I am sure you have heard a number of bigwig money-making gurus spout this nonsense before and have thought nothing much of it. But it is true, in order to save or make money even, you have to spend it. Hey, with the way the current economy is, it doesn’t hurt to consider a few counter-intuitive options!

Spend Money
Like I said, and I’ll say it again, just so you can get used to it: if you want to get the most for your money, you are going to have to spend it. One of the biggest mistakes people make when they are trying to get their finances in order is to stop spending money altogether. This is a big mistake. What’s Newton’s law of motion? “A body that is in motion, stays in motion.” This can be similarly applied to the flow of money. You are not going to make any money unless you spend it.

So what do I mean? Consider this, not all spending is the same. Of course, you should limit unnecessary and frivolous purchases, but spending on essential upkeep, preventive measures and items that will save money in the long run is vital for getting and keeping your finances in order.

For example, scrimp on stuff such as routine car maintenance and energy-saving bulbs, and you could pay for it in the long run. When things go wrong with cars, especially with that European hotness you have tucked away in your garage, it could end up costing you big. And with rising electricity and energy costs, switching to the new bulbs could save you a pretty penny in a little less than a year! Haven’t been going to the dentist to save on health insurance? Boy howdy, that root canal is going to hurt, physically and financially! Okay, okay, enough. You get the point.

Don’t Stay Home in Front of the Idiot Box
Yes, yes, staying at home watching television is cheaper than going to the movies. I know, I know. Or is it? While staying home is certainly less expensive than going out with your friends, it isn’t likely to improve your financial situation significantly. Remember Newton’s law of motion? Since when has sitting money ever made anyone rich?

Here’s what I suggest. Instead of staying home, bitching and lamenting that you can’t afford to go out, take the initiative. Sign up for some classes at the local community college to improve your job prospects and learn new cost-cutting skills so that next year you don’t have to sit at home thinking about the things that you want but still can’t afford. Who knows, you might just meet your future business partner at one of these classes! You know what I mean. If like minded people work together, things are going to progress much faster. So, if your goal is to get rich, having similar minded people with you, working on the same thing, will get there faster.

Don’t Buy The Cheapest
This is almost the same as what I was talking about earlier with the scrimping. Cheap rarely means what you think it means. It actually means, cheap, not best value. To get the most out of your hard-earned money, you must think value rather than price. A car that is inexpensive, but costs a lot to drive and needs frequent repairs has less value than a car with a
higher price tag but costs less to run and maintain.

For example, for those of you in the know, I love the 1992-1995 BMW 8 Series car. It had a price tag of around ninety thousand dollars when it first came out. However, now you can pick one up for merely eight thousand dollars! Why don’t I get one? Because of the complex V8 or V12 engines. They are expensive to maintain and require a lot of maintenance. Instead, what should I get? You guessed it, a Honda Civic (or something comparable). This concept of buying value over price can be applied to anything and will mean that you rarely buy items which are the least expensive.

Don’t Buy Things That Are on Sale
Much like things that are cheap, things that are on sale are rarely the best value. In fact, it is usually the opposite.

There are two major problems with most items on sale: they are often something that you really don’t need, and there is something wrong with them.

If it’s not something you’d buy even if it weren’t on sale, it’s a purchase you shouldn’t make. Do you really need thirty pairs of 50 cent underwear or that gigantic jar of mayonnaise? When you find something on sale that you do need, don’t buy it without looking at other options. If you need the item and there aren’t better options, then buy away.

Also, things that usually go on sale are things that have gone bad or are about to go bad. Ever notice the specials menu in restaurants? No, it’s not what the chef has fresh for the day, it’s food that’s about to go bad, and they need to move it! While I can’t say for certain that all restaurants do this, but it make sense doesn’t it?

Alright, that’s all the time I have for this week folks. thanks for joining me again and see you in seven!

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Here is another one of those mildly entertaining surveys that I found on the Internet that have to do with money. This week, we will find out Which Billionaire Are You?

So, you conquered the business world, you have more money that you could spend in three lifetimes, and you have the perfect arm candy for every night (and it was all thanks to reading Alex Leigh dot Net, of course!). Since becoming rich, have you ditched all your old friends? Or, have you become a kind hearted philanthropist?

So, which billionaire am I?

After answering a few amusing questions, the program spit out my answer. I am officially a Megalomaniac! Muahahaha! I rule with an iron fist and do not tolerate incompetence. And apparently, I have no friends, but employees. Interesting… That’s eerily accurate! LOL!

Which Billionaire Are You?

Please visit the site through the link I post above and post your result in the comments section. It would be nice to see what else people get. Plus, I will know which one of you I would need to take out to secure my money. So all you Megalomaniacs, watch out!

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So, you fixed up that starter home top to bottom, and are finally ready to put it on the market and make a killing. Sound like it’s a couple of years ago? Think it’s impossible in today’s market? Well, you are wrong. A good businessperson can profit in any type of market. Believe it or not, just as many real estate transactions are occurring right now.

While reasons for home sales have changed, if transactions are still occurring, money is still being made; just by different people. But what if you could be one of those people that have transactions in any and all types of markets? Wouldn’t that be great?

Let me give you an example. When the economy is booming, lenders become more lenient, or creative so to speak. It seems that during the “up times,” everyone and their grandma could get financed for a home purchase, with zero down and pay interest only. Ah, the good ol’ days… Well, in those markets, the idea is to make minimal payments until the value of the property increases, and then sell. Basically, you’re making money using the bank’s assets.

Now, when the economy is in a downturn, many careless investors lose out on big money when the value of property drops, and suddenly they find themselves owing more than their properties are worth. My suggestion? Rent it out. Rentals always increase during recession periods. Make sense?

In any case, let’s get to the tips for this week.

1. Pricing Your Home
Do not price your home too high. Better yet, get an objective opinion and have your Real Estate Agent research comparable sales and advise you of the appropriate price range for your property. Leave emotion at the door. This is business.

2. Financing Position
Be flexible on financing options. Don’t pigeon hole yourself into only accepting all cash. Not everyone has cash lying around. Being flexible on financing options may secure a better selling price, and a better selling chance! For example, no one likes to offer rent to own options. However the upside to offering this is expanding the pool of potential buyers. Imagine, finding a great family to purchase your home, when you would not even have met them, had you not offered the option. It may require more work, but we’re talking hundreds of thousands of dollars here. It’s worth a bit of sweat equity.

3. Market Timing
Don’t make the mistake of selling something at a time when no one can afford it. Ask your Agent to determine whether the market cycle is ripe to net you the money you need.

4. House Showings
Provide easy access to your home for sale. With the internet, people have gotten used to buying certain things unseen, but not a big purchase such as a house. Do not do “Appointment Only.” It is the most restrictive. In contrast, houses on lock box are the most accessible. The more accessible it is, the chances for the right buyer to show up, increases. However, people have different lifestyles. Let your Agent help you determine a solution that will best fit your situation.

5. Marketing Technology
Don’t fear technology. Put it to good use. make sure your Agent is up with the latest technology, such as internet sites that cater to home buyers. Check around to see what technology is being utilized in your area. In some places, cable television advertising is popular. In others, using 800 numbers are the norm. A good Agent will know where you can get the best exposure, and properly advise you.

Okay, that’s it for this week folks. Check back next time for five more tips!

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