Think Your Way to Wealth

If you're new to "Think Your Way To Wealth", get free updates on debt reduction, saving money, and building wealth by subscribing to the RSS feed or via Email . Thanks for visiting!

There are many people that believe you need to “show off”, drive a fancy car, wear designer clothes, and generally spend money to make a good impression or to impress other people. The truth is, you don’t have to spend a lot of money to make a good impression. People develop an impression of you by how you present yourself and interact with them and other people. Especially in the workplace, making a good first impression is important, as well as how you present yourself on a daily basis. Here are some of the free or low cost things you can do to make a good impression.

Practice good personal hygiene- Taking a little pride in your appearance can go a long way. Keeping your hair neat and not disheveled, your nails trimmed(if you are a guy) and clean, and paying attention to other small but important aspects of your personal appearance gives off a good first impression. Showering and brushing your teeth on a daily basis is a necessity as well.

Keep your clothes clean- You don’t have to go out and spend hundreds or thousands of dollars, but keep your clothes clean, neat, and wrinkle free. Ditch the faded clothes at work, wear those around the house or on weekends. Today’s business casual has gone far enough, you don’t need to push the envelope with it either. Wear nice looking shoes, and keep them clean and/or polished.

Speak clearly- You don’t have to be a loud mouth, but speaking clearly, slowly, and loud enough to be heard and get your point across can help your personal and business relationships. I have always been a little quiet, but when I speak more clearly and with a little authority, I notice a difference in the way my words are received.

Keep your car clean inside and out-Whether you are taking a client out or just a friend, your car can say a lot about you as well. it doesn’t have to be fancy or expensive, but keep it fairly clean on the outside, throw away all of the fast food wrappers, and vacuum it regularly.

Keep your house and yard neat- Similar to other aspects of your life, and nice, well-manicured front yard and a neat, organized household makes people feel comfortable. While your co-workers or clients may never visit your house, your friends and relatives probably do, and if you keep your house neat, you won’t have a problem inviting others over either.

Be a good listener- People like to hear themselves talk and be listened to, and if you dominate the conversation, you can easily rub a person the wrong way.

Be responsive- Return phone calls and emails as soon as possible, it makes others feel important, or that they are important to you, when you respond to their needs or requests in a timely fashion.

Don’t lose your cool- Try to remain calm and collected, even when you are irritated or aggravated with someone else. You will appear to be under control, and show that you are not a loose cannon and can handle pressure- a good trait to have.

Be punctual- Don’t be the guy (or gal) that is always late for meetings, late for work, etc. You can quickly develop a reputation as a person who is not reliable.

Filed under: Career, Frugality by RC - 1 Comment →

According to recent congressional testimony, some experts believe changes (i.e., controls and restrictions) to the oil futures trading market could result in up to a 50% decrease in the price of a barrel of oil, with gas prices also dropping as much as 50%, or to around $2.00 per gallon as soon as 1 month after. I do not really believe it would have that much of an effect, as I am sure there are other factors involved, such as global demand and the loss of value of the U.S. dollar vs. global currency, etc. However, it got me thinking about whether, were gas prices to drop that significantly that quickly, would people stop trying to drive more efficiently, stop looking for the cheapest gas stations, and generally just stop worrying about the price of a gallon of gas?

I have been trying to drive more efficiently, plan my trips and errands, and be conscious about my driving habits due to the recent spike in gas prices over the last 6 months to a year. Would I continue to do so, if gas was only $2.00 gallon? I think so, and I would certainly try. By driving more consciously, I would continue to save the same percentage per mile driven, and those savings over a month to a year would continue to add up.

Frugal habits developed when you have to save money should be carried forward even if the necessity of saving is no longer present. Keeping your costs and expenses to a minimum is an important component in building wealth.

