My friend shared this great article on facebook. I thought this is a GREAT new years resolutions list for me. My commentary is in red.
Pay Down Debt
You’ve heard it before, but paying down any debt, regardless of how small, saves you money and makes you feel a little better about your finances. Start with a small debt and use the money you saved to pay down another debt. I’m so proud of myself. Ever since I paid off my credit cards 2 years ago, I’ve never been in CC debt again! It’s great because they keep raising my limits and giving me more cards with rewards! Car bought in full. The only debt I can think of is my school loan. But it’s doable by June 2013! Yay!
Cut Out a Luxury
Cut out your Starbucks twice per week and you’ve saved $416 a year. Put that $416 towards debt, or put it in your Individual Retirement Account (IRA). Over 20 years, that $416 invested that you saved each year, would turn into $15,500. This is hard because I can be a shop a holic. But ever since yobo started buyin things for me, I will shop less… hopefully. And I am going to learn how to open an IRA.
Save
We live in a world where saving is like flossing. We know we should, but we don’t do it enough. The top 1% have made saving a habit. Some of the 1% still report that they shop with coupons. This is a habit I started in the later 1/3 of this year. I was only able to save roughly 15% of what I made. My goal next year is 30%!
Live Within Your Means
Billionaire Warren Buffett still lives in the modest home he purchased in 1958 for $31,500. Are you living within your means? If you do it now, your “means” will rise as you save more. No more excessive shopping. I’m actually going to enroll in the sewing & fashion classes next year so I can start making my own clothes and not spend money buying much anymore. YAY!
Don’t Play the Lottery
There’s a reason the lottery is often referred to as a tax on the poor. You won’t get rich playing the lottery or gambling on anything. Checked! I don’t part with money without some sort of guaranteed gratification.
Don’t Day Trade
An Austrailian study followed a group of day traders and found that 70% lost money and the other 30% had a high risk of ruin. They were only able to make a small profit, because they had one or two great trades, among a long list of bad choices. The top 1% invest for the long term. Checked! I don’t know how to. Don’t plan on learning anytime soon.
Buy at a Discount
Never pay full price for anything. Be patient with all purchases and wait for the sale. You can buy everything cheaper than the sticker price, somehow. Figure out how to do that. Checked! Boo yah! My retail friends are on speed dial. I have all the makeup brands covered. Bebe, my favorite shoe store ever is covered. And I even have mens clothing and sport stores covered, for when I buy gifts for yobo. Hahaha
Use Your Talents
Regardless of what you do for a living, you have talents that are untapped in your life. Use your hobby as an income source or use your day job skills to moonlight as an independent worker. Hm… I already turned my hobby into a living. But… maybe I can sell the clothes I make? Anybody wanna pre-order?
Self-Promote
Nobody likes an ego, but the 1% got ahead because of their contacts. Use your relationships to get some face time with other people. Mental note to SPEAK OUTLOUD more and introduce myself to more people and not be afraid to ask for help!
Believe in Yourself
Winners are winners, because they do what winners do. Winners know that they’re not victims of circumstances, because those circumstances are new opportunities. Winners know that they have value and they know that often, the difference between the winner and the loser was not intelligence, but drive and initiative. Go after what you want and don’t look at economic headwinds. You may not make it to the 1%, but to live a prosperous life you don’t have to be remotely close. I can do it!! : D
The Bottom Line
It may be a challange for the average American to reach the top 1%, but these tips, if followed properly, are a step in the right direction. They are certain to help the average family get above the median household income. YAY! One step closer to lavish wedding and household full of babies!
Are you already doing some of these things? Are you going to add any of them your New Years Resolution list? Good luck everyone! 2012 is the year of the Dragon! MY special lucky year!!! I hope I get a lucky baby.. hahahahahahaha ;p
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