Sunday, December 18, 2011

Spend More and Save Less in Amway

The following is a repost of a blog I wrote last December.

I saw this advice on the news this morning while watching a story about Christmas spending, though this advice could certainly apply to Amway too.

So here's a rare blog where I don’t curse out my upline, a little off topic but seeing as how its the Christmas season sort of fits with this time of year.

I hate seeing stories about budgeting for Christmas especially when its 2 weeks away its pretty much a lost cause for most people. One financial expert that was interviewed said to budget 1.5% of your income for Christmas. That would include presents, baking extra meals, or any other spending that happens this time of year. He said if the annual income was $50,000 then that’s a budget of $750. He also said to save first, spend later and then totally glossed over that and moved on to saying spend only cash at Christmas. Like I said could be advice a little too late for some people who are whipping out the credit card and then regretting it when the January bill arrives in the mail.

Years ago I read something about figuring out how much money you spend for Christmas. Divide that amount by 12 and then put aside the cash every month. By the time Christmas shopping arrives you’ll have the cash on hand. Good advice. Every month Ambot and I put $80 into an envelope. By the time October or November rolls around we’ll top off the envelope for the rest of the year. So who’s good at math? By the time we start Christmas shopping we’ve got $960 sitting in an envelope. When we first started doing this we put in $60/month. Ambot suggested today that next year we should increase it to $100/month.

I’m a saver and Ambot is a spender which is what got him in trouble with the Amway cult and feeding into the scam. He pulled out his credit card for everything including buying his precious upline meals thinking that he’s tracking all his business expenses with a credit card not really comprehending that eventually he has to pay it back.

Using the same philosophy figure out how much you spend on Amway each month and set that cash aside, not use a credit card. Well actually most of the time you have to use a credit card cause its Internet purchases. So lets say cash that’s set aside to immediately pay back the credit card. Factor in at least $300/month on purchasing Amway products so you can earn a bonus check of just under $10. Ambot wanted to earn more money. The lowest amount he spent in a month was $468. Most months were between $950 and $1050 purchasing Amway products with the highest spending two months after joining - $1,358.

Here’s where I want to SCREAM! My food budget is $600 and that includes groceries and eating out, about half/half. What the fuck was he buying? OK, I’ve mentioned hyper consuming XS Energy Drinks before. How does this possibly come close to we buy from Amway products we normally buy when we’re grocery shopping? I’ve never come close when grocery shopping.

Saying you’re going el cheapo on buying CD’s so add another $20/month but the sky’s the limit. The most CD's Ambot purchased one month was $150 but most of the time it was closer to $40/month.

Gotta have your premier membership to WWDB $49.95. Don’t forget Communikate if you’re a “serious business builder” $36.95/month.

Various monthly seminars - tickets and parking - $70.

That’s $476.90 a month doing just the basics to earn a less than $10 bonus check from Amway and prove you’re a serious business owner. It goes up and up and up from there depending on how much room you have on your credit card and how much you want to impress your upline with your spending.

There are 4 major functions each year usually in another state. Transportation, meals, hotel, tickets - plan at least $500 and it could go higher depending on your circumstances (how far you’re travelling).

So lets do it like we’re putting cash aside for Christmas and dividing by 12. You need to set aside cash close to $700 (or more) each month!


Does anyone think that could be a mortgage payment? Does anyone think that could be invested in stocks or a 401k? How about a pretty big blow out for Christmas?

That’s a lot of cash to set aside each month for a business that has over a 99% failure rate.

I still like the advice from the financial expert today: “Save first, spend later.”

Apply that to your Amway business before you go nuts on your credit card to impress your upline.


  1. great post!

    works quite well too, we are just starting to get back on our feet and get our financial life in better order, using a percentage budget works in every day life too. with us it works great for budgeting percentage for groceries and future/possible emergency funds.

    I am quite thankful that we have taught our Kids to put money aside. we have a 4 way plan for them.
    trip savings/ Education funds/ free spending allowance.
    some people have their kids put away a small amount for a charity fund but it seems to me that my kids can give a lot more by volunteering

  2. Thanks JadenRed! There are a lot of financial advisors out there and everyone has pretty much the same advice: pay down debt and start saving. They all have different paths how to get there. I read some of David Bach's books. If you go to his website and wait a few minutes a pop up window to get a free download of his ebook Start Over Finish Rich comes up. You have to sign up with your email but he rarely emails me anything, just if he has a new book coming out or something that might be of interest to his readers. He's been on Oprah and is often on the Today Show as a money expert.

