Joe's Money

Well, it turns out no matter what income bracket you’re in, you probably still broke with negative net worth.

This book was a real eye opener for me.  It describes the perception and the reality of millionaires and how they got their millionaire status.  The truth is, the average millionaire is not driving a $100,000 sports car, or even a new car for that matter.  The folks driving the $100,0000 sports cars are usually just as worse off financially as the person making $8/hour if not worse.  They make more they spend more.  The doctors and lawyers may be book smart, but according to the author, they are decades behind on financial literacy.

Check it out, this is a good, inexpensive read!  Enjoy!

Link to purchase book – Used copies starting at only $.50

I hear a case of living beyond your means just about daily.  The entitlement factor in this country is unreal.  You need to get realistic and buckle down your finances.

Unfortunately, most people in our society have been brought up to live beyond their means.  We are surrounded by images and videos of people living extra large lifestyles that are simply out of reason for most.  Growing up with the constant barrage of the rich and famous, has created a society that not only thinks they need this lifestyle, but think they are entitled to it.

When growing up, most teenagers spend their parents money.  Unless they are working, they are likely spending their money on frivolous things like fancy clothes and electronics.  According to statistics, only about 42% of high schoolers find paid employment.  According to the statistics, less than 50% of teens are working, so their parents are funding their popularity contest.  They are simply keeping up with the teenage Jones’s.

Unfortunately, this upbringing sets the teenagers up for failure later in life.  They are taught that at no matter what expense, they must appear to be keeping up.  This is proven by their average credit card debt of over $5,000 for age groups 25-34 year olds.  Had they been taught the value of the dollar at a younger age, perhaps the frivolous spending would have stopped.

The worst part of this ridiculous spending spree is, that age is not a factor.  The statistics are similar for just about all ages.  Many books state the same.  The more you make, the more you simply spend.  Doctors, lawyers, and the like are all chasing their tails with the fast food burger flippers just on a different scale.  If you earn $20,000 per year, maybe you spend $10,000 on keeping up with the Jones items.  If you’re making $100,000 per year, your simply spending $50,000 on most expensive Jones items.

I don’t know the Jones’.

Many people have the ability to carry the perception of being well off for long periods of time.  However, eventually, the jokes on them.  The charade is over and all that is left is the consequences of leading this type of lifestyle.  The result is usually a lifetime of debt.  I like to refer to this as chasing your tail.  You can chase it all you want, but your never going to catch it.

What you need to realize is, you need to stop buying items you don’t need on credit.  If you don’t have the cash, DON’T BUY IT.  Its that simple.  You need to learn to sacrifice for the better long term goals.  Take a serious look at your spending. Tell yourself, you don’t know the Jones’.

Here are a couple of quick tips

1.  Learn to budget and search for bargains.  If you can’t pay cash, don’t buy it.
2.  Do not give children credit cards.  They do not have the financial foundation to handle them.
3.  If you have credit card debt, call your provider to negotiate a lower rate.
4.  Pay off small balances first, then tackle the larger ones.  Remember, always pay at least the minimum though.
5.  Once you’re out of debt, don’t go chasing your tail again, stay out of debt!

I can’t begin to tell you how much you can save by buying store brand or “value” brand groceries.  I never had really bothered to consider store or value brand items until I started to have the drive to save.  Now, I find myself constantly looking for value alternatives.  Between the grocery stores, and super stores, you can find almost any food or household item available in a value brand.  I have picked up many of these items to find virtually NO difference in taste or quality 95% of the time.  On the occasion, you will get a bad apple out of the bunch but overwhelmingly you will realize that this stuff is the same.  There have been articles online and news stories on TV about how many of the value branded items are actually manufactured by the name brand counterparts.

In most major grocery stores, the price tags on the shelves display the cost per ounce of food.  Compare the name brand to the value brand.  This is the easiest way to save and there is no confusion even if the package sizes are different since it is measured in ounces of actual product.

Expand your horizons and save!

Once you have your emergency bubble inflated and your debt paid off, you can pay cash for almost anything.  This can have its up side.

I have heard of multiple discounts given simply for paying with cash Vs. a credit card or check card.  The reasoning for this is merchants have to pay a fee plus a percentage of the sale just for taking the card.  The percentages are usually pretty low but if you run tight margins it can add up.

I have heard this specifically at gas stations.  Many times, gas is very low margin only making a few cents per gallon of gas.  Now if the credit card processor is taking only a few percent, they just ate up your profits.  By offering a cash discount in between the retail price and the loss price after the fees, they can save more profits.  Pretty simple for not having to do anything!  More times than not its the mom and pop shops doing this and it will usually be prominently advertised.

Another one that can save you tons is on labor work.  This can be anything from having your roof replaced to having someone cut the lawn.  Many times, the smaller contracting firms have to put materials on credit.  If you pay cash, they may be able to negotiate a better discount if its cash your paying with.  This never hurts to ask.  A few months back, I was able to bring a roof bid down from $9800 to $9200 and get much better materials in the process.

Everyone needs some time to get away from it all and relax sometimes.  Take a look at some of these tips and save big on your next vacation.

User Broker Travel Sites

Using vacation broker websites like Expedia, Orbitz, etc can save you tons.  I have the best luck with Expedia but I don’t travel too often.  Take a look at a few and see what you can find.  The idea for these sites is pretty simple, sell unsold seats and rooms for a discount.  Some money is better than no money.

With these broker sites, it is also easy to compare different travel times throughout the year.  If you are flexible on the days you leave and return, you can save a fortune.  I often go to Las Vegas and Sunday through Thursday seems to be the best bet most of the time.

Be sure to compare prices for extra days.  Last time we booked Vegas, we were only going to stay for 3 days.  Then we ran the price and realized it was literally the same price to stay for a fourth night.  They were running a promo for buy three nights, get the fourth free.  Even when that deal is not running, many times the extra night will only cost about $20.  Why not stay for the extra day?

Travel at Non Peak Times

Obviously, some destinations are more desirable at different times in the year.  However, if you are willing to go against the grain on this one, you can save a fortune.  I have literally seen half price vacations at non peak times.

Try to avoid Holidays and weekend, rates are almost always higher at those times.

Look for Discounts On Area Attractions

A quick google search can save you lots of money.  Before you take off for your destination, take a look at the areas attractions and activities.  Many times you can get discounts or deals when booking in advance.  Many attractions also post coupons on their websites or elsewhere online.  Again, a simple google search will help you find whats available.

Don’t Waste Money on Poor Attractions

The internet is your friend.  Looks for reviews of attractions you are thinking about.  Once you arrive at your destination, it can be much more difficult to find reviews on the attraction of choice.  Use this tip and stay away from the things that are not worth the price.