ingenuity http://www.wisebread.com/taxonomy/term/3052/all en-US How to Think Like a Billionaire When You’re Broke http://www.wisebread.com/how-to-think-like-a-billionaire-when-you-re-broke <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-think-like-a-billionaire-when-you-re-broke" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/poor_woman_with_empty_wallet.jpg" alt="Poor woman with empty wallet" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>It&rsquo;s not easy being broke. As of 2014, there were almost 47 million Americans living below the poverty line. That&rsquo;s roughly 15 percent of the population.</p> <p>To simply tell these people to &quot;start thinking like a billionaire&quot; may seem tone deaf, or even cruel. But it actually is great advice. Millionaires and billionaires, especially those who are self-made, tend to think in a completely different way. It all comes down to a different view of the world. And it&rsquo;s time to embrace that mindset.</p> <h2>Don't think about the money you don&rsquo;t have</h2> <p>To illustrate this point, consider the test Dr. Tina Seelig gave her Stanford University students. She challenged them to <a href="https://www.psychologytoday.com/blog/creativityrulz/200908/the-5-challenge" target="_blank">make as much money as possible</a> in two hours using only $5 of &quot;seed funding&quot; tucked in an envelope. Working in teams, they could spend as many hours as they wanted planning, but once they tore open the envelope, the clock started ticking. The most successful results came from the teams that realized a very important part of the test &mdash; namely, that the $5 was a red herring.</p> <p>Concentrating on the small sum of money put them in a box, so they ignored it, and instead looked at ways to make money from scratch. Some of the ideas were incredible. One team made $650 by selling their time; they sold their three-minute presentation slot to a firm looking to recruit students in the class. Brilliant. Now that&rsquo;s how a billionaire thinks &mdash; looking at the opportunity, not the handicap.</p> <p>The lesson here is that the money you do not have right now should not, in any way, hold you back. If you don&rsquo;t have funds, find a way to use what you do have to make money. What can you sell? Is it your time? Is it knowledge? Is it a service? The lack of money in your account should not place a limit on your ideas.</p> <h2>Never say &quot;I can&rsquo;t afford it.&quot; Instead ask &quot;How can I afford it?&quot;</h2> <p>You may have heard it often growing up. &quot;Dad, can I get a new bike?&quot; &quot;No, we can&rsquo;t afford it.&quot; That&rsquo;s how poor and middle class people often think. They look at their current financial situation, and make a quick calculation. But that&rsquo;s the wrong approach.</p> <p>If you need something, or your kid wants something that isn&rsquo;t just a frivolous whim, don&rsquo;t automatically say, &quot;No, we can&rsquo;t afford it.&quot; Instead, counter with a question. Namely, &quot;OK &hellip; <em>how</em> can we afford that?&quot;</p> <p>Maybe it&rsquo;s a new stove, or replacing the old, worn-out car. If you immediately shut down the possibility, you&rsquo;ll never get it. A billionaire doesn&rsquo;t place these limits on ideas or dreams. They look into funding sources, ways to create capital, and many other money-generating avenues. And we&rsquo;re not talking about pulling out your credit card for something you can&rsquo;t afford and don&rsquo;t need.</p> <p>For necessities &mdash; or important dreams &mdash; it doesn&rsquo;t matter if the object in question costs $100 or $100,000,000. The process is still the same. How can you afford that? What can you do to make it happen? Start thinking. (See also: <a href="http://www.wisebread.com/how-to-come-up-with-1000-in-the-next-30-days?ref=seealso" target="_blank">How to Come Up With $1,000 in the Next 30 Days</a>)</p> <h2>See change as opportunity</h2> <p>Most of us are afraid of a major life change, be it a job loss, financial obligation, or a move to another state. These are stressful and difficult situations. But a billionaire sees any kind of change, even those most of us would consider negative, as an opportunity.</p> <p>If it&rsquo;s a job loss, it has created a glut of free time to use for a new venture. What can you do with that time that could create money in new and exciting ways? Think back to those college students with the $5 challenge. Some of them decided to make money waiting in line for people. They were making $20 a shot. Considering the minimum wage is currently $7.25, that&rsquo;s almost three times the amount for literally doing nothing.