Often you read stories about how lottery winners have gone broke in a matter of years, even after winning millions. You come across successful businesses, which somehow went bankrupt and wonder why that would be. Usually, the answer is inconsiderate and wasteful spending. People go through a huge inheritance very quickly with bad financial decisions.
On the other hand, some families with modest earnings can save plenty of money and invest it prudently to provide a future for themselves and their children. A little money put aside can go a long way when it is set to work to produce returns.
There are many examples of families building a fortune with modest earnings. They understand the importance of living within their budget so that they have something left to spare. Those people achieve business success and build wealth while they are sending all their children to private schools, too. This clearly shows that they don’t hesitate to spend money where they think they should. Just that their priorities are different. They value things like investing in the future of their children more.
You should know your priorities and what is not essential spending. You can spend all your money on luxury automobiles with very high insurance rates, holidays, clothes, accessories and fine dining. Alternatively, you could drive a lower budget but still fine car, go on holiday with cheap packaged tours, buy your designer clothes at 70% discount from outlet shops or end of season sales and learn how to cook excellent meals and have a good time at home with your family.
There is a huge misconception with shopping around to save money. When you talk about buying things cheaper, people understand that you are too cheap to spend money. This is hardly the case if you know what you are doing. You should aim to get what you want or an equally good replacement but buy them at a lower price.
For example, when your auto insurance is due for renewal you could act like you are a millionaire and just let it renew automatically. Or you could shop around to buy the same car insurance coverage at a cheaper price. It really is so easy and quick online that you wonder why only few people do it. You may need to switch to another vehicle insurer but this is pretty easy to do as well. Policyholders are free to switch their automobile insurance providers without any penalty at each renewal.
Think about utilities as well. You can change your electricity, gas, telephone and cable TV suppliers and save a lot of money. What would you really be losing if your electricity was supplied by company B instead of A? However, there would be much more money left in your pocket after the switch. Suddenly, you would feel that you are actually making more money these days.
Spend Your Money Carefully instead of Working Harder
There are only so many hours in a week and every person has a limit. If you are working all hours to pay for a lavish (and wasteful) lifestyle, are you really enjoying your life? It is surprising to learn that many people buy expensive houses and cars and sign up for memberships not because that is what they want. They do it because they want to keep up with the Joneses.
It is a pity that they think their neighbors, friends or colleagues will think less of them if they don’t have flashy autos, houses and latest gadgets. You cannot buy real friends. You need to be there for them if you want them to be there for you. You need to be considerate, funny, social and all around friendlier if you want people like you. Those don’t cost money. Take control of your life, live within your means, save money and make your wages go a lot further.