Tag Archives: Coffee

You Can Never Save Money by Spending Money!

Money Lesson Number #129: You Can never save money by spending money!

Don’t let the Geico ad with that cute little talking and dancing  gecko lizard fool you–the only truth about that commercial is that every fifteen minutes, you and millions of people are just adding more money to Warren Buffet’s already $70-plus billion; he owns the Geico Insurance Company.

The-Geico-Gecko1

Always remember this: if you are spending any money, you are not saving, no matter how good the deal is, even if it is on sale for 99.99% sale off.

You did not save money if you bought it, you spent money (more often than not wasting money on junk that you will not need in a month), your money is going from your pocket to someone else’s pocket and, usually it is a billionaire or a multi-billion dollar company.

The only time you save money is when your hard-earned money stays in your pocket, whether it just sits at your home, in your checking account or in a portfolio that you own.

Learn the little tricks that corporations use to get your money.  Every time you see any kind of ad, such as TV commercials, printed ads, a sponsor page on your Smartphone via Facebook or Google, they have one goal in mind; to take your money from you forever!

The old saying is true: “A fool and his money are soon parted,” or even worse, “A fool and his money are soon partying.” But there is even a much better saying: “A Penny Saved is a Penny Earned.”

My favorite stratagem is to pay yourself first. Each time money comes into your hand, save/invest twenty percent (20%) and spend the other eighty percent (80%).

I know at times you must buy goods and services, but what you should know is that each time you spend money, it is going to make a large multinational corporation or someone wealthier and you poorer

(Please see one of my earlier  blog: Get Rich off the Very Companies You Pay Each Month for Goods and Services [Gas, Electricity, and Water Companies]). 

Most people have been duped into spending money. All ads no matter how simple or sophisticated are designed to wire your brain to make you give up your money to someone else. It is not easy, but you have to rewire your brain to know when you are getting duped.

A good way to start is with your children by letting them know that most TV and other commercial advertising are not 100% true. Our seven-year-old now always asks us each time he sees a TV ad, “Is it true?” and rarely are any of them true!

But, you can also always ask yourself by saying, “Can I go one day without it?” and the next day, ask the same question and most of the time, you will keep you hard earn money. The products or services are often things that you can live comfortably without.

Here is a quote from one of the first book ever written about money that will never change, The Richest  Man in Babylon“; Ten percent of what you earn is yours to keep.” 

buffet20My hope is that one day, people will realize that they have been tricked emotionally always to turn over their money to billionaire or people who already have more money than they do. 

“Too many people spend money they earned..to buy things they don’t want..to impress people that they don’t like”. –Will Rogers

Thank you for reading, please share my blogs and books with someone you love.

Love Always

www.sherwinpbrown.com

Stop Paying Your Electric Bill

How to get your current gas and electric company to eventually pay you more than you’re paying them each month.

 

nexteraenergya23Did you know if you live in Florida and you pay your utility company, such as FLP {real name is Nexta Energy—(NEE)}, at the average monthly cost of $183 for 32 years, it will cost you a total of $70,272 ?

 

But, if you had just invested only two years of the same payment $4,392 ($183 x 12 x 2 = $,4,392), it would now be worth $251,376 as today. At a dividend yield of 3% per year, you would now be earning  $ 7,541 per year–that is $628 per month. You would now be getting $445 per month more than the $183 you are paying them.

Here is a second example: If you live in Chicago, and you pay COM Ed (ED). Culling data from Yahoo Finance for the past 45 years, and using the current average $135-per-month x 45 years, your total bills paid would amount to $72,900.

mYXT0ThmBut, if you had just invested only two years of the current annual cost $3,240 ($135 x 12 x 2 =$3,240), your investment with growth and enrolled in a Dividend Reinvestment Program (DRIP), it would now be worth $579, 292 and  with a current dividend yield a 4.2 percent.

Your current yearly investment income from them would be $24,330 or $2,027 per month. That is; you are now getting $1,892 more than you are paying them.

How much do you pay your utility company and how long have you been paying them?

What other company do you buy something from each day?

Are you a Starbucks junkie? Do you pay about $2.50 per cup twice per day? Plus tip?

starbucks_1798272c That is at least $1,825 per year, or in 23 years you will have spent $41,975. But, that is okay if you just had put one year of your coffee cost of $1,825 twenty-three years ago and let it compound via growth and dividend

The value of that $1,825 as of today would be worth be $282,521 with a cash dividend yield of 1.3%, and  it would be paying you $3,672 per year or $10.06 per day. You could still enjoy your two cups per day and have $5.06 more than you are paying them.

Money Lesson #140: As it says in my book “Simpler, Safer Investing”, invest where millions of people such as yourself buy and use the companies’ products and services each day, such as your electric and gas company, or your favorite coffee chain.

To lean more on this subject, please check  my book on my web site www.sherwinpbrown.com  or an Apple ITunes,  Amazon .com,  Google play, Barnes and Noble, Kobo Book are anywhere books are sold.