Okay Future Millionairess I have not been consistent AT ALL! I've just been out here trying to prepare for what may be the biggest step toward my personal millions!! BUT as always the dependable AND timely Mr. Jones has come through with yet another MONEY MODAY! Check it out and don't worry I will be back on track this week.... Hugs Kisses and Dollars.
MAKE MONEY WORK FOR YOU
To start off this Money Monday, you have to understand the millionaire mindset. Wealthy people don’t work to make money; they make money work for them. Money is simply a means to accomplish an end; it is a tool to be used for whatever your goals are in life. Just like any other tool, it best accomplishes that goal when you are using it right, making it work most efficiently.
When it comes to making your money work for you at this stage in life, there are three key areas to start with:
1. Making serious spending cuts: Last week I told you to make a budget and begin keeping track of expenses. In order to make your money work, you have to take control of those expenses. We waste so much money on convenience and spoiling ourselves, but becoming aware of these financial hemorrhages can stop the bleeding. Whatever your top 3 expenses are, decrease them by just 10% every two weeks for two months. This gradual decrease should not be hard, but it will take discipline. Keep track of your progress and reward yourself for it.
2. Earning a healthy return on every dollar: We also talked about saving last month, which can be different from investing. Wealthy people don’t just save; they invest. Don’t get ahead of yourself though; I’m not referring to stocks and bonds at this point. The goal of investing is getting a return on the investment (i.e. how much money can this $1 make me). The best return that you can get right now is to pay off any debt, specifically credit cards. Consider this, most credit card interest rates are between 13-25% annually, meaning for every dollar you have on your balance, a year from now, you will owe $1.13-1.25. If you pay that dollar today, you have essentially made yourself $.13-.25 without any of the inherent risk and research that comes with trying to get that level of return in the stock market. Once your credit card is paid off, maybe in a future Money Monday, we can discuss more advanced methods of investment.
3. Improving and maintaining credit: Now bear with me on this one, because I know I just told you to pay off your credit cards. However, one of the most important things that you can do to build your credit score is to spend on your credit cards. First understand that card companies make money off the interest you pay, but their biggest revenue source is the stores and restaurants that have to pay Visa or American Express every time you swipe your card. The more you swipe, the more money you make for the card company, and the more they will reward you. These rewards (from personal experience) include free flights, lower interest rates, and higher spending limits. The trick is to use the cards for recurring expenses (cell phone bills, gassing the car, groceries), and PAY THEM OFF IMMEDIATELY. Interest is charged after a balance has been on the card for a month, so if you buy $200 of groceries with your credit card and pay $200 within a month, you will not be charged any interest for the purchase. This will build your relationship with the card company and also improve your credit score. (Keep in mind that its still best to use cash for those miscellaneous expenses that can often add up).
Those are three quick tips that should get your hard earned money to start working hard earning you more money. Please comment if you have any questions about any of these or last weeks tips, maybe your question will get me invited back to write another Money Monday!
Until then, remember, money is only as valuable as what you spend it on.Andrew B. Jones
Thank You Mr. Jones!!!
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