Spend money on the things you love
If you’re trying to loose weight and you go on a crash diet, sure you’ll loose some weight, but eventually it will all get too much for you and before your know it, you’ll hit the chocolate and biscuits again. And you’ll be back to where you started. It’s just not sustainable.
So it follows that you aren’t going to get rich by cutting out all spending. Getting rich is not about stopping spending money on your morning latte at Starbucks if that’s what you like to do.
Getting rich is just like keeping fit. It’s about eating sensibly and exercising regularly, getting rich is about setting yourself a standard which is sustainable, for you, over the long term.
It also means that you have to be realistic about what you can afford. Just because you may love to drink Champagne but if you’re only earning £100 a day you’re not going to be able to have a bottle everynight with your evening meal.
It also means that you should resolve not to get into debt just to fund your purchases (you’ll have learnt that though from the How to Control Your Debt )
Cut the costs on the things that aren’t important
If things aren’t important to you then whey would you spend more money on them than you had to?
Things like car insurance, household insurance, paying for your utilities etc, I’m guessing aren’t that important to you. Who really cares who provides your gas or electricity? Will cheaper electricity work when you plug your kettle in or will the light come on when you press the light swich button? Trust me here, it will.
If you’re renting a place becuase it’s convenient for work, is it worth living a few streets away and saving on the monthly rent to allow you to fund a holiday or study for a course? You can always walk to work and save the gym membership!
Cutting expenditure on the things you don’t love will free up money to either pay off debt, save or spend on the things you love.
So what do you love?