How to spend money wisely
What's the point of making money if you don't spend money as well?
It can be very easy to spend money on random and non-essentials things in our day to day. Similar to managing time, it's tempting to spend money on the urgent and short term and leave the focus on important and not urgent for another day (which will never come).
Money is an enabler and not an end go. It should support how you define and achieve what you want. So what are the essential principles to spend your money wisely.
Essential principles on how to spend money wisely:
1. Invest in your self
That classic quote from John Rohn says "Don't wish life was easier, wish you were better". Spending in yourself is one of the best investments. Read, explore, research, train, expand your skills, learn another language or another sport.
Our essential self improvement products are here:
- Books
- Ebooks
- DVDs
- Audio
2. Buy tomorrow, not today
Resist the temptation of buying on impulse without reflection. Adopt a simple rule of 24 hours. Whenever you want to make a large purchase, wait at least one day to think about it. It's a simple way of avoiding getting into debt and accumulating stuff that you really don't need.
3. Buy experiences instead of things
Physical products come and go, experiences are forever. Several researches have proven that the pleasure of buying material things is immediate but short lived. After a few days, we just forget and take it for granted.
However when we buy and enjoy experiences, it has a long lasting effect in our memory and pleasure. Therefore, instead of buying a new plasma TV, why don't you go traveling, meet new people, explore new restaurants, enjoy your favorite music band live, and so on? Life is short, we will not take any of our belongings with us.
If you were allowed to have only 100 things, what would keep? What is essential to you? This is a liberating exercise.
A few ideas of essential experiences:
4. Don't spend it: just enjoy what is priceless
We live in a capitalist, consumption driven society. But we frequently forget, the best things in life are free. Love, friends, achievements, discoveries, experiences...
So another essential principle, is just to leave money a side for bit and enjoy the best life has to offer. Admire and appreciate nature, go for a walk with your partner or friends, have a good conversation with someone you love.
By doing that it becomes simpler to save, donate, invest and keep your consumption in check.