Image by PhilipsPhotos

Filed under: Frugality, Psychology by RC - 6 Comments →

Protecting your home computer is essential in this day and age. There are new viruses being created everyday with the intent of damaging your computer’s operating systems or files, and hackers are always looking to access your personal computer to get access to personal information, including financial info, passwords, etc. The two key pieces of software every computer user that connects to the internet should have are a good antivirus program and a good firewall. Fortunately, instead of spending up to $50 or more on each one, and paying a yearly renewal fee, there are two great programs out there that can provide this protection for free. Not too many things can be had for free these days. I know there are other free antivirus and firewall programs out there, but I have been using both the free version of the AVG antivirus and the Zonealarm firewall for over 3 years now, and have not had one problem. I am not a computer expert, so you may need something more robust. But if you are a fairly careful web user, I think these two programs probably provide all of the protection you will need.

AVG Antivirus

- The free version of AVG antivirus program is rated highly by many PC magazines and hardcore computer users. I have not had any problems with it slowing down my computer, which is a complaint of some of the popular antivirus programs out there. It provides protection against viruses, spyware, adware and identity-theft, and updates on a regular basis. Make sure you allow the option of the program to download the updates when they are available so you have up-to-date protection.

Zonealarm Firewall

-The free version of the zonealarm firewall provides basic firewall protection, blocking attempts to access your computer, and making your computer basically invisible to those online. You will get a pop-up when a new program tries to access the internet, which some people find annoying, but if it is a program you want to allow, you can click a box so it does not ask you again in the future. I don’t really find this to be a problem.

Filed under: Frugality, Saving Money by RC - 4 Comments →

My Dad is a pretty great guy, and I have learned a lot from him over the years. Our relationship has not always been perfect, but one thing he did do, although sometimes it took me quite a while to notice, was set a good example when it came to money and life issues. Even though it took me many years in some cases, and I haven’t quite mastered them yet, I realized as I got older that many of the things he did were quite frugal, and that by not giving me everything I asked for, he was teaching me to work for things I wanted. Now, I took that to an extreme for a while and spent too much of the money I earned, but I may have never gotten on the right track financially if he hadn’t set such a good example. Here are 10 lessons about life and money I learned from him:

1. Don’t try to buy your children’s affection- This one is hard for me, I have trouble saying “No” to my kids sometimes. But I was certainly not spoiled as a child, lets put it that way. By not giving in to everything a child asks for, you are teaching them the value of money and that “things” aren’t everything. And by making your kids work for things they want when they are old enough to, they can learn the value of “earning” a dollar.

2. Bring your lunch to work- I am sure my dad ate out or bought his lunch from time to time, but it seems like he brought his lunch to work just about everyday. I think he worked for about 35 or so years before he retired, so even if he saved $4 a day , with 250 work days a year is $35,000 not counting interest. With simple 8% interest over 35 years, that $4 a day could turn into $172,000!

3. Drive a car into the ground- My Dad drove an old Toyota for many years, several (probably more than several) years without A/C down here in hot, steamy, south Louisiana. I am still not sure how he did that, because I am not sure if I could drive without A/C. But not having a car note for so many years can allow you to save quite a bit of money.

4. Learn to balance you career and family- I know my father had quite a few opportunities for promotions which would have entailed uprooting his family and moving across the country, but he did not take them because he would have had to move away from his extended family, and would have had to put in much longer hours. While I am a strong believer that you must always do your best at your job or career in order to advance, the statement that “money isn’t everything” is true, especially when it comes to your family. You can still put in extra hours at work, just don’t eliminate quality time with your family in order to advance your career.

5. Plant a garden- My Dad has always, even to this day, planted a vegetable garden every year. It is one of his hobbies, but it also provides vegetables, herbs, and other items cheaper than the grocery store, and it also gives you something to do, with your kids as well if you have them.

6. Do your own yard work - I am still amazed at how many of my friends in their late 20’s or early 30’s pay someone to cut their grass, usually over $100 a month. And they are not too busy at work to do their own yard work, either. No one ever cut my grass at our house except my Dad, one of my two brothers, or me. As far as I know that is still the case.

