I’m tired of everyone telling us how to save money. What we need is people telling us how to make money.
Like a lot of people today, maybe your budget is tight. Maybe you read Money Magazine looking for a few tips to get ahead. Or maybe you read Get Rich Slowly (one of my favorite blogs). Most money sources have oodles of tips on how to save money and make your fixed budget go further.
Common Tips About Money:
- Cutting coupons
- Eat out less
- Quit buying books and use the public library
- Bring a bag lunch to work
- Shop at the Salvation Army and the Goodwill
- Buy in bulk at a warehouse club
- Refinance your home
- Send away for rebates
- Get DVDs from Redbox
- Use 0% credit card offers
- Increase your insurance deductible
- Keep your used car
- Limit gift giving
- Take advantage of matching 401k funds
- Drink less alcohol
- Stop Smoking
- Avoid late payments
- Replace light bulbs
- Buy energy efficient appliances
I’m sure you’ve read dozens more. These are great ideas, but… they won’t solve most people’s money problems. They’re too minuscule. Too incremental. They’re a good start at getting your debt under control, or dealing with a lost job, but in the long run, they won’t get you were you want to be. They are temporary fixes to a lifetime issue.
We all want more money for one reason… It gives us freedom to pursue our goals, to travel, to grow, and to create the life of our dreams.
If you focus all your attention and energy on saving money, you aren’t focusing on the solution. You are focusing on the problem. The solution is creating wealth. To create wealth, you need income and you need to grow it. So if you’re focused on coupons and light bulbs you aren’t focused on the long term. You’re focused on a band-aid fix.
What is Supply Side Home Economics?
In 1997, Christine and I decided we would focus 80% of our money consciousness on the supply side. That means – we focused on creating more income for our family – the supply side of money. That doesn’t mean we don’t negotiate. We recently reduced our phone service by $30 per month. We also cut our cable and internet bill by almost $500 a year without compromising service. Focusing on Supply Side Home Economics means spending 80% of your energy on generating income.
Think about it…
If you make $50,000 per year and you spend $50,000 per year, you’re broke. But if you increase your income to $70,000 and you don’t change a thing, you’re solving your money problem. The bigger problem is… too many people spend everything they make no matter how much, but that’s another blog post…
How to start?
Look for opportunity everywhere. Instead of spending an afternoon chasing down a 50 cent discount on milk, work on a business. Sell stuff on craigslist. Sell stuff on ebay. Create new internet sites. Look for ways to help other people get what they want.
As noble as conservation and frugality is, it doesn’t create economic growth. Hunkering down and not spending will not get the economy out of this slump. Creating wealth will. Likewise, hunkering down will not get you or your family on the path to prosperity. Focusing on growth will.
With the technology available today, at near zero cost, there is no reason why you or anyone else can’t create $500 – $1000 in new income in your spare time.
How do you get there?
Ask yourself a few questions:
- What do you have around the house you can sell?
- What unique knowledge and life experience do you have?
- How can you offer that knowledge and experience to others?
- What value can you provide others?
- How can you give them more value than you charge for your goods or services?
- How can you help others sell their stuff?
- How can you teach others your unique skills and knowledge?
- How can you gain valuable specialized knowledge?
- What makes you unique and how can you offer that to others?
When you create more wealth for yourself, it makes us all wealthier. It isn’t zero sum. The pie grows for everyone. It’s nothing to be ashamed of. So help humanity by making yourself wealthier. Here’s a great place to start (don’t let the hyped up title throw you off, it’s great).