Do You Make These Mistakes in Everyday Spending?
Most of the mistakes we make in everyday spending take place “unconsciously.” In this issue we will address them, tally up how much they cost, and take a glance at what you can do with that freed-up money to significantly change your life!
5 Mistakes “Poor-Rich People” Make in Everyday Spending:
Mistake #1: Use credit cards to charge daily habits.
Mistake #2: Make a daily morning coffee & snack stop. (Average cost $5.00)
Mistake #3: Buy a Mid-morning snack. (Average cost $3.00)
Mistake #4: Eat out for lunch. (Average cost $8.00)
Mistake #5: Buy a Mid-afternoon snack. (Average cost $3.00)
Mistake #6: Buy a “perk-up” after work coffee. (Average cost $3.00)
This totals $22.00 per comes out to: $470.80 per month.
If you take part in “unconscious spending habits” like these, by cutting them out you could quite possibly find $470.80 of freed-up money.
5 Solutions “Lavish Cheapskates” Swear by in Everyday Living:
Solution #1: Use cash in everyday spending.
Solution #2: Carry a five dollar bill for daily spending and don’t spend above it.
Solution #3: Do everything you can to keep that five dollar bill in your wallet as long as possible.
Solution #4: Pack lunch and snacks for the day.
Solution #5: Coffee Drinkers: Buy a Mini-French Press ($10) and make your own coffee.
AND FINALLY…
We, As Lavish Cheapskate’s,
Use that freed-up money to GET OUT OF DEBT!
This is the KEY To Recession-Proofing Your Life!
We’ll use a case scenario applied to credit-card debt.
If you have a balance that you have carried on a credit card that stays at the same amount regardless of your payments, then this is a great opportunity to get out of that chokehold.
NEWS FLASH: Minimum payments have doubled with many credit card companies, while others are still maintaining the minimum payment of 2%.
MSN Money Link:
With the recent change in minimum payments, many credit card companies will require a double amount as your minimum payment. If you have a credit card that has maintained a balance of $8,000.00, the minimum payment may have previously been $160.00 and may now have increased to $320.00. For those heavily in credit card debt, this could be a real problem. For those who aren’t, this could be your savior (since you will accelerate your pay off).
Regardless, paying only 2% to 4% is very costly, but the difference between 2% and 4% is astounding when you look at the difference in interest paid out.
At a rate of 4% minimum payment based on an $8,000.00 balance, it would take nearly 13 years (155 months to be exact) to pay it off, and a total of $3,574.37 in interest.
At a rate of 2% minimum payment based on an $8,000.00 balance, it would take over 37 years (448 months to be exact) and $12,789.63 in interest.
The Lavish Cheapskate’s Way To Wipe it Out Faster: Let’s say you applied the Lavish Cheapskate’s solution and DID free up $470.80 a month-if you paid ABOVE your minimum payment on this credit-card at 4% interest, you would pay off that entire debt in 11 months rather than 13 years, and you would save $2,967.56 in interest.
If you pay a minimum payment of 2%, and applied the same amount toward that credit card, you would still pay it off in 11 months, and you would save $12,182.82 in interest!
With the economy changing so rapidly, we are soon to see bigger changes than this in the credit card industry.
I can’t stress this enough: Become a Lavish Cheapskate Starting NOW and Recession-Proof Your Life. Use your freed-up money to wipe out ALL debts!
Two things can happen from this point forward:
You can put this advice into action now and be incredibly grateful soon.
You can ignore this advice now and wish you had taken it.
I say this to you earnestly because I want you to live in liberation!
Just today I was thinking about all the excuses I used as a Poor-Rich Person, and this thought came to mind: “Excuses are weapons to protect your misery.” It’s now a powerful quote that all of us can live by.
Abandon excuses, take action, and join me. Together we can be grateful we are Lavish Cheapskates!
Please share Lavish Cheapskate News with friends, and let’s help others free up money in everyday spending so they too can reach liberation!