So you want to get rich fast

Oh really? Well I got bad news for you, most typical millionaires acquire their wealth slowly. You ever hear those stories about people winning the lottery and then going bankrupt after? Yeah, it's because they never had that kind of money so it created a never ending wellspring illusion in their mind.

Dan Miller said that most wealthy people stay wealthy because they worked for it, the working and acquiring aspect helps keep them in balance and from blowing it all. It's kind of like that boy who gets a toy for Christmas and the next day it's broken, yet if he bought it himself, he'd value it more and take care of it.

Be simple with your money, don't try to beat the credit card system with reward points or whatever. You can't and won't. Live on less than you make. Resist Taco Bell's new Black Jack taco.

Retail and Commission

If you work in retail for commission, here's a tip. Slow down the whole transaction process. When I worked at an electronic's store we were to sell the insurance on everything where applicable. I used to ask if they wanted it at the very end and they'd always say no. Because if you tell a customer their total, then ask if they want insurance for $200-$500 on the TV, they won't. They already have set in their mind the total of the sale.
So then I started asking if they wanted insurance, accessories, etc, mid way through the sale as we were talking about the product. They got it probably about 40% of the time. Then I understood I had to ask it early, but not too early because you don't want to come off as pushy as that's a major turn off to the customer. Sometimes they didn't get certain accessories at the time but they did seek me out on another day and purchase what I suggested. I'd even see them get the things they needed from someone else, which in the name of good customer service, I'm glad they got what they needed.

So simply slowing down the transaction and asking if they want insurance and accessories early and throughout the sale is helpful.

$75,000 for what?!

I had a meeting the other day with one of my clients. We are building a french drain system for his company, and he mentioned he has put $50,000 into his Harley Davidson motorcycle. I don't know anything about motorcycles except if I had to take a guess at an average price for a relatively powerful and aesthetically pleasing to the eye bike, I'd say about $25,000.

Wow. That's $75,000 for a motorcycle. This is America and we all have the right to spend our money on what we want. But then the thought came into my mind about the foreclosures, unemployment, and the economy in general. Maybe the foreclosures wouldn't happen if we (myself included) prioritized better. I'd think we'd make a firm foundation (our house) established first before we buy toys. Maybe unemployment wouldn't be so scary if we saved our money for a rainy day rather than buy unneeded things.

The Money Effect

Welcome to the Money Effect blog. I'm dedicating this blog to money, finances, budgeting, marketing, and the like. Money is so fascinating because it affects everything, hence the blog title.

Personally, my family has school debt we need to pay back and we don't own a home, yet. But my wife and I are working towards those goals. I will state that I'm not a fan of debt. I think there's a lot of risk involved that isn't talked about. There's something about buying things with other people's money that doesn't jive with me.

So sit back, enjoy, and let me talk to you about money. I am by no means an expert on money.