Dumb Little Man | Tips for Life

Common Signs There's Nothing Left to Cut

• You've cut out coffee.
• You've dropped cable and internet.
• You don't eat out.
• Bring lunch to work.
• Clip coupons.
• You've sold stuff on CraigsList.

3 Ways to Increase Your Budget

The Bottom Line

Written on 4/20/2013 by Brett Lindenberg. Brett Lindenberg is happy that spring has sprung. If you enjoyed reading this post you might also enjoy reading his blog at www.500amonth.com

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1. Pretend that you can afford it.
   Too often we base the quality of a product based on its price and label. Plus, as we already discussed, if it's difficult for us to afford it, we may want it all the more because of the inherent allure of that which is hard to get. By ignoring the price, you automatically protect yourself from the "hard-to-get" factor, and can begin to think more objectively.
2. List the advantages of buying.
   Now that you are no longer under the spell of wanting it just because it is hard to get, you can begin to think objectively about whether you want this. Sometimes, you may find it difficult to find any good reason to buy the item once you ignore the price. For example, I stopped buying expensive makeup when I realized that I can't think of a single advantage it has, other than that it should be better because of its price and brand. But at other times, some advantages remain.
3. List the disadvantages of buying.
   This is very important and it's not something that many of us are used to doing. If you are about to buy an expensive house, after you eliminate the "hard to get" factor and list the advantages, considering what are some of the drawbacks of the purchase. It may too far from your place of work. There may be a lot of construction in the area. It may be a lot larger, and so it takes a lot longer to clean. The same idea applies to any other purchase. Everything we buy, or really anything at all, carries both pros and cons. By considering both, you make it much more likely that you'll make an informed choice.
4. Decide if it’s worth the price.
   After you ignored the price so as to bypass the "hard-to-get" factor, and calmly analyze both the advantages and disadvantages of the purchase, it is time to decide whether it is worth the price. You need to consider how the financial cut will affect the rest of your life. This is especially important for very large purchases. Returning to the house example, if you buy this house, will have money to afford furniture? Going on vacations? Will you still be able to go out to dinner whenever you feel like it? If you stop to ask yourself if it’s worth it, then the few times that it does make sense to make a substantial financial sacrifice, at least you know that you are making an informed choice. But you may find that most of the time, going outside your comfortable price range is simply not worth it.

Written on 5/29/2012 by Maya Ackerman. Maya divides her time between research, writing, teaching, singing, and spending time with her family. She has authored over a dozen academic articles and is about to receive her PhD. To share her insights and bring you researched articles on topics such as money, success, happiness, and love, she co-founded Great Living Now, a personal development community focused on helping others make their lives better.

Photo Credit: jollyuk

• Imagine Having no Money
  Imagine what you would do for happiness if you had no money at all. Think about how you would spend your time, and what you would do for enjoyment. Change your focus from material possessions to other things that bring you enjoyment, such as spending quality time with your family and friends. Rather than focusing on the accumulation of possessions, concentrate instead on playing with or reading to your children, or spending time out enjoying nature.
  


• Want What you Already Have
  Society teaches us to want what others have. Instead, shift your thinking so that you are satisfied with, or want, what is already yours. What tends to happen is once we reach our goals in terms of owning personal possessions, we trade those old goals in for a set of new ones that involves bigger, better, and grander objects.
  
  Goals are good to have because they motivate us to work, and to continue to strive for self improvement. The key is to find a balance between having worthy goals and recognizing when we are allowing the desire for possessions to overwhelm the importance of other aspects of our lives. Rather than constantly striving for things we do not have, we need to shift our focus to being thankful for the things we already possess.
  
  


• Volunteer Your Time
  One way to appreciate what you have is to work with others who have nothing, or who have disabilities that no amount of money can overcome. Volunteering time to work in a food bank, or to work with underprivileged children, can really alter your perspective on where you are in life, and can create a deeper appreciation for the gifts you do have in your life.
  
  Helping others can boost your spirits as well. There is a great deal of personal satisfaction to be gained from giving aid to those who are in need of it, leaving you with a sense of satisfaction that will carry over into your own life. Use the experiences of helping others to teach your children compassion and civic responsibility.

Written by David B. Bohl, the author of of Slow Down Fast

Photo Credit: lanmuoip

• Haggle
  You may not think that the local appliance store is willing to go down from the printed sales price, but you would be surprised what a failing economy does to salespeople. If you have knowledge on your side (like what the competitors are selling the same item for), you can get them to come down on prices, add extended warranties, deliver for free, install for free, etc. In addition to these, don't forget the freebies.
  


