Last Updated on March 14, 2019
Are you in love with your credit card like Rebecca Bloom in ‘Confessions of a Shopaholic’ or with your clothes like Miranda Priestly in ‘The Devil Wears Prada’ or even worse? Just for the record, there are plenty of people worldwide who are in the same shoes just like you.
They love shopping but end up broke. With money, you can translate many of your dreams into a reality. Having a roof above your head and food in your kitchen does not mean that you are safe.
Changes may pop up in any second, and you may fall in a serious financial crisis. Some are struggling with the single annual trip they have been planning for since a long time, whereas others seem to carry their credit cards around and spend unreasonably.
At the end of the day, they land up with nothing except the huge amount of clothes they bought and stocked in a closet like Rebecca Bloom did. You can be one of these and be desperate to know one or many effective ways to manage your financial life.
Millionaires’ 24-hour-rule
You must have read a lot of books about money saving including ‘Managing Your Money For Dummies’, yet nothing seems to work. Well, maybe because you are either not reading the appropriate books or failed to apply the tips provided for you.
Either way, there are more effective books written by people who came up with intelligent ways to manage your money wisely. They on their own right tried these ways and applied the rules that turned them into the richest businessmen and women in the whole world.
If you read ‘Millionaire Success Habits’ by Dean Graziosi or ‘The New Millionaire Next Door’, you will notice and learn a basic rule to save your money which is the 24-hour-rule. In other words, if you want to buy something, do not pull out your wallet or credit card immediately out of your pocket, give it a second thought.
Millionaires are always excited to make new deals, but not before they take their 1-day-thinking break. They study every bit of their decision to draw the final resolution which can decide whether they will remain millionaires or not.
You might buy sometimes impulsively some silly stuff as you are too angry or too happy for you have just got paid. Before deciding to buy anything, give it a moment and think whether you ‘need’ or ‘want’ that thing.
All in Cash
You need to put your credit card in the freezer like Rebecca Bloom did to stop using it every time you want to make a purchase, even when it is small. If you keep on in such a way, you will end up in a big financial crisis desperately in need of help paying off your credit debt.
Start to think a bit like Bill Gates and other rich figures who use mostly cash to pay for many things in their daily life. The best way to reduce credit card debt is by ending your total dependence on your card and start paying in cash.
The key to strategic spending is through getting rid of basing your life on cashless economies. This is going to be a bit hard if you are addicted to shopping and daily usage of your credit card. But before using it, consider the expensive bills you will be paying at the end of the month.
Specify and stick to a budget
Living strategically and financially safe requires careful planning of your future and present spendings. The best money-saving strategy is by specifying your monthly or annual budget and be determined to stick to it.
Once you decide what your essentials, savings and personal spends are, you can feel safe and guarantee that you are not going to spend more than you should. The fact that you dedicated an amount of money for everything in your life given its level of priority will shield you from unreasonable spending.
Your essentials should the ones you are supposed to pay for more. Here is an idea: if you do love doing some math, conduct your own audit session to compare your income with your spendings. You can also do some research about the best way to start a savings account where you should be keeping at least 20% of your salary or wage.
Wise spending
Saving money does not necessarily mean that you are miserable to have it. What it means is that you are the kind of person who lives in the present and keep plans for the future. This is how the majority of business people think.
It is a strategic planning skill which reveals your personality and your thinking manner. Before you decide spending your money, evaluate the situation you are in and assess your potential buys accordingly. But keep one single thing in your mind which is buying only what you need.
Of course, there are times where you can break the rules a bit, but not all the time. Any purchases you make at any level should be beneficial to you in a way, either that they can add value to your work or help you perform your duties effectively.
Things that can boost your life and are of great value are your car for example, to get to work on time instead of being stuck in the metro station or a valuable laptop to use to contact your clients and managers.
Time-saving services to invest in
Always use your sober sense and strategic thinking skills to decide which things to buy or services to hire and which ones you are not obliged to consider. Think like an investor and spend accordingly.
Having this investing strategy in mind will lead you to splurging your money on exclusively useful things. In fact, if you think like an investor, you will not spend your money, but rather saving it in a way to earn more and more.
For instance, if you rent a nice apartment near your workplace, this will save the trouble of finding a cab and spending a lot on transportation means. If use a laundry service to get your laundry home, it will save you the time and effort you are supposed to devote for your work.
There are many simple things you can do and can save your money properly. They may cost you a bit, but that is a strategic investment on its own to grant you time to enjoy your life.
Invaluable experiences
