It might seem like the rich do nothing but splurge their money on life’s luxuries and a lot of them do but truly wealthy people know that a penny saved is a penny earned so why not follow their lead instead their tricks will put you on the road to a bigger bank account.
#1. Dealing With Bills.
Instantly it’s never fun parting with your hard-earned cash when those bills come piling in. So, we naturally try to put them off for as long as we can but instead of saving you money it actually has the opposite effect simply because unpaid bills don’t allow us to manage the rest of our money as effectively as we should. As a result, you often spend the last bit of your coin on your bills and end up with almost nothing. So kick this bad financial habit and make it a rule to pay all your fixed expenses on the very first day through automated systems this way you always have a clear view of your financial situation.
#2. Making Shopping Lists.
If you love shopping you know how hard it can be to stop yourself from buying something especially if it’s on sale and that’s when a shopping list can come in handy. The truth is it only seems like you’re saving money when you buy stuff on sale, in reality, you subconsciously pick up way more items than you need and end up overspending. If this sounds familiar to you then plan your shopping list in advance and schedule your big purchases during sales to get a good bargain.
#3. Have No Spending Days.
If lists don’t put an end to your impulsive shopping it’s time to try the ultimate technique, “No Spending Days”. Your task here is very simple to forbid yourself from spending money on any unnecessary things for one day. Try it a couple of times and then raise the bar by not buying anything special for a whole weekend. Once you pass this test you can take on the biggest challenge of all and stop splurging on things for a whole week. This little exercise will train your willpower and make it easier for you to control yourself and save your money.
#4. Paying With Cash.
Going cashless seems really convenient but this way of handling your finances isn’t that effective once you see just how easy it is to swipe that little piece of plastic that’s why millionaires and people with high income always prefer cash over cards especially when it comes to small purchases. First of all, when it comes to credit cards it keeps you as far away from debt as possible which is always a plus. Especially when you consider the fact that cash has no interest to mention you become much more aware of your spending when you have physical money in your hands and you see the Sun getting smaller and smaller. You’ll be shocked how quickly it goes.
#5. Saving Change.
When you start paying with cash you inevitably collect a lot of loose change and even though everybody hates it and wants to get rid of it as soon as possible you really shouldn’t take that coin for granted. Any loose change that you drop in your bag and forget about can buy you a great cup of coffee or a snack that you normally pay for it with the rest of your money. Start keeping your change and you’ll see how quickly your daily expenses will decrease.
#6. Repairing Things.
Whenever something breaks our natural instinct is to replace it with a new one but most of the time it can be quickly and easily repaired. A lot of millionaires agree with this too and strongly believe in committing to purchase until its last breath. They even stick by this rule for gadgets and devices while most of us are hankering to get the latest model before the one we have even stopped working. Truly wealthy people fix what’s fixable plus why make more trash when you don’t need to have a bonus you’ll decrease your ecological footprint.
#7. Spending Money On Personal Growth.
Who said that saving that has to be miserable you can tackle this problem from a completely different perspective like splurging on things that make you better instead of buying yet another pair of shoes. Kimberly Palmer a personal finance expert at nerd wallet recommends doing just that and not being afraid to buy yourself a good laptop reliable car or any other thing that can open new doors for you. These types of purchases will inspire you to improve in your work field and therefore help you earn more money in the long run.
#8. Investing In Services That Save Time.
While we’re on the topic of effectively splurging money according to Business Insider the rich don’t hesitate to spend money on services that save their time either the millionaire mindset that can lead you to wealth is simple time is money period. Getting your groceries home delivered using laundry services or renting a relatively expensive space to stay closer to work can save you tons of time which translates to money in your wallet. You can use that extra time to get better at your craft start new interesting projects and brainstorm for more innovative ideas your options are limitless.
#9. Putting Money Into Your Hobbies.
One of the most important things in life is to love what you do and this ultimate truth basically rules millionaires lives. They buy stuff that makes them happy and uses this happiness as fuel for inspiration in their work. So, don’t stop yourself from buying a guitar if you’re passionate about learning how to play it or spending money on a good camera if you want to get into photography. These hobbies will complete your life and give you more energy for work just make sure that your savings allow for it and go.
#10. Splurging On New Experiences.
Most millionaires have pretty colorful lives and it’s all thanks to their ability to invest money not only in cool ideas but also in new experiences. Every experience whether it’s good or bad teaches us an important lesson and broadens our horizons showing us our true abilities and talents. So, don’t be afraid to step out of your comfort zone try skydiving take a trip to an unfamiliar country or start your own project you’ve always wanted to bring to life. These experiences will make you stronger and reveal your greatest strengths and weaknesses that in turn will put you on the path to financial success.