Last Updated on Mar 12, 2020 by James W
Often you hear on the news that lottery winners can be broke again only after couple of years of winning millions. Or you see a successful business owner who went bankrupt and you wonder why. The answer is wasteful and inconsiderate spending. No matter how much money you have you can waste it all if you are not careful with your spending. Ask many heirs who ruined inherited family fortune.
Economical Living
On the other hand, there are many people who build a fortune with modest earnings. They know how to live within their budget and spare money to invest as well. Those people achieve business success and build wealth while they are sending all their children to private schools, too. This clearly shows that they don’t hesitate to spend money where they think they should. Just that their priorities are different. They like to invest their money and invest in the future of their children.
You should know your priorities and what is not essential spending. You can spend all your money on luxury automobiles, holidays, clothes, accessories and fine dining. Alternatively, you could drive a lower budget but still fine car, go on holiday with cheap packaged tours, buy your designer clothes at 70% discount from outlet shops or end of season sales and learn how to cook excellent meals and have a good time at home with your family.
Shopping Wisely
There is a huge misconception with shopping around to save money. When you talk about buying things cheaper people understand that you are too cheap to spend money. This is hardly the case if you know what you are doing. You should aim to get what you want or equally good replacement but buy them at lower price.
For example, when your car insurance is due for renewal you could act like you are a millionaire and just let it renew automatically. Or you could shop around to buy the same auto insurance coverage at a cheaper price. You may need to switch to another vehicle insurer but there are many people who can halve their premiums with the same company. Read the article and find out how you can manage to do the same.
Think about utilities as well. You can change your electricity, gas, telephone and cable TV suppliers and save a lot of money. What would you really be losing if your electricity was supplied by company B instead of A? However, there would be much more money left in your pocket after the switch. Suddenly, you would feel that you are actually making more money these days.
Spend Your Money Carefully instead of Working Harder
There is only so many hours in a week and every person has a limit. If you are working all hours to pay for a lavish (and wasteful) lifestyle are you really enjoying your life? It is surprising to learn that many people buy expensive houses and cars and sign up for memberships not because that is what they want. They do because they want to keep up with the Joneses.
It is pity that they think their neighbors, friends or colleagues will think less of them if they don’t have flashy autos, houses and latest gadgets. You cannot buy real friends. You need to be there for them if you want them to be there for you. You need to be considerate, funny, social and all around friendlier if you want people like you. Those don’t cost money. Take control of your life, live within your means, save money and make your wages go a lot further.
