Let me begin by confessing that I am a “garage sale junkie”. I love garage sales! Recently, I found a bottle of wine that had been produced exclusively for the late actor, Dean Martin. The label bears his likeness and the wine is 35 years old. The label also stated that only 850 cases of this wine had been produced. (this could be a good or bad thing?) My cost for this very cool find was a whopping $1. But I digress, this article is not about my love of garage sales, it’s about defining our relationship with money.
Money is either a small sheet of paper or a piece of metal, WE attach the meaning to money. Depending largely on our upbringing, we either have a healthy or an unhealthy relationship with money. Many of us are frugal and hunt for bargains. Shopping this way allows us to channel the money we are saving into interest bearing accounts and investments. Over time, this money can become significant and help provide us with a secure retirement. (“garage sale millionaire”) Others find it challenging to exert any type of spending discipline. They habitually make purchases on impulse and tend to pay full retail price for everything they buy. Unfortunately, many wake up one day to find that they are in significant financial trouble due to their lack of discipline. Below are 5 tips for developing a “garage sale millionaire” mindset.
THE “GARAGE SALE MILLIONAIRE” MINDSET….
*Get in the HABIT of spending less than you earn. Let’s face it, we live in a world with a ton of cool toys. Delaying gratification can be extremely hard. The first step on the road to financial freedom is to spend LESS than we earn. You may be saying yeah, yeah, yeah, I already know that. The question is…are you practicing it? This one habit can dramatically change your financial future. Examine your monthly bank statement and determine where can you cut wasteful spending? Make the commitment to this for one year. You will be amazed by how much you save!
*Pay CASH for purchases. I employ 2 strategies that serve me well. If I can’t pay cash for it, I don’t buy it and before I make any significant purchase I ask myself if it is something I NEED or just something I want. Something I NEED will always take precedence over something I want. Paying cash and avoiding impulse buys helps curb wasteful spending. We can then invest this “impulse money” into our future.
*Look for opportunities to create new streams of income rather than new lines of credit. I carry one debit card and one credit card. I focus my energy on looking for opportunities to create new streams of income. This mindset is a proactive wealth building mindset opposed to a “credit” mindset. For example, this past year I wrote a book. My book has become a NEW stream of income in the Burton household. I have not applied for any new lines of credit this year. ***One of the best TAX strategies we can employ is to own a home based business. New stream of income, new TAX savings.
*Avoid paying retail. Turn this concept into a game. Garage sales, consignment shops and services like Craig’s list are great places to find items that are in great condition and many items are brand new. Diana and I have furnished three homes employing this strategy. We have saved thousands of dollars and routinely receive positive feedback on how nicely our home is decorated. For example, we recently purchased a desk for our mountain home. The estimated cost of this desk was $1000. We were able to purchase it for $50 dollars and the seller even threw in a high end desk chair. Our patience paid off! FYI…you are the only ones who know how much we actually paid for this gorgeous desk. Ha, Ha!
*Make financial education a priority. A person doesn’t have to make a lot of money to save a lot of money. However, we must make financial education a priority and we must design a financial strategy and maintain the discipline to see it through. Dave Ramsey and Suze Orman are best selling authors who specialize in providing their readers with great strategies for creating financial freedom. Go to the local library and check out their books. (I just saved you $50 dollars) Make an appointment with a TAX professional to develop a strategy for paying less TAX. Meet with a financial planner to help you maximize your retirement plan. Remember, burying our head in the sand or relying on the government are not proactive financial strategies.
I have been wealthy and I have been broke. I can honestly say that a life free from financial worry is a much easier one to live. If you are living paycheck to paycheck, running out of money before you run out of month or you just want the peace of mind of knowing that your retirement is secure, then I encourage you to begin developing your own “garage sale millionaire” mindset. Here’s to prosperity!
As always, I look forward to your thoughts and feedback.