Wednesday, 11 September 2013

Instead of making more money, try cutting expenses

There are two ways to have more money. The first way is to make more money. The second way to spend less. Most of the time you have much more control over the second option versus the first option.

Living today can be expensive. In most places you have the expensive options right next to the cheap options. The best part is that you have the option of going to either.

The easiest way to tackle this problem is to look at the big picture and ask yourself, do you really need this particular item. If you rate it out of 10, 10 being you absolutely must have it and 1 being that you do not need it at all.  When you buy things it should be at least an 8.

The other thing can do is wait to see if you really need something. If you want to buy something then wait a few days to see if you really need it and if you don't need it then simply don't buy it. Waiting can take away the impulse of what you want to buy.

One tactic that really works is buying something that only has the features you want. Try to avoid the least expensive and the most expensive products. The least expensive is usually not worth buying because it will break. The features in the most expensive product will cost more. If you buy something in the middle of the road the features will be reasonably priced and will probably have the most value. There are very few times when the most expensive product is the product you should buy. The only time you should buy the more expensive product is when you use that item multiple times a day.

The best thing you can do is live with less. The less stuff you have and the less stuff you buy the more you will save.

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