5 Easy Ways to Save Money and Eat Healthier!

  1. Stop buying microwave food! The prices are astronomical. With the same money you could make not only more, healthier, meals at home.
  2. Do not buy more food than you can use or store. Throwing away food gone bade food is the same as throwing away money.
  3. Use a slow cooker for easy, cheap, and healthy meals. Cook steamed vegetables, baked beans, pulled pork, roast beef and more. You will have lunches and meals for the week with one cook.
  4. Stop buying bottled water: Use a glass or plastic bottle that can be reused. Not only will you contribute to the planet, you will also stop spending money unnecessarily. As a bonus, lots of water fountains now have spaces to refill bottles just like this so you don’t have to awkwardly try to fill your bottle.
  5. Take your lunch to work: You’ll stop spending half of your budget for lunch if you start cooking it. And to point #4, make sure to get good quality reusable containers you can wash at home.

 

 

3 Master Life Hacks to help you Save Money for the rest of your life!

Let me know in the comments if you find this interesting!

When it comes to advice on money, things tend to be repetitive and kind of basic: create a savings account with limited access and put money there, make your own food at home, BUDGET BUDGET BUDGET!

These are of course not bad places to start when it come to being frugal- but it’s easier said than done. Below are some great life hacks that can help you get in the frugal mindset and save money for the rest of your life.

Think In Terms Of Time Spent Rather Than Dollars Spent.

If you have a very relaxed attitude about money, like I many people, then thinking about throwing away $50 on something or other doesn’t disturb you. If that’s the case, then you should start thinking about a purchase in terms of your time rather than in terms of cash. Think about how many hourly wages you will spend on something.

Always have enough Cash to back up any purchase you make, decrease the expense with cashback credit card programs.

Only buy things when you can afford to pay for them in full- take advantage of credit cards cashback offers to save $$ and pay off your bill in full each month. You can save 1-5% on your purchases this way.

Eliminate Impulse buying

Every time you want to buy something, anything… Just wait 1 week. Think about it or don’t think about it. The real goal here is to get out of the mindset of impulse buying. Investing in this good habit will save you money time and time again.

The Minimum Payment Trap

On the outside, minimum payments are made to look harmless and as though they exist for your advantage. However, this couldn’t be further from the truth. Minimum payments are designed to keep people in spiraling debt.

The lower the minimum payment (relative to the size of the loan), the more interest you will pay.

When you take out any sort of loan loan, there is often a structured loan repayment plant for the duration of the loan. Lower minimum payments are attractive to consumers because they see it as an opportunity to make big, expensive purchases without the need to save up for them. The problem with this model is that on top of paying for the items or commodities in question, you also pay interest on a loan. While this is widely known, what is not widely known is that Minimum payments maximize your out of pocket expenses significantly. 

My friend recently bought a home for a relatively affordable price in Bellevue, Washington. A year or so after buying the home, he found out the house had severe electrical and plumbing issues. He had to take out a second mortgage to gut, fix, and repair the whole house. At first, he was very happy because the minimum amount due per month on the 2nd mortgage was very affordable and would let him fix his abode.

Still, due to the cost of the repairs and materials, he did most of the work himself. I would come over to help him with heavy things or to hang drywall occasionally. One day I came over and he was noticeably upset. I ask him what was wrong, and he told me this:

(paraphrasing) ” I just found out that if I make the minimum payment on my second mortgage, I will pay twice as much across twenty years. I can’t afford to make much more than the minimum payment between other bills, my first mortgage, and student debt. I’m f**king screwed for twenty years. I looked into my other debts and it’s the same thing. I make $100,000 a year, but I can’t save anything because of all of my bills. How can I raise a family without sinking further into the hole?”

He had been lured into the minimum payment trap for the past decade of his adult life. He’s an opportunist. He saw every loan with a minimum payment as an opportunity to buy things he didn’t necessarily need… like the boat he purchased a few years ago. He doesn’t get to spend much time on it. It costs him a few hundred a month and it will continue to do so for years to come.

How do I beat Minimum payments?

The best way to get a head of minimum payments is to not take out loans in the first place. Save your money, then make a purchase. Not the other way around.

What if I already have Minimum payments to make?

Don’t make the minimum payment, even if you can only pay 5% more it will save you in the long run. If you can afford to pay more upfront on the loan, do so. If you can afford to make higher monthly payments, absolutely do so.

What if I have no other options, I need to take out a loan?

Same advice as above, try to put as much down up front as you can. Always pay more than the minimum payment due. Make sure to review the loan terms with scrutiny, some loans have terms that change after five years.

Featured Image Source

Read my latest book!

Goal Achieved: $3 per day passive income

 

In an effort to discover what works and what doesn’t with passive income, I recently decided to give affiliate marketing a try.

I think affiliate marketing is great, but only if you truly believe in the product. I don’t think it’s fair to back a product if you’ve never used it before. That said…

I decided to made a new WordPress Site. This site was focused on primarily survival/outdoors gear. I was inspired to make the site to increase awareness for basic emergencies supplies, how to use them, and where to get them. I monetized the site by using affiliate links instead of ads. Such that if a user purchased the product through clicking the link on my site, I would receive a small cut of the sale.

 

clicks
The First Week. Amazon pay’s fees on shipment, not on click.

Everything went great with the site for the first week! The first few days saw several hundred views, and many users engaged with my links. Following the first day, I began to see revenue. All in all, about $30 bucks for the week and I didn’t lift a finger. I also hadn’t yet done SEO or anything of the sort. I was enthralled!! I was officially making passive income.

Why do I say was? Because over the weekend my site was shut down. It was hosted with a free wordpress.com domain, and for some reason the site was blocked. If you look at the image above, there were two days with no traffic, and thus no affiliate revenue.

