I Spending A Money spent today can t be spent tomorrow Must plan how to spend Enjoy the things you buy not the buying of things B Secret to getting rich Spend less than you make C If you really want something what are you willing to give up to get it If you enjoy it then do it and cut back somewhere else D Notice it is what is important to YOU It depends person to person but you have to take into account opportunity costs of what you could have spent that money on Opportunity cost the loss of potential gain from other alternatives when one alternative is chosen E SAVE more than you SPEND 1 Ex 1 was the richest man in the world and one of the richest men in the world Warren Buffet these guys both live in the same house drive a prius etc Very very frugal remember being frugal doesn t mean cheap means smart 2 Ex 2 was lottery winners several of them basically they get this lump sum of money don t know how to save it and go out and spend on cars and houses one lady even got a loan for her lottery sum because she wasn t getting paid in lump sum and she wanted her money now ended up being in debt and the financial company who loaned her money never saw a cent 3 Long story short just because you have it doesn t mean you have to spend it save and spend within your means or at very least spend a of it not all of it CONSCIOUS SPENDING realize what your willing to give up to get up would you rather have new jacket or retirement house little things ADD up look at what you like and prioritize own life and Too much money left at the end of the month Feel guilty buying something But buy it anyway Suppose o You could save and invest o Then spend money guilt free Catch must plan how you ll spend ahead of time Frugal isn t cheap IT S SMART Frugal choosing what to spend money on o Spend of what s important to YOU not on what isn t SET YOUR OWN PRIORITIES o This is conscious spending It s a trade off of priorities o Fight social pressure spending Keeping up with others is a full time job watch out for peer pressure that She talks about having on X amount of dollars and if you cant afford something change she said you will be amazed at how we can change when we have too o Where you living to expensive GET A CHEAPER ONE as simple as o Example if you are paying a car payment of 300 dollars and now your loan is paid off down go blow the 300 each month instead make the loan payments to YOURSELF save it o Same thing with raises gift certificates tax refunds etc Its money you didn t have before save it o Tax Refunds it is your money try and manipulate play the figure IRS has to take out of paycheck more dependents hold less if you are getting back huge tax return giving government free use of your up the of deductibles get to keep a little more of paycheck o Just because you have cash doesn t have to burn a whole in your pocket save it for a rainy day you will really want something Being rigid DOES NOT work long term you can treat yourself take a LITTLE bit of what you want etc BUT don t do it with 100 of the money You can have multiple accounts divide money up into different accounts you can have a clothing account and a emergency fund and a eating out account etc whatever categories that you need if it helps you F Save all your change JUST DO IT ADDS UP G Don t buy things pay for things not reading Example Having a DVR with 8 different shows once there are not 8 good shows at once downgrade package Example Magazine subscriptions send something 3 months free and cancel at anytime they bet your lazy and wont cancel usually right cancel them if you don t read Example Gyms I am going to workout every Monday morning NAAA you are going to just sleep cancel it Bundle Services ask as see what you are paying she used example of comcast bill just simply call be very friendly and ask for latest deal they will lower rate she was paying for mega channel package she didn t even watch all you gotta do is make a dang phone call dooo itttt O thats only a couple of cents NO IT ADDS UP Not being cheap just being NOT stupid Spend Wisely Don t pay more than you must Sales season changes holidays coupons Comparison shop prices gas time return policy Generics off brands Internet Additional costs Shipping handling sales tax Inexpensive things add up sweat the small stuff Buy what you need Use appropriate Multiple use Spend Wisely o Go less expensive not without o Consider the total cost printers are super cheap now but they get you with the ink which is the main cost over time o Don t throw away money LITERALLY o Utilities turn off lights don t turn sink on hot every time it doesn t get hot in time anyways Cell phone plans just get the unlimited or down size to your needs Impulse Buying and Hidden Costs Concentrate on 2 areas where you spend the most o Those are where you most likely need to cut back Instead 5 or 6 beers have 3 or 4 and save rest Some ideas Leave price tags on save receipts Delay purchases Interest payments result in items costing more Remind yourself of opportunity costs Still Budget Problems Handling Money Track spending Don t cut out REDUCE Set Your Own priorities Expect the unexpected emergencies Be flexible Serious Debt Issues Examine committed expenses Too much housing expense Too much car H Saving Young I Saving and Wise Spending o Don t increase spending Continue loan payments to YOURSELF Raises bonuses tax refunds gifts Divide money into pools o Review automatic payments Subscriptions clubs cable bundled services gym o Examine insurance needs What s it for PROTECTION J Insurance Health home car disability Shared risk another trade off premiums o How much can you hangle yourself Self insure Choose deductibles Life 1 10 o Term versus Whole Life start 26 total 6 30 o Ex Life insurance term life oldest best way usually 5 10 years Renewable term Death benefits not taxed After age 50 you probably won t need life insurance anymore o Whole life versus ordinary life K GOT TO PUT MONEY AWAY FOR EMERGENCY Write down everything you spend and you can see where you are really spending DONT CUT OUT REDUCE Set your own priorities not what your neighbors are doing If you got some serious debt issues still Get your money for that month and get into cash and put into different …