</p> <p>Fear of change is natural. But fear is a negative response to any situation, and in the long run, it will cripple your thinking and your ability to bounce back. Whatever the situation, take control and think positively. How can you turn it to your advantage? What do you have now that you did not have before this major event happened? Then, run with it.</p> <h2>Every penny saved is a penny earned</h2> <p>Billionaires do not blow money. People have this idea, which comes from a select few who hog the limelight, that the superrich are super wasteful. But they did not become rich by throwing money away.</p> <p>There is a now infamous anecdote about a billionaire who went into a New York bank asking for a $5,000 loan, and put his Bentley up as collateral. It was approved, and the bank employee parked the car in their underground garage. Two weeks later, the man returned from vacation, and paid back the $5,000, plus the $15.41 it accrued in interest. When asked why he, a rich man, would require such a small loan, he replied &quot;Where else could I have parked my car in New York City for two weeks, for only $15?!&quot;</p> <p>The story isn't real, but the strategy definitely is. This is how a billionaire would actually think about such a situation. Sure, they can afford the finest parking in the city, but why pay through the nose for it when they can get it for almost nothing?</p> <p>You can think the same way. What are you paying for, right now, that could be reduced in cost? What ways are there to save money on everyday purchases? From extreme couponing, to haggling and bartering, you have many options available to you.</p> <h2>Time really is money</h2> <p>Donald Trump once stated that he never wastes time. Even when he&rsquo;s on the golf course, he&rsquo;s doing business. He sleeps as little as possible, because every moment he&rsquo;s awake is an opportunity to make money or create something.</p> <p>Look at the ways you spend your time, and see how it can be maximized to work for you. If you&rsquo;re on the bus going to work, are you staring out of the window, or reading a book that could teach you a new skill? Do you have hobbies that are productive?</p> <p>Even playing video games can make you a small fortune, if you record yourself playing and post the videos to YouTube and Twitch. Indeed, the average &quot;pro-streamer&quot; makes between $3,000&ndash;$5,000 per month from 40 hours per week of game time. Think about that. They are literally being paid a living wage to play video games. Something that many people believe to be a waste of time has been turned into an income stream.</p> <h2>Consider every detail</h2> <p>It&rsquo;s been said that billionaires look at the bigger picture. It's often called &quot;the 30,000 foot view,&quot; which basically means seeing the layout, but not the houses, driveways, and storefronts. This is, in fact, the complete opposite of how a successful business operator thinks. Yes, the big picture is important at the get-go. But the details are what drives the success or failure of a venture. Often, it&rsquo;s a small detail that was overlooked that causes something to fail.</p> <p>Look at your own budget, and lifestyle, with that same eye for details. Are you paying $1 too much for something, especially a monthly bill? Did you examine the contract for your lease? Is there something in it that gives you a chance to save money? Did you get every deal you were supposed to get at the grocery store? Check the receipt.</p> <p>Back in 2005, a software company <a href="http://techtalk.pcpitstop.com/2012/06/12/it-pays-to-read-license-agreements-7-years-later/" target="_blank">hid a $1,000 prize</a> in the terms and conditions of its user agreement. It took five months, and over 3,000 sales, before someone actually read the agreement and claimed the money. Details count. Pay attention to them, and you could see incremental changes that really start to add up.</p> <p>Remember, billionaires and millionaires may live extravagant lives, but don't let that stop you from thinking the same way they do. It will make you wealthier in the process.