Can you can get wealthy with your disposable income? I know that sounds crazy, but I have been reading Brian Carruther’s book, Money Mindset and he knows what he’s talking about with the wealth mindset. He has been extremely successful at not only making millions in network marketing, but more importantly, keeping it.
Become Aware of Your Disposable Income
What about your disposable income? What do I mean by that? Most people think of their disposable income as the income left over after they pay their bills. They might see that in the bank and think I can go out and eat another time, or I can go buy an outfit that I don’t necessarily need, because I have the money in my bank account left over from paying my bills. I can just stock up on a lot of groceries at the wholesale buying club even though I don’t quite need them now.
All those little “splurges” add up. What you need to do is be aware of where your money is going. Track it first, then tell it where to go. That is something I learned from Dave Ramsey and Financial Peace University. Most people are not even aware, for instance, how much they spend on groceries every single month. I learned what we were spending because a couple of years ago we wanted to pay off some debt.
We went to the Dave Ramsey Financial Peace. We learned some new skills, started applying them, started to track everything, and I realized we could be saving some money in our budget. We started using the envelopes, and voila, paid off $21,000 worth of debt. It was a wonderful experience. It helped us realize where our money was going. Then we were in control.
The Hefty Opportunity Cost of Spending Disposable Income
There’s something called an opportunity cost with your money. You may be looking at that $1,000 flat screen TV and thinking, “Man, I would love to have that for the Super Bowl.” Sure, that’s a cool thing to have, but what if you need to fund a kid’s college education? There’s something called the Rule of 7 that says if you take that $1,000 and invest it at a 10% rate of return, it will double in 7 years and you’ll have $2,000. Give it another 7 years and you’ll have $4,000. Financial advisors are very familiar with this rule. So how important is that TV to you? Instead of spending that $1,000 on the TV, put it in the bank, invest it for your future.
What about that fancy cup of coffee? You’re going to Starbucks and you get the big frappuccino and it’s $5, and maybe you buy a muffin with it. When you start to track that, you’ll see how it starts to add up. How many times are you going? At home, you could make a cup of coffee for less than a dollar and have a piece of toast with it. This is where the little nooks and crannies of your money goes, and all that money, put together, that can make you wealthy over time if you take that money and put it where it actually can work for you.
Wiser Ways to Keep More of It
Another way you can turn your disposable income into wealth is, look at buying a used car instead of a new car. I know in network marketing we want to look like we’re successful. I agree it can be important and you absolutely don’t want to drive a junker if you can. I drove an old car for 15 years so I understand. When I went to look for a new car, I looked for one that was newer, but not completely brand new. I knew as soon as I drove it off the lot it would lose its value. I opted for one a couple years old, low miles, warranty, etc. It’s a nice car, drives well, it’s dependable, and I absolutely love it.
Having a “polished” wardrobe can be important for a network marketers image, but you can do this on a budget, trust me. Here is an area where I’ve been really good at finding some deals. I love being frugal and I love finding deals. You can find some amazing clothes, high quality, at higher end resell shops. I’ve got some great ones in my area and you probably do too, you just have to search them out. Even at a Goodwill, I’ve found some amazing deals, believe it or not. I’ve found high end brand name slacks and dresses for as little as $5! These are high quality names you would pay $100 for retail that make you look like a million bucks, but without spending it! I’ve also found designer boots that would have been $100, for $12. It’s so fun finding deals like that, and you can too.
Fly coach instead of first class?
Could you have water at the restaurant instead of a fancy drink?
Split an entry with your spouse or your significant other when you go out that ONE TIME a week? My husband and I do that all the time and there’s still plenty of food when we do that. Have a snack before you go out so you’re not so hungry and you don’t want to eat the plate 🙂
Here’s a great idea: take that disposable income and invest it in YOU, in that course you need or that company event you should absolutely go to. YOU are the only investment that returns you 100% because you will be acquiring skills you can use for the rest of your life that will increase your income. Much better than a latte right?
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