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Show#7 Millionaire or Bust – First Steps

July 21st, 2006 · podcasts

Topic of the Week
This week we talk about the first step towards building wealth. For those of you with credit card debt, paying that off is what we’ll be talking about.

Money Saving Tips
Money Saving Tip of the Week
Replace all the incandescent light bulbs in your house with fluorescent. The price has really come down and the quality and selection are great. Not only will you save money on your electricity bills (within the first year after the cost of the bulbs), but they last up to ten times longer. Shop for ones with guarantees – some are for as long as five years. Fluorescents will cost you less in the long run. They will also help keep your house cooler in the summer — another savings if you use air conditioning. Bulbs are now made to fit into regular sockets and come in every brightness you could ask for.
Talli’s Tightwad Tip of the Week
To see your electric bill take a nosedive, make it a habit to unplug non-essential appliances when not in use. When away from home or on vacation, these appliances can add dollars to your electric bill. It’s worth the extra savings.

Money Making Tip
Sell some of the larger items you have that you don’t want on You’ll get a lot more for them than you would at a garage sale, especially if you set a price ahead of time. It’ll get you more than you would at a garage sale, save you time and be easier than trying to sell furniture on eBay.

Tool of the Week
Credit Card Minimum Payment Interest Calculator
This tool will tell you how much interest you will pay if you only pay the minimum on your credit card. It will also tell you how long it will take to pay off your debt. This way you can see how much your debt is costing you.

Financial Psychology
This week we talk about putting purchases in perspective. How long do you have to work to make enough to buy an item? Remember to use your after tax income for this calculation.

A $50,000 income might only become $36,000 after taxes in some states. A $1000 purchase here in the bay area becomes $1087.50 after sales tax. With those numbers, you would need to work for 63 hours to pay for that item. Is it worth it at that price. That’s your call. If it is, buy it. If not, don’t. Make frugal choices, but ones you can live with, so you don’t feel deprived.

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