    Sure as hell beats the shitty financial advice you get from counselling with your Amway upline!

  3. Scamway adherents are taught by the kingpins to spend now and then spend again later, success is just around the corner.

    Glad to see you here and even glad you got out and are "just starting to get back on our feet and get our financial life in better order"

    I agree with Anna that in all, financial advice comes down to pay down debt and start saving. And that is light years far away and better than any advice from a so called scamway upline.

    Let me mention He has formulated a "7 baby steps" common sense advice and can't hurt to peruse over.

    Have a Good and better luck (than anything from scamway!)

  4. ExAmbot - Dave Ramsey's another one of followed financial experts. His Total Money Makeover has a following on a forum somewhere that I used to visit occasionally. Those people had tons of great advice but some of them were really judgemental of others, especially someone who'd taken out a loan to buy a car. I find his 7 steps a little too strict for my liking but then not everyone can be gazelle intense! Like any other advisor take what works for you.

  5. "Like any other advisor take what works for you."

    Yes indeed. The beauty of choice and critical thinking is marvelous! I was gazelle intense with steps 1-3, the rest I modified to my circumstances.

    "...some of them were really judgemental of others..."

    One of the things scAmway did for me was question my faith as a christian, coupled with the catholic sex scandal. I am not surprised by Dave's followers being so judgemental-it's a spillage from christianity. I find it akin to ambots' self righteousness. Some christians are blinded by the belief in the "rightness" of their faith to the detriment of the same spilling over other functions of life-IMHO.

  6. Dave Ramsey has some good advice and has helped a lot of people. At any rate reading his book gets people thinking and maybe not everyone needs all the steps like 5 but if they get started with savings and paying down debt then its helped them get their finances in order. I'm glad I'm not the only one who sees some of Ramsey's followers as judgemental. And here I'll say not all of them, some were very kind to people who confessed they had setbacks or emergencies where they had no choice but to borrow money or use a credit card and some of those followers were downright nasty. And I'm thinking what's it to you. These are just people you know on the Internet its not like what they do or don't do with their money or their debt affects your life one way or the other.

    I rarely use my credit card but I don't plan to give it up which is a huge blasphemy as far as some of Ramsey's followers are concerned. For travel when renting a car or checking into a hotel its a real pain in the ass if you don't have a credit card. Not to mention buying things on the Internet. Not that I do hog wild but a couple of times a year I'll go to Amazon and spend at least enough to get free shipping. Someone spending less than $100 a couple of times a year on their credit card doesn't have a problem, in my opinion. I've always used my card responsibily. Its my husband who ran into trouble thanks to those Amway assholes in the upline who wanted him to buy, buy, buy and the only available funds he had were courtesy of Visa.


Comments are moderated but we publish just about everything. Even brainwashed ambots who show up here to accuse us of not trying hard enough and that we are lazy, quitters, negative, unchristian dreamstealers. Like we haven’t heard that Amspeak abuse from the assholes in our upline!

If your comment didn’t get published it could be one of these reasons:
1. Is it the weekend? We don’t moderate comments on weekends. Maybe not every day during the week either. Patience.
2. Racist/bigoted comments? Take that shit somewhere else.
3. Naming names? Public figures like politicians and actors and people known in Amway are probably OK – the owners, Diamonds with CDs or who speak at functions, people in Amway’s publicity department who write press releases and blogs. Its humiliating for people to admit their association with Amway so respect their privacy if they’re not out there telling everyone about the love of their life.
4. Gossip that serves no purpose. There are other places to dish about what Diamonds are having affairs or guessing why they’re getting divorced. If you absolutely must share that here – don’t name names. I get too many nosy ambots searching for this. Lets not help them find this shit.
5. Posting something creepy anonymously and we can’t track your location because you’re on a mobile device or using hide my ass or some other proxy. I attracted an obsessed fan and one of my blog administrators attracted a cyberstalker. Lets keep it safe for everyone. Anonymous is OK. Creepy anonymous and hiding – go fuck yourselves!
6. Posting something that serves no purpose other than to cause fighting.
7. Posting bullshit Amway propaganda. We might publish that comment to make fun of you. Otherwise take your agenda somewhere else. Not interested.
8. Notice how this blog is written in English? That's our language so keep your comments in English too. If you leave a comment written in another language then we either have to use Google translate to put it into English so everyone can understand what you wrote or we can hit the Delete button. Guess which one is easier for us to do?
9. We suspect you're a troublemaking Amway asshole.
10. Your comment got caught in the spam filter. Gets checked occasionally. We’ll get to you eventually and approve it as long as it really isn’t spam.