One day, Ronald was dreaming to be rich. He was asking some questions to himself what the rich people did why they became rich. After doing some library researches and asking people whom Ronald think are rich, he came up his own conclusions.
The reasons why some people who previously lived just like ordinary persons and became rich are the following:
They changed their mind-set and attitudes to reach the goal of being rich.
They practiced discipline, perseverance and focus to attain their objectives.
They implemented money-saving strategies and use the savings in starting a business.
They engaged in a business where they have a passion or interest.
They continued and kept on learning new business technologies.
They maintained proper accounting records to monitor their wealth.
They gave back to the community by way of donations to charities.
One of the most difficult to establish a business is the lack of capital. The amount of capital needed depends on the type and size of the business to be established. One of the several ways to save money and use the savings as capital for the business is to implement
money-saving strategies such as the following:
Transfer credit card balances with high interest rate to those with low interest rate.
Consider applying for home equity line of credit if the interest rate is lower than the credit card interest rates and use the line of credit to pay off the credit card balances. The interest paid on a home equity line of credit may be tax-deductible.
Maximize the contributions to the company retirement or 401K plan with employer matching contribution. If your employer matches 50 cents for every one dollar you contribute to the plan, you will be receiving a 50% return for every one dollar.
Join your employer’s medical reimbursement plan to save on taxes.
Stop smoking to save on cigarette packs and health expenses.
Purchase a term life insurance instead of cash value insurance to save on insurance premium.
Increase the deductible amounts for your auto and homeowner’s insurance to save on the insurance premiums.
Inquire first from an insurance company the cost of insurance for the car you are planning to buy.
Buy a used (at least 2-year old still with warranty) car instead of a brand new car.
Properly maintain your car by following the vehicle manufacturer’s schedule maintenance.
Put regular gasoline, instead of the premium gasoline, into your car tank.
Bag your lunch to your work.
Sell your clothes, appliances, furniture and others that you are not using anymore by conducting garage sale or selling through consignment stores.
Save on your groceries by buying store-brand products, using grocery coupons and joining wholesale clubs.
Minimize dining out. Go online and look for recipes for the food you love to eat the restaurant and try to learn to cook them at home.
Discontinue the health membership club and do your health fitness and exercises at home or in the park.
Cancel all subscriptions for newspapers and magazines. Go to the public library to borrow newspapers, magazines, books and DVD movies.
Minimize going to the movie theaters. Borrow DVD movies from the public libraries or rent DVD movies from rental stores.
Do not use ATM machines that charge fees for withdrawing cash.
Purchase household appliances that are energy-efficient.
Make a budget for your gift-giving and avoid expensive gifts. What is important for the gift receiver is being nice and thoughtful to him/her.
Turn off electricity and unplug the electrical connections when appliances are not being used.
Cancel the landline telephone connection if you have cellular phone in your family.
If you use the Internet connection 365 days a year, use the MagicJack Plus telephone and pay no monthly telephone charges and cancel the landline telephone subscription.
With the above money-saving strategies, you will be able to save money and use the savings as capital for your business. If the savings are not enough, you may get the additional capital from your home equity line of credit or borrow money from your parents and relatives.
Quote for the Day:
In some mysterious way we cannot fully comprehend, Jesus Christ, the Creator of all things, personally identifies Himself with the poor. When we give to the poor, we are actually giving to Jesus.
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