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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