It’s not easy to be careful with your money, and it only becomes more difficult as you accumulate wealth. This is because, as you earn more, the most expensive things become available to you—and it can be tough to resist the pull of a shiny, brand-new trinket!
This phenomenon is so widely known that there is a documentary on football players who went broke after their careers ended; they couldn’t refrain from buying everything they wanted, and as a result, 16% of these elite athletes went bankrupt within 12 years of retirement.
If you want to remain financially secure, you must have fiscal self-control; you don’t always have to spend money. In fact, wealthy people tend to be frugal! Take Ingvar Kamprad, the owner of Ikea, who flies coach and drives a relatively cheap car.
Frugality, of course, doesn’t have to stop there—you should use everything to its full potential, whether it be food, clothing, or even time!
Buy in Bulk
Buying in bulk can save you money and given that people only really go shopping when they’re out of something, bulk-buying means that you are shopping less and spending less—it’s a win-win! A good way to gain perspective on this is to calculate your yearly purchases ahead of time; buying a year’s supply of toothpaste, for example, is better than waiting until you need more.
The best thing about bulk-buying is that you can apply it to so many different purchases, and in all different areas of your life. At the end of the day, you might not save boatloads of money, but as the Japanese say: “he who laughs at one-yen cries at one yen!”
Look the Part to Feel the Part
We are all taught to dress for success, but all that really entails is putting on a suit and tie. Why not go above and beyond when it’s a fact that looking better than usual will make you not only feel successful, but doubly boost your self-esteem?
There are so many ways to do this—getting a new car, for example, will make you feel like a million bucks—but you can also get something like a facelift. It will not only help you look the part but will save money in the long run; by prophylactically getting a facelift, you won’t have to dump thousands into temporary fixes like creams and fillers. You’ll be ahead of the curve!
Believe it or not, the most successful people love cosmetic procedures because they enhance the appearance and leave a lasting, positive impression on other people that is much deeper and more meaningful than any material possession.
Don’t be “Above” Discounts and Coupons
More often than not, coupons and discounts codes are taken as markers of poverty. In my eyes, though, they mean that you are wise about your spending!
It’s a common practice among the wealthy to make use of these offers, because saving even a few dollars at one time can make an incredible difference in the long run. The issue is not about appearing like you have money; it’s about not spending money when you don’t have to!
The same principle applies to bargaining for expensive items. Commonly, salespeople try to squeeze customers dry, but instead of taking them up on, say, a $25,000 used car, talk them down to a more reasonable $18,000. Negotiation is an art form!
Don’t Waste Your Earnings on Showboating
Some people spend their entire paycheck on expensive objects. This may seem like a good idea in the moment, but it’s actually a financial setback. Buying things that you don’t need—specially to impress other people—can only do so much to make you happier; it’s more important to save your cash for an item or project worth its weight in gold.
In short, it’s important to know that your money could always go to something more important, whether it be a vacation, a new work computer, or even a new house!