Free Financial Tips & Advice

7 Tips to Get Rid of Your Money Wasting Habits

When someone asks you, “What is the easiest way to be a millionaire?” Most will probably answered, “Go to that quiz hosted by Regis Philby. ” But if you ask someone who is financially smart, they will said that the easiest way to become a millionaire is start as a billionaire. They are not joking, this is actually the truth. It is easier to spend than multiply your assets. Shopping looks more tempting than saving; buying a new boat is a lot easier than saving for your kid’s college tuition.

Become richer than before is easy and hard at the same time because of the human nature. The process of getting rich is not just about getting more and more money, it’s also how will you use the money you have gained. To do this there are three major components that you should have: Learning capability, motivation, and right habits. Learning is a must and probably the easiest because it is a process that could be done anywhere and anytime. Motivation should be grown as something to hold on to the process. Right habits are the toughest of them all because it will take times to reduce and remove inadequate habit that prohibit you from becoming a millionaire. Here is a few tips that may help you gaining the right habit:

1. Planning.
Most of us often delay or ignore to plan our finance and when this happen, stupid question like, “Where did my money go?” will pop up everytime you broke. Begin to note all of your income and expenditure so you could track everything you have done with your money. Start it early and do it right before it is too late.

2. No more reckless shopping.
Just remember that Money doesn’t grows on trees so the next time you want to buy the newest car, you instead save it in your bank account for your post-retirement vacation.

3. Forget about credit card.
Low interest is not necessarily means that you will gain profit from it, we should realize that buying with a credit card will cut our income in the future to pay the debt and its interest. If this happened, saving won’t help us.

4. Become a smart customer
Be selective when you want to buy something with priority scale, even if they are your primary needs. Selective doesn’t always mean to go for the cheaper stuffs. For example, which one is better, cheap lamp that break once every six month or an expensive lamp which can be used for two years?

5. Do not make any financial decision emotionally
Do every decision with presence of mind; don’t let your emotion get the best of you. For example, gaining a lot of pensions will blurring your judgement because of the joy it brings. Better to keep it save first then decide what to do with it when you could think rationally.

6. Insurance
Shit happens. Accidents, earthquake, tornado, flood, riots and other risk should be handled before it happens. Protect yourself with insurance, it will make you feel safe financially when an unexpected events came right to you.

7. This is crucial and a little bit off but we should after the excellence, not the money. There are things that money cannot buy and will make your life better. Health, family, friends, and colleagues tasted better than money. After all, if you are not healthy and don’t have any family or close friends, your money won’t make you happy.

So start to gain a right motivation and start simple. Get rid of a bad habit is hard but it’s not impossible. With the right motivation and good knowledge, we will be successful in managing our money.