Really Saving Money… And Do I Feel Guilty About Bitcoin?
I was a guest on WOCA Radio this past week, which is a central Florida station you can hear on 96.3FM.
It was a very fun show where we discussed ways you can save some real money, as well as why I don’t feel guilty when Bitcoin is used for criminal activity (just like I don’t feel guilty about dollars being used for the same thing).
We uploaded this 10-minute clip on our YouTube channel.
Here are 7 life disciplines to help you save money.
1. Make your savings inconvenient; if your savings are only a mouse click away from being spent, it’s likely to be used at the first sign of trouble or desire.
Set up an online savings account with a faraway bank, set up an automatic plan with your main bank account, and then with the savings account, throw away the debit card they send and lose your online access. Make it so you have to call them to make a withdrawal or have them send you a new debit card.
Creating obstacles between you and your savings can help you preserve them and helps you get in the habit of not tapping into them every time you feel the need.
It’s also why I love to save in gold and silver, as it takes a lot to mentally sell an asset so beautiful.
2. Only buy what you can afford, not what a bank will lend you to buy. Never forget that you become someone else’s asset when you owe them interest payments.
Albert Einstein famously once said about interest that “he who understands it, earns it… he who doesn’t… pays it.”
3. Pay yourself first. Make sure you set up an automatic savings and investment plan and have it deducted directly from your paycheck or taken out of your checking account. Just like the landlord or a college loan needs to get paid, so do you. Save at least 10% of your income and do it automatically.
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4. Downsize or become a minimalist. Move to a cheaper area or live in the smallest possible apartment you can. Save and sacrifice for 5 years and it will make the next 50 much more pleasant.
Les Brown, a motivational speaker, often says “do what is easy and your life will be hard. Do what is hard and your life will be easy.”
In our 20s, my wife and I not only moved to save 50% on rent, but we even squatted in a friend’s foreclosure for 9 months (rent-free). We lived poor, but today, we live a 5-star lifestyle in our late 30s.
5. Make sure your car is paid off. If it’s not, ask yourself why not. Seriously, there is no reason to be in debt over a car.
Buy a cheap car or sell an expensive one, but don’t go through life with a car payment. It makes no sense other than to impress your friends the first time they see you in a new car. After that, it’s just a money sucker that has no real asset value.
6. Stop speculating in the stock market and start buying investments that pay you. Rich people do this, so why not mimic them?
Invest for cash flow, not capital appreciation.Instead of blindly throwing money at the stock market, look at dividend-paying stocks and crowdfunded real estate funds, like FundRise.com and PeerStreet.com.
7. When buying your first home, think of it as a rental, not your final destination. Buy an affordable home that you can pay off in 15 years. It becomes a huge asset in your life when you turn it into a rental in a decade, and this cash flow will be with you for the rest of your life, giving you a huge income advantage.
If you haven’t already done so, don’t forget to listen to my interview with Robert Kiyosaki. He wrote the number one personal finance book of all time, Rich Dad Poor Dad.
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Legal Notice: This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.