How Selling Lemonade Changed How I View Money

I think most people have some ”a-ha” moment about money while in their transition from childhood/student life to adulthood. For me it was a story I read in Reader’s Digest last year (although I have no idea how old the copy was). We have copious amounts of copies of Readers Digest in our waiting room at work. I don’t often read them but when patients don’t show up or cancel last-minute sometimes there isn’t much else to do.

I am very much paraphrasing the ideas of the article and will probably not get all the details right, so I apologise in advance, the main point of the story remains intact though.

It was a story about a young boy, who at a young age (something like 6 years old), decided he wanted to make some of his own money while his parents hosted a yard sale one summer morning. With the ”initial investment” from his parents of about $5.00, he set up a lemonade stand selling glasses at 0.50/cup. He ended up making something like $20.00 that day alone. He explains that he re-paid his parents and put his $15.00 profit in his piggy bank.

Over the next few summers he continued selling lemonade at every opportunity, always saving his profits. It wasn’t until he was something like 9 years old that he told his dad that he wanted to get out of the ‘lemonade business’ and buy a lawnmower. His parents had no idea that in the past few summers their son had made, and saved, hundreds of dollars selling lemonade. Enough to buy a nice self-propelled gas lawnmower which will help him on his next entrepreneurial endeavor.

Let me explain how smart and business savvy this child was. He took his lemonade profits, bought the lawn mower but had no intention of wasting his childhood away mowing lawns, instead he would hire someone older, stronger, and more experienced to do the work for him all while making a profit himself.

He reached out to some older kids he knew and offered them a summer job mowing lawns. He would provide the lawnmower, gas and nail down a few regular clients in the neighborhood (ensuring job security) but the older boy would do the work. He charged $25.00-$40.00/lawn depending on size and paid the older boy $15.00-$25.00/each lawn. Between the regular clients and the occasional cuts for people who were on vacation etc, they young boy profited something like $3000 for basically doing nothing (other than being the mastermind behind the operation) and the older boy made even more. Win-win situation. He was 9 years old!

He did this for the next few summers and eventually bought a few lawnmowers, hiring someone to man it each time, and carved out quite a name for himself in the lawn care industry in his community.

I don’t remember the story-ending details, and I don’t want to make something up, but I feel like this kid went on to university (totally paid for between his savings and scholarships to a business school). At the time the article was written, he was something like 20 years old and on his way to being a millionaire by the time he was in his late 30’s due to smart investments.

I was flabbergasted when I read this story about the sheer intelligence and savvy mind of this kid. How does a young 6-year-old even think about such a business model? Most kids are playing with toys and concerned about what their friends are doing for the summer, not how to start-up and maintain a business.

And this is how selling lemonade changed how I view my money and forced me to look at what I’ve accomplished financially in my 28 years on this earth (which, sadly is basically nothing).

Has a story every changed how you view money? What do you think about this story?

_________________________________________________________________________

Lemonade Photo Source

Lawnmower Photo Source

Kick Starting Our Budget: How We're Saving $182.00 Each Month

When we decided to get real about debt repayment, the first thing we needed to do was to sit down and look at our budget. I knew there were areas we could be saving but just never bothered to put the effort in to do anything about it before now. These aren’t areas the affect everyone but here’s where we saw some savings with little to no effort:

  • Changing our cat’s food. Our cat has a digestive issue and requires special food, however I knew we could get a similar product for less if I put the effort in to shopping around. Money Saved: $30.00/month
  • Stop paying to life insurance on our individual lines of credit. God forbid something happens to one of us, our actual Life Insurance will be more than enough to cover the two LOC in question. Money Saved: $50.00/month (this shocked me actually).
  • Changing our cable/phone/internet package details. Money Saved: $25.00/month
  • Bank fees. Don’t even mention it, it makes me sick. We switched to no fee banking. Money Saved: $52.00/month. Yes, monthly.
  • Hubby’s cell phone plan, Money Saved: $15.00/month
  • Changing drug stores to one with lower dispensing fees, Money Saved: $10.00/month

For a grand total of $182.00/month in savings. Huge especially since it was wasted money anyway!

How to Save Money Grocery Shopping $100.00 Giveaway!