After reviewing the terms word for word It was not clear to me what I did that was against the terms. So, I contacted customer service. However, I did not and have still not heard back. Defeated, I choose to research my options- as it was clear I could no longer host this site on wordpress (for whatever reason).

After much deliberation, I went with hostgator. I compared bluehost and godaddy as well as a few others, but hostgator provided the best value for the product. So far everything has been great with them. Plus, I can make as many sites as I want. The site is back up over the weekend and is again bringing a few dollars a day. I had to rebuild most of it. XP

Hopefully, it will keep making a few bucks a day. If so, then I may have to expand on my endeavors. It also may stop generating revenue, in which case I would re-evaluate my model.

Either way, I’ve never made passive income before. $3 seems insignificant, but it adds up. Assuming the totally unlikely probability of $3/day everyday for 40 years, that’s nearly $44,000. Assuming every site I make makes $3 a day, I would need to make 50 sites to live comfortably.

Either way, it’s more than just making money! It’s also being savvy with your money!

Next goal: $10 per day!

EDIT: GOAL $20 per day ACHIEVED!

 

Bill Gates thinks we need new economic models

Nearly forty years ago Bill Gates, along with Paul Allen, founded Microsoft. Since then Microsoft has been a driving force in the software, enterprise, and IT industries. He’s also one of my personal heroes.

He posted this note on his blog after reading “Capitalism Without Capital” by Jonathan Haskel and Stian Westlake.

Gates points out that the intrusion of software into the industry that was previously driven by tangible goods the world needs to rethink economic models. He points out in the below image of the Supply/Demand model that this is how he was taught the economy worked.

It’s not entirely untrue, but this model doesn’t work for software anymore- because software can be deployed and shared anywhere for little to no cost. Rather than things like cars- which require materials and people to assemble each one. Software is also no longer very transferable- with many companies moving to subscription based models requiring you to log in to the software for access. As such, you can’t sell used software easily anymore. But you could still sell your car.

Regardless… the blog post is great and you should check it out: Gates on Gates Blog

I’m going to check out Capitalism w/o Capital! When I finish it I’m going to post my perspective on it, as I wonder- between job loss and other things- exactly how the worlds economy will evolve in the coming decade.

Source:

Gates on Gates Blog

The Minimum Payment Trap

On the outside, minimum payments are made to look harmless and as though they exist for your advantage. However, this couldn’t be further from the truth. Minimum payments are designed to keep people in spiraling debt.

The lower the minimum payment (relative to the size of the loan), the more interest you will pay.

When you take out any sort of loan loan, there is often a structured loan repayment plant for the duration of the loan. Lower minimum payments are attractive to consumers because they see it as an opportunity to make big, expensive purchases without the need to save up for them. The problem with this model is that on top of paying for the items or commodities in question, you also pay interest on a loan. While this is widely known, what is not widely known is that Minimum payments maximize your out of pocket expenses significantly. 

My friend recently bought a home for a relatively affordable price in Bellevue, Washington. A year or so after buying the home, he found out the house had severe electrical and plumbing issues. He had to take out a second mortgage to gut, fix, and repair the whole house. At first, he was very happy because the minimum amount due per month on the 2nd mortgage was very affordable and would let him fix his abode.

Still, due to the cost of the repairs and materials, he did most of the work himself. I would come over to help him with heavy things or to hang drywall occasionally. One day I came over and he was noticeably upset. I ask him what was wrong, and he told me this:

(paraphrasing) ” I just found out that if I make the minimum payment on my second mortgage, I will pay twice as much across twenty years. I can’t afford to make much more than the minimum payment between other bills, my first mortgage, and student debt. I’m f**king screwed for twenty years. I looked into my other debts and it’s the same thing. I make $100,000 a year, but I can’t save anything because of all of my bills. How can I raise a family without sinking further into the hole?”

He had been lured into the minimum payment trap for the past decade of his adult life. He’s an opportunist. He saw every loan with a minimum payment as an opportunity to buy things he didn’t necessarily need… like the boat he purchased a few years ago. He doesn’t get to spend much time on it. It costs him a few hundred a month and it will continue to do so for years to come.

How do I beat Minimum payments?

The best way to get a head of minimum payments is to not take out loans in the first place. Save your money, then make a purchase. Not the other way around.

What if I already have Minimum payments to make?

Don’t make the minimum payment, even if you can only pay 5% more it will save you in the long run. If you can afford to pay more upfront on the loan, do so. If you can afford to make higher monthly payments, absolutely do so.

What if I have no other options, I need to take out a loan?

Same advice as above, try to put as much down up front as you can. Always pay more than the minimum payment due. Make sure to review the loan terms with scrutiny, some loans have terms that change after five years.

Featured Image Source

Read my latest book!

5 Easy Ways to Save Money and Eat Healthier!

  1. Stop buying microwave food! The prices are astronomical. With the same money you could make not only more, healthier, meals at home.
  2. Do not buy more food than you can use or store. Throwing away food gone bade food is the same as throwing away money.
  3. Use a slow cooker for easy, cheap, and healthy meals. Cook steamed vegetables, baked beans, pulled pork, roast beef and more. You will have lunches and meals for the week with one cook.
  4. Stop buying bottled water: Use a glass or plastic bottle that can be reused. Not only will you contribute to the planet, you will also stop spending money unnecessarily. As a bonus, lots of water fountains now have spaces to refill bottles just like this so you don’t have to awkwardly try to fill your bottle.
  5. Take your lunch to work: You’ll stop spending half of your budget for lunch if you start cooking it. And to point #4, make sure to get good quality reusable containers you can wash at home.