7. Let stores or companies know when you are unhappy with the service or goods you receive- I remember he once came home from the grocery store, (and this was when every checkout line had a bagger) and he noticed they had forgotten to bag his ice cream. It was on the receipt, so he knew he had paid for it. He called up the store (and I am not exactly sure what he said), and about 30 minutes later someone from the grocery store drove to our house and dropped off 2 cartons of ice cream. I learned that if you don’t speak up and express dissatisfaction, you you are guaranteeing that you will not be satisfied. Some, but not all, stores or companies will try to make you happy with your purchase, but you have to give them a chance. Obviously this does not always work, but you will not know unless you express your dissatisfaction to the store or company you are dealing with.

8. You don’t have to spend a lot of money creating family memories - Go fishing, take small vacations that don’t cost a lot, spend time with your kids and get involved with their activities and lives.
9. Eat at home most of the time- We had burger night, homemade pizza night, and a few others I remember when I was a kid. It is a lot cheaper than eating out, and healthier too.

10. When you start a family, its not about you anymore- Especially if you have children, you have to realize that it is no longer about you. It is no longer that important to buy yourself things, but to provide for your family. Your kids will be gone and out of the house before you know it, so giving up some of your own indulgences for 18+ years won’t kill you. I know this one is hard, as I have trouble curbing my own impulses at times, but with two small children in the house I am beginning to learn that it is really about them, not me.

Filed under: Building Wealth, Frugality by RC - 5 Comments →

With talk of high gas and food prices more common than who won this season’s American Idol, being frugal is “in” again as everyone wants tips on saving money, spending less, and coping with inflation. Since you’ve had lots of practice at it and suddenly being frugal is cool again, you may get asked for advice by all of those trying to jump on the frugality bandwagon. Here are the top ten frugal techniques that frugal hackers have been practicing for years that are suddenly the “in” thing for your spendthrift friends.

Cutting coupons- Coupon clipping has gained a recent surge in popularity, with everyone trying to combat high food prices. You are a seasoned pro and save hundreds every month.

Free stuff from drugstores- The drugstore game is all the rage, but you’ve already got a supply of toothpaste, soap, and shampoo that will last you till the end of times.

Vintage clothing from thrift stores- This one is always popular among the “retro” crowd, but spending $4 on a skirt or $3 on a pair of jeans instead of a faded pair with holes from Abercrombie for $40 makes you look like a genius.

Beating high gas prices- Everyone wants to know how to beat high gas prices; you’ve been taking alternative transportation, walking places, and already know where to find the cheapest gas prices.

Cheap creative meals- You’ve got cheap eating down to a science, how else would you know how to make a taco with chickpeas?

Getting Free Samples- You’ve got enough free razors that you haven’t bought one in years, and stopping by Sam’s Club on Saturday for “lunch” is part of your weekend routine.

Saving on Energy Costs- CFL light bulbs have been in your house for years now, you’ve already got your eye on LED’s as well.

Growing Your Own Food- You know how to grow your own vegetables and herbs even if you don’t have the space.

Making Extra Money- You’re not worried about getting laid off, as you’ve been making extra money outside of your regular job for years and know dozens of ways to earn extra income.

Driving an old beater- Your car may be older than your teenage children, but at least you’re not trying to sell or trade in your SUV for something with better fuel efficiency.

Filed under: Frugality by RC - 5 Comments →

I recently had a minor mishap with my cell phone. I am not exactly sure how it happened, but when I pulled my cell phone out of my pocket, the front lcd screen (or really the cover for the lcd) was cracked in a spider-web type pattern. Uh-oh, not good. My cellphone plan does not expire until October, so I basically was left with two options, I thought.
1.) Buy a new phone. Without a contract I believe this would probably cost me in the $200 range for a similar type phone, if not more.
2.) Sign up for a new 2-year contract, and get a free phone. The problem with this option is, although I have been relatively happy with my service from Verizon, I am not sure if I am even going to keep my phone line, as I have one through my employer as well, and I am considering transferring my number, as I use it very rarely, to a separate plan or even a pay-as-you go phone and just keeping my wife with Verizon to cut back on the cost.
After thinking about it for a while, I came up with a frugal alternative, although it is likely temporary.