• Be willing to walk away
  Don't be afraid to be difficult. If you don't get the deal you want, tell them you are going to leave. This works even better when you cart is loaded with other purchases and you are willing to let all of those go because you don't get the deal on what you really want.
  


• Bring up competitors
  This works well when you are looking at very competitive business - like car dealerships or electronics or even credit card companies who are pumping up your interest rate. If you are in a store, it works even better. If you say, "that other store was selling those same things for cheaper" loud enough, you'll get all sorts of attention.
  


• Cash, cash, cash
  Not only should you bring cash for your purchases to keep you on your budget, you should tell the salesman you intend to pay with cash and thus save them the 3%-5% that Visa collects on each purchase. Some stores will drop the price simply because it's a cash purchase.
  
  Another trick is to be sure you only bring as much cash as you are willing to spend. This will eliminate the possibility of you exceeding your budget. It also may help persuade a sales manager when you are haggling over the price of an item.
  


• Shut up
  When in doubt, keep your hands in your pockets and keep your mouth shut. This will make the salesman dicker himself down on prices when you don't seem happy with his initial offer. They may even divulge some juicy information, like the markup price or even if what your looking at is the best model. Remember, the sales person wants to make the sale more than you want to purchase it!


• The Golden Rule! Don't be afraid to ask for a discount
  If all else fails, ask for a deal. There may be sales coming up you don't know about, special pricing or even a coupon that the store has on hand. Even small bargains add up to big ones. "What else can you toss in" is a single sentence that can amount to some huge discounts or freebies.

Written on 12/01/2008 by Mike Koehler. Mike Koehler is a multimedia journalist in Oklahoma City working full-time to save the newspaper business while helping his wife raise three kids under age 8. In his spare time he sleeps. E-mail Mike at kmanconsulting@gmail.com.

Photo Credit: CamelCrusher1978

1. Listen to the pain…it is teaching you something.
   Pain is one of the slowest and most thorough teachers. It signals something is wrong and can be corrective. While it is tempting to try to rescue someone from his or her financial pain, it’s important not to look at circumstances in a vacuum. There are ramifications to our actions, and experiencing pain may be one’s only mechanism to learn what not to do.
   
   This point isn’t an endorsement of pain as much as it is an acknowledgment that pain is sometimes one’s preferred method of learning. By “rescuing” such a person, you are actually doing two harmful things: you are often robbing him of learning a lesson that he may not get otherwise, and you are prolonging his dependency on you.
   
   For example, when Oscar-winning actress Halle Berry was younger, her mother famously allowed her to stay at a homeless shelter temporarily in order to get her life together. Halle had moved out on her own and asked her mom for financial help for expenses. Her mom told her no: either come back home or figure it out. That’s exactly what Halle did and credits the difficult experience with making her “stronger” and teaching her resilience in any difficult situation.
   


2. Pain from Failure is Often Temporal
   Halle’s experience illustrates a revelation that completely changed my outlook on failures a few years ago. It caused me to realize that very few failures are tragic. Additionally, it helped me separate a failing project or task from being a failure. The simple quote is:
   
   Men don't drown by being underwater, they drown by staying underwater.
   
   In other words, you can get back up from failure. The important lesson is that you do not repeatedly make the same mistakes. By struggling through a difficult problem, you have the unique opportunity to acquire the wisdom from your missteps necessary to avoid the very behavior or decisions that resulted in failure. The old saying goes "insanity is doing the same thing repeatedly but expecting a different result." Reasonable people learn their lessons and can go forward to have extraordinary success.


3. Failure is an Opinion
   Not only is failure temporary, but it is also a matter of opinion. I always think of the irony in the number of prominent individuals worth over $10 million who have undergone severe financial pain. Many of us know the following financial experts and businesspeople for some of their significant achievements; however, all have gone through pronounced periods of financial ruin too: Dave Ramsey, Robert Kiyosaki, Donald Trump, and Suze Orman. I could go on, but the point is in addition to their previous failures being temporary, I firmly believe that working through their previous failures taught them some of the very lessons that fueled their current successes.
   
   Those lessons include purchasing investments that are congruent with their risk tolerance and knowledge base, maintaining adequate liquidity, monitoring their financial ratios, structuring deals that limit their financial exposure to losses, and many other pearls of wisdom that you will find in their respective books.
   
   Undoubtedly, they have all gone through some painful experiences and have multiple battle scars. I believe it was their struggles that qualified them for their present successes. If your “failure” taught you the lessons necessary to create a net worth in excess of $25 million, was the experience truly a failure? Was the pain worth the trouble?


4. Pain Unlocks Creativity
   One of the most powerful examples of pain unlocking creativity rests in Tennyson’s story. Beloved playwright Alfred Tennyson developed a powerful bond with his close friend Arthur Hallam. They met in 1829 at Cambridge University when they were eighteen and nineteen. It only took them a few weeks before they were writing sonnets to each other and visiting each other’s homes for prolonged periods.
   
   Sadly, Arthur died young; they had only been friends for four and a half years, and Arthur’s death literally destroyed Tennyson. For many years, Tennyson was melancholy and mourned the loss of his friend. He even confessed that he often wished he could die rather than continue to live without Arthur. Indeed, it took several years before Tennyson could even bear visiting Arthur’s grave.
   
   He reconciled his deep feelings by writing a work that became known as In Memoriam. It explores questions of mourning, the essence of his lost friend, God, and nature. These poems are often cited as some of the greatest lyrical poetry ever written on grief.
   
   No one wants to go through pain, but sometimes the creative voice is unmuzzled through pain and grief. Consider how many best-selling songs are born out of someone’s heartbreak. Consider what the world would be like if Oprah didn’t go through a very difficult and troubling childhood. How many high achievers were motivated by prior poverty?


5. Pain Serves as a Memorial
   Your scars serve as a memorial allowing you to harness the power from painful experiences to yield extraordinary results. For instance popular fitness expert Jillian Michaels used to be an overweight child. I suspect this is part of what made her so effective on The Biggest Loser. She could personally empathize with the contestants’ situations because the memories of her own experiences were so decisive in who she became. Her drive to never go through her past pain again and to aid others in their journeys has propelled her to become one of today’s most powerful fitness brands.
   
   Beneath the clothing and tough exterior, she wears the scars of someone who struggled with her weight and did something about it. Drawing on the memory of her pain serves as strength: strength to exercise when she doesn’t feel like it, to eat healthy when her taste buds would rather have something else, to look passed the tears of the contestants when they say they can’t do it because she knows victory is on the other side.
   
   Never underestimate the power of an experience to shape your life and influence the world!

Written on 11/22/2011 by Roshawn Watson. Roshawn writes at Watson Inc. on eliminating debt, investing money, and building wealth. Get my free eBook Your Foundation to Wealth by signing up for my email updates (no spam I promise). Get my RSS feed and connect with me on Twitter @roshawnwatson too.

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1. Write a Grocery List
   Simple, yep, but this one trick can make a big difference. If you often find yourself buying groceries that end up being thrown away, or if you get lured in by the cookies or ice-cream, then having a list will help. It also prevents repeated trips to the store to pick up that one thing you forget...
   
   A list lets you buy exactly what you need: no more, no less. It takes just five – ten minutes to write a grocery list, and you’ll easily save that much time in the store.


2. Leave Your Credit Card at Home
   If you often find yourself spending more than you should when you’re out shopping, then leave your credit card at home. Take cash, or a debit card: that way, you can only spend what you actually have.


3. Record What You Spend
   Just as keeping a food diary helps you lose weight, keeping a spending diary helps you save money. If you have to write down that bottle of cola and candy bar, you’re more likely to resist buying them.
   
   A spending diary will also highlight patterns: any areas where you’re spending more than you realise, and where you might be able to cut down.


4. Try the Store Brands
   If you normally buy branded products, try the store’s brand instead, or even a value range. You might be pleasantly surprised – sometimes, there’s little or no difference in quality (the products may even be produced in the same factory, by the same methods, and simply packaged differently).


5. Take a Packed Lunch to Work
   It only takes five minutes to make sandwiches in the morning – probably much less time than you spend heading out from work to buy your lunch. A packed lunch will cost you far less than getting food from a store or restaurant – and it’s often better for your health, too.
   
   You can find more tips on packed lunches here.


6. Add Items to a Wishlist
   When you’re browsing an online store, add any items that you like to a wishlist – don’t buy them straight away.
   
   As Trent Hamm explains here on The Simple Dollar, adding items to a wish list “takes the edge off of the immediate desire. I can also return to those ‘wish lists’ at a later time and determine if it was a ‘whim of the moment’ desire or something I actually have a use for.”


7. Block Online Shopping Sites
   If you’re really struggling to control your online spending, then try blocking any problem sites for your browser. When you really need to make a purchase, you can unblock them – but the extra step involved will help prevent you from going onto those sites “just to browse”.


