Everything We Do Costs Money.

It is no secret that it costs money to live. You’re spending money right now.

Oh, you are probably not handing over dollar bills or entering in your credit card information right now but you are spending money. You sleep somewhere. You have a phone. You eat. You have electricity. And it all costs something.

But the exact cost is different for each person, even if they have the exact same item or service. Why?

Because some people have learned to get what they want for less. Why haven’t you?

Are you too dumb? Too tired? Too apathetic? Do you have too much money? I don’t think so, this is too important to dismiss.

Even if you spend the “average” amount, you are still paying too much because you could have paid less. All you had to do was obtain better financial knowledge.

You see, we are constantly under attack. Every single day millions of dollars worth of advertising dollars are spent by companies to try and take even more back from us in return. And every day it works because the vast majority of people do not want to learn how to keep more of their money.

This relentless assault on our pocketbooks is not going to end. Pressured by corporate executives to always been growing revenues and profits (and therefore make their share options worth even more), businesses will find ways to squeeze ever harder for that extra dime.

What Paying Just 10% Extra Means

I am still surprised at the price people pay for cell phone service, sometimes over $100 per month! People just get accustomed to paying that price and never look around. This is exactly the type of customers that companies want and it is exactly what type of customer YOU don’t want to be.

If you get paid your yearly income equally every month of the year, you earn 8.333% of your salary each month. That means if you overpay by an average of just 10% for the goods and services you buy then you are actually working a whole month each year to do just that! (If your expenses are around your income, like most people)

A whole month of working!

Now think about the opposite situation, you SPEND just 10% less than average. That means a whole ‘extra’ month of expenses is sitting in your bank account at the end of the year!

Plus, saving money is better than earning the same amount as you don’t have to pay taxes (income, sales, etc) on money you save.

Now put that saved money into investments and let it compound for a few decades and you could retire YEARS earlier.

This just shows you how important becoming financially literate is. It is certainly worth the effort to learn. Take control of your money, it is a life-changing skill!

Take The Power Reigns

• Examine Your Reoccuring Subscriptions: Do you know how Planet Fitness can sell memberships for just $10 per month? It is because a large portion of their members never show up! What a waste of money for those people. Are you truly getting your money worth from your monthly subscriptions? If not, cancel or find a suitable substitute.

• Find The Actual Cost: If you have ever bought a new car, you know all the ‘extras’ they will tack on. Dealer fees, shipping fees, document fees, extended warranties, etc. Some you can demand be taken off, and you should always get an itemized cost list for transactions like this. Additionally, don’t play their game and go by monthly payments, know the total cost.

• Research: The internet makes it easy to find the cheapest seller of an item as well as reviews of both the item and the business. Spend some time finding the best value. (The amount of time spent researching should increase with the cost of your purchase)

• Don’t Fall For Pushy Sales Tactics: Have you ever been to a timeshare sales pitch? There you will find some hardcore pushy salespeople. If your gut is questioning the deal, don’t do it! A sure sign of a pushy sales is a limited time offer, I.E. “This offer is only on the table right now, if you leave you won’t get it”

• Prices Are Negotiable: And not just in small businesses or commissioned sales places. Ever hear of price matching? That is just negotiation made simple. I’ve had success in the big chains by talking to the manager and negotiating a lower sales price for a “scratched and dent” refrigerator.

• Don’t Pay 100% Before The Work Is Done: I once had purchased some furniture that needed to be ordered from the manufacturer. I paid half then and agreed to pay half upon delivery. Well, before the furniture ever arrived at my door I had a call from them asking to pay the other half. I refused to do that and so should you. Whether it is a contractor or a car mechanic, never pay more than half before the work is done. Once they have the money, you lose your power and don’t be surprised if the work takes even longer.

Conclusion

This is just scratching the surface, how in depth do you want to go? The knowledge is out there - seek it out!

Becoming smart about money means you will control it, it won't control you.