24

Saving Money

So far we've talked about self-development and getting in the right frame of mind for success. We've also talked about making money. Now I want to share the power of saving money and being a smart buyer.

When I tell people that shopping and buying is a skill, they usually think I'm crazy. After all, when you need something, you buy it—right? Yes and no. If you want to make the most of your money and maximize your spending power, you need to be a smart buyer.

I've seen people struggling to live on $250,000 a year, and others get everything they want and need on $50,000. What makes the difference? The way the money is spent.

How to Add Fifty Cents to Every Dollar

Once you learn to get the maximum bang for your buck, you will realize that by spending wisely you are effectively earning more money—but without working harder!

Now, I'm not saying that we should go and live on a park bench to save money. That's not a life style that you or I would aspire to. However, taking simple actions to save money can make a massive difference.

Do I Really Need It?

Before making a major purchase, think: Do I really need this, or is it a fad or impulse purchase? If you do really need it, consider the following options:

1. Could I rent it for the few days I'm going to use it?
2. Could I buy it and share it with someone else to bring the cost down?
3. Could I buy it secondhand, ex demo, or slightly used?
4. If I buy it and then sell it in X amount of time, what could I get back (depreciation)? ...

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