Some people are still getting it all wrong when it comes to wealth creation and financial freedom. Well, it is not just your income or salary that makes you rich. Your spending habits play a crucial role in your quest for wealth creation and financial freedom. If you spend money more than you earn, you will never become financially free. This is the golden rule, so what are those things that you should not be spending your money on?
Hello readers, you are welcome to another mind-boggling blog from my platform about wealth creation. I have done previous related blogs in the past like “21 Tips For Personal Development,” “Why I Added These Two Stocks To My Portfolio,” “7 Steps To Find An Outstanding Stock Quickly,” amongst others. These works have one thing in common; they all are focused on making you more productive, financially, and otherwise. There are always those expenses that we make with our income and believe them to be wise choices. But on further scrutiny, these expenses are not entirely necessary and can be avoided. I believe it is time to save money on some things and focus on more pressing concerns. So, what are those things we should avoid spending our money on in order to save more?
Things To Never Spend Money On
Never spend money on homes you cannot afford
Have you heard of the term “House poor”? If no, then let me give you an insight. House Poor is a term used to describe a situation where someone pays large parts of their total income on gaining ownership of expensive homes (including property taxes, utilities, maintenance, and even mortgage payments). When these heavy fees are paid, house-poor individuals then find it difficult to meet more pressing financial obligations.
Never invest in things that you do not fully understand
Making big moves is a good choice, depending on how you make them. If you do not have basic knowledge of a particular thing, why spend money on it? There are a lot of schemes and business opportunities all over the world today. But before venturing into anything, ask yourself this question, how much do I know about this thing? If your honest answer is no, refrain!
Do not be penny-wise, pound-foolish
You may have seen some items that are going on sale in the big store in your area. So you pop in there and grab as many of the items as you can carry. That is good business, right? No, it is not because you may have wasted your time, fuel, and money. In the end, you may not have needed that much, and you have already spent precious money on things that are irrelevant at the moment because you were penny-wise, pound foