UNCOMMON CENTS 32

SHORT OF BEING DAVID GEFFEN, BRAD PITT OR OPRAH WINFREY, HOW DO YOU ACQUIRE WEALTH? KNOW THYSELF. KNOW HOW TO ENGAGE IN RISK ASSESSMENT, SIZING UP YOUR DETRIMENTAL BEHAVIORS THAT ARE COSTING YOU MONEY. OBVIOUSLY, SPENDING EVERYTHING YOU MAKE LEAVES YOU NOTHING TO INVEST. SPENDING MORE THAN YOU MAKE LEAVES YOU IN DEBT. START WHEN YOU ARE YOUNG TO PUT MY 3 SUGGESTION TO WORK FOR YOUR FUTURE. START DOWN THE PATH TO WEALTH. WHY WEALTH? IT’S BETTER THAN POVERTY WHICH NECESSITATES SOMEONE ELSE BESIDES YOURSELF BAILING YOU OUT OF A FINANCIAL JAM.

MY 1ST SUGGESTION IS TO PAY YOURSELF. WHATEVER YOUR SOURCE OF INCOME, PUT THE FIRST $50 OR $100 FROM EACH PAYCHECK ASIDE FOR SAVINGS. MY 2ND SUGGESTION IS TO THINK CASH. PAY WITH CASH. DON'T EVEN CONSIDER A CREDIT CARD IF YOU DO NOT INTEND TO OR HAVE THE MEANS TO PAY IT OFF EACH MONTH. REFUSE TO BE BEHOLDEN TO OUTSIDERS FOR 'HELP' OR INTEREST PAYMENTS. THEY ARE NOT 'REALLY' HELPING YOU. MY 3ND SUGGESTION FOR CREATING SAVINGS IS TO AVOID DEBT. THIS IS WHERE KNOWING YOURSELF AND ELIMINATING RISKY HABITS LIKE PARTYING AT THE CLUBS, EATING MEALS OUT OF THE HOME, GOING TO TANNING SESSIONS OR SHOPPING AT THE MALLS COME INTO PLAY. STARTING DOWN THE OPEN ROAD TO WEALTH IS EXCITING AND SELF-SATISFYING BUT INITIALLY IT REQUIRES SELECTIVITY AND SACRIFICES. INSTEAD OF BUYING HEINZ KETCHUP, MOUNTAIN DEW OR A NEW BEDROOM SUITE - AS YOUNG AND EAGER YOU BEGIN YOUR JOURNEY - BUY GENERIC KETCHUP, GENERIC SODA POP AND GENERIC FOOD ITEMS. INSTEAD OF NEW FURNITURE BUY USED ITEMS AND AN INEXPENSIVE NEW (OR SANITIZED USED) SET OF BEDDING.

AS YOU MAKE ENOUGH MONEY TO PAY YOURSELF FIRST, TO PAY CASH AND TO FORSWEAR DEBT, BE VALUE CONSCIOUS AND DISLIKE WASTE. YOUNG PEOPLE, OLDER PEOPLE, MOST PEOPLE - WHY FOLLOW THE CROWD?- WASTE INCOME TO LIVE EXTRAVAGANTLY WHEN, IF THEY LIVED SATISFACTORILY OR COMFORTABLY, THEY COULD FOLLOW THE SMARTER ROAD TO FINANCIAL INDEPENDENCE. KNOW YOURSELF, KNOW YOUR WEAKNESSES, THINK THROUGH THE QUALITY AND QUANTITY OF YOUR NEEDS AND WANTS. FOR EXAMPLE, POP FROM A SODA DISPENSER IS EXPENSIVE AND WASTES YOUR MONEY. IF DESPERATE - AND WHO REALLY IS ? - GRAB A DRINK OF WATER FROM A PUBLIC FOUNTAIN INSTEAD. THE ACQUISITION OF COSMETIC JEWELRY, FOR EXAMPLE, WHICH NEVER APPRECIATES IN VALUE REPRESENTS WASTE. THE PURCHASE OF A HOUSE TO AVOID MAKING RENTAL PAYMENTS, ON THE OTHER HAND, REPRESENTS A LONG-TERM INVESTMENT AS LONG AS THE MORTGAGE PAYMENTS DO NOT REACH BEYOND THE MEANS OF YOUR BUDGET.
HINT: TAKE THE FIRST THREE STEPS DOWN THE GOLDEN PATH TO WEALTH AND SELF-SUFFICIENCY.