Often times we believe that because we have worked so hard to earn our money we equally have the discretion to spend it how best it pleases us. Rightly so, especially when you believe you have attained some level of financial independence.
However, because money is a scarce commodity and is not just plucked from any tree, there is a need for us to carefully access our spending and evaluate how much value our money returns to us.
The most common place to spend our cash is while shopping either the traditional way or perhaps online. The old adage of ‘don’t buy everything you want’ still stands. Always expect your stores to offer you the most exciting and tempting offers especially during weekends, Yuletide etc. If you prepare you mind for this it will go a long way in helping you make the right decisions once you walk into that store.
Most times, all the exciting offers are only aimed at tricking you to reach for that wallet – You can’t really begrudge the sellers either that’s why they are in existence.
Hence, before you reach for that wallet in your pocket, pause and think. Do you really need it? There is no gain buying something you have its equivalent back at home. Also, don’t be easily cajoled by new products especially if they are from the same producer with the old one at home. More often than not there is really nothing ‘new’ about that new product. Sometimes it just the packaging.
The common rule of bulk buying also applies here. Most shops would only consider giving you a discount (one good way of getting value for your money) when you buy in large quantity. So, rather than buy in units you can go for a bulk. However, no matter how much discount you are offered if you don’t need it don’t buy it.
Experts say one of the biggest differences between the wealthy
and the not as wealthy is that the wealthy people earn interest and everyone else pays interest. It is important to realise that money is a tool that can help you to achieve your goals. In order for you to reach true financial independence you need to have your money begin to work for you – not you for it.
A good example of this is saving where you money attracts returns. It needs not be in a bank. It could be in a co-operative society or an investment firm that pays attractive interest rates. So rather than have your money just idle, you could invest and reap returns. Remember, while saving is simply accumulating money in a safe place so its readily available when you need it, investing puts your money to work.
Financing a debt adds little or no value to your money. So, before you can get the best value from your cash you must do away with all kinds of debts especially the ones with excess interests.
Finally, while employing these principles to get all the value you desire from your money, do not deny yourself of the necessary leisure because they add value to you.
