop, you made your own coffee which costs around 60 cents to make at home.
Then you save: $25550! Now put that in fixed deposit for 10 years at an average interest rat of 4%. You earned 25550 x 0.04 x 10= $36000. You earned 36k by drinking clean coffee at home. These are just very basic and small examples. Imagine if same rules were applied if you bought cheaper car, cheaper groceries, made food at home, that would just make you a millionaire by the age of 50, if not sooner!
Live life. Don't save on every little thing. Spend on what you need and you can afford. Don't waste on drugs, fast foods, short lasting clothes, etc.
Showing posts with label Saving. Show all posts
Showing posts with label Saving. Show all posts
Wednesday, September 24, 2008
How to save money on gas
Gasoline prices have skyrocketed in past few months. The prices have gone so high that it has become a political issue about who will provide better gas prices.
Saving money gas has become more important than before. This time it is about saving thousands of dollars per year, not just a few dollars. Now you have to add gasoline to your monthly budget, if you are planning to use it for work or other activities.
But there are many ways to save on gas. If you take a closer look at the number of alternatives available; there are actually a lot of them. One of the fundamentals rules to save money on gas is to use less of it. The idea is simple and easy to follow. Here is how you can save on gas and therefore on money.
1.) Walk the short distances: If the grocery store is only a mile away, it won't hurt to walk all the way there. It will be a good exercise for you and save a lot of gas. One of the biggest reasons why someone uses a car is for grocery shopping. A car requires gas, and if you don't use the car you won't use the gas and save money.
To buy small items like bread, eggs, or some fruits don't waste gas. You are not only saving your own money by walking, but also protecting the environment from global warming. There are other short distances that people use their car for like going to a friend's house, shopping, or just going for a ride.
2.) Ride a bike for long distances: Bikes can easily cover 5-7 miles without making you tired. You can buy a solid expensive bike with gears and latest technology and still end up in profit after saving all the gas. Use your bike to go to work, school, or grocery.
Bike is again good for health and can be used for longer distances. Instead of walking with grocery, you can use the bike storage box and put groceries inside it making it easier for you. Buy your kids a bike for going to school or other places. Buying a bike is must for everyone who doesn't live far away from a mall.
3.) Use public Transit: For long distances public transit can be cheaper than a car and again you will be doing well for the environment. Whenever you save on gas, you protect the environment which means you always gain and never lose. A bus can usually carry around fifty people and be used to travel distances up to 100 miles.
For some people it is hard to take their bike to work, or do grocery shopping on a bike. I can understand their problem. Especially in a city everything is located far away and a car is must for most people. But don't get disappointed, you can still save a lot on gas by following these tips:
1.) Turn your air conditioner or heater off whenever you can
2.) Make sure you get your engine updated often.
3.) Buy a car with high mileage, meaning it can run a lot of kilometers without using too much gas.
4.) Avoid buying heavy duty trucks, since they use a lot more gas.
5.) Buy a 10 seater if you have a big family.
A car isn't the only place where you need gas. What about gas stove, gas washing machines and dishwashers? The only way to save on gas on electronics is to use it less. Make sure you have the newest gas technology which requires less gas to run the electronic.
Make sure you don't over use your washing machine or gas stove.
Hopefully, by now you have understood that saving money on gas is not that hard after all. Start now and your money will pile up soon. You can put the money in a savings account and make it grow bigger rather than blowing it on gas.
Saving money gas has become more important than before. This time it is about saving thousands of dollars per year, not just a few dollars. Now you have to add gasoline to your monthly budget, if you are planning to use it for work or other activities.
But there are many ways to save on gas. If you take a closer look at the number of alternatives available; there are actually a lot of them. One of the fundamentals rules to save money on gas is to use less of it. The idea is simple and easy to follow. Here is how you can save on gas and therefore on money.
1.) Walk the short distances: If the grocery store is only a mile away, it won't hurt to walk all the way there. It will be a good exercise for you and save a lot of gas. One of the biggest reasons why someone uses a car is for grocery shopping. A car requires gas, and if you don't use the car you won't use the gas and save money.
