In order to be successful, you need to know how to best allocate your money. By knowing and understanding the things successful people don’t waste their money on, you will be better prepared to shape your own successful future.
Successful people don’t get saddled with late fees that can chip away at their bank balances and credit scores. Paying late can even cost people who pay off their balances every month. Just about every other monthly bill carries its own procrastination penalty as well. Smart and savvy spenders avoid late fees by automating everything. Automating your payments so you don’t get hit with high fees and penalty rates can help you hold on to more of your money.
Successful people are almost always planners, and impulse purchases tend not to mesh with that quality. If you want to emulate their behavior, be much more cautious with your money, said Leslie Tayne, author of “Life and Debt.” She suggests going cash-only to curb your spending. “Use the envelope system, bringing with you only a predetermined amount of money to spend at each store,” she said. “This approach will help you stay on budget and curb any habits you might ordinarily have in impulse buying and overspending.”
More often than not, manufacturer warranties are sufficient to cover a product. You’ll probably be able to buy the same item again after using it for a few years rather than adding to your cost with an extended warranty. Quite often, these warranties have a lot of conditions attached that might prevent you from claiming their benefits anyway. So, the next time a salesman tries to coax you into buying an extended warranty for a purchase, think again.
Eating Out Every day
Eating out can add up quickly. The more food you can prepare at home, the better off your food budget will be. Plus, packing lunch also tends to be better for your waistline. Of course, it is more than OK to treat yourself and buy the occasional meal out, but if you’re aiming to hit major financial goals in 2018, going homemade is one of the simplest ways to cut back without making dramatic sacrifices.
Successful people are often good with their finances. They do this by making deliberate purchases. Among the things they do not waste money on are late fees, impulse buys, extended warranties and eating out every day.