Few people take $ 1000 and become millionaires by investing.Most of the millionaires decades regularly put money aside, buying up shares, and reinvest profits. If we can build up enough assets as the income from your investments are used to buy more shares, wealth can grow very quickly.

Although many people would like to start investing and building wealth, money they never seem to do that. Human nature is to continue adding obligations (houses, telephones, clubs, cars, toys), until all the money you make is speaking before the start of the month. At that point is just treading water – not building any wealth, but not going into debt either. Eventually a car breakdown, a new roof is needed, or a medical emergency, but at that time, people in debt. This adds another requirement – the interest on the loan. To grow and invest rich people need to reduce obligations that one money left over at the end of the month to invest it. While a few hundred dollars a month may not sound like much, by the time that investment income will be extended so that they can move up in lifestyle or take on a lower-paying job with greater personal benefits. Here are some simple things you can do to save a few extra dollars:

1) Buy a used car for cash. A new car loses half of its value in the first four years. This means that a $ 40,000 car will be $ 5,000 per year in depreciation alone cost (nevermind interest ion the car loan). Even if one buys with zero interest, one is still the loss of depreciation. If you have a car four years old, will only cost you $ 2500 a year in depreciation and the repair bills will likely not much larger than that for new cars (most cars can go from 200.000 to 300.000 miles routinely nowadays. If You put half the money you would have set aside for payments in a savings account and invest the other half, you can replace the car every 4-6 years for cash and invest $ 1250 a year. After a while you’ll able to easily buy a new car for cash every four to eight years, but why bother?

2) get water instead of soft drinks in restaurants. Ever notice you, so just drink a few sips to take during your meal? At $ 2 per drink for people who eat out five times a week is $ 520 per person per year. Alcohol, at $ 5 – $ 10 per drink is even worse. The water – you’ll hardly miss the soda, save $ 1000 – $ 2000 per family per year to invest, and save 150 calories per meal next. You can buy alcohol at home for $ 2 or less per serving. (Note to the children, offer them $ 1 if they order water instead of a drink. They will probably do 90% of the time. You save € 1 per child, plus they learn that buying the drink costs money and probably less likely to automatically order a drink when they grow up.)

3) Turn to the professionals. This may seem backwards, but if you’re a big car repair, a water heater having to modify or re-seed the lawn and you do not consider it a hobby, it can actually make sense to hire a professional to do. If you are capable of taking on extra hours at work that you would spend eight hours into the water heater (and really away from your family because they do not want around you with all the cursing going on) could be spent at work place. If you pay a professional $ 200 and you pay $ 40 per hour, you have just an extra $ 120 to hire the pro. Sure, by having the tools and experience he can only do one hour of work, but if it would have taken you eight hours what is the difference?

4) Eating out less often. If you go outside, keeping the amount you spend each month on restaurants. You may be surprised to learn that you spend thousands of dollars each month. Try eating a few meals at home every week. You can save about $ 50 per meal, or $ 2500 per year just by eating a dinner extra per week in. If you get tired of TV dinners and frozen meals, pick up a copy of Betty Crocker and learn some simple dishes such as pork chops or making fried chicken. Another choice for busy people to crock pot meals – they are easy to make and ready when you get home. Give it a try – you’ll need to eat healthier and save money.

5) Avoid time shares. It may seem amazing to that place waiting for you once a year, but you’ll probably find that you’re working on that week or you just do not want to go to the same place year after year. If you just rent a place if you want it you will not have to pay maintenance fees, his freedom to choose when and where you want to go, and not the headache of trying to solve a timeshare later. You’ll probably save thousands of dollars per year in maintenance fees and missed holidays.