To buy small items like bread, eggs, or some fruits don't waste gas. You are not only saving your own money by walking, but also protecting the environment from global warming. There are other short distances that people use their car for like going to a friend's house, shopping, or just going for a ride.
2.) Ride a bike for long distances: Bikes can easily cover 5-7 miles without making you tired. You can buy a solid expensive bike with gears and latest technology and still end up in profit after saving all the gas. Use your bike to go to work, school, or grocery.
Bike is again good for health and can be used for longer distances. Instead of walking with grocery, you can use the bike storage box and put groceries inside it making it easier for you. Buy your kids a bike for going to school or other places. Buying a bike is must for everyone who doesn't live far away from a mall.
3.) Use public Transit: For long distances public transit can be cheaper than a car and again you will be doing well for the environment. Whenever you save on gas, you protect the environment which means you always gain and never lose. A bus can usually carry around fifty people and be used to travel distances up to 100 miles.
For some people it is hard to take their bike to work, or do grocery shopping on a bike. I can understand their problem. Especially in a city everything is located far away and a car is must for most people. But don't get disappointed, you can still save a lot on gas by following these tips:
1.) Turn your air conditioner or heater off whenever you can
2.) Make sure you get your engine updated often.
3.) Buy a car with high mileage, meaning it can run a lot of kilometers without using too much gas.
4.) Avoid buying heavy duty trucks, since they use a lot more gas.
5.) Buy a 10 seater if you have a big family.
A car isn't the only place where you need gas. What about gas stove, gas washing machines and dishwashers? The only way to save on gas on electronics is to use it less. Make sure you have the newest gas technology which requires less gas to run the electronic.
Make sure you don't over use your washing machine or gas stove.
Hopefully, by now you have understood that saving money on gas is not that hard after all. Start now and your money will pile up soon. You can put the money in a savings account and make it grow bigger rather than blowing it on gas.
Sunday, September 21, 2008
Save money on eating out
Search Tag: Saving
In the western world a lot of people don't have time to cook food at home; especially the working mothers. In the modern era the roles of a woman are changing and all members of household are expected to work. This all leads to eating outside and spending more money than you really need to.
Eating outside can cost a lot of money if you choose a "high-status" fine dining restaurant. You can easily save $30-$40 every time you go out to eat. Firstly, you need to decide if you are eating out for food or for a special occasion. If you are eating out regularly because you don't have time to cook, then avoid going to fine dining restaurants at all costs!
Fine dining restaurants have a lot of expenses such as the plates, table cloth, servers, etc. This is why fine dining restaurants can cost up to 3 times more than an ordinary restaurant. If you are going out to eat regularly choose a restaurant where there are no servers because the wages are one of the biggest restaurant expenses and if there are no wages to pay then food will be much cheaper. The quality of the food does not get affected and you won't need to give any tips which can add up to a large amount.
Self-serving restaurants such as McDonald's, Steak House, and most other fast food restaurants are mostly self-serving and that is why the food is much cheaper. You can always find a lot of items to satisfy your hunger in self-serving restaurants. But if you are going for a special occasion and would like to go to a place where you are served and have all the luxuries then it will definitely cost more, but you still have options. Most dining restaurants have discount rates and some will allow kids to eat for free because they make enough money from the adults.
Another type of restaurant you want to avoid is all you can eat buffet restaurant. Firstly, it is unhealthy and secondly it costs much more than average meals, especially if you don't eat for the money. Many people over eat at buffets because they paid for it and this causes bloating of the stomach, stomach ache, and even lower metabolism.
If you want to save money when eating out, you must avoid buffets at all costs! Think about it. Why would a restaurant allow you to eat more than you paid for? Buffet price is set at maximum standards; meaning that the price you pay is actually the price for the maximum amount of food an average human being can eat at one meal. You need to be really hungry and have a lot of capacity to actually eat more than the expense of the food.
This is the reason why many buffet restaurants continue to be in business and make a lot of profits. The food and service aren't the only ways to save money when going out. Another way to save money is to set a standard server tip. This means that whenever you leave tips for the server, give them a standard amount. Something like $5 is low, but still counts as a tip.
