Idea for how to save cash....

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Guitarhacker
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Re:Idea for how to save cash.... 2012/05/21 11:32:28 (permalink)
We have a big 5 gallon pickle jar.... the kind you see in the convenient stores on the counter with big dills in them. I bought the jar and all the pickles in it cause the jar was really cool.

Anyway, we throw spare coinage in there and from time to time pull it out and wrap it. If the jar is more then half full it gets very heavy. 

I should pull out the copper pennies and sell them to the recycler man... they're worth more that way than what the bank will give for them at face value.

OK... so no matter how you save money, the important thing is to just do it. Whatever works for you. 

Quitting bad habits and saving the money from that works well, especially at today's prices for booze and tobacco. 

Another good one is to pay yourself first. Take 10% off the top of every paycheck and deposit it into some sort of savings/CD account. It starts to add up pretty quick and you adjust to living on the 90%.

My favorite... the one that my wife and I used is as follows>   Adjust your living expenses accordingly so that you can live entirely on one of the two incomes in most households. Doing this is not easy. but the rewards are phenomenal.  You live off of one income....usually the larger one, and bank 100% of the other income.  It sounds radical and yeah... it is. BUT... it also yields RADICAL RESULTS!!!!!!

The man who told us about this method of savings was a pharmacist and his wife was a doctor's office manager. They lived off the wife's income which was pretty decent but was in fact the smaller of the two incomes. They had been doing this for many years, putting all of John's income into a bank account. At the time... the banks were actually paying a much higher interest rate than they are today. 

This all came to my wife's attention and subsequently to my attention when John went into work one day and at the lunch table announced that he had bought a farm the day before..... 3 houses on 125 acres of land. My wife said that he'd be paying for that for the next 30 years, to which he replied that he had paid CASH for the property.  She asked how he, on a pharmacist's income had the money to buy a far with cash. He explained the entire plan in detail. We called that our John Perry money plan. 

We had recently bought a house as a newly married couple. We discussed this and decided to try it. So we saved a part of my income (the smaller one) every single month without fail. We started a new bank account in a bank that we did not, at the time use so the money would be "untouchable". It took a bit of effort at first to save the money and then to not touch it as the account grew larger every month. 
Seriously, it only took a few years for the account balance to grow to the payoff point on our mortgage. 

Once we hit that balance, we went a month or two past it and closed the account and paid off the house. About 6 years into our marriage, we were owners of a house that was free and clear of the bank.  Once the house is paid off.... you now have even more money to save monthly. So keep saving and in a few short years, you now are buying everything with cash..... from vacations to cars, to other investment houses. 

The point is...not to brag on what I did, but to encourage you to set a goal for saving money, get a plan, and follow through. It's never too late to start and the earlier you begin, the better off you will be years down the road.  
post edited by Guitarhacker - 2012/05/21 11:35:49

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