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Rich life seems as an unachievable dream for us. It should not, as the only thing you need to get is a will-power. Thus, earn more, spend less and invest the remains. Maybe you are not going to become extremely rich and will not buy a personal jet, but you will definitely become wealthier and financially independent.
Millions of people across the world dream to have a fabulous lifestyle, but keep spending money on unnecessary things and can not stop. As a result, they have lots of debts which later on with enormous sufferings have to cover up.
These small tips can help you to change your life into the better, but only if you are eager to let the changes in.
Set Goals and Follow Them Up
If you are only twenty and reading this article, you are lucky enough as you still have plenty of time to reconsider the attitude towards finances and its coherence with life in whole. Ponder over goals now, write them down in every single detail. Once you have a complete image of your future life, start thinking of the ways to achieve what is so desirable for you. The list of goals may also prevent from buying useless stuff that will be thrown away within one month or a bit later. Focus on your goals and make them visible, for example, make a collage with the pictures of your dream life and hang on the wall in your room – that will remind you of your goals and keep you motivated.
Don’t Spend Money for Short-term Pleasures
In our era of consumerism, we should be scared of a global idea that things can make us happy. They can, but for just for some minutes. Are they worth it? Is it a good idea to spend several hundreds of dollars to share a few minutes of happiness? You can spend twice less and be happy for a longer period of time. Memories are way much more significant in our lives. Money is flowing away, time is the same. But memories are always with us.
Emotions, Step back
Control your emotions when you are going to make a purchase, stay calm and cool-headed. Any hint of impulsive behaviour and you are going to waste much more than you have planned. When there is no plan with financial goals marked precisely on the paper, it is possible to lose control and start buying useless things, which you will regret after.
Make Mistakes, but Learn from Them
It’s impossible to live without making mistakes, we can plan as much as possible, but no one is protected from making some wrong steps and decisions. Mistakes make us wiser and more experienced. Nobody’s perfect, sometimes it’s okay to use credit cards or apply for instant payday loan online if there’s an extreme need of money. The most important is to understand that it’s worth to borrow money only if it’s really necessary. Try to live within your means, but don’t be too strict to yourself because under your own pressure you may lose a motivation. Enjoy life but remember that there are things more important than money. Our happiness is in our own hands, that’s why work hard and follow your dreams.
Nice post. I’d add in – try to save a lot extra. I’ve ended up with huge medical bills that aren’t covered by insurance or government, and I would have been screwed without a cushion!
Cat recently posted..Cheaper to make from scratch or buy from the store?
Yes that extra money could come in handy in all kinds of situations. You don’t want to be going into debt any time an emergency happens. You have to be prepared for the unexpected.
The emotional thing isn’t a rpoblem from me, but the learning from mistakes is a big one. Important stuff! I beat myself up sometimes when I make a mistake, but I shouldn’t, my wife and me shoudl learn from it and move on from it!
TB at BlueCollarWorkman recently posted..Never Ask About a Foreclosed Home
Exactly, it is much better to learn from any mistakes than beat yourself up about it. You don’t really get much out of punishing yourself. Instead roll with the punches and think of how it could be done better next time around.
We are working on limiting our “want” spending. We are definitely spenders and it’s killing our savings plan.
Michelle @ Making Sense of Cents recently posted..Our Vacation Plans for the Next 12 Months
That want spending can be pretty tough to limit when you are so accustomed to being able to buy he things you want. It can feel like you’re depriving yourself by suddenly not buying those things. So you might want to try just gradually scaling back on that type of spending.
Good post. I could not agree more about short term pleasures, they’re usually just a waste of money. I’d much rather save for something I want and get more enjoyment out of it that way.
John S @ Frugal Rules recently posted..A Frugal Person’s View on Holiday Tipping
I’ve always been a sucker for short term pleasures. I’d hate to think of how much I’ve wasted on those kinds of treats. I’ve also spent a lot on memory building spending though. So that spending will last a lifetime…or at least until my memory starts to diminish.
I agree that learning from mistakes is the key. We will all make mistakes…but it’s important to try to find something of value to learn fom them!