It may make you look cheap, but if you are tight financially then you need to save on tips. There is no reason to give $20-40 in tips when you cannot afford to. The servers get a salary so you aren't hurting them too much. But again, if you go to a self-serving restaurant you won't need to worry about all these things at all and save a lot of money.
In conclusion, the best way to save money is to avoid restaurants with luxuries other than food such as fast service, interior decoration, top notch furniture, etc. Your only priority should be the quality of the food which will not get affected if you avoid luxuries of a five star restaurant. So start looking for restaurants where you serve yourself, and don't have to waste money to help restaurant provide the luxuries.
In the western world a lot of people don't have time to cook food at home; especially the working mothers. In the modern era the roles of a woman are changing and all members of household are expected to work. This all leads to eating outside and spending more money than you really need to.
Eating outside can cost a lot of money if you choose a "high-status" fine dining restaurant. You can easily save $30-$40 every time you go out to eat. Firstly, you need to decide if you are eating out for food or for a special occasion. If you are eating out regularly because you don't have time to cook, then avoid going to fine dining restaurants at all costs!
Fine dining restaurants have a lot of expenses such as the plates, table cloth, servers, etc. This is why fine dining restaurants can cost up to 3 times more than an ordinary restaurant. If you are going out to eat regularly choose a restaurant where there are no servers because the wages are one of the biggest restaurant expenses and if there are no wages to pay then food will be much cheaper. The quality of the food does not get affected and you won't need to give any tips which can add up to a large amount.
Self-serving restaurants such as McDonald's, Steak House, and most other fast food restaurants are mostly self-serving and that is why the food is much cheaper. You can always find a lot of items to satisfy your hunger in self-serving restaurants. But if you are going for a special occasion and would like to go to a place where you are served and have all the luxuries then it will definitely cost more, but you still have options. Most dining restaurants have discount rates and some will allow kids to eat for free because they make enough money from the adults.
Another type of restaurant you want to avoid is all you can eat buffet restaurant. Firstly, it is unhealthy and secondly it costs much more than average meals, especially if you don't eat for the money. Many people over eat at buffets because they paid for it and this causes bloating of the stomach, stomach ache, and even lower metabolism.
If you want to save money when eating out, you must avoid buffets at all costs! Think about it. Why would a restaurant allow you to eat more than you paid for? Buffet price is set at maximum standards; meaning that the price you pay is actually the price for the maximum amount of food an average human being can eat at one meal. You need to be really hungry and have a lot of capacity to actually eat more than the expense of the food.
This is the reason why many buffet restaurants continue to be in business and make a lot of profits. The food and service aren't the only ways to save money when going out. Another way to save money is to set a standard server tip. This means that whenever you leave tips for the server, give them a standard amount. Something like $5 is low, but still counts as a tip.
It may make you look cheap, but if you are tight financially then you need to save on tips. There is no reason to give $20-40 in tips when you cannot afford to. The servers get a salary so you aren't hurting them too much. But again, if you go to a self-serving restaurant you won't need to worry about all these things at all and save a lot of money.
In conclusion, the best way to save money is to avoid restaurants with luxuries other than food such as fast service, interior decoration, top notch furniture, etc. Your only priority should be the quality of the food which will not get affected if you avoid luxuries of a five star restaurant. So start looking for restaurants where you serve yourself, and don't have to waste money to help restaurant provide the luxuries.
Thursday, August 21, 2008
How to save money in high school?
Search Tag: Saving
The earlier you start saving money, the better it is. Saving money in high school is easier to do than an adult because you don't have the burden of paying bills, or pay the mortgage. If you are an average teen then you should still be living with your parents, and be able to save a lot more easily.
Saving money in high school is also critical. You will have to pay student loans, book fees, tutor fees and for some even a new place to live. You will be going to College and all the money saved will help a lot to repay the student loans and to find a good place to live without a lot of work.
* Clothes: In high school these days everyone wants to wear branded clothes. You have to make friends and fit in by buying branded clothes. This is a huge problem for girls since they seem to be more fashion oriented. But what if all that money could be saved by simply buying only when you really need clothes?
* Stay away from sales when you don't need clothes. Even if the clothes are cheaper, there is no reason to buy them if you don't need them. As a high school student, clothes might be the most expensive item on your shopping list.
