Lessons That Helped Me Save Money

Making every dollar work for you

The idea of saving money is one that I frequently ponder and even put into practice in a variety of ways. Eliminating debt, saving money, and working extra hours seem simple in concept, but they are oftentimes painful to carry out.

One area of my finances is similar in terms of being simple but is much more difficult to carry out, growing wealth.

Growing wealth is something that many people will live for, die for, study endlessly, and even still may end up broke. There are many ways, in theory, to make your money work for you and produce returns, and I hope to explore a variety of methods I have personally used and experienced.

Growing your money does not have to painful, and it can be life-giving and exciting. Without holding you up any longer, let’s dive into wealth-building.

Flee From The Promises of “Get Rich Quick” Schemes

In my early twenties, I was plagued by the theme of getting sucked into a variety of different pyramid schemes and losing my money with false hopes of scoring big. It took me many years to realize that there is almost no way to legitimately get rich quickly.

The old saying “if it feels too good to be true, then it probably is” is much more accurate than I knew in my younger years. While going to college, I was working part-time jobs for $8 an hour, and the reality of “the grind” was too real for me. I was slaving away for pocket change and working for a boss who made way too much money to do not as much work.

Realizing how my ego drove me to nearly empty my pockets caused me to do some research on the spending habits of people who remain financially broke. Check out the shocking findings below.

The thought of escaping my jobs, being free from a boss who can tell me how much I can make and when I can take a vacation, and sticking it him before leaving gave me a strange excitement. I wanted to be a part of something that you see in the movies. Something that was abnormal and made a boatload of cash.

Fast forward a few years and I had made $0 in any of my pyramid schemes and scams, but I lost hundreds of dollars. My other friend, who was into investing chose a super average mutual fund, and at the same time managed to gain 24% off of his original $1,000. Only one of us made money, and it wasn’t me.

If anyone promises you the world, simply do not believe them. If it were truly that easy to make money, no one would be broke. It is far better to learn skills and gain knowledge in building wealth that will work out far better, and in the years to come, make you much more money.

Who Are You Trying To Fool?

Shortly after buying my first house, I felt the pressure of keeping up with my neighbors. I saw their neatly trimmed garden and lawn, as well as their higher quality tools, cars, and sheds. While it might sound silly, I really did feel insecure about being viewed as an adult who couldn't have nice things.

As my first winter in my house rolled around, I had a few moments of clarity.

• No one was able to see my lawn under all of the snow
• the neighbors garden was obviously dead *
• everyones’ cars looked dirty and performed horribly in the sleet

Why was I so quick to desire these things?

Everything I was insecure about became average in a painfully obvious way, and it saved me a lot of money.

I am able to drive to work, mow my lawn, renovate my house just fine, and store everything in my shed. I am actually able to do everything my neighbors are doing, and I am not spending the extra money to look “more capable.”

After realizing how much money I saved being content with my situation, I also went ahead and spent hours researching the 9 wealth-killing habits to keep you poor. What I found was convicting and caused me to change my lifestyle.

As I began to refocus my financial attempts to put my wife and me in a better spot, I was able to invest more and ultimately earn a lot more. At the beginning of the pandemic of 2020, I put $11,500 into the market as stock bottomed out, and after recovering, my investments jumped up to $53,000.

If I had given in to my own pressure, I would have only been able to invest around $2,000, made around $8,000 profit, and missed out on nearly $40,000.

Do not let your pride and ego tempt you into buying things you really do not need, to impress people who either do not actually care, or don’t matter to you.

If You Succeed With A Little You Can Succeed With A Lot

In my earliest days of investing and looking to make my money work me I was quick to throw all of my money into something without properly researching. My first $1,000 investment turned into around $780 with a $220 loss. If you have never lost more than $100 before, it can be gutwrenching.

I decided to take a few months and experiment with just $100. If I can make any gains with my $100, then I could apply it to $1,000. After a few months, I turned my $100 into $112. A $12 gain is nothing compared to a $220 loss, but with enough wisdom, practice, and discipline, I could eventually make my $220 back and continue to make a profit afterward.

The lesson here is that we all need to take time to learn and grow. We cannot jump right into the fray and expect to succeed violently. Because I learned to work effectively with $100, I now have the skills to work effectively with $50,000.

This also applies to everything, even things outside of the realm of finance. Because I learned to care for my girlfriend and then-fiance, I was able to work towards being a better husband. Small steps are necessary to build a foundation that lasts.

This article is for informational and entertainment purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.