Building Wealth

Building Wealth

Wealth is a result of inflow – outflow. Your inflow is composed of anything that produces money for you (income, stock dividends, savings account interest, rental property income, etc.). Your outflow is anything that takes money away from you (Food, bills, donations, insurance payments, car loans, credit cards, interest, mortgage / rent, etc.).

Most people focus on making more money but you can “make” as much money cutting expenses. Usually you have less control over your income because the typical person usually just has one income and someone else controls that. Outflow though are usually completely under your control and can make an immediate impact. We will discuss both as once you have your outflow under control it is natural to move on to increasing your inflow.


Controlling debt and interest payments

If you have large car loans, student loans, or any other form of debt. A quick way to see if you can reduce the cost of them is to try and refinance them to a lower rate or get a zero interest period. With a period that you are not paying interest you can really attack the principle and get that debt down.


By refinancing you are re-negotiating the terms of the loan and if you get a better deal that means that you will pay less interest over time

Other business will refinance your loan because they would rather you pay them interest than someone else

Refinance Rate

If you are paying 5% on a loan and have five years left on it, then if you can find anyone that can give you a lower rate you are already winning if you don’t have to pay any refinancing fees (which most won’t – but always ask)

Refinance Length

Sometimes it may be worth extending the term of the loan to get your monthly payment down but only if it is really a burden. In general I would refinance to a much lower rate and a longer term but I would never just refinance for a longer term.

Credit Cards

Credit cards can be wonderful if used correctly

If you are in credit card debt the quickest way to get rid of it is to consolidate your debt via a balance transfer into a 0% card that usually has that rate for 18-24 months. You may have to pay 3-5% of the balance being transferred but that is much better than 15%.

Once transferred pay the balance down as much as you can over the period where you have 0% interest on the balance you moved over. Depending on the amount you bring over you may be saving yourselves hundreds to thousands in interest payments

  • It is important to just move the balance over and never use this card for new purchases
  • Credit cards companies do this because they hope you don’t pay it off in the time period and then you pay them wonderful interest payments

Credit Card Cash back

If you have no debt, run everything you can through a cash back credit card and pay the balance every month

  • By doing this you get paid for the same purchases you would be making
  • This can add up to hundreds per year

Again having control over your outflows is important because you need to make sure that you can pay your balance every month to avoid an interest payment

  • Paying interest kills your cash back quickly
  • This is why cash and carry is just dumb
  • Cash and carry is the equivalent of a child having an allowance and once the money is gone you can’t spend
  • It is much more powerful to learn control and disciple and make those credit cards pay you for the purchases you are making


Some things I have done to lower my bill.


Replace all your lights with LED lights

  • They are durable and consume the least amount of power
  • High initial cost but they pay for themselves over a year or two

When possible, use timers to avoid parasitic consumption


Gas and Water

  • Gas is usually cheap and only really comes up as an issue when heating
  • The following might sound gross and you can adjust accordingly but this seems to work for me and no-one has ever noticed
    • In order to lower water costs, I started showering every other day and not flushing my toilet every time (#1’s obviously)
    • Wearing my top layer of clothes twice (not on consecutive days) before washing them
    • Watering my lawn only 2 times a week (3 if it is really hot)



  • Sign up with a good offer online and when they try to raise the price, call and cancel your service
    • It is important to know who else provides internet service in your neighborhood
  • If the person on the other line does not want to negotiate and is willing to go through the cancellation then just hang up and try another person.
  • If that does not work then actually go through the hassle of switching if you end up saving hundreds over a year (Ten’s isn’t really worth it)
  • Sometimes you can just cancel and wait a week and return to your company with a new subscriber offer by just changing your name slightly when you sign up online.



  • I love food and this is my Achilles heel
  • I wish I cooked at home more
  • I wish I didn’t eat out as much
  • At the very least I try and use coupons as often as possible
  • When you eat out you not only pay a premium on the food and service but you also pay 5-10% sales tax.
  • Add up all the premiums and you’re probably paying 33% over market price for something you do three times a day


I am still figuring this out but here is a quick list of something’s I have done:

A second job

Sell on eBay / letgo/ etsy

Ask for a raise/ change jobs

Rent out a spare room

Run a Airbnb

Find a friend/partner and split living expenses


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