* Entertainment Discounts: Every once in a while you feel like watching a movie. Why not go on discount days? In my town every Tuesday the ticket is $5 less than usual. Find a good place to watch movie which offers discount rates on some days. On those days you can go and have fun for less money.
- There are no drawbacks to this. You watch the same movie, the same theatre just a different day. Those few dollars add up quickly. Lets say you watch one movie per month (Most of you watch more than that), but lets just say you saved $5 per month on movies, that would be $320 by the time you graduate. This is just for the movies; wait till all other savings add up.
* Lunches: You don't have to buy a combo everyday. Save on lunch food by simply buying less or making food at home. This will again save a lot of money by the time you graduate. Home lunches cost around $1 on average if prepared everyday, and cafeteria food costs around $5. That is 4 dollars of saving 5 days a week. That is a whooping $3840 saved on food in four years!
* Travelling Costs: Buy a bike or walk to school rather than taking the public transit everyday. A bike will cost $350 the first time you buy it, but in the long run you will save more by not taking the bus. Walking of course is the best option for most teens to save the most money. Let's do the math again. A bus ticket costs $1.50 each and you will be using two everyday. $15 every week and $780 every year which is already more than the cost of your bike or the "cost" of your walk.
* Trips: You don't have to waste over two grand on the international trip if you don't feel like going. It is a big decision to go to the international high school trips. If you want to save up, then your best bet is to not go on them. You can go on the smaller trips to have fun, and forget about the international ones.
* It is tough to not go to the trip of your life, so this tip is optional for anyone who can do it.
Here are your 5 tips to save when you are in high school. Although summer months have been included in the calculations for savings, you will still save around the same as stated.
Remember that saving in high school is easier to do, than to save later in life. So start now and good luck!
The earlier you start saving money, the better it is. Saving money in high school is easier to do than an adult because you don't have the burden of paying bills, or pay the mortgage. If you are an average teen then you should still be living with your parents, and be able to save a lot more easily.
Saving money in high school is also critical. You will have to pay student loans, book fees, tutor fees and for some even a new place to live. You will be going to College and all the money saved will help a lot to repay the student loans and to find a good place to live without a lot of work.
* Clothes: In high school these days everyone wants to wear branded clothes. You have to make friends and fit in by buying branded clothes. This is a huge problem for girls since they seem to be more fashion oriented. But what if all that money could be saved by simply buying only when you really need clothes?
* Stay away from sales when you don't need clothes. Even if the clothes are cheaper, there is no reason to buy them if you don't need them. As a high school student, clothes might be the most expensive item on your shopping list.
* Entertainment Discounts: Every once in a while you feel like watching a movie. Why not go on discount days? In my town every Tuesday the ticket is $5 less than usual. Find a good place to watch movie which offers discount rates on some days. On those days you can go and have fun for less money.
- There are no drawbacks to this. You watch the same movie, the same theatre just a different day. Those few dollars add up quickly. Lets say you watch one movie per month (Most of you watch more than that), but lets just say you saved $5 per month on movies, that would be $320 by the time you graduate. This is just for the movies; wait till all other savings add up.
* Lunches: You don't have to buy a combo everyday. Save on lunch food by simply buying less or making food at home. This will again save a lot of money by the time you graduate. Home lunches cost around $1 on average if prepared everyday, and cafeteria food costs around $5. That is 4 dollars of saving 5 days a week. That is a whooping $3840 saved on food in four years!
* Travelling Costs: Buy a bike or walk to school rather than taking the public transit everyday. A bike will cost $350 the first time you buy it, but in the long run you will save more by not taking the bus. Walking of course is the best option for most teens to save the most money. Let's do the math again. A bus ticket costs $1.50 each and you will be using two everyday. $15 every week and $780 every year which is already more than the cost of your bike or the "cost" of your walk.
* Trips: You don't have to waste over two grand on the international trip if you don't feel like going. It is a big decision to go to the international high school trips. If you want to save up, then your best bet is to not go on them. You can go on the smaller trips to have fun, and forget about the international ones.
* It is tough to not go to the trip of your life, so this tip is optional for anyone who can do it.