I’m super excited to be partaking in this great Giveaway of $100.00 Paypal cash or a $100.00 Amazon Gift card!

Saving money grocery shopping is something most families struggle with. I’ve already done posts about how hubby and I manage to eat on a $300.00/month budget through meal planning and partaking in Big Cooks but today I will share some other ways to help cuts food costs for your budget.

This is a little non-traditional, but partaking in Canadian Budget Binder’s Grocery Store Challenge is a sure way to keep you on track with your spending. You are encouraged to set a budget and post your shopping trip for everyone to read…having Mr CBB in the back of your head is sure to help you keep on track!

Shop later in the day. I know a lot of grocery stores around here anyway will mark down some food (meats particularly  later at night because it is packaged already and they need to move inventory for fresh stuff in the morning. I’ve purchased perfectly good meat at an average of 30% off simply by going when kiddo is in bed.

The number one for me, and I’ve already written about it, is MEAL PLANNING!

If a store has a Buy One-Get One Free (BOGO) sales and it’s on items you may not need two of, or may spoil before you use, see if a friend needs the same item and split the cost.

I’ve already said this but shop weekly and shop the sales. If ground beef is on sale this week, get creative and cook a few different things with it rather than paying premium price for chicken when it’s not on sale.

If you do partake in a Big Cook to help lower costs, see if the local butcher will offer you a discount for a large order placement.

Shop from your restaurant…what did I say? Yup, some restaurants will add items for people who may need a restaurant sized order and it’s usually much cheaper. I know my brother-in-law works in a restaurant and he says they have a large family (like 8 people) who often will ask if he can order an extra box of chicken breast/whatever and they pay for it. Worth asking about.

Good luck!! Contest ends December 15th…Just in time for Christmas grocery shopping trip!

 

a Rafflecopter giveaway

Bear With Me

As you can tell I switched to self hosted. A bloggy friend of mine recently lost all of her content so I decided to not risk it and wait any longer. I need to pretty it up but it will take some time on my behalf and baby girl demands most of my time right now, so I’ll ask for some patience while I get ‘er done.

Cheers,

Catherine (aka Mrs Plunged in Debt)

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How Selling Lemonade Changed How I View Money

I think most people have some ”a-ha” moment about money while in their transition from childhood/student life to adulthood. For me it was a story I read in Reader’s Digest last year (although I have no idea how old the copy was). We have copious amounts of copies of Readers Digest in our waiting room at work. I don’t often read them but when patients don’t show up or cancel last-minute sometimes there isn’t much else to do.

I am very much paraphrasing the ideas of the article and will probably not get all the details right, so I apologise in advance, the main point of the story remains intact though.

It was a story about a young boy, who at a young age (something like 6 years old), decided he wanted to make some of his own money while his parents hosted a yard sale one summer morning. With the ”initial investment” from his parents of about $5.00, he set up a lemonade stand selling glasses at 0.50/cup. He ended up making something like $20.00 that day alone. He explains that he re-paid his parents and put his $15.00 profit in his piggy bank.

Over the next few summers he continued selling lemonade at every opportunity, always saving his profits. It wasn’t until he was something like 9 years old that he told his dad that he wanted to get out of the ‘lemonade business’ and buy a lawnmower. His parents had no idea that in the past few summers their son had made, and saved, hundreds of dollars selling lemonade. Enough to buy a nice self-propelled gas lawnmower which will help him on his next entrepreneurial endeavor.

Let me explain how smart and business savvy this child was. He took his lemonade profits, bought the lawn mower but had no intention of wasting his childhood away mowing lawns, instead he would hire someone older, stronger, and more experienced to do the work for him all while making a profit himself.

He reached out to some older kids he knew and offered them a summer job mowing lawns. He would provide the lawnmower, gas and nail down a few regular clients in the neighborhood (ensuring job security) but the older boy would do the work. He charged $25.00-$40.00/lawn depending on size and paid the older boy $15.00-$25.00/each lawn. Between the regular clients and the occasional cuts for people who were on vacation etc, they young boy profited something like $3000 for basically doing nothing (other than being the mastermind behind the operation) and the older boy made even more. Win-win situation. He was 9 years old!

He did this for the next few summers and eventually bought a few lawnmowers, hiring someone to man it each time, and carved out quite a name for himself in the lawn care industry in his community.