8. Use Coupon Codes
   Any time you’re making an online purchase, search online for “coupon code” plus the name of the product or store. You might not find anything – but you might save 20% or more, with just a few seconds’ work.
   
   Many sites offer regular roundups and emails of coupon codes – try Retail Me Not for starters.


9. Ask “Do I Need This?”
   Any time you’re thinking of making a purchase, ask “Do I need this?”
   
   Of course, there’ll be times when you want to buy something that you don’t strictly need – but asking the question can help you to become more self-aware about your purchasing habits. If you’re considering putting money down for something which you don’t need but which you think you want, then give yourself a day or two to mull it over. Often, that initial impulse to buy will just vanish overnight.

Written on 8/11/2011 by Ali Luke. Ali writes a blog, Aliventures, about leading a productive and purposeful life (get the RSS feed here). As well as blogging, she writes fiction, and is studying for an MA in Creative Writing.

Photo Credit: Monochrome

1. Cook at home often: If both the husband and wife work, this is likely to be very difficult. Start out with the habit of cooking at home once a week and slowly increase the frequency until you find a balance between saving money and getting stressed out.
   


2. Make your own coffee: Everyone seems to have heard of the latte factor. Even though the author may have overestimated the savings from skipping a latte at Starbucks, don’t underestimate the ding it puts in your pocket in the long run. You don’t have to entirely ban drinking coffee, but skip it as often as possible unless you make it at home.
   


3. Brown bag lunch at least a few days a week: Lunch times are great opportunities to network and make connections that could improve your career growth. So unless there is a common eating area for brown baggers, you may choose to limit brown bagging lunch to three days each week. Find a balance between saving some money and making the connection. In my case, I take my lunch with me 2-3 times a week and eat out the rest of the time.


4. Make a list before going shopping: They call it impulse buying for a reason. Humans simply have a very tough time resisting the temptation to purchase extras while shopping. Without a list you will buy items that you simply do not need. Even worse is when your forget to purchase the actual item you came to the store for in the first place. If you plan on cooking at home, pre-plan a rough menu and make a list before you go grocery shopping. Getting all that you need in one trip can help avoid another unnecessary trip and temptation.


5. Go grocery shopping while you are in a hurry: Maybe you need to go out in a couple of hours. Or your favorite show is going to be on TV after a couple of hours. Try to squeeze in the grocery trip in that intermediate time. Armed with your grocery list, you should be in-and-out very quickly with little time for meandering and getting tempted to buy things you don’t need.


6. Watch out for expiration dates on perishable goods: This one seems intuitive when you read it, but I am surprised at how many people do not pay attention to expiry dates. No point getting a gallon of milk if it is going to turn sour with a couple of days. Same goes for meat, eggs, yogurt, spreads, frozen items, deli/bakery items etc. Some people say you can use a few items a few days after expiry – but I personally value my health more than money and would rather avoid buying such items in the first place.


7. Buy in bulk whenever possible: When it comes to non-perishable items, buy in bulk whenever you find something on sale. The items I usually stock up on are, cereals, tinned goods, rice, beans, pasta, coke, toothpaste, body wash, shampoo, toilet paper etc. For such items, shopping at warehouse stores like Costco, Sam’s Club etc can save you quite a bit of money, provided you stick strictly to your shopping list when you shop at these places.


8. Buy generic products whenever possible: Does it really matter whether your cereal is made by Kellogg's or is the store brand? Does it matter if your milk is Oak Farms or the store brand? For a few things (like soda in particular), I prefer brand name products. For others, I do not mind generic store brands if they can save me money. Find what works for you and switch to generic brands for at least a part of your grocery list.


9. Use grocery store bags to line trash cans: This may not work if you use a massive trash can but we use a small sized one for which the grocery bags are a perfect fit. This not only helps us save some money, but reduces our environmental foot print and avoids the kitchen from stinking from a huge overflowing trash can.
   


10. Consolidate and pay off debt as soon as possible: If you carry any debt, focus on consolidating it to a lower interest and paying it off as soon as possible. Money paid in interest is money thrown away! Why spend your hard-earned cash to make the financial institutions rich?
    


11. Pay your bills on time and avoid late fees: Get organized about your regular bills. If possible, automate the payments. Most utilities and other recurring bills can be set to be charged to a credit card or deducted from a checking account these days. Also, many banks offer free bill pay programs. So there really is no excuse for forgetting to pay a bill on time and forking out the late fees. Say, by chance you do forget a bill, if you are a first time offender, call the company and request politely to waive the late fees, and more likely than not, they will oblige.
    


