As inflation continues to grow, people are looking for answers on how to manage their money. A lot of influencers on social media are encouraging a practice called “cash stuffing.”
What is it, and is this a good trend to follow? That’s our focus today.
With costs on the rise, you can lose money without even trying. We’ll share tips on how to beat inflation to keep that from happening.
Click the player to listen to this episode of The BIGG Success Show Podcast. Below is a summary.
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Do you feel poorer? You may be.
The current economic atmosphere highlights an important principle of personal finance – you don’t have to actually lose money to lose money!
Bigg success is life on your own terms. The five elements of bigg success are money, time, growth, work and play. Today we’ll focus on money.
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When it comes to money, we’re all conscious these days that we have to save more. We saw a great definition of saving the other day by Carolyn Jabs. Her Growing Up Online column appeared in an article in Columbus Parent. She said:
“In its finest form, saving doesn't mean depriving yourself or your family of what you want, much less need. Instead, it means comparing long-term and short-term goals to decide which matter most.”
When she puts it that way, saving doesn’t sound so bad! We often think of savings as “doing without.” It’s not doing without. It’s deciding on the timing.
Saving, in and of itself, is not a noble act. It’s a means to an end, not the end. It’s about trade-offs – trading now for later or later for now.
If you pay cash for something today, you give up earning money on the money you used for the purchase. Your money will work for you if you save it and invest.
If you buy something and finance it, you’re deferring cash out the door today in exchange for even more cash out the door (since you’ll have to pay interest) in the future.
So, ultimately, it’s a decision about what will make you the happiest – enjoying your money now or stashing it away so you can enjoy it more tomorrow.
It’s living with purpose on purpose – defining your bigg goals and living each day to achieve them.
What if you don’t have to sacrifice the present for the future? That’s a bigg idea! Look for ways to enhance your present and your future.
You are the entrepreneur of your life, irrespective of whether or not you own your own business. Your life is your enterprise. You, and only you, are in charge of this enterprise. As the entrepreneur, plan your purchases.
Don’t get caught buying on impulse. It’s a trap that really hits us hard. And we’re not just talking about those insignificant items at the check-out. Marketers are really good at making us think we can’t afford to wait.
For example, think about the ads that promise “No Payments for Two Years.” We translate that, in our minds, as if we’re not spending money for two years. But the reality is, if we don’t have that money already set aside, it’s probably going to give our finances a jolt when the payments kick in … at incredibly high interest rates.
By planning our purchases, and then sticking to the plan, we’ll only buy those items that we’ve determined make us happiest. We can keep our eyes open for the best deal which saves us money now – money that can go straight to our savings.
If you’ve set aside $2,000 and then only spend $1,500, give yourself a night out on the town in celebration of a job well done. Take the rest and put it into your savings.
By synergizing our savings with our spending, we can save more money for the future because we get the best deal when we buy today. That’s how we get what we want today without depriving ourselves. It’s one thing we can do to propel us to bigg success!
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Thanks so much for checking in with us today. Please join us next time when we’ll talk about the biggest time waster of all. Until then, here’s to your bigg success!
Direct link to The Bigg Success Show audio file:
http://media.libsyn.com/media/biggsuccess/00406-060109.mp3
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We have an idea for your personal finances. Now if you’re one of our regulars, we may surprise you a little with what we’re about to say …
Go out and spend some money!
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Markets go through cycles. Sometimes it’s a seller’s market. But right now, we’re in a buyer’s market for almost everything!
Now, before you take our advice and rush out the door on a quest for that perfect item, consider these four questions:
If you clear those four hurdles, you’re good to go … to go get the deal of your lifetime.
It’s good for the economy, but even more important, it’s good for you. Because we’re seeing deals right now that we will probably never see again in our lifetimes.
Like the car dealer who is offering a two-for-one sale – buy a car and he’ll throw in a second car of equal or lesser value for free! That’s right … free! Did you ever think you’d see anything like that?
Many contractors are starving for work. It’s a great time to remodel your home – get those improvements done you’ve been putting off, add that room, remodel that bathroom or kitchen.
While we normally don’t suggest building a new home, for financial reasons as well as the emotional strain it can put on a relationship, it’s a fantastic time to think about having that dream house built.
And let’s not leave out businesses. Vendors in so many product lines just want some business. It’s a great time to expand or upgrade your business.
Here’s the irony in our current situation – spenders are faced with great deals, but they often can’t clear the hurdles above. So they can’t spend!
Many savers have seen the value of their investments fall back ten years. So perhaps the lesson – live a little now, too! It will go against your grain to go out and shop. But look at it this way – you’re saving money because, by doing it now, when suppliers across the board need the money – you’ll get the deal of your lifetime!
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Thanks so much for reading our post today. Join us next time when we diss on Plan B. Until then, here’s to your bigg success!
Direct link to The Bigg Success Show audio file:
http://media.libsyn.com/media/biggsuccess/00346-030909.mp3
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Last time, we talked about the lost art of making change. As we prepared for that show, we remembered another little tidbit about change:
You can save your change for a change.
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If you find that you’re running out of money before the month runs out, this is one of the easiest ways to get started saving. Give yourself an allowance. Pay for everything with that cash. At the end of the day, put all of your change in a jar or a piggy bank.
Did you ever have one of those cool banks where you get to see the coin going down into the bank? It made saving fun and is a great way to encourage kids to save. Or adults for that matter … why should the kids have all the fun?
It’s amazing how much you can save with this simple little technique. Ever so often, say at the end of the month, go to the bank and deposit your change. Once you get your money in a savings account at a bank, you can start earning interest on it. Your money making money on your money … that’s what you want.
Richard Jenkins, editor-in-chief of MSN Money and author of A simpler way to save: the 60% solution, has an outstanding idea:
We know what you’re thinking – you’re having a tough time getting by on 100 percent. It’s ludicrous to think anyone could get by on only sixty percent!
But hear us out. You just might like this program …
Set up five piggy banks (or envelopes, accounts, or any other way that works for you). The key thing is to segment your money right upfront. Here’s what the five piggy banks are for:
Piggy Bank #1 – This little piggy stays home. This piggy bank gets sixty percent of your gross income. You’ll use it to buy the basics – things like food, clothing, household expenses, taxes, insurance, donations, and the like.
Piggy Bank #2 – This little piggy goes to the market. This piggy bank gets ten percent of your gross income to invest in long-term assets, like the stock market. Most likely, your investment vehicle will be a tax-advantaged account, like a 401(k) through your employer.
Piggy Bank #3 – This little piggy gets the beef. Set aside ten percent in this piggy bank to beef up your long-term savings even more. You’ll also invest this in long-term assets, but you’ll want to maintain enough liquidity so the money is available for an extreme emergency.
Piggy Bank #4 – This little piggy gets none. The ten percent that goes into this account is for irregular expenses. So you won’t get any long-term benefit from this piggy bank. What you will get is the ability to pay for large expenses upfront instead of with a credit card. So from this account, you’ll pay for your vacations, major repairs, replacement of appliances, gifts and the like.
Piggy Bank #5 – This little piggy cries “Wee, wee, wee” all the way home!
This ten percent is your fun money. It’s your reward for setting aside the money in the other piggy banks the way you planned to.
Think about it this way – If you meet your goals, you get to spend an extra ten percent!
Managing your finances with these five little piggy banks will help you live bigg now and retire bigg later!
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Thanks so much for reading our post today. Join us next time as we wrap up this series. We’ll discuss making change work. Until then, here’s to your bigg success!
Direct link to The Bigg Success Show audio file:
http://media.libsyn.com/media/biggsuccess/00342-030309.mp3
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