So there’s the fix….

Scotch Tape!

It actually has held the screen together pretty well for the last few days, but I am not quite sure it will last too long.
After a little bit of searching, I came across a cheap fix (although not quite as cheap as scotch tape) on eBay. It is a replacement screen for the front, for about $3 plus shipping. I will likely be ordering one of of these and attempt to replace it to carry me until my contract is up in October. So instead of replacing a phone I may only keep for a few more months, I believe I have found a way to keep myself from buying a new phone or committing to a new two-year contract.

PS-I also came across a Motorola Razr V3 repair manual while looking online, if anyone is in need of one.

Filed under: Frugality by RC - 1 Comment →

Certainly there are many college students, who enamored by the offer of a “free” t-shirt or some other token gift, start digging themselves into debt by signing up for a credit card and using it without concern with how they are going to pay for their purchases. But there are also many college students who live quite “spartan”, living in a cheap apartment, with no car or credit cards, living off their earnings from working a part-time job and going to school. Many only spend cash, and when they run low , look for creative ways to feed and entertain themselves.

On the other hand, there are many recent college graduates who, upon graduating and getting a job, suddenly change the way they were living. This is understandable, as eating ramen noodles every day for a week gets old after a while. But why do many recent graduates suddenly move into a nicer apartment, sign up for credit cards to furnish it completely, buy a new car, start eating out lunch every day and going out for cocktails at an expensive trendy new club, and continue to do so for many years to come? Some people continue to live like this for most of their adult lives, racking up credit card debt for things they don’t need and can’t really afford.

Because they stopped living like college students!

I know this is the case, because I did it myself. For some reason, you start trying to live how you perceive an adult should, with all the trappings, toys, and expenses, even though you normally start out a relatively low salary right out of college. You may be tired of your 8 year-old car and are looking to impress your friends or new co-workers, or that 1 bedroom apartment in the cheap part of town no longer fits the perception you have in your head of how you should live as a young new professional.
Even if you are a medical doctor, right out of school you are not going to be making as much as a surgeon with 15 years of experience. So why try to live like one? The smarter way, to keep yourself out of debt and start building wealth at an early age is to continue to live like a college student, or at least make smart decisions with your money.

Some tips for living like a college student for recent grads or adults with lifestyle inflation:

• Keep your old car as long as possible. Take care of it, and it can last you a very long time. If you don’t have a car, by a used one, don’t finance a new one for 5 + years.
• Don’t move into a high priced apartment or saddle yourself with a condo or house note right away. Even better- move back home for a while. When you do buy a house, buy less than you can afford.
• Don’t furnish your entire apartment with new furniture, art work for the walls, etc, or replace it every two years. Keep your old furniture as long as possible.
• Don’t get caught up in the “young professional” hype- You don’t have to eat out everyday for lunch and dinner or go out for drinks 3 times a week after work.
• Don’t try to impress people with things, or by throwing money around in social situations. It doesn’t really work and is not worth it anyway.
• Max out your 401k or retirement plan. You didn’t have the money before, so you won’t miss it. if you start maxing out your 401k when you first start working, you will not have to worry about saving enough for retirement, I promise you.
• Only replace things that really need to be replaced. No offense to Apple, but you don’t have to have the latest I-gadget, whether it is an ipod, iphone, or whatever the next one will be. Cheaper alternatives will work just fine.

I am in my mid-thirties, and it took me quite a few years to realize that my “perceived lifestyle” was a little to high for my salary early on. Now that I am making more money, I am finally getting to the point where I can pay for my past mistakes. However, it is all the more difficult for some, as many people have gotten married and started having children, like myself. If only I had lived like a college student a little while longer.
Now, where are those ramen noodles…..

Image by Hey joe….

