Believe it or not – this isn’t about cutting back

Scroll through all the levels.  Somewhere around Level 100, you’ll see that just saving won’t get you there.

It’s about using money to make more money.  Conventional wisdom says to invest in a mutual fund or real estate.  I’m not dissing either (and my husband and I are invested in both).

Let’s continue to use conventional wisdom but add a third prong.  Take $5 from your spending money and do something to make it grow by 5%.

There are two ways to do this.  One is reduce waste and the other is to make more money.  Your first level is to get twenty five cents more.  You could just dig out more spare change but that won’t work long term.

A teacher I know started bringing cold drinks to her school and making them available for sale to her fellow teachers.  They loved it as it was quite a hike to the nearest vending machine in their school.  She loved making a little extra money.

Another way is to reduce excess spending.  I became more aware of how much food we were wasting because I wasn’t planning well enough.  I’m a stay at home wife and part of my job is to run our home well.  I didn’t want to cut back on the healthy food and organic produce we buy to fatten up our investments.  I did see where I was buying too much produce at once and it would spoil before we could eat it all.  Organic food is expensive so a little extra planning really paid off for us.  I shaved a couple of hundred dollars a month off our food spending without compromising how we eat.  That effort was totally worth it.

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