Do Business Well

Many people have a simple money management philosophy: “If I have it, I spend it till I don’t have it.” Others are so good with money it makes you sick. These are the ones who save every penny they’ve ever found, then buy a new Porsche on their sixteenth birthday. Assuming you didn’t trade your pennies for a Porsche, here are some tips to help you spend less and get more for your money.

 

(Not) Spending Tips

I’m guessing that you’re a pro at spending money. The trick that’s harder to master is not spending money. Try these tips.

Ask Why

“Why do I want to buy this thing?” It’s amazing how silly some of your purchases look when you ask that question.

Count to 7

Live by the “7 over 7″ rule: Anytime you want to buy something that costs over $7, you have to wait seven days. This will blow a big hole in your impulse buying habits!

Don’t “Save Money” By Spending it

Walk away when someone says a deal is “too good to pass up” or that “you’ll never find as good a deal as this one.” You will always find a better deal; keeping your money in savings is a better deal. Don’t let salespeople pressure you into making decisions “before it’s too late.” If you shop around, you’ll usually find something as good or better—or discover you didn’t need the thing after all. (More on this in the next chapter!)

Hang Around People Who Spend Less

If the main pastime of your group of friends is shopping, chances are you’re going to spend more money than you should.

 

Write it down

Every time you spend money, write down what you bought and how much you paid. Buying something isn’t as easy when you have to find your expense book and write down the transaction. Hold a contest with yourself to see how little money you can live on each week. Set goals, and reward yourself when you meet them.

 

Get Some Advisers

Invite two good friends with smart money habits to be your financial advisers. Whenever you want to spend more than $20 on something, you must present the idea to them and receive their unanimous approval. If they object, you can’t buy it.

 

Plan Ahead

Each morning put in your wallet only the amount of money you know you’ll need for that day’s essentials. Keep the extra cash at home.

 

Give yourself a Bonus

There’s no rule that says you must spend all the money in your SPEND account. Put excess cash into your savings account where its value will go up instead of down.

 

Empty your Pockets

At the end of each day, dump all your pocket change in a jar. Empty the jar every month, and deposit the coins in the bank. It seems like a small amount of money, but it adds up over a year into some real cash.

 

Buy off a Bad Habbit

If you smoke, eat the wrong foods, or drink seven Cokes a day, give it up. Figure out how much money you spend on your habit, then put that money in the bank instead.

 

The Best Trick

It just occurred to me that you may be one of those people who go through books out of order (that’s what I do). So in case you’re reading this chapter first, you need to know that the best trick to spending less money is to make and keep a budget based on your priorities. When you know what’s most important, it’s much easier to spend your money wisely. We covered all this stuff back in chapter 3, “Bonehead-Easy Guide to Money Management.” Go there now and see what you’ve been missing.

(And if you’re one of those sneaky people who read the chapter but didn’t do what it says, go directly to chapter 3, do not pass go, and above all, do not spend another $200.)

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