Tuesday, February 03, 2009

Tracey has asked me to explain the "Double Your Money" entry on a previous blog.
It is actually an idea I read on another blog that I thought sounded challenging and fun!
You can get a fuller explanation there.
Basically, you start by finding your seed money. It can't be money you already have.
Then you double it, until your reach $1M.
If you start with a penny, you will reach $1M in 28 steps.
You have to use money you find, items you may find to sell or trade, or investments you can make when you amass enough cash.

For example, let's say I've amassed $5 in the "Double My Money" fund and there's going to be yard sales in my community one weekend. I could take $3 of the $5 and buy a 12 pack of whatever soda is on sale that weekend for a quarter a can, put it on ice, and sell it for 50 cents a can. I would recover my $3 investment and would have made $3 more, growing my fund from $5 to $11 in a Saturday morning.

When the fund grows to say $1,000, you could invest in a mutual fund, put some money into a certificate of deposit, etc. Anything to keep it growing. And, of course, keep picking up change!

I think the point to this whole project is that most of us think we don't have enough to do anything with, when in reality if we just picked up enough pennies we would all be millionaires!

The truth is the little things we do every day really do count!

1 comment:

SarahB said...

Love this! I've been in a rut trying to figure out how to stretch the family budget...when I really need to be thinking smaller instead of bigger. Thanks for the ideas. I think I'm going to go dig in my garage this afternoon.

Lipstick Underground