12. Be aware of your bank balance and avoid over draft fees: If you use your checking account often or have some bills that are paid automatically from your checking account, be aware of the balance and avoid overdraft fees.
    


13. Avoid ATM fees: Be aware of the ATM withdrawal fees charged by your bank. While some banks waive fees for all ATM transactions on any ATM machine, most don’t. So be sure to use only those ATM machines where your bank will not charge the fees, or withdraw directly at your bank.


14. Avoid credit cards with annual fee: Credit cards with their cash back bonuses and reward points are a great way to save some money. Just make sure that the card does not charge you any annual fees! There is no dearth of cards that offer fee-free reward plans, so there really is no reason to pay the annual fees.
    


15. Disconnect land line if possible: Unless you have small kids in the house or older people to take care of, it is more than likely that you will be able to survive with only the mobile phones and can get rid of the land line. We have survived without any problems for over 4 years now with out a land line. Our Internet comes via cable.


16. Instead of buying books, borrow books from the library: Whenever possible, borrow your books instead of buying them. The card to your public library is free and the libraries are generally well stocked. In my city, the chain of public libraries is connected and the available books can be checked online. If there is some book that I cannot find in my local branch, I can make a request online for it to be brought in from one of the other branches to mine which is very convenient.


17. If you have to buy books, check if you can buy it used: Used books do not quite give the same feeling as leafing through the crisp pages of a brand new book. But considering that you can get used books for almost as much as half the price of a new book, it is a small price to pay. My favorite place to buy used books is a local chain called “Half Price Book Store”. Check if you have something similar in your city. For text books, look online on bulletin boards, mailing lists etc, and price compare on websites like addall.com.


18. Price check before buying anything expensive: For other items that are expensive, do a price check before buying the item. If you can wait for a while you can track the prices and grab a great deal when it comes along. Frequently available online coupons make it even more easy to save some money. This is especially true while purchasing any electronics.


19. Avoid impulse buying: Make it a habit to avoid impulse buying. Many of the things you want to buy do not seem all that necessary, if you only you wait for a day or two. Also, waiting means you will be able to check prices and make an informed decision to buy it at the best possible price.


20. Bottle your own water: Drinking water is good for your health. I always make it a habit to keep some at my desk at all times. Bottled water is the most convenient since it can provide protection against accidental spills. That said, buy bottled water only once in a while, and then reuse that bottle to fill your own water. If you are not happy with tap water, invest in a Brita Filter – in the long run it can save a lot of money.


21. Avoid the vending machines: Almost everything that is dispensed via vending machines has a huge markup (and is rarely healthy). However, if you suffer from snack attacks at work, consider creating a secret stash of snacks. If you like drinking soda and have a fridge at the workplace, save a refrigerator pack in the fridge with a post-it with your name on it. If you have a long commute, consider a stash for the car as well and avoid a quick drive-thru visit.


22. Keep your car as long as possible: When possible, try to keep your car as long as possible. Find the balance between the money spent on repairs versus the monthly installment on another vehicle and choose to run your old car as long as the repair costs are low.


23. Do regular scheduled maintenance on your vehicles: Do not skimp on or forget to do regular oil changes. Remember to check the air in your tires often. And use the grade of fuel that the owner’s manual recommends. These small acts can significantly lengthen the life of your car, giving you years of use.
    


24. Avoid buying a new car: When you eventually buy a car, see if you can make do with a pre-owned vehicle. A new car depreciates significantly the moment you drive it out the dealership. Is the new car small really worth thousands of dollars? Pre-owned cars that are only a few years old with low mileage are the best bargains. Regardless of the purchase, learn to negotiate with car dealers.
    


25. Ride your bike or carpool whenever possible: In many of the cities in the US it is hard to get by without a car. That said, just because you have a car does not mean you have to use it every day. Whenever possible, ride your bike or share a ride with a colleague or spouse and save both on gas and reduce the environmental footprint.


26. If you watch a lot of DVDs, get an online DVD store membership: Membership to online movie stores like Netflix or Blockbuster Online can save you a lot of money compared to buying DVDs or renting it from a local store. You need to wait once you order the movie, but if you watch a lot of movies at home, then you can easily get into the habit of ordering ahead of time so you always have something at home. If you are patient and your library has the resources, check to see if they have a movie section. You won't get anything very new, but they are free.
    


