Wondering how to make more money in less time? You often have to use your credit card? Dump those habits and learn how to always have money in your pocket. It is not about miracles in your life, it is about you and you attitude to money.
Easy one: pay one third to yourself. Reserve money.
Everyone around you has bills to pay, and almost everyone has also a credit. However, the most important person to pay first, is you, because if you don’t pay yourself, then you don’t respect yourself. If you manage to pay yourself only one third of your income, then you will certainly have a money in your pocket, for investments and tougher times. Technique is easy: you have income of three thousand dollars – you put one thousand on reserve account. It subconsciously forces you to spend less on useless stuff, and gives psychological comfort of having the backup. You do not even know how powerful habit it is, unless you try it. Mechanism is simple, usage of it also. And money is growing.
A little bit tougher, sell useless stuff. And don’t buy new.
I don’t believe you that you use everything in your house, no way. Probably half of your wardrobe stuff is too small for you, your garage is full of tools, and your old Hi-Fi system is standing somewhere in the corner. You do not even know how much money you have in this stuff, and it is losing its value every day. And the bigger home you have, the more things you can sell. But, there is a catch.
There is absolutely no point in selling useless stuff, until you are not eager to stop buying new one. You don’t need ten cases for your MacBook. You also don’t need those funny socks for only five dollars. And certainly, you do not need this iPhone case in a shape of dog. Think twice before paying, and think how often you are going to use it in next month. If answer is below two, and it is not a new vacuum cleaner – you don’t need it. And of course remember to put one third of cash from useless things to your reserve account.
Catchy one, are you rich enough to buy cheap stuff?
That is the best paradox I’ve seen in terms of money: that buying cheap stuff makes you pay few times more. If you plan to buy a new (not only in terms of age, this also applies to used) car, and you decide to buy the cheaper, lower quality one – you are going to pay double. The point is, if something was manufactured with real care, and the guy who was doing it cared about the quality – then the product will survive few years of heavy usage. If you buy bottom shelf product, only because it is cheaper – then you are going to suffer the service costs. And those depend on what you have bought, because fixing whole engine in a car will certainly kill you financially, but buying new blender after two months is also a pain.
It is a recipe for a financial dynamite.
Combine those three, and you will see effects in few months. The best part is, that it applies as much to people who make two thousand dollars per month, as to those who spin millions in their hands. Everyone can have a tendency to buy things which are useless. Only the size is different.