Holly@ClubThrifty recently posted..Guarding Your Personal Information from Corporate Interests
Very good post. I think it’s important to note, an additional aspect. We must learn to invest in financial instruments. All people with great wealth, learn to manage their money financially. That may be the key to continued growth and losing the gains.
StockTipsInvestment recently posted..Tape Favors the Bulls, but be Prepared to Run for the Exits
That is an area that I am still working on. I have a history of investing in subpar investments due to lack of investing experience/knowledge. I am working on changing that and getting my money working smarter.
Yes we all make some kind of mistakes. Even the richest people in the world sometimes made the wrong decision. They found ways to benefit from those mistakes with future decisions though.
I think emotions and short-term spending are often tied together, and are things that can bring down net worth and the propensity to accumulate more. Far too many people think in terms of wants, instead of thinking about needs – and doing so logically. This applies to both women and men, sometimes in different ways.
Viewing things from a logical point of view, having a plan and making decisions that fit with long-term goals, is a better way to go than constant thinking about implusive spending for fun. We can truly enjoy every day without splurging on unnecessary things, in my opinion!
DPF@Digital Personal Finance recently posted..5 Ways Bloggers Can Use Fiverr to Outsource Tasks
I think most people just try to avoid thinking long term when they are constantly faced with so many wants. By instead focusing on the long term, they end up having to avoid a lot of those wants. People feel so entitled to have all of those things though. So they sacrifice long term finances just to be happy today. They don’t stop to realize that there are so many ways to remain happy without all those extra luxuries.
Quality tips. I think taking your emotions out of your purchases is a big one along with learning from your mistakes. If you can’t learn, then you will continue to make mistakes. That doesn’t bode well for anyone.
Grayson @ Debt Roundup recently posted..Free Shipping Day Is December 17
Turning emotions off is easier said than done. It’s just a natural reaction to let our emotions take control when we really want something. Changing that behavior can be challenging.
Build fire wall around your savings and DO NOT BORROW MONEY.
If you simply do these things you will come out better also invest in SILVER and GOLD instead of paper investments, fed reserve notes, 401ks, stocks.
Don’t do it because you think it will triple in price do it because the dollar buys less gas, food, and rent than it used to and gold and silver have been around since Moses.
Also make a top priority to take better care of yourself.
There is only one real wealth and that is health. If you knew better you would do better.
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I personally wouldn’t invest in something just because it’s been around an extremely long time. Just because there is inflation it doesn’t mean the stock market is a bad investment. It has a long history of always rebounding and continuing to increase in value. Unless everyone were to suddenly start investing in precious metals instead, there will always be more money pouring into the stock market.
I do agree that taking care of your health is more important than anything else. For a while I was so focused on trying to build up a side income that I completely ignored that priority. Now I don’t take my health for granted and try to make decisions to be healthier.
The most aggravating thing about my credit card debt is that I don’t actually have anything that I spent all that money on anymore.
Edward Antrobus recently posted..Bad Behaviors at a Company Holiday Party
That’s too bad. With most people’s debt they at least have some kind of possessions to show for it. Having debt over something you no longer have would be frustrating.
Haha, “set goals and follow them” seems like the simplest advice in the world, but how many of us fail at that daily! I love setting goals, and following them is much more difficult than just saying “I’m going to do such and such”. For me, financial goals are the easiest to reverse engineer and break down into achievable parts. you know how much you bring in and spend (you know, if you’re on a budget), and so you should be able to determine with reasonable accuracy “how much” you can save, and by “when”
Jacob @ iheartbudgets recently posted..What Does $1 Mean To You?
You’d think it would be that cut and dry, but unfortunately new wants are constantly creeping up on us. New technology comes out that gets bombarded at us with advertising. Or we see friends going on some extravagant vacation. Then there are random emergencies. Add it all up and planning really isn’t so easy. It is important to at least lay out a basic plan though and keep that in mind. When we are always thinking about our long term goals, it becomes easier to avoid the random temptations.
It’s so tough sometimes to keep from impulsive buying. I know I personally struggle with it at times even though I should know better! Thanks for your tips.
Veronica @ Pelican on Money recently posted..Has Your Boss Been Naughty or Nice?