I don’t remember the story-ending details, and I don’t want to make something up, but I feel like this kid went on to university (totally paid for between his savings and scholarships to a business school). At the time the article was written, he was something like 20 years old and on his way to being a millionaire by the time he was in his late 30’s due to smart investments.

I was flabbergasted when I read this story about the sheer intelligence and savvy mind of this kid. How does a young 6-year-old even think about such a business model? Most kids are playing with toys and concerned about what their friends are doing for the summer, not how to start-up and maintain a business.

And this is how selling lemonade changed how I view my money and forced me to look at what I’ve accomplished financially in my 28 years on this earth (which, sadly is basically nothing).

Has a story every changed how you view money? What do you think about this story?

_________________________________________________________________________

Lemonade Photo Source

Lawnmower Photo Source

Kick Starting Our Budget: How We're Saving $182.00 Each Month

When we decided to get real about debt repayment, the first thing we needed to do was to sit down and look at our budget. I knew there were areas we could be saving but just never bothered to put the effort in to do anything about it before now. These aren’t areas the affect everyone but here’s where we saw some savings with little to no effort:

  • Changing our cat’s food. Our cat has a digestive issue and requires special food, however I knew we could get a similar product for less if I put the effort in to shopping around. Money Saved: $30.00/month
  • Stop paying to life insurance on our individual lines of credit. God forbid something happens to one of us, our actual Life Insurance will be more than enough to cover the two LOC in question. Money Saved: $50.00/month (this shocked me actually).
  • Changing our cable/phone/internet package details. Money Saved: $25.00/month
  • Bank fees. Don’t even mention it, it makes me sick. We switched to no fee banking. Money Saved: $52.00/month. Yes, monthly.
  • Hubby’s cell phone plan, Money Saved: $15.00/month
  • Changing drug stores to one with lower dispensing fees, Money Saved: $10.00/month

For a grand total of $182.00/month in savings. Huge especially since it was wasted money anyway!

How to Save Money Grocery Shopping $100.00 Giveaway!

I’m super excited to be partaking in this great Giveaway of $100.00 Paypal cash or a $100.00 Amazon Gift card!

Saving money grocery shopping is something most families struggle with. I’ve already done posts about how hubby and I manage to eat on a $300.00/month budget through meal planning and partaking in Big Cooks but today I will share some other ways to help cuts food costs for your budget.

This is a little non-traditional, but partaking in Canadian Budget Binder’s Grocery Store Challenge is a sure way to keep you on track with your spending. You are encouraged to set a budget and post your shopping trip for everyone to read…having Mr CBB in the back of your head is sure to help you keep on track!

Shop later in the day. I know a lot of grocery stores around here anyway will mark down some food (meats particularly  later at night because it is packaged already and they need to move inventory for fresh stuff in the morning. I’ve purchased perfectly good meat at an average of 30% off simply by going when kiddo is in bed.

The number one for me, and I’ve already written about it, is MEAL PLANNING!

If a store has a Buy One-Get One Free (BOGO) sales and it’s on items you may not need two of, or may spoil before you use, see if a friend needs the same item and split the cost.

I’ve already said this but shop weekly and shop the sales. If ground beef is on sale this week, get creative and cook a few different things with it rather than paying premium price for chicken when it’s not on sale.

If you do partake in a Big Cook to help lower costs, see if the local butcher will offer you a discount for a large order placement.

Shop from your restaurant…what did I say? Yup, some restaurants will add items for people who may need a restaurant sized order and it’s usually much cheaper. I know my brother-in-law works in a restaurant and he says they have a large family (like 8 people) who often will ask if he can order an extra box of chicken breast/whatever and they pay for it. Worth asking about.

Good luck!! Contest ends December 15th…Just in time for Christmas grocery shopping trip!

 

a Rafflecopter giveaway

Bear With Me

As you can tell I switched to self hosted. A bloggy friend of mine recently lost all of her content so I decided to not risk it and wait any longer. I need to pretty it up but it will take some time on my behalf and baby girl demands most of my time right now, so I’ll ask for some patience while I get ‘er done.

Cheers,

Catherine (aka Mrs Plunged in Debt)