Wallet Wealth - Rat Style

Some of this might be redundant, but it's worth repeating in this 'year of the rat'.

* Make sure your kids' savings are locked into high interest paying accounts. Up until recently our kids' savings were earning them point one percent, yes '.1%' in children's accounts.

I never got a logical explanation as to why the bank wouldn't have suggested a higher interest savings account given the large sums of birthday money we'd saved. I guess it's just one of those things about educating ourselves...anyway, now they earn 3.25%!

* If you are plagued with credit card balances that never go away pick up the phone NOW, and negotiate a no interest or lower interest period. The first agent may say 'no', so ask to speak to the manager, if that person says 'no', ask for the next person up, and so forth.

One time I threatened to close all my bank accounts and cancel my credit card, they put me on hold for about 40 seconds and 'miraculously' came back with a 'yes, we'd love to help you'.

* Forced savings will help you save.

On the first of every month my bank transfers $50 ($25 for each kid) into their RESP. I used to think 'it's ONLY $50', but in no time thousands have been saved - plus we've benefited greatly from the government's 20% top up.

* Leave credit card(s) at home. There will always be a sale, a bargain, something to justify pulling out our plastic impulse card. If we buy something on sale but don't pay the balance in FULL, on time, we end up paying interest which means the 'deal' we got bit us in the ass.

* The best thing a credit cousellor ever taught me was to pay my credit card debt on a weekly, sometimes daily basis. Instead of waiting to pay the minimum on its due date, pay the debt down every time one has extra money. If I got birthday money I'd deposit it to my CC; if I had an extra $5 here and there I'd deposit it to my CC; if I'd lent someone lunch money and they paid me back I'd deposit it on the CC.

* To be fair, there is ONE plastic impulse card which you can't afford not to have with you at all times: a library card; free books, magazines, movies, music, free knowledge! This institution is so awesome it even offers toy libraries home delivery and hospital services.

* Crunch numbers/re think the leaks/stop letting them rob you blind. I speak from experience, though no time for a sob story. Three things you can change today, that'll free up money you can use to pay off debt or transfer into a high interest savings account.

1. Cell phone. Need it? Ok, fine, keep it, but shop around, lose lots of sleep over this until you've got the best deal. Here's something and something else to get you started.

2. Credit card(s). Need it/them? Ok, fine, keep it/them, but why are we paying them a yearly fee? Absurd, we pay them so they let us buy things, mostly on impulse, and then we pay them back late and they punish us badly. Absurd.

3. Slavery - car style. A highly educated, well read, resourceful, handsomely paid married couple we know only owns one car. They travel all over the world, often, they fine dine a lot, they entertain at home - no holds barred and they dress well.

When I asked them about only having one car they broke it down to research they'd done, questions they'd asked, information they'd gathered which totalled about $12,000 a year! Yep, even with a seemingly afforable car lease, a car will make you its slave, mostly disguised in unexpected expenses.

In 2001 my husband and I shared the above true story with a close friend, someone who always complained about overwhelming money shortages and unfulfilled travel dreams. It took seven years for the facts to sink in, but horray for inner growth, said person is selling their car, opting to invest in a car share program, using local transport, walking, and using much freed up funds to travel. Bon vogage!


Would love to hear your little steps to large wealth victories. In fact, I'll give the best idea CAD $5. Deadline February 15.