27. If you like watching movies at the theater, go before 6:00 pm: This is one of our soft spots when it comes to spending. We really like watching movies in the theater with the big screen and the great sound effects. But instead of paying ~$10 a pop for the ticket, we usually go before 6:00pm when the tickets are a little less expensive. Also, for movies that we don’t absolutely want to watch right away, we just wait until it screens on the discount theater where the tickets are $2 a pop. We avoid the temptation to buy snacks, by usually going for a theater some time soon after our lunch or sometimes sneaking in our own snacks in the purse.
    


28. Regulate your electric use: When not in use, unplug electric appliances. Apparently, unplugging the TV instead of just switching it off can save a lot of electricity! When not in a room, switch off the lights and the fan. Use a programmable thermostat to control your A/C and heater usage. If that's too much, at least know what each appliance uses and unplug a few of them.
    


29. Plan vacations ahead of time: Vacations are a necessary part of saving our sanity in the busy lives that we lead. But vacations are also a huge drain on the family finances. You can cut the cost of a vacation significantly by planning and booking ahead of time. Bookmark travel sites for finding inexpensive airfare, hotel etc., and book at least two weeks in advance.


30. Finally, keep distance from lavish, high-roller friends: If you have lavish friends who buy a new car every other year (or worse still, lease it), have large screen TVs and every other conceivable electronics gadget, eat out at fancy restaurants every other night and just live way beyond their means, keep the distance. They may be nice people and mean you no harm, but hanging out with such people often can lead to a lot of unnecessary desires and discontent. What’s more important – your friends or your peace of mind?

1. What’s Your Work Time Worth?
   The first step in applying the “life calculation” is to calculate the value of your working hours. Let’s say you make $50,000 a year working 40 hours a week. After taxes, you end up actually seeing $35,000 (this will depend on where you live, number of dependents, etc.). Assuming you work 50 weeks a year, the monetary value of each working hour is around $17.


2. The Shift From Dollars to Life.
   Once you’ve nailed down the rough value of each working hour, you can begin shifting away from thinking dollars to thinking life. You do this by calculating the life cost of all those things you wish you could buy. So that new MacBook Pro you wish you had no longer costs $1,800. If each hour of work is worth $17, it now costs 105 hours (almost three weeks) of life. That new house you wish you could buy no longer costs $500,000, it costs 29,411 hours of life (roughly 14 working years of life, and that’s assuming that the house is the only thing you spend your money on).


3. Consider trading things for life.
   Once you’ve calculated these actual life costs, think seriously about the trade-off between things and life. For Thoreau, the trade-off was simple. He always chose life over new things. As he says, “There is no more fatal blunderer than he who consumes the greater part of his life getting his living.” But you may decide that certain things are worth the life sacrifice. This doesn’t mean you’ve failed at spending less and living more. Quite the opposite. It means that you have made a reflective choice to sacrifice a portion of your days and hours for the things you own. You’ve made a conscious choice. The real danger Thoreau points to arises when we lose consciousness of this choice, when we buy without ever considering the amount of life exchanged for our latest purchase.

Written on 5/18/2011 by Nate Klemp. Nate earned his PhD at Princeton and is a professor at Pepperdine University. He founded LifeBeyondLogic.com, a website dedicated to exploring philosophy as an art of living. You can follow him on Twitter @LifeBeyondLogic and on Facebook. Download a free copy of his new ebook, Finding Reality: Thoreau’s Lessons for Life in the Digital Age.

Photo Credit: Fred Sheahan

1. The Nature Of Money
   
   

   "Money of itself has no explicit nature. Money is what one makes of it"

   
   Many of us believe that money holds a certain power. This is wrong. Money itself does not hold the power, rather it's our perception of money that has the power. If we change our perception about money, and understand that it is a tool used to acquire necessities, it no longer has the same power. In fact, I'd contend that we can start living life with a more balanced view once we understand what money really is.
   
   This lesson is not usually gained until we are older and unfortunately, in youth, we have a very different view of material items and do whatever we can to accumulate items for the wrong reasons.
   


2. Money Is A Means To An End
   
   

   "A Child must be taught early that money is only a means, a type of usefulness, an implement. Like all instruments, it has certain purposes, but it will not do everything. One must learn how to use it, what it will do, but above all what it will not do."

   
   We've all heard the saying money can't buy you love. In fact, it can't buy you a lot of things in life. While the commercialization of the planet advertises that new cars, purses, and homes can create happiness, I think most of us know better.
   
   Once you understand that money cannot purchase the emotions, relationships, or feelings that truly lead to happiness, money (and material possessions) will become much less important to you.


3. Money Is An Indirect Matter
   
   

   "My policy is that money is an indirect matter. The direct matter is your ability or what you are going to do that counts. If that comes, the indirect things will follow."

