Additional Building Blocks to Personal Finance

It’s one thing to talk about the need for financial soundness. Living in that way is a completely different story. Building a secure financial foundation is essential when it comes to growing your wealth. I want to share a few points that will help you to build a strong foundation in your finances.

1. When buying things like cars, buy pre-owned.

My motto is “unless you win it, buy it pre-owned.”  Vehicles have a tendency to depreciate rather quickly.  Honestly, as soon as you drive your newly purchased car off of the lot, the value of that car is instantly lowered.  Be aware that these sorts of purchases never appreciate in value, so your best bet is purchase them with cash.  You should avoid acquiring debt (that you have to continually pay interest on) in order to own it when it’s worth will lower over the course of your pay-off process. 

One way that I was able to accomplish this was to sell my previously owned car outright.  I sold it for cash.  Instead of going through a car dealership—where they will never pay you the true value of the car outright—I found someone who would purchase the vehicle. I would suggest that you research your car so that you know how much you should be accepting for offers.  Once I sold that vehicle, I was able to use that cash and add the necessary cash amount to purchase a new vehicle and walk away with the title in hand.  That is a truly freeing feeling! 

2. Be mindful of your spending.

Being disciplined on your spending is an absolute must when it comes to growing in financial literacy and developing wealth.  You can have the things that you desire to have, but you should adopt a creative method of doing so.  If you love that newly released spring dress at your favorite department store, recognize that store’s rotation schedule and keep an eye on when the summer items will begin to be sold.  That is when you’ll notice that beautiful spring dress will begin being deeply discounted in order to make room for the new inventory for the following season. 

Another way to spend wisely is to shop your favorite designers in consignment and thrift stores.  Lightly used and even barely used items are often in great shape or nearly new for a fraction of the price. 

Also, save money by preparing your own meals instead of going out to eat.  This a great means of saving and it provides healthier eating options (you’re aware of the ingredients).  It can be less expensive to hire a cook for $10/hour than it costs to continuously eat out.

3. Manage your maintenance.

You can often find ways to cut costs on the things that you enjoy.  For example, you can save a great deal of money if you trade services with a friend who can do your hair for you in exchange for you doing her nails.  These types of interactions build strong relationships and are beneficial in saving both parties a lot of money over time.

4. Develop multiple streams of income.

Even if you are working a traditional job, you can stretch and create other streams of income. This way, if one stream dries up, you aren’t solely dependent on it and you have other means of creating alternative income. If you’re passionate about certain things, this can be a skill set that you may be able to monetize. Be sure to understand what your core brand is so that you don’t appear to be scattered. Develop, change, and grow so that you are able to reach others and help them while simultaneously creating your multiple streams.
Take that first step and connect with others who are desirous of a larger than average concept of success.
Remember that it only takes two things to become wealthy.  You have to make a decision and you have to start where you are.  You never have to ask for permission to succeed.