Here are your 5 tips to save when you are in high school. Although summer months have been included in the calculations for savings, you will still save around the same as stated.
Remember that saving in high school is easier to do, than to save later in life. So start now and good luck!
Saturday, August 16, 2008
Painless ways to save money
Search Tag: Saving
Saving money can be a pain for some people, and that is why we get the title "painless ways of saving money". If you love being secure financially and like the feeling of having enough money in our bank account, then saving money won't be pain for you, and you are already on a way to being a debt-free human.
But for some people saving money means no shopping, no enjoyment, no pleasure, which means no fun in life. And we all live to work and have fun, so we must spend money right? That is right, and saving money doesn't mean having less fun or enjoying your life less.
We need to save money in order to have fun. Many of you are wondering what is meant by that? Saving a few dollars today, add up to thousands of dollars. It is not just a saying or a phrase, it actually makes a lot of sense.
Here is the maths behind saving (Don't worry I am only talking elementary school maths).
1.) Save $1 a day by making your own coffee. (It is fresh, hot, tasty and you can make it rightwhen you wake up, which means no hassle of waiting in a line buying coffee which is cold sometimes or has less/more sugar.
Now this dollar everyday of the year adds upto $365. You do this for 25 years of your life, and you have saved $9125, not a bad amount for having your own coffee, is it?
In most cases you can save upto $2-$3 on breakfast alone. Saving on food means having healthier food, eating at your own time and you will learn how to cook! You will have to work a bit harder than standing in a line and saying "one cheese burger". But look at the benefits. You will be able to save upto $10 everyday on average. Those fast food restaurant receipts add upto a lot.
2.) Choosing the right bank: Your savings need a place to grow or to stay parallel to the inflation rate. You need to find a bank that pays the highest interest on your savings and then put your money in that account. Also known as the "savings account". This will make you save money, and also grow that money even bigger.
3.) Saving on gas/school/work: Buy your children a bike to ride to school. Over time this will save more money than the cost of the bike.
I can personally relate to this example. My son's school was on a bus route, about 1.9 KM away. That is not very far, but it is hard to walk that distance every morning and evening. The bus fare was $2. There are around 280 days of school. So that adds upto $560. Most of his friends took the bus, but I bought
Saving money can be a pain for some people, and that is why we get the title "painless ways of saving money". If you love being secure financially and like the feeling of having enough money in our bank account, then saving money won't be pain for you, and you are already on a way to being a debt-free human.
But for some people saving money means no shopping, no enjoyment, no pleasure, which means no fun in life. And we all live to work and have fun, so we must spend money right? That is right, and saving money doesn't mean having less fun or enjoying your life less.
We need to save money in order to have fun. Many of you are wondering what is meant by that? Saving a few dollars today, add up to thousands of dollars. It is not just a saying or a phrase, it actually makes a lot of sense.
Here is the maths behind saving (Don't worry I am only talking elementary school maths).
1.) Save $1 a day by making your own coffee. (It is fresh, hot, tasty and you can make it rightwhen you wake up, which means no hassle of waiting in a line buying coffee which is cold sometimes or has less/more sugar.
Now this dollar everyday of the year adds upto $365. You do this for 25 years of your life, and you have saved $9125, not a bad amount for having your own coffee, is it?
In most cases you can save upto $2-$3 on breakfast alone. Saving on food means having healthier food, eating at your own time and you will learn how to cook! You will have to work a bit harder than standing in a line and saying "one cheese burger". But look at the benefits. You will be able to save upto $10 everyday on average. Those fast food restaurant receipts add upto a lot.
2.) Choosing the right bank: Your savings need a place to grow or to stay parallel to the inflation rate. You need to find a bank that pays the highest interest on your savings and then put your money in that account. Also known as the "savings account". This will make you save money, and also grow that money even bigger.
3.) Saving on gas/school/work: Buy your children a bike to ride to school. Over time this will save more money than the cost of the bike.
I can personally relate to this example. My son's school was on a bus route, about 1.9 KM away. That is not very far, but it is hard to walk that distance every morning and evening. The bus fare was $2. There are around 280 days of school. So that adds upto $560. Most of his friends took the bus, but I bought
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