Tuesday, March 6, 2007

Money Making & Saving Tips

The following tips are based on a best-selling book on becoming a millionaire. It was around 70% junk; I’ll try to summarize as much as I can of the 30% I thought was worth reading. The book itself despises the poor and glorifies the rich in a very materialistic approach, in every possible occasion; I wouldn't recommend reading it believe me it doesn’t even start to sound interesting until after you’ve read through half the…

The next half was a bit useful and here are some concepts and budgeting tips are found to help you control and implement strategic money spending, I’ll add a few statements here and there so its not only the book content you’re reading here, its my personal feedback as well:

A few budgeting tips to control your money spending habits:
1) Assign play money!! I found this interesting cause you don’t usually see this tip in budgeting books. Why should you assign play money? Because if you don’t you will not have control over your spending habits, you might end up spending so much without taking note. Make it 15% for entertainment.
2) Assign charity money! Yes this note is from a very materialistic author, why? Cause you’ll feel good about yourself and about your contribution to society, help to be helped. I have to agree with this point but different motives apply.
3) Assign 10% of your income to savings, Now, I have to add this statement, avoid banks, companies that produce alcohol, cigarettes and anything that destroys the fabric of our values… Have a positive impact on your society, money isn’t everything no matter what the author of this book thinks, interest rates or (USURY) is sucking the living blood out of people. And at the end of the day you don’t want money that is “prohibited in Islam, Christianity and Judaism”.
4) Assign 10% of your income to investment in Passive Income generators, the main idea is to have your money generate more money (more details on passive income and investment approaches are described below).
5) Don’t use credit cards for payment, the temptation is too good to resist and interest rates will knock down the best budgeting experts.
6) Avoid carrying change all the time, get yourself a moneybox and drop those coins inside. Empty it every month and deposit it in your account. Personally I found this one a bit too much!!
7) Track your spending money, write down every penny you spend, have your pen and diary ready and write it all down. It will help you estimate future expenditure and where you can improve.


Laila said...

v. interesting. I would also like to add a more economical reason for avoiding alcolic and 'luxury' investmenets. Apparently ethical investments, such as food, are more sustainable and are not too dependent on political upheavels.

M Kilany said...

interesting point, I'm not so sure but I hope so... I tried accessing your blog but couldn't...