A common thing I hear when I advise new parents in Financial matters is they don’t have extra money to set aside for college funding, or for other savings goals.
The following is just an excersize and plausible example to realize different ways to create savings.
One of the brightest parts of the ‘not always bright’ road of Parenthood, is the day you tell the kids they can have a dog. Smiles, hugs, and promises of devotion to chores & grades, NIRVANA. It’s too bad contracts from kids aren’t enforceable in court. Your first thought might be to go to the shelter to pick out a dog, but there’s another alternative. Why not pick a breed that is sought after...marketable? True, you pay a bit, but if you’re smart, you can negotiate a better price for a ‘non-fixed’ female. You have probably guessed where I’m going by now, but let me spell it out.
Yorkies, for example, are great, cute little dogs that don't shed their fur. These "little" dogs equal little poops and good puppy prices. Naturally, you would pick the breed that YOU want. Now for the math; Average Yorkie pups go for $1000 per puppy, multiplied by the average litter size of 6 puppies, minus the average ‘costs of goods sold’ (vaccinations, food, a vet bill, akc registration) equals a tidy $5000 multiplied by the 6 years the AKC regards as safe equals $30,000. Now equate investing the money at a lowly 8% a year and watch that $30K turn into $39,612 after 6 years! Wait, if you started when your oldest was 9, then you have 3 more years of compounding until they start college. This brings the total to $49,899!! Make sure you have the money in a non-taxable account during accumulation. Resist the temptation to subtract the extra time that having puppies requires. This time shouldn’t be spent by you. Feeding, watering, assisting with the marketing and the cleanup are all great precursors for future college students… Before they’re old enough to legally work. OH! A friend of mine sells miniature Labradoodle pups for $2,500 each! Now do the math on that ...
There are MANY ways to create savings. Laziness brought on by depression and stress hamper ambition. I know its easy for some stranger to say to ignore it. Well...you have to ignore it. There are resources available to you. Heck, give me a call if you need to talk. ...I'm Steve
Steve J. Casull, CEO & Founder