How to Save $100,000! (Part 1)
Image sourced by Luca Micheli @lucamicheli
After I got divorced in 2007, as I’ve mentioned in other Budget and Grow Rich® posts, money was tight, very tight. A couple of years later – maybe 2009 or 2010 – I got a new job and was able to stabilize my income and start saving money again.
My best friend Reggie was a super successful trader at a hedge fund. For his 50th birthday, he organized a gala celebration at a Villa in Tuscany Italy.
He invited me and ~15 other people.
The deal was, “Pay your transportation. I’ll cover everything else! Food, lodging and entertainment.”
Wow. I’d never been to Tuscany let alone Italy.
But if I went to Italy, I would have wanted to go to Rome, The Vatican, Venice and maybe Florence. So my trip would not have just been transportation to Tuscany and back! No way.
I had a dilemma. . .
I was just getting back on my feet and starting to save money. In addition, my son Mike V’s college was approaching. And the funding that goes with that.
In my heart AND per obligation under my divorce agreement, I had to fund a certain portion of my Mike’s college education – college tuition and living expenses.
Even though my income was rising and I was saving money. . .
What if I didn’t earn a bonus in the years leading up to Mike’s college and the payment due dates?
What if I the stock market was a bear market? In other words, what if the value of my investments dropped and I didn’t have enough money to meet my obligation to fund Mike’s college tuition?
What if I faced a pay cut?
What if an unexpected emergency popped up – a healthcare situation?
What if?
Hence the dilemma – do I go to Reggie’s birthday celebration in Tuscany Italy?
Or make the conservative choice, the conservative route, and stay home.
After a week or so of pondering – because I really wanted to go to Tuscany Italy – I called Reggie.
“Reggie, I’m going to pass. If for whatever reason, my income didn’t keep increasing or worse, if my year-end bonuses didn’t pan out, and I didn’t have enough money to meet my obligation for Mike’s college expenses, I would never forgive myself.”
Do you know what he said?
“Good decision. I respect that! We’ll miss you.”
And life went on.
To this day, we’re still best friends!
For me?
That single decision was a major turning point in my life.
When faced with financial and lifestyle choices, we must make choices – the best choice for us.
Not for Reggie, not for someone else, but for you and your family.
A decision is likely to impact your spending behavior (or buyer behavior) and result in putting more money in your pockets and building more wealth or whatever OR Not.
I never saw any photos from Tuscany and I know everyone that made the journey had a good time.
We’ll never know for certain, but I don’t think I missed the trip and I didn’t lose any sleep.
Going forward, I was stronger and stronger and gained more confidence in making ‘tough decisions’.
How about you?
Could you change your spending habits to free up cash flow and create more cash for investing and building wealth?
I did.
What’s more, I saved 100% of my college tuition obligation (commitment) to Mike V. Before he graduated High School.
What a relief. What an achievement!
How about you?
Could you change your spending habits to free up cash flow and create more cash for investing and building wealth?
P.S. To Create More Free Cash and Save More Money on Groceries Every Day – click here.
See you next week.
Arthur V.
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