How to Stop Money-Wasting Habit?
Money wasting habit can easily avoid. In personal finance, we teach how to save money not how to waste money. As well in investing lessons, we share our knowledge on how to make our money work for us. There are things that can easily prevent us from wasting our money. And there are also things that attract us from spending our money without knowing that our money are just wasted.
Today, let’s just identify how our money was just wasted and how our money was placed and spent properly. If you think you are one of the many people who are just wasting their hard-earned money, then this article is for you.
Sad to say, one of the popular money wasting habit is to buy the things that we only want not the things we really need. If you have a mobile phone and buy another new mobile phone just to impress your friends, you are just wasting money.
The “keyword” is impress. Are you just buying things because you want to tell the world that you have the latest electronic gadget, the latest car model and the latest clothing? If you think you are, then stop that habit it.
Needs and Wants Should Clearly Identified
To stop the money-wasting habit, you must analyze the things that you really need and the things that you really want. Of course, when buying items, you must prioritize your needs than your wants.
Accessories like jewelries and fashion like clothes and shoes are “needs” and wants. Jewelries are wants and clothings are needs, We wants necklace and expensive watches. We need clothes to warm our body. But sometimes, we bought too much clothes, we only need few clothes.
Know What are Assets and Liabilities
To avoid money-wasting habit, you must know what is an asset and what is a liability. Don’t buy liability, buy assets instead. Always remember that your money should produce another money. Assets like stocks, real properties, bonds, cash deposits, mutual fund shares are great than buying new gadgets.
Avoid Gambling
Another money wasting habit is gambling, you think you can beat the casino? Do you think you can become a multi-millionaire in gambling? Well, think about this, how many gamblers who became rich and how many gamblers who became poor.
Addiction to gambling is not good. Actually it can only ruin your family, your future, your personal finance. Instead of gambling, trysaving and investing money.
Money-Wasted is Time Wasted
A money wasted is just like a time wasted. Why it is because, you spend time when earning money. So, always think that whenever you spend money, you are spending time. This means, a money-wasted is also a time-wasted.
Imagine if you earned $100 in one day working for 8 hours, that means when you bought unnecessary items, you only wasted your 8-hour or one day. Think carefully before spending any single cent.