Savings Creator #3 : Spend Your Way to Wealth

We all love to shop right? It’s the innermost essence of being a consumer. While writing this article, I’m enjoying my venti coffee Mocha in Starbucks. What else is the money for besides shopping? To light your cigar? Maybe not. Here is a way to spend money with ultimately opposite effect; it increases it even further.

Savings Creator #3 : Spend Your Way to Wealth

Almost all things we bought in stores will decrease in value over time. The shoes that we use to run, will past the point of un-resellable state after several wears. Or our grandiose newly launched 102 inches plasma TV will become obsolete in several months. So what is the solution? Easy, stop buying stuffs that deteriorate in value. Instead, find those that go up.

Instead of buying fingers-licking KFC meal, buy KFC Holdings stock. Spend a couple of hundreds once in a while or when you have extra savings. Remember the savings that you have made in Step 1 and Step 2? Spend that money in stocks or in other investments.

If you don’t have enough time or don’t know how to take care of the stocks, choose mutual fund instead. They require less maintenance and there are less risky that stocks.

Change your daily conversation to convey your new habit to your friends (so you won’t dare to come back to old habit). Instead of saying "I’m going to have a raise next month, wanna join me shopping for new furnitures?", change to "I got a couple of hundreds to spend but I’m not sure which one to buy, PIDF or PIEF?

So go ahead and spend your money. Spend as much as you want. But instead of buying things that later will have no value (like an empty ketchup bottle or a vacation), or virtually no value (like costume jewelry, clothing, or furniture), make sure the things you buy will retain and even grow in value. Remember: Life is a series of choices. I’m not telling you to stop spending money, merely to choose how you spend it.

Once you get into this habit, you’ll develop as much excitement buying investments as you currently do buying clothes. The reason that this is a foreign concept for you is that you have never bought anything that has retained its value — except maybe your house.

But once you start to buy things that rise in value, you’ll never look back. If you think shopping is fun, wait until you start shopping for things that make money for you. Now, that’s shopping!

[via ricedelman]

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  1. #1 by franchise opportunity on August 4, 2007 - 6:16 am

    great article – you definitely have a creative approach to making money!

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