How to Spend Money Wisely?

Posted by Grace under Personal Finance on August 24, 2013

Another guide on how to spend money wisely at InvestmentTotal.com! Spending money wisely has a big role if you want to save a lot from your hard-earned money, whether it is from a salary or business income, you must have the habit of saving money. Do you know the reasons why it is hard for other people to save money.

Let’s talk about these reasons, maybe you have one of these attitude. Always remember, you must educate yourself about financial literacy. The benefits of it is you will become financially free, as may people are dreaming about. Are you dreaming financial freedom or not? if you don’t have the plan to become rich, then do these habits of spending money.

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What Kind of Money Spender are You?

I will only mention few things how common people spend their money; if you know other types of spender please write it on the comment box below. These are just my point of view, whew!

  • Small Time Money Spender

These are spenders who are unconscious where and when their money spend, buying small things like candies, snacks, small amount of money used. Even small amount of money if you will sum them up, what’s the result? Lot of money, right?

  • Big Time Money Spender

These are addicted in shopping malls, eating in fine dining restaurant, they are buying expensive gadgets, these are people who are buying “wants” not “needs”.

  • Impressionist Money Spender

These are spenders who treat their friends, office mates for lunch, dinner, recreations, they are also the type of spenders who are buying expensive gadgets, clothes, even a car (that bought from loan).

  • Generous Money Spender

I like these spenders because they are not buying things to impress other people, these are the spenders who help other people to have business capital, giving tithes to their church, giving unexpected return to hopeless people. In short, these are millionaires, these are rich people. The true wealthy people belong in this type of spender.

Question: How to Spend Money Wisely?

Now, if you are asking me, where is the content of this article that will satisfied the title “how to spend money wisely?”. My answer to that question is, you have to buy only the things that really matter “these are the needs not the wants”, second, you must become frugal, do not impress other people in your latest gadget or in your latest car bought because of car loan (that way the car can considered as a liability not an asset).

You must budget you money, in budgeting your money, you must write down the necessities and not the things can be use for leisure.

Example; You need to budget for kids education (tuition fee not on your latest phone) You need to pay utility bills, internet connection, not to buy the latest clothes. What I mean here is you have to prioritize where your money should be going or spent.

Pay Yourself First if You Want to Spend Money Wisely

Follow the “Pay Yourself First” rule, set aside for your savings and investment to get ready for the future and to become financially free, I choose to enjoy my life tomorrow because I will become financially free rather spending all my money today just to live comfortably and happily temporarily. I want permanent financial success.

I am documenting and reporting my financial goal in this page, read it and you will be motivated to invest money for the future. Thank you for reading, God bless you and may all your dreams come true.

Now you know how to spend money wisely. I hope you will become a generous money spender not an “impressionist”. Next article, must see – 24 tips to spend money wisely.

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