Getting More Out of Your Paycheck

Do you feel that you don't have enough money left over after your paycheck? Here are a few ways you may find useful in reducing your spending and increasing your wealth.

Resist temptation to buy

It can be extremely tempting at times to go to your favorite store "just to look" when you see the most beautiful thing that you just have to have. A few minutes later you exit the store with a bag full of goodies--and an empty wallet.

What is the best way to resist temptation? Eliminate the source of the temptation. Stop going shopping for something unless you actually need it. This will help to keep away the desire to "buy buy buy." This may be very hard for you, but it is necessary if you want to increase your wealth. After all, you can't save any money if you spend it all.

One thing that really is a temptation for me is electronics. Whenever something new and cool comes out, I feel the need to buy it even if I don't need it. And 99% of the time I don't need it. Whenever I am faced with a desire to buy something, I look at the big picture. I always think about it hard if I'm considering buying something new. I look at my need for the item, benefits of having it, and the downfalls of having it (for example, drainage of my bank account).

The downfalls of buying the item are usually what stop me from buying it. I look at how much this thing is going to drain my bank account, and if I'm thinking about buying a thousand-dollar computer while I only have $1,200 in the bank, I think about how buying this will only leave me with $200. I will not have very much money left over for anything else, for example stuff that I actually need.

Some more things I look at before I spend money are my priorities. Right now my ultimate goal is to help people, I want to someday be able to use my wealth to change lives. Problems right here at home in the neighborhood, city, state, country, and even internationally, I want to be right there helping. As this is a much more fulfilling goal to me than buying a computer that will become obsolete in a week, I am motivated to instead save my money to reach my goals.

Keep records of everything

Proper record keeping is necessary if you want to lower your spending and increase your wealth. Keeping records will allow you to monitor how much money is coming in and how much is going out, and you will be able to decide easier how much you can set aside for saving.

I used to not keep good records at all. I would just write checks and use my check card without caring at all, and I would end up in serious trouble. I would forget how much I have circulating out in check form, and I would just use my check card. This would result in me having less money in my bank account than I thought, leaving me nearly broke until I got paid again, and sometimes even negative in my account balance (oops!). I found it isn't worth it to not keep records, and I have really started keeping track of my money.

Save and invest money

Every time I get some extra money I put it aside to save for things I really want. It really does add up when I add a little bit at a time whenever I can spare some extra. Since regular saving accounts do not provide the proper "rewards", I have resorted to investing.

There are numerous investment opportunities available--stocks, bonds, certificates, there are a number of great places to put your money. Currently my bank is offering certificates of deposit (CDs) at a 4% annual interest rate, with a minimum $250 deposit. That means that if I were to get a $1,000 CD at that interest rate (4%), after one year the interest I would receive is about $40. That's not bad considering the current rate my savings account is at, which is something absurd like .3% per year for the same amount.

These investments always have some kind of risk of money loss. Of course, the risk is often very minimal, but it certainly can happen. However, I have found one place to invest my money that is 100% safe, and guarantees a 100% return. That place is me.

Self-investment is certainly one of the best place to put your money. Knowledge is power, and by increasing your knowledge you become more able, more powerful, to do things. With knowledge the greatest people of all time did the greatest things--Benjamin Franklin became a founding father, Thomas Edison invented the incandescent bulb, and Bill Gates and Paul Allen founded Microsoft and became multi-billionaires.

Reading is in my opinion among the best ways to acquire knowledge. As a little bit of self-investment, I try to read a new book every couple weeks to increase my knowledge and ability. This form of self-investment is very low cost, and I can still use most of my spare money to invest in other ways if I choose.

By following the above steps I am sure you will be able to get more out of your paycheck, allowing you to have more money for the things you need and want, and to help you prepare for the future.