   
   If you do something just for the money, the love of it will soon die. If you do something you love, then the money is secondary but it will come a lot easier and it will last longer. This is something I have learned in business: when I chase the money it runs faster than me, when I let the money chase me by doing something I love, like writing, the race is a foregone conclusion.
   


4. A Fair Share Of The Profit
   
   

   "Many film producers think I am only interested in money. That's why they all try to lure me on their set by promising me huge sums and nothing else. But, at heart, I only want a fair share of the profit."

   
   This is a great lesson by Lee. By looking at what is fair for all parties involved you will be known as a fair and trustworthy person. If you take bigger slices of the profit, the profits will soon dry up. Think of it like this: If you are asking for a ton, those that you are working with may feel unmotivated and ultimately the success of the project suffers. If you are fair, and everyone is fair, the group works as one and accomplishes great things.
   


5. The Good Times Will Not Always Last
   
   

   "I profited from my father's philosophy about money. He used to tell me, "If you make 10 dollars this year, always think to yourself that next year you may only make five dollars - so be prepared."

   
   We all know this at heart and yet so many of us fail to practice saving for harder times. Many economic gurus these days like telling us to save more. Great, but if the mortgage can't be paid, how am I able to save? The key is to do something and set something aside - albeit only a few bucks.
   


6. Keep Money In Perspective
   
   

   "Sure money is important in providing for my family and giving us what want. But it isn't everything."

   
   Money is important, there is no questioning that, but answer this question:
   
   "Would you swap your family for 1 million dollars?"
   
   Ok, I know how most of you answered. The important test here is that you should always weigh the important of money against your actions, decisions, and behaviors. What are you willing to give up during your quest for cash? Your integrity, your family (by never being around)? Give it some thought.
   


7. Enjoying Your Work Is The Important Thing
   
   

   "At [one] time I wanted all the indirect things - money, fame, the big opening nights. Now I have it, or am beginning to get it, the whole thing doesn't seem important anymore. I have found that doing a thing is more important. I am having fun doing it. Money comes second."

   
   This is one of the most important lessons about money that I think Lee spoke about, and it's certainly true in my life. I have discovered over the years that the prize at the end of the rainbow is not really the prize, the prize was the Journey to the end of the rainbow.

Written by Steven Aitchison. Steven is the Author of Change Your Thoughts and works as an alcohol and drugs counselor. He has a BSc in Psychology and has a passion for studying belief formation, thought processes and values and principles.

Photo Credit: juanma

1. Realize that experience does not equal value
   Simply "putting in your time" does not make you worthy of a raise, a promotion, or even a job. Many of us make the mistake of assuming that experience merits higher pay. In reality, higher value merits higher pay.
   
   This is a good thing. It means that there is something you can do to earn more money regardless of your situation or experience. It means that you can take action and "earn" a raise, rather than sitting around "hoping" to get one.
   
   You can start this process by being honest with yourself. How much value do you provide at your job right now? How much responsibility do you hold compared to your peers? Let's say you went to a new job; do you provide more value than the person that would replace you? These questions are not meant to discourage you, but rather to help you realize where you currently stand as an employee in your manager's eyes. It's easier to move up the ladder if you know what rung you are starting on.
   


2. Determine new ways to create value
   Once you have an idea of where you stand, you can begin looking for ways to increase your value. This is a pretty straightforward process. More valuable employees have more responsibility and generate more results. Let's turn back the clock and look at a very wealthy man as an example.
   
   Andrew Carnegie was one of the most successful -- and wealthy -- businessmen in all of history.
   
   When he was a teenager, Carnegie began working for the Pennsylvania Railroad Company. He did extra projects whenever he could, took on additional responsibilities as soon as he could handle them, and showed enthusiasm for getting results. In reference to his time at the company, Carnegie said:
   
   

   "I could not resist the temptation to plunge in, take responsibility, give train orders, and set matters going."

   
   
   Carnegie made the practice of doing extra work a habit long before he had his own company and built his fortune in the steel industry. As a result, he earned promotion after promotion and raise after raise. He took honor and pride in the work that he did and showed a desire to go beyond the standard expectations.
   
   Do you perform duties outside of your regular department? Do you "plunge in" and "take responsibility" like Carnegie? If not, how can you start doing so?
   
   Make a list of additional projects, committees, and responsibilities you can take on at work. Has there been a project that has just been waiting to be finished, but no one has stepped up to work on yet? Is there an upcoming conference or meeting that you can help plan? In many cases, there will be some obvious tasks that you can help out on right away.
   


