When I was younger I always had a difficult time saving money. I would blow hundreds of dollars on the dumbest shit. But when I started making more money, and then wondering to myself “Where did all my money go?” I decided that I needed a better way to keep track of my money, which in turn helped me save money.
- Keep Track of Your Money
The best thing that I did to help me stop spending money wastefully, was to keep track of the money that was coming in and the money I was spending. This is incredibly simple to do, in fact there are many software programs that can help you keep track of how your money is being spent
- Invest rather than spend for status
Most individuals spend money they don’t have on things that are not meaningful to their lives. The only thing that it does is provide them with the fleeting ability to project status. Better places to spend money include starting one’s own business, investing and spending money on something that will improve your quality of your life, or help you become a better person. Investing in your own property, by using a plumber to do yearly maintenance is an example of a good investment. When you decide to sell your property, you know that your plumbing system is in excellent shape. You can also ensure that no sudden problems occur that would set you back hundreds or even thousands of dollars.
- Avoid Overspending
Why do most people need to buy expensive items? When they can get something that is of the same quality and style for much cheaper. Avoid spending money on brand name clothing’s or expensive items, when you can get items of the same value for much cheaper. Always buy for utility and durability
- Avoid Depending on Credit Cards
Too many people use credit cards as a clutch to buy whatever they want. You should never buy something on your credit card, that you cannot pay off in full at the end of every month. The interest rate alone is a waste of money.
- Home and Car Ownership
Most people don’t understand that owning a home and car are one of the biggest money wasters you could possibly have. In my opinion it is better to rent a home or apartment and commute than to own a home and car. This could potentially save you thousands of dollars every year
- Starbucks and useless drinks
The average American $780 a year on just Starbucks alone, this is absolutely ridiculous. It would be cheaper to make your own coffee at home (if you have to), or opt in for some alternatives, like water.
These are just some of the things that you can do to save thousands of dollars every year. If I think of some more I will post another blog entry on it. Remember, if you track your spending, you will be surprised just how much money you are wasting every year.