- Income – Investment = Expenses
It is not Income – Expenses = Investment, what mostly do. Pay your self first, if you invest first you can’t spend what you already invested.
- Buy tomorrow
Exactly after buy something you loose the wish to be with that thing all the time, try to buy it tomorrow, then after-tomorrow, after a while, maybe you will think that you really don’t need the item. Try at least to sleep before take the decision.
- Buy because you need it
You buy something only because or you desire the item or you need it. Try to make a process when you are going to buy something, do you nee it? is it expensive? do I have money to buy it now? Maybe you will realize that you don’t need it, it was just a desire.
- Check the promotions and spend well
When you go to the supermarket, you buy only one item? Maybe you can buy the bigger one and it will be cheaper! Spend less is different of spend well, for instance you can buy a LED lamp for you room, a LED lamp is much more expensive, but you will save much more energy!
- Check how much you need to work to pay what you want to buy
First, remember, you pay taxes, big part of your salary already goes there. Where I am from, Brazil, 1/3 or your year is to pay taxes. Imagine that now you have just 2/3 of the year that is actually your money. You still have to pay your own cost and expenses. Hoe much days are left for you that are actually yours? Will you work forever to pay an iPhone? Check well how much you are paying per hour and how much time of your year you need to work to pay this item.
To finish I’d like to recommend a book: Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth, by T. Harv Eker.
rockthefinance 