Money Monday: Building Wealth is Not Glamorous

BY: - 28 Oct '13 | Money

Share this article!

TNMWomanMoneyPiggyBank

We’re addicted to the big play. The allure of the quick win seduces us all. Vicariously we watch the average Joe collect new found lottery millions, thinking – just maybe – one day it could be us.

The nation hangs onto every episode of American Idol or the X Factor, waiting for the next rags-to-riches winner to be revealed. We read about the young entrepreneur who made millions seemingly overnight or the stock investor who suddenly made it rich investing in penny stocks.

Yes, we’re junkies for the quick score, the big win, the rags to riches fantasies.

In fact, one out of every five Americans believes winning the lottery is a viable way to save for retirement. And perhaps that’s why frugality and all of this personal finance stuff seems so downright boring.

Creating Wealth Isn’t Sexy

Our best money management moves never produce the quick payoff. We may not even see the fruits of our money saving practices for months or years to come.

Overnight fame and riches are sexy. Frugality, not so much.

In money matters we become successful playing small ball. Instead of the touchdown bomb, it’s about stringing together a series of first downs until you score. It’s about hitting several singles in row, rather than striving for the glamorous home run.

Small Steps Eventually Lead To Big Wins

Cutting coupons, shopping the sales, and buying in bulk may save you $40 a week on your grocery bill. I’ll admit, it doesn’t create much excitement. But consider that $40 in savings will snowball into $2080 worth of savings by the end of just one year.

Eliminate your land line and you may save $70 a month. May not seem like much until you realize that’s a $840 yearly savings.

Cut the premium cable package and you’re saving $700 a year or more.

Take your lunch to work twice a week and you’ll easily rack up $600 annually.

Likewise, unplug unused electronics and turn off the air conditioner while you’re away from home and pad your pocketbook with an extra $350 a year.

Switch from a bank to a credit union and you’ll save $300 a year or more in fees.

The Simple Truth – Slow And Steady Wins The Race

The small steps are never glamorous. Clipping coupons, cutting expenses, and making small changes seem mundane. But implemented consistently, they build lasting wealth.

And that’s something you can get excited about.

BMWK, what are some of the small changes you’ve made to put more money in your pocket?

About the author

Alonzo Peters wrote 261 articles on this blog.

Alonzo Peters is founder of MochaMoney.com, a personal finance website dedicated to helping Black America achieve financial independence.

Store

like what you're reading?

Start Shopping!

Discussion

Facebook Wordpress

2 WordPress comments on “Money Monday: Building Wealth is Not Glamorous

  1. Renee

    Great tips. I made adjustments by buying clothes at the end of the season, investing in classic styles and not trends so that I can wear them for longer periods. I always shop in groceries where coupons are doubled. I also purchased a kitchen water filter (cost less than $30 with coupons)and stopped buying bottled water.

Leave a Reply

Get
Money Articles Delivered To Your Inbox Daily! Sign up below!

Single & Free to Do What I Want: 6 Tips for Good Money Habits

BY: - 31 Oct '13 | Money

Share this article!

TNMWomanFreeLetGo

One of many favorite things about being single is financial freedom. When you don’t have someone else depending on you, it’s amazing how much “stuff” we can accumulate. We can buy what we want when we want.  And as long as our immediate necessities are met, we can basically live with very little sense of responsibility. The issue with this is that it becomes easy to develop bad habits around our financial responsibility. We want to mold ourselves to truly be a “better half” when we enter into a serious relationship.

Here are some quick tips to remember as we develop sound financial habits:

Budgeting: It’s important to put your income and expenses on paper every month. Seeing where your money goes give you control. When we don’t budget, we don’t manage our money which gives away the power we have over how we use our funds.

Savings: An emergency fund should be funded for 6 months of expenses in an accessible account. Contribute to your company’s 401k to build retirement savings. The earlier you start, the more interest you will accrue to thoroughly fund your 401k. Set aside specific savings for large purchases like vacations, cars, Christmas funds, etc.

Spending: Our budget should account for things such as clothing, gas, car maintenance, food, expected doctor visits, replacing equipment (like a computer or cell phone), toys for the kids, café visits, etc. We can save a lot of guilt and buyer’s remorse when we plan how we spend.

Giving: Most of us want to give to certain causes, charities and often our places of worship. Giving will give you the most pleasure of all of the things you do with your budget when you get to impact someone’s life in a positive manner.Every budget should have a line item for giving.

Credit: Your credit score is comprised of the data on your previous account histories.Learn how to build your score. Lower your account balances. Stay on time with your payments.Don’t get overextended on debt (no debt is always better).Track your credit score.You can order one free credit report per year from annualcreditreport.com.

Taxes: Learning to manage your tax burden is one of the most important keys to building wealth. Tax laws update each year.Find a knowledgeable tax professional or accountant. Get in the habit of keeping receipts for purchases. Work with your tax professional to learn how to minimize your tax burden during the year.

Communication: Work with good financial counselors and coaches to learn to make wise financial decisions.Learning to talk about money when while you are still single. Personal finance and wealth building thrive in relationships when we have open communication.

About the author

Jay Hurt wrote 76 articles on this blog.

Jay Hurt is a Relationship Coach, columnist and author of the book, The 9 Tenets of a Successful Relationship (http://9tenetsonline.com/about-the-book ). Jay’s focus is working with people who want to design better relationships and get more out of life!

Store

like what you're reading?

Start Shopping!

Discussion

Facebook Wordpress