Filed under: Building Wealth, Frugality by RC - 4 Comments →

As prices for food, gas, and a multitude of other goods and services continue to rise, I found myself noticing recently how many people I see walking around in the mornings with a cup of coffee in their hands from the local Starbucks or other coffee shop. Occasionally, someone will starting telling my how $3.50/gallon gas is killing them will sipping on a $4 16 oz. latte that cost the equivalent of over $30 per gallon. Bottled water still seems to be quite popular as well, and if a 16 oz. bottle of water costs $1 to $1.50 at a convenience store , the equivalent for a gallon would be $8+. Coffee is one of my favorite drinks, but I usually drink it at at the office, where it is free, or at home. I drink a lot of water as well, but I rarely drink bottled water; my wife on the other hand likes to take a bottle with her whenever she leaves the house. Even buying water by the case form Walmart or Sam’s Club, it still costs more than it does coming out if the tap, which is free. Let’s face it, Americans, as a whole, spend a lot of money on bottled water, as well as in coffee from coffee shops. Here are the numbers from 2006.

• Bottled Water Industry- $15 Billion in 2006. (Source)
• Coffee Shop Industry-appx. $11 billion in 2006. (Source)

So in the U.S., Americans spent about $25 to $26 billion on coffee from coffee shops and bottled water in 2006, or about $85 for every man, woman, and child in the U.S. This number has increased over the last two years, as well. That seems like a huge number to me. Do you think that the economic situation in the U.S., whether it is a recession, stagflation, or just a weak economy will have any effect on people’s purchases such as these? Will people start brewing their own coffee and bringing it with them, or start drinking tap water? Or is a morning Starbucks too important or too difficult for the average American to give up? I know Starbucks recently reported lower than expected earnings, but from what I recall their sales growth was still positive, only lower than expected. So it does not appear, as of yet, that rising gas prices or the weak economy has cause a decrease in these types of purchases. But will it in the future? Are people really embracing frugality, or are some things just untouchable when it comes to cutting back? I am not sure. What do you think?

Image by Bizmac

Filed under: Frugality, Spending Money by RC - 6 Comments →

 Finding cheap gas prices is no longer only for the frugal-minded among us, it is now becoming a necessity for everyone. It seems like prices have gone up $0.10 to $0.15 per week for the last few weeks.  The more you drive, the more you spend on gas, and the more important it is to find the lowest price possible. Even though I travel the same route to work everyday, I often find myself driving around town, and of course, I notice when a certain gas station has lower gasoline prices than others, and of course, I always seem to see a lower price right after I fill up! With prices changing so frequently, it is hard to find the station that is the lowest. Some change their prices at different times of the day, and even though you may go to a station that is usually the lowest, it may not be the lowest the time you go there. Even a difference of a few cents per gallon can add up of a period of time. I have used one of these websites in the past,  Gasbuddy, to look up prices, but the other,  Mapquest Gas Prices,  is new to me.

 Gasbuddy: Allows you to search by city, state, or zip and brings up list of the cheapest prices in your area. Gasbuddy also gives you an overview of historical prices, trends, and includes Canada as well.

Mapquest Gas Prices: Allows you to type in an address, intersection, or zip-code, and pull up the gas stations with the lowest prices in that area, all on the same map. Additional features include a gas price calculator, browsing by city and state, and alternative fuels such a E85 and bio-diesel. The map feature on mapquest is great, and it seems as though it would be very useful when travelling or on a trip.

While I like being able to see multiple stations on Mapquest Gas Prices, both sites are quite useful for finding cheap gasoline in your area or on the road.

image by a siegel

Filed under: Cars/Auto, Frugality, Saving Money by RC - 2 Comments →

Gas prices are have gone through the roof over the last few weeks, and food prices are rising as well.  Sam’s Club and even Costco are talking about rationing rice. There are quite a few ways to save money on gas while driving; here are 30 ways to cut your food bill and associated grocery shopping costs as well.

Your Eating Habits and at Home

Grow Your Own- No, that’s not what I mean ;). Grow your own vegetables and herbs (which are quite expensive if you go by weight), and fruit if you live in a place you are able to. Don’t have a big yard? Try building a square foot garden.

Drink less milk, soft drinks, and alcohol- You don’t have to stop drinking any of these, but try cutting back a little. Your waistline will thank you as well as your wallet.

