My obsessive-compulsive hubby is on a health kick so he’s been borrowing fitness books and mags from the library (we’ll also eat brown everything, brown rice, brown bread, even brown crackers but that’s a whole other rant).
Browsing through last April’s copy of Men’s Health (99.9% of the articles are on making money, uncovering ripped abs and of course how to land hot girls), there’s an article Money To Burn – 9 Simple Ways To Build 7 Figures. I thought it would be fun to cover it this week (besides I received a request from a publisher for a full manuscript and am rushing to give it one more edit ...my creative ideas are tapped).
1. Create a personal expense account.
“Seventy percent of you have a savings account, but less than half of you use it. This wouldn’t be a criminal offense, except that almost 30 percent of you regularly pay overdraft or late fees, because you don’t have enough money in your account to pay your bills on time, every time.”
The solution?
The author, Anya Kamenetz, suggests putting enough money in the checking account to waive the service fees and to pay the months bills. The rest goes into a savings account.
Basically this is pay yourself first which we know works (I use this myself). Takes the budgeting out of managing money.
2. Go to the ATM once a week, no more
Experts say going to the ATM more than once a week is a red flag that our finances are in trouble.
I get paid once every two weeks so it really doesn’t make sense to go to the bank more than once a week. And the more I take out, the more I spend. The hubby and I give ourselves allowances and when the cash is gone, I quit spending.
3. Take a salary cut.
Again, not exactly earth shattering advice. If your 401k plan offers up a match, that is like free money. And contributing 10% to the 401k with the tax savings is only a drop of about 7% in take home.