Never Get a ”Real„ Job

Free Never Get a ”Real„ Job by Scott Gerber

Book: Never Get a ”Real„ Job by Scott Gerber Read Free Book Online
Authors: Scott Gerber
    Then find a way to make cuts in each category.
    Essentials . Where could you have used your money more efficiently? What inconsequential substitutions could you have made to save a little here and a little there? What purchases could you have avoided entirely? With each substitution, increase the severity of the cut to give yourself a wide range of savings options. For example, if you are thinking about ways to save money on rent, the option with the least amount of savings and lowest impact to your lifestyle might be to live with a roommate—whereas the option with the highest amount of savings and largest impact to your lifestyle is to move back in with your parents. In the end, you’re the one who needs to weigh the cost-benefit analysis for each category that works best for you.
    Liabilities . How much of your money was spent on liabilities? Much like the approach you took with the essentials category, determine three potential alternatives for each liability. Paid a lot of money in taxes? Maybe you or your accountant can find new write-offs you didn’t previously consider. High credit card debt? Maybe you can consolidate all of the debt onto a single zero-or-low-interest card. College loans killing you? Perhaps you can renegotiate your monthly payments by refinancing with a different bank.
    Expendables . This is often the biggest eye opener—because no matter what the number is, it will always seem absurdly high. What luxuries can you limit or reduce? Which can you eliminate entirely? For some, it might be as simple as eating out fewer times per month. For others, it might be a major overhaul such as getting rid of a car in favor of public transportation, cutting down on travel, and putting a strict cap on recreational activities. I’m not advocating that you live like an impoverished monk in a cave—but you can’t have it all. If you plan to keep any of your luxuries, you need to choose them wisely. Learn to see these more extravagant items as goal purchases rather than impulse buys. Make them rewards; this will motivate you to work that much harder and save you a boatload of cash in the interim.
    Use the following formula to calculate your life burn rate:

    Once you’ve calculated your life burn rate, you can determine how long you can survive without making a single penny with the formula below:

    Whether your total is zero or 15, use this information when brainstorming your business idea. All you’ll have to get your business started is what you currently have; you can’t count on outside funding. More importantly, your start-up will need to—at a minimum—allow you to break even based on your life burn rate.
    The test of your new fiscal responsibility comes in daily practice. Can you survive a day without straying from your new life burn rate? A week? A month? You’ll undoubtedly find that some cuts work, and others don’t. New experiences may prompt new ideas, alternatives, and cost-cutting techniques. Assess your method’s effectiveness daily and adapt it as necessary. Don’t treat this like some short-lived diet. This is a life-altering game plan and the first major step in your becoming your own boss.
    Eight Tools to Cut Your Bills, Save You Money, and Keep Your Finances on Track
Cut costs, find bargains, and lower your life burn rate with these eight personal finance tools:
    1. is a free personal finance management tool that keeps track of your bank accounts, credit card bills, budgets, and financial transactions. Mint also compares and recommends financial products, such as credit cards and bank accounts, to ensure that you get the best prices. Cost: Free.
2. enables you to slash expenses by helping you find the lowest price on essential expenses such as gas providers and wireless carriers. Cost: Free.
3. is like an online team of financial advisors. This service combines practical budgeting

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