Go Fishing!-If you live near water, try to catch your dinner. This can be a great activity to do with kids as well.

Try meatless meals- Cut meat out of your dinner lunch or dinner menu several times a week.

Eat breakfast for dinner- Make omelettes for the family one night during the week and serve everyone for a few dollars.

Skip a meal on the weekends- Have a large breakfast on the weekends, then have an early dinner, and skip lunch. It won’t hurt most of us.

Plan your meals carefully- Plan out your dinner menu ahead of time, and include the leftovers, if any, in your planning.

Plan your meals based on what’s on sale- Check out the ads for your local grocery stores before you plan your menu to incorporate the sale items.

Eat less junk food- Cut back on salty and sugary snacks, switch to fruits, vegetables, and other healthy alternatives, which are usually cheaper.

Don’t waste food-  Keep an eye on your perishables, and if you find yourself throwing out food, cut back on how much you buy or freeze things before they go bad.

Experiment with simple or exotic cooking- Buy a cookbook or two, and look for easy, simple meals which don’t cost much or have a lot of ingredients. Experiment with foods from other cultures, which frequently don’t use as much meat as we do here in the U.S. either.

Don’t use the vending machines- The cost of items in vending machines is usually 2 to 3x as much as you can get it yourself.

Bring your lunch to work- Brown bag it to work or bring leftovers. This can cut down on wasting food as well. Bring your own drinks from home, or drink water.

Split entrees with your spouse or significant other- When eating out, try splitting an entree.  Many restaurant’s portions are so big, you end up with leftovers.

Buy a freezer- Investing in a freezer can allow you to freeze things before they spoil, batch cook for future meals, and stock up on perishables such as meat and chicken when there is a good sale.

Before Shopping and At the Store

Make a list- Make a list based on what you need, and stick to it. You will spend less money by doing this.

Buy in bulk- Anything that won’t spoil before you use, buy in bulk. Be sure to check the unit pricing, but 9 times out of 10 it will be cheaper to buy in bulk.  If you can’t use it all when buying in bulk, try to split it with a family member or friend.

Buy what’s in season & local- This applies especially to fruits and vegetables, but can apply to seafood and other items as well, depending on where you live.

Shop the sales- Check out the weekly flyers for the best deals, and shop around if you don’t have to drive too far out of the way.

Buy whole cuts of meat- Buying a whole chicken or larger cuts of beef or pork are normally cheaper than individual cuts and smaller packages.

Don’t buy non-grocery items at the grocery store- Save your non-grocery purchases for trips to Walmart or the pharmacy, or other discount store. The markup on these items is usually high at grocery stores.

If you don’t clip coupons start- If you don’t clip coupons, start. By combining them with items on sale, you can get the most bang for your buck. Don’t use them for items you wouldn’t normally buy, however.

Search the net for coupons too-Search the Internet for online coupons at places like smartsource.com, as well as the myriad of grocery coupon sites.

Try generic or store brands- These are frequently quite a bit cheaper than name brands, and often taste just as good. Experiment with them to make sure you like them.

Stock up on sales- When you see a really good sale, stock up on that item for future use. Be sure you are going to use it all, of course.

Look for mark-downs- Check out the meat department for markdowns, where they lower the price on meat (and sometimes other items like dairy) when it is getting close to its “sell by” date.

Don’t go shopping hungry- We have all heard this one before, but it is true. You are more likely to buy more if you go food shopping hungry.

Don’t bring the kids-Kids are always going to want something, whether it is a toy, candy, or spider-man popsicles. This will keep you from buying things that aren’t on the list. (Spider-man popsicles are usually on my list though)

Watch the register- Keep an eye on the register while your groceries are being rung up to make sure you are getting the right price on the things you buy.

Check your receipt-Take a quick look at your receipt to make sure you didn’t get overcharge or double charged, or the store didn’t forget to put something in your basket.

What are your best tips for saving money on food and grocery shopping?

Filed under: Frugality, Saving Money by RC - 9 Comments →