The extravagance and its many and insidious tentacles
Even people who calculate everything and leave nothing to chance, spend a lot and various things without even smelling it.
“The reality is that you’re going to waste some of your money,” says Ramit Sethi, general manager, and bestselling author, but the goal is to spend as little as possible.
The financial management expert has come up with a number of ways to manage our money properly.
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1. You do not control how much you spend
This is the irreparable mistake that most people make with their money, Sethi always claims. What can we do; To spend 50% of our income on house and living expenses, to invest 5% and the rest to go to the bank account.
Read also: Three financial mistakes that young people make
2. Your rent costs more than 1/4 of your salary
The monthly rent of the house is the big hoarse for most people. “The best financial move you can make is to literally move to a less expensive home. “When you do, you can celebrate in the cafeteria next door,” says financial management consultant Lauren Lyons Cole.
Pointing out that cutting living expenses is the big key and not cutting out coffee and food…
3. Use your credit card for everything
The credit card remains the Trojan horse of super-waste, according to Claire Tsosie of the NerdWallet website, and especially online shopping. What can we do; Set a weekly shopping limit or stop plastic shopping altogether for a while.
Read also: How to invest like the wealthy 1%
4. You buy the wrong things from the wrong places
Supplying groceries with, say, groceries is another way of unknowingly spending more than you would like. The grocery store is the place where you get your fresh vegetables at good prices and not crockery and soaps, which are also provided aiming at the consumer impulse of the moment.
“I strongly urge people to wait. “Buy your vegetables and then go to a kitchen shop, saving tons of money along the way,” explains consumer behavior expert Amiyrah Martin
CONTRIBUTED BY geozee
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