I used to be a lot worse in that area but I think I’m improving. Previously I’d always think since it was a small purchase it didn’t matter. Now I understand that it all adds up. If we keep giving into the impulse items, it’ll take that much longer to save for the things that we really want.
I think the last paragraph hits the nail on the head. We’re not perfect, so the best way to compensate is to learn from our mistakes when we make them.
Mrs. Pop @ Planting Our Pennies recently posted..What Am I Gonna Do With A Gun Rack?
For some reason people are often so insistent on trying to be perfect. So when they are anything less they get so frustrated that it negatively affects their progress. Once you accept that you’re not perfect, you can really work towards where you want to be.
I enjoyed the post, I’m just curios who wrote it. Who is the Guest today? I liked what they had to say and wanted to check out their site.
Mandy @ MoneyMasterMom recently posted..Do you dare to dream?
It was actually written by a writer who does not have a blog of his own. He chose to remain anonymous though. Glad you enjoyed the post though.
Definitely learning from your mistakes and then not repeating them will help one to become more financially solvent and prudent! I’m curious as to who wrote the guest post also!
K.K. @ Living Debt Free Rocks! recently posted..Sunday High Fives! And The Winner Is…
As mentioned to Mandy above, the written chose to not reveal his name. He doesn’t have a blog of his own to check out anyway. It is quite important that you do not repeat mistakes. It is understandable to make some mistakes once, but if you make those same mistakes again, you clearly did not learn the first time around.
If I’m out shopping and I see something and get excited about it I always try to ask myself do I really need it. If I’m not sure I typically leave it and think about it for a day. If I forget about it I probably didn’t need it. Great post. Mr.CBB
Canadian Budget Binder recently posted..Winter Vehicle Maintenance… Costing You Less In The Long Run
I tend to just avoid shopping in general so I don’t have that kind of temptation. So my temptations instead are usually just for dining out or random snacks. Giving yourself some time to think about purchases is a good strategy though.
I like your first tip suggesting other small tips!
I was reading an article earlier today about how people “hope” that their savings will be enough when they start withdrawing from it. But “hope” is not the same as smart decisions. And if you run out so will your hope.
John recently posted..10 Ways To Make An Impression On Your Boss
Very true John….hope will only get you so far. Then reality will hit and you’ll realize you didn’t do enough. So you have to have sound planning and smart financial habits. If you ignore the importance of that today, you’ll regret it tomorrow.
I’m really proud of what we’ve accomplished this year in terms of our finances, we have learned from years of mistakes and are now super conscious about how we spend our hard earned dollars.
Catherine recently posted..Fun and Frugal Dinner Parties
That’s one of the big benefits of running a finance blog. You just learn so much and pick up lots of awesome financial habits. I am so much more confident about my financial standing since starting my blog. I feel that I now know what I need to do to get to where I want to be. Before it was all so intimidating.
Thank goodness we finally learned from our mistakes of impulse buying. If I’d only read this in my 20′s!
Kim@Eyesonthedollar recently posted..What Will the Fiscal Cliff Mean to Health Care?
I’m sure it’s just a matter of time until they start teaching some of this stuff in school. Or as society becomes more aware of this stuff, more parents will pass it on down to their kids. I just wouldn’t count on the government to start that anytime soon since they’d be worrying about that slowing down the economy.
I like no making emotional decisions when purchasing. Mostly that means taking a step back and coming back to the item if I really want it. It’s helped me a great deal!
Budget & the Beach recently posted..Looking Back, Looking Forward: Part 1
It can take a bit of time to overcome the emotions that get stirred up when you see something you really want. When those emotions are at their peak, the last thing you’re probably thinking about is whether you truly need that item.
my suggestion is Invest for yourself to learn things perfectly.Control your emotion by yogas.if you once control your emotions then you will be on right way and become very close to success but anyway i like the presentation of the post specially “Don’t Spend Money for Short-term Pleasures”.
raj recently posted..How to turnoff Facebook notifications on email
Maybe I should give yoga a try. I sometimes have a tough time controlling my emotions. That control is rather crucial to success though.