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/paul-michael">Paul Michael</a> of <a href="http://www.wisebread.com/how-to-think-like-a-billionaire-when-you-re-broke">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-ways-to-feel-better-about-your-financial-situation">6 Ways to Feel Better About Your Financial Situation</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-money-lessons-we-could-all-learn-from-dwayne-the-rock-johnson">6 Money Lessons We Could All Learn From Dwayne &quot;The Rock&quot; Johnson</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-only-money-advice-youll-actually-listen-to">The Only Money Advice You&#039;ll Actually Listen To</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-inspiring-quotes-about-money-from-successful-women">6 Inspiring Quotes About Money From Successful Women</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-pearls-of-financial-wisdom-from-dave-ramsey">3 Pearls of Financial Wisdom From Dave Ramsey</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Lifestyle advice billionaires broke entrepreneurship ingenuity inspiration making money millionaires poverty saving money Wed, 24 May 2017 08:00:08 +0000 Paul Michael 1952957 at http://www.wisebread.com Ingenuity: The Ultimate Frugal Skill http://www.wisebread.com/ingenuity-the-ultimate-frugal-skill <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/ingenuity-the-ultimate-frugal-skill" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/wisebreadingenuity.jpg" alt="Lemonade Stand" title="Lemonade Stand" class="imagecache imagecache-250w" width="250" height="167" /></a> </div> </div> </div> <p>In our modern world, we&rsquo;re often hand-fed information and ideas. We&rsquo;re plugged in, tuned in, and logged on in unprecedented ways. It can be both liberating and limiting. As I see kids growing up in this new reality, I worry about their ability to see the interplay between information and ideas, understand the big picture, creatively problem-solve, and negotiate the curve balls that life will inevitably throw their way. (See also: <a href="http://www.wisebread.com/20-great-frugal-skills-and-how-to-get-them">20 Great Frugal&nbsp;Skills &mdash; and How to Get Them</a>)</p> <p>More specifically, I wonder how the gadgets of our lives &mdash; and the overwhelming volume of pre-packaged information that our culture delivers &mdash; will affect the next generation&rsquo;s financial health. In short, I wonder if we&rsquo;re risking the loss of our ingenuity. After all, ingenuity is what frugality is all about. If our economy continues to be challenged in the way it has been in recent years, will the next crop of young adults have the skills to succeed?</p> <p>Ingenuity, in all its forms, drives frugality, and it&rsquo;s the skill that underwrites our ability to live fully with less. In the game of simple living, ingenuity gives us a strategic advantage. Here&rsquo;s why.</p> <h3>Ingenuity Helps Us Save Money</h3> <p>My grandmother always said, &ldquo;It&rsquo;s not how much you make; it&rsquo;s how much you save.&rdquo; And while I agree with the spirit of this sentiment, I also realize that making more means being able to save more. But at root, her phrase illustrates ingenuity's proper place in the skill set of frugality. Ingenuity is the force behind creative reuse, bartering, identifying opportunities for friendly negotiation, and stretching ingredients in the kitchen. Ingenuity helps us save &mdash; and maximize what we save. It has the power transform scarcity into satiety and make limits&hellip;.well, not quite so limiting.</p> <h3>Ingenuity Helps Us Make Money</h3> <p>I&rsquo;ve always believed that there are two separate but equally important ways to successfully manage life on a limited budget. You can either learn to spend less money or figure out how to make more of it. Of course, to get ahead of the game, the most powerful approach is double down and do both at the same time. Again, a little ingenuity can make all the difference. Ingenuity inspired my mom and dad to turn our <a href="http://www.wisebread.com/the-garden-as-classroom">family garden</a> into an income-producing machine. My brother and I became door-to-door fresh produce salesmen in our small-town neighborhood and earned enough money from our little business to live large at the state fair each year. Ingenuity helps enterprising kids across the country turn overgrown lawns and un-shoveled sidewalks into extra pocket cash (although I fear this particular breed of kid may be an endangered species). Ingenuity has the power to turn a surplus of anything &mdash; time, materials, skills, labor, or knowledge into a product or service. It gives shape and form to our ideas and turns opportunities into cash.</p> <h3>Ingenuity Helps Us Spend Money (Wisely)</h3> <p>Less obvious, but no less important, ingenuity helps us to make smart spending decisions too. Frugal folks tend to choose <a href="http://www.wisebread.com/quality-over-price-15-items-to-spend-more-on">quality over quantity</a>, picking products that are multi-purpose, versatile, and able to be easily repaired. Knowing how to spend your money wisely is just like saving money &mdash; the two are shades of the same color. Wise spending means understanding when and how to invest, what products will appreciate in value, and what products should be purchased now to save money later.