Saturday, January 11, 2014

Put Wealth Building On The Fast Track

There are many ways to invest and build wealth, but to maximize investment, you must invest as much as possible.  The best way to do that is to watch how much is being spent on things other than investment.  There is only so much money available from income to work with, so allocate it wisely and you will be rewarded in later years.

Eating less can help (with a diet and with spending), but you still have to eat, so there is a limit to how much you can save with this option.

Economising on utilities such as electric, water, and heat can likewise allow you to redirect income towards investment.  Knocking down the cable bill by removing premium channels and streaming with devices like Roku and Chromecast will also help.

Spending on things should be prioritized by NEED, not want.  Do you really need that new slicing kitchen gadget, when the knife does the job (and burns more calories)? Gifting should be reasonable...do not fall into the guilt trap and spend too much to make yourself feel better...after all, isn't it the thought that counts?

There are many other areas where spending can be curbed.  Just look at your credit card statement to see what those items might be costing you every month.  Also think about downloading an app on a smart phone or tablet (like Mint or Money Lover - Expense Manager) that can be used as a spending journal to track items...you will be surprised what you find.

DIY and reap the rewards:

An area I dabble in to save money is DIY..."do it youself" on household repairs and auto repairs. I have a thirst for knowledge anyway, so this activity helps with that. The satisfaction you get with completing a task feels great, and you save a LOT of money over time...even if you do not tally it up so you can watch the amount grow over the years.

Every time you have to call a "Professional" there is the service fee, then the paid time to figure out the problem, then the cost of materials (which is normally higher than you could buy them for), then the paid time to fix the problem...meanwhile, you have to wonder sometimes, if they actually know what they are doing...I could do it wrong all by myself, for less (after gaining knowledge over the years, you actually start to know how things are supposed to be done, and can easily see when they are going wrong. Even though the repair person is supposed to be qualified, it does not mean their work will be up to par).

There is also the amount of time it takes to fix the problem...repair people have other customers with needs...and your needs may not be at the top of their list.  I may take longer, but the dollar clock is not running, and I just may finish before the professional would have.

There are some things nobody should try to tackle on their own.  With scary repairs it may be helpful to enlist a friend in the trades.  An example might be electric repairs:  depending on the size of the repair, the voltage, and the amount of primal fear you have about the "magical power in the wire", you may not even want to touch it.

Each sizeable repair you avoid paying for will add hundreds of dollars to your investment potential.  Any other dollars saved from using your "disposable" income wisely will add to this amount.  All that remains is to redirect this income wisely by investing in great companies that pay dividends.

Some articles in this blog are about repairs in and around the home.  If you have the skills to do repairs, or would like to acquire them, these articles will help.  Googling how to do these and otherrepairs will also help.

I always google repairs I want to tackle, even if I know how to do them.  Often, I pick up additional hints and tricks on how to do the job easier.  We are in the information age...why not make use of it to build your wealth?