It’s What You Keep – Why Saving Matters


Why Saving Matters

I don’t know who said the phase “It’s not what you earn, it’s what you keep” first but they deserve a literary medal.

What does the phrase mean exactly?  

If you currently make $50k a year and are in debt like the average consumer, what would happen if your income doubled?  Would you suddenly payoff all your debt and become a powerful investor?  Or would you spend twice what you do now and end up in an even worse position?  Most of us would probably be ashamed to admit it but the latter is probably more likely.  I don’t know why the human brain works this way but if you are comfortable with a $300/mo car payment, then $350 isn’t so bad.  Fast forward 10-20 years and you are smiling while paying $600/mo.  The same goes for everything you buy thus the cost of living people often mention.

Don’t Be Like Everyone Else

What’s the average person do when they get a raise?  Spend it all?  Maybe bump up their car payment to get into a nicer car?

If you are saving 10-20% of your income today and you received a big raise what would you do?  Perhaps save 10-20% of it?  I challenge you to save at least 50% of that raise since you didn’t have it yesterday.  Continue with this method over your working career and you will end up with a very high saving percentage while never missing anything.

What Else Does “Keeping” Apply To?

It’s what you keep also applies to taxes.  The more that you can save on taxes then the more you keep and the more you can invest.  Don’t forget to treat that refund check like a bonus and save a large portion of it as well.

Can you think of other ways in which you can keep more of what you earn?

Stop Wasting Money – Why Overbuying is Not a Good Idea


There are lots of articles out there telling you give up your caffeine addiction, this is not one of them.  Unless of course you are buying it faster than you can consume it.  Recently the power went out at my house for a few hours and as a result all the meat in the freezer thawed.  I threw it away because I’m paranoid about food poisoning.  I threw out about 20 boneless chicken breasts from when they were on sale for 50 cents off a pound.  While cleaning out the fridge I noticed the gigantic bottle of ketchup was expired.  I bought the big bottle because it was 8 cents cheaper per ounce.  I also donate unused canned goods once a year when they are getting near expiration.  The list goes on and on.  I buy the larger quantity to save a few cents or stock up because an item is on sale only to throw some away later.  Throwing away food is not on anyone’s budget so I really need to stop doing it.  The logic applies to other things too.  Laundry soap, car washes, haircuts, the list goes on and on.  Buy what you need and stick to your budget, you’ll be much happier in the long run.



Money Saving Tip – Snacks In The Car


If you want to avoid eating out, then I strongly suggest packing your lunch.  However, sometimes we do pack that lunch and then an errand takes longer than expected.  The next thing you know it’s been hours and you are running through a drive through.  I promise that keeping something like protein powder, beef jerky, almonds or similar will save you cash in the long run.