3. Ask for suggestions
   Employees that earn raises are often taking initiative. You can start by having a brief conversation with your boss.
   
   Tell your boss that you're looking to take on additional responsibilities and ask him if there are any suggestions for what you can do. If he asks why, tell him that you have career goals and improving your skills and increasing your responsibilities is part of that.
   
   If your boss gives you some suggestions, then you know what you should work on next. In many cases, however, your boss will put off the conversation and tell you that he'll "get back to you."
   
   That's fine. This is where you begin to stand out from the crowd.
   


4. Follow up
   Give your boss about a week and then follow up with him.
   
   This time, however, come with your own list of additional projects and tasks in hand. Show him that you have taken the time to seriously think about how you can create an impact and increase your responsibilities. Very few employees make an active effort like this and your actions will begin the process of setting you apart from your co-workers.
   
   This is an important step because it shows your boss that you are serious about providing additional value to the company.
   
   When you finish this follow up conversation, you should have at least one way that you can make a bigger impact. Join a committee. Take on an extra assignment. Become the go-to guy or gal in your office. There is always something you can do.
   


5. Make sure you have proof
   Take advantage of your increased responsibilities by doing an amazing job. You should make sure that your new project is your best work.
   
   As you finish your new projects -- and as you go about your regular job -- be sure to collect clear proof and evidence of your value. Did a customer give you an over-the-top compliment for the job you did? Get it in writing if you can. Did your co-workers find the presentation you gave to be very beneficial? Save those slides for later reference.
   
   If you can, try to quantify your impact with exact numbers. Did you lead a new training seminar for your peers? How many people attended? How many new skills did they learn? Did you save the company time or money? How much? Using numbers makes it easier for your boss to see your value.
   
   Using proof is the strongest tool in your toolbox. Keep track of what you do so that you can prove why you deserve a higher paycheck. It is much easier to get a raise when you have clear, specific proof of why you should get it.
   
   You earn your raise before you ask for it.
   
   After a few months -- or maybe even a few weeks -- you will have settled into your new responsibilities and you'll have proof of the value you provide. Now that you are armed with these tools, you can confidently ask for a raise. Your additional work will put you ahead of the standard employee and show that your value is worth rewarding.
   
   Yes, it's extra work, but compare the cost of a few months of additional projects to the payoff that you get from earning more year after year. Asking for a raise is something that most employees always want to talk about, but "never get around to it" because they know they haven't proven their worth.

Written on 3/23/2011 by James Clear. James Clear is the voice behind PassivePanda.com, a site that helps peopleearn more money. For additional salary negotiation tips and strategies, join Passive Panda's Free Newsletter on Earning More

Photo Credit: baslow

• Always make a list before going shopping of what you need
  
• Don’t go into stores “just to look” if you know you usually end up buying something
  
• Never add items to your basket when you’re standing in line at the checkout: these products are deliberately chosen to encourage you to pick up something extra that you don’t need
  
• Avoid clicking on adverts online and don’t “browse” on sites like ebay and Amazon
• Uninstall shopping apps that you are hooked on
  

Written on 3/15/2011 by Ali Luke. Ali writes a blog, Aliventures, about leading a productive and purposeful life (get the RSS feed here). As well as blogging, she writes fiction, and is studying for an MA in Creative Writing.

Photo Credit: kevindooley

• Caring about your money, and trying not to waste it – whether that's in noticeable ways (like losing your wallet) or less obvious ones (like paying your bills by check when you'd get a discount for using direct debit)


• Stocking up on your favorite foods when they're on sale.


• Borrowing books from your local library or using Amazon's second-hand sellers, instead of buying every single book new.


• Cutting out things which are pricey but which you don't really enjoy.
  

"Wealth can only be accumulated by the earnings of industry and the savings of frugality." (John Tyler, 10^th President of the United States) – 19^th century

"The way to wealth depends on just two words, industry and frugality." (Benjamin Franklin) – 18^th century

• Refuse to spend money on things which you really need (like new clothes).


• Buy shoddy, low-quality goods – which end up costing you more in the long run.


• Let friends foot the bill when you go out.


• Act unreasonably, expecting or demanding a discount (negotiating is different).


• Refuse to tip in restaurants.

Written on 2/16/2011 by Ali Luke. Ali writes a blog, Aliventures, about leading a productive and purposeful life (get the RSS feed here). As well as blogging, she writes fiction, and is studying for an MA in Creative Writing.

Photo Credit: Frugal Yankee