Have you ever heard the saying about Bill Gates? Supposedly, he is so wealthy that if he were walking and saw $20 laying on the sidewalk, it wouldn’t be worth his time to pick it up.
For the longest time, I did not truly understand that statement. If I saw $20 laying right in front of me, why wouldn’t I pick it up?! It just seems foolish not to!
Rather than just dismiss this crazy statement, let’s dig in and see if there’s any truth to it. We all know that Bill Gates has a current net worth of approximately $50 billion. Since he has done so well with his financials thus far, it can be assumed that he could earn 10% on his money, or $5 billion each year.
When we break down his income, Bill Gates makes $158.55 every second! By picking up that $20, he would actually be reducing his income. Now, I can hear some of you already… “No Derek, he’d just add $20 to his income that he was already earning.” I disagree. By taking his time to do something other than his work, he could be forfeiting his next big idea or missing out on a brilliant investment opportunity. That $20 bill could cost him millions over the course of a few years.
Couponing is a Waste of Money
A hand-full of you might understand and agree with this statement completely (if this is you, congrats! You might just be the next Bill Gates). For the rest of you, I suspect that you do not have a source of income beyond your 8 to 5 job.
For those of you that love couponing, I understand
Just a short while ago, I saw a news special about “The Coupon Lady”. They showed footage of a woman that stocked her cart full of groceries and everyday items. When she got to the check-out, her total was over $200 (not surprising), but wait! She pulled a wad of coupons out of her pocket and with every beep of the scanner, the total came down….and down…and down.
Her final bill was $9.41! I was fascinated! At that very moment, I started researching and hunting down those great deals. I was convinced that I could buy items at a 95% discount too! It is a great thing to save money after all.
I figure that I must have spent about 5-10 hours each week with those dumb coupons! Finding them, cutting/printing them, sorting them, finding discounts to combine them with, and finally using them at the register. It was incredibly time consuming! Plus, I never got that good at it either. I think the most I ever saved at the register was $25, or 30% of my bill.
Make More Money
After becoming discouraged with my piddly coupon savings, I began evaluating the equation of discretionary income once again.
Discretionary Income = Income – Expenses
In order to raise my discretionary income, I could reduce my expenses (which wasn’t working so well with those coupons) or I could make more money and raise my income.
Since that moment, I ditched couponing and started putting those 10 hours/wk toward the development of this website (as well as some other side ventures), and as you can see by my income reports, I am now earning an average of over $300 a month!
There is no possible way that I could have saved $300 per month by cutting coupons! Our monthly grocery bill is barely more than that!
Plus, by trying to save money, there is a limit to what you can save, but by earning extra income, there really is no ceiling. You could earn an additional $100,000+ a year after a few years of efforts (I plan to report the truth in this figure in 2014 :))!
I suggest you put down those scissors and start increasing your income.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.