Retire Before 25

“A company is run on cash…”

These words have forever changed the way I think about money. Yes, a business is run on cash and so is your personal life. Far too many people are living on credit instead of cash.

This article will show you 10 ways to save money. They are practical and they work!

1. The Piggy Bank

This is the classic way to save money and you know what? It still works. When I was saving to buy my wife’s engagement ring I had an envelope marked “Engagement Ring”. I would deposit my paycheck each week and hold back a certain amount to stick in my “Piggy Bank” (envelope).

Advantages:

• Cash is immediately accessible
• No risk (of accidentally spending or value fluctuations)
  

Disadvantages:

• Could get stolen / lost easily
• No potential for growth through interest

Summary: This is the single most “liquid” way to save.

Liquid: fluid: in cash or easily convertible to cash; “liquid (or fluid) assets”

2. Money Market Funds

This is the ideal way to save if you are looking to pull your money out in a short amount of time with a potential for great interest and low risk. My personal money market fund can yield as high as 5% interest.

Advantages:

• Low Risk
  
• Potential for High Interest
  

Disadvantages:

• Potential for Low Interest
  

Summary: This is a very liquid asset that is safe and secure and should be used for short-term investments. (1 year or less)

3. Mutual Funds

Mutual Funds are a collection of stocks and/or bonds that you “buy into”. The portfolio is already diversified for you so you don’t have to be an expert at picking the right stock(s).

Advantages:

• Potential for High Growth
  
• Portfolio Already Diversified for You
  

Disadvantages:

• Not Very Good for Short-Term Investments
  
• Hidden Fees & Charges

Summary: This type of investment is good for long-term stable growth. There isn’t a lot of risk in most portfolios but you need to watch for hidden fees and charges or your fund can end up costing you money rather than making more for you.

4. Young Stocks

If you think a company is going to boom, why not invest in it? Imagine if you had purchased WalMart stock when it was brand new. If you see a market trend you might want to consider investing in a young stock.

Advantages:

• Potential for High & Rapid Growth
  

Disadvantages:

• Potential to Lose it All
  

Summary: This is an exciting but dangerous way to save. As they say, the greater the risk, the higher the reward!

5. Individual Stocks

If you like the idea of a mutual fund but want to choose your own stocks for a more personal sort of diversification you will love saving this way.

Advantages:

• You Can Be as Safe or as Risky as You Want
  
• More Diversification = More Stability
  

Disadvantages:

• Time Consuming & Tedious
  

Summary: This is the kind of saving that the “do-it-yourselfer” will love. It is a lot of work but can be quite rewarding in the end.

6. Certificate of Deposit (CD)

A CD is a fixed-term savings account. Your money is secured by the FDIC (that means no risk of loss). Most CDs also have fixed interest rates.

Advantages:

• Money is Guaranteed by the FDIC
  
• Potential for Fixed-Rate Interest
  

Disadvantages:

• Your money is not accessible until maturity
  

Summary: This is another great way to save. Talk to your current bank first, most offer CDs with decent terms and rates.

Maturity: The date a debt or investment must be paid in full.

7. Savings Account

This is what most people think of when they think of saving money through their bank account. Most banks offer savings accounts that you can open alongside your current checking account.

Advantages:

• Funds Are Easily transferable to Your Checking Account
  
• Funds Are Accessible & Liquid

Disadvantages:

• Generally Low Interest
• Watch for Small Usage Fees and Minimum Amounts
  

Summary: This can be a very simple and straightforward way to save money through your current bank.

8. Bonds

You’ve probably heard of bonds as “low-risk and low-growth” funds. This is basically true. The bond holder (that’s you) is the lender and the issuer of the bond is the borrower. Bonds must be payed back at fixed interest rates on fixed terms.

Advantages:

• More Stable Than Most Stocks
  

Disadvantages:

• Generally Low Interest

Summary: Most people seek to diversify their portfolio by incorporating both stocks and bonds. This is typically a good idea.

9. Home Equity (Real Estate)

This is an interesting way to save money. Let’s say that you have $60,000 that you want to save -  you could buy a house and sit on it until the market increases. Turn around and you may be able to sell it for, let’s say, $75,000 a few years from now.

Advantages:

• You’ll Always Have a Place to Stay When You’re In Town!
  
• Quality Homes Retain Their Value
  

Disadvantages:

• Real-Estate Tax, Maintenance, etc. that Cost You Money
  

Summary: All in all this is not a bad way to save some money but it is risky. You never know what the market is going to do, and what if a natural disaster strikes your “investment”?

10. “Way to Save” or “Keep the Change”

Many banks offer unique savings accounts such as Bank of America’s “keep the change” or Wachovia’s (Now Wells Fargo) “Way2Save” account.

Advantages:

• Simple and On-Going Savings
  
• Doing Business With Your Main Bank
  

Disadvantages:

• Different Restrictions & Rules for Each Bank
• Low interest, if any
  

Summary: A simple way to save some extra spending money. Not good for higher amounts of money.

Remember, a business and a life are run on cash, not on credit.

It doesn’t matter exactly how you save your money, just SAVE!

Are you looking to make extra money from home?

Contact: Cody Miller at 214.682.5331 or cody@retirebefore25.com

Since you found this how-to article I’m assuming you already know what Residual Income is. If you’re not so sure then take a quick look at my explanation in the article, “What is Residual Income, Anyway?”

There are thousands of online ads and websites dedicated to creating a residual flow of income. Many of these ads and websites represent a handful of legitimate companies which offer residual income, while some do not. The truth is, residual income does exist and you can have it for yourself if you find the right company with the right product for you.

I am not here to tell you that my company is right for you. That would be ridiculous. There are far too many factors in this equation to make such a blanket statement. So I will do what most marketers are terrified of doing. I will direct you to outside information.

The companies I am about to list are known for creating real, lasting residual incomes. Some of these companies have been around for a long time and some are fairly new. You will find a lot of variety here. Pick the company that you’re most excited about. Because you’re going to need enthusiasm to succeed. Residual income is not easy to create, if it were, everyone would have $100,000 a year flowing into their bank accounts whether they worked or not.

Earning a residual income online is entirely possible. But it isn’t even close to being easy.

Network Marketing Companies Known to Pay True Residual Commissions

1. Zurvita – Various Products & Services
2. Mary Kay – Cosmetics
3. USANA – Health Supplements
4. Ignite – Energy
5. AmeriPlan USA – Dental & Health Discounts
6. MonaVie – Health Drinks
7. Ambit – Energy & Electricity Service

DISCLAIMER: All of these companies have been given mixed reviews. Network Marketing itself is under constant scrutiny. You will find good and bad reports concerning each company. Please understand that I am not involved with any of these seven companies listed except Zurvita. I have furnished this list as a help to those who are seeking true residual income. To the best of my knowledge I believe that these companies offer a true and lasting stream of residual income.

Cheers,
Cody Miller
cody@retirebefore25.com