Dr Oz: Gain Control Of Your Finances
Are you living paycheck to paycheck? If so, Dr Oz had a power plan that could give you control of your own finances. Ric Edelman said it all comes down to pennies which is why he gave every member of the audience a penny. He explained that if you took that penny and doubled it in value every day for 30 days. At the end of the month, you would have $10 million!
Dr Oz: Pay Yourself & Watch Your Money Grow
Dr Oz revealed his plan for gaining back control of your finances, getting out of debt, and saving big money. (amagill / Flickr)
Ric explained that people think money grows linearly, when in fact, it grows exponentially. That why you have to get your money earning at effective rates of return, and in his example he used a hypothetical 10% rate of return, which is the average return of the stock market. You just have to start!
To start, you need to pay yourself first, that way, as Ric put it, you’ll still be broke, but you’ll be broke with money. If you hav an income of $50,000, drop a 0 to make it $5,000 and divide it by 12. You get $416 a month and that’s how much you should write yourself a check for. Each month, take that money and deposit it into a mutual fund account, exchange traded fund, or just some sort of bank account, to watch your money grow!
Dr Oz: Set Up An Auto-Debit Account + L.I.F.E. Fund
Next, you should set up an auto-debit account that you don’t have a card attached to. Not having the card eliminates access which means you can set it aside for things you truly need it for. Remember L.I.F.E. which stands for listed below cost, impulse buys, forgotten bills, and emergencies. Your life fund is for the unexpected and sometimes even expected costs, according to Lynette Khalfani-Cox.
Dr Oz: 30-Day Credit Card-Free Challenge
Dr Oz then revealed his 30-day Credit Card-Free Challenge for the first time. He challenged his viewers to stop using their cards, only visit the ATM once a week, and take out enough cash for the week. See how far you can get with that cash. You can use your debit card, but just once a week. Finally, track your savings and he guarantees you’ll be surprised.
Ric Edelman handed each of the women a lottery ticket and then asked each of them if they would trade their tickets for a $5 bill. The women refused, knowing that their tickets could be worth a million. He then explained to the women how they can actually turn just $5 into a million, without playing the lottery. If they each took $5 and saved it each day rather than buying a lottery ticket, for an entire year for 40 years, they would have nearly $977,621.
Dr Oz: Freeze Your Credit Cards
Lynette then suggested that the women freeze their credit cards to eliminate any temptation. You can also reorganize your wallet to make the most of your cash. Organize the cash in categories ahead of time so you know what each amount is for, whether it’s food, transportation, or any extras. Once the cash is spent, it’s gone and you can’t spend any more.
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