</p> <p>Saving money, making money, and spending money are the three essential silos of frugal living. And ingenuity is the universal skill that gives practical use to each. It&rsquo;s a way of thinking that saw our grandparents and great-grandparents through the <a href="http://www.wisebread.com/survival-basics-for-depression-era-kids">Great Depression</a> and helped families adjust to rationing during World War II. If our modern devices will enhance or detract from our innate ingenuity remains to be seen. I hope as our young people become more deeply plugged in to the Information Age, they don&rsquo;t unplug from their history and the generations of ingenuity that helped secure their wired lives.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/kentin-waits">Kentin Waits</a> of <a href="http://www.wisebread.com/ingenuity-the-ultimate-frugal-skill">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-think-like-a-billionaire-when-you-re-broke">How to Think Like a Billionaire When You’re Broke</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/25-new-things-to-do-today">25 New Things to Do Today</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-save-on-12-winter-essentials">How to Save on 12 Winter Essentials</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-35-best-ways-to-spend-your-free-time-frugally">The 35 Best Ways to Spend Your Free Time (Frugally)</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-things-you-can-do-in-denver-that-you-cant-do-anywhere-else">8 Things You Can Do in Denver That You Can&#039;t Do Anywhere Else</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Lifestyle ingenuity skills Spend Wisely Tue, 04 Sep 2012 10:00:42 +0000 Kentin Waits 952406 at http://www.wisebread.com Open a beer bottle with a sheet of paper http://www.wisebread.com/open-a-beer-bottle-with-a-sheet-of-paper <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/wisebread_imce/752015_beer_bottle_neck.jpg" alt="Beer bottle" title="Beer bottle" width="272" height="300" /></p> <p>A friend sent me this link, knowing full well I&#39;ll never, ever need it (I carry a bottle opener on my keyring in case of such emergencies). But, for those of you not always equipped with beer tools, this is a cheap, simple solution.</p> <p>It is also worth noting that it&#39;s a much safer solution than a: Using your teeth and chipping off the enamel, or b: Slamming your beer on the side of a table and either breaking the table, your bottle or several bones in your hand.</p> <p>So here we have it. In just 2 minutes you&#39;ll forever know a way to impress every single one of your alcoholic friends. I&#39;ve also posted the latest parody currently doing the rounds. Mucho fun.</p> <p>&nbsp;</p> <object width="425" height="350"><param name="movie" value="http://www.youtube.com/v/qrXmDiYHUY0" /><param name="wmode" value="transparent" /><embed src="http://www.youtube.com/v/qrXmDiYHUY0" type="application/x-shockwave-flash" wmode="transparent" width="425" height="350"></embed></object><object width="425" height="350"><param name="movie" value="http://www.youtube.com/v/m8s_DaQ9now" /><param name="wmode" value="transparent" /><embed src="http://www.youtube.com/v/m8s_DaQ9now" type="application/x-shockwave-flash" wmode="transparent" width="425" height="350"></embed></object><br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/paul-michael">Paul Michael</a> of <a href="http://www.wisebread.com/open-a-beer-bottle-with-a-sheet-of-paper">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/remove-car-dents-quickly-and-cheaply">Remove Car Dents Quickly and Cheaply</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-make-moonshine">How to Make Moonshine</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-halloween-treats-you-can-make-in-an-instant-pot">9 Halloween Treats You Can Make in an Instant Pot</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/make-your-dvd-player-region-free-in-seconds">Make Your DVD Player Region-Free in Seconds</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-home-diy-projects-you-can-do-in-one-day">10 Home DIY Projects You Can Do in One Day</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> DIY bargain solutions beer bottle cheap gadget creative solutions homemade gadget ingenuity paper folding Mon, 02 Apr 2007 20:18:45 +0000 Paul Michael 437 at http://www.wisebread.com