The Right Perspective: Through A Blender?
I’ve been pondering the best way to handle to achieve my goals long term and it seams that the best approach is going to be through a blended mixture of several things:
- Looking for ways to not spend money
- Looking for ways to earn extra money
- Looking for ways to use the money I already have as a tool or sets of tools
It is easy to get caught up in the mindset of making more money (and this blog’s title indicates that, but it was intended as a play on words and for humor purposes rather than a philosophical statement), but instead of just one leg to this stool, lets embrace as many aspects as possible and look at the problem from all angles.
Not spending money on frivolous things, or being frugal, is one important aspect. Not to the point of suffering, but to the point of discerning needs, wants and the in between elements and knowing what needs to go. Know whether or not you need to spend that money and also know the long term consequences of saving that money, with interest.
Looking for ways to earn extra money will involve your knowing what you have time for, what you can get done in that time, and also evaluating the cost and return on investment associated with making that extra money. Sometimes that is moonlighting, sometimes that will be a side-business and sometimes it will be short-term projects that you know will be money makers.
You’ll want to make sure that you’re maximizing the money that you do have. One of the ways that you can do that is to find the best accounts available for the different financial institutions available. Trent at The Simple Dollar suggested getting a high yield savings account. I’ve got one set up now. In many cases there’s a minimum amount that you have to have in the account to make the 5% (or whatever the account is offering), but if you can keep that amount in there and use that account as a holding account to before passing the funds to other accounts (such as an IRA for tax savings) then you’ll get the earned interest, plus the tax savings before the tax season is over.
Think about how you’re using your money, be wise with it, know its current value, its future potential value, and think outside of the box as you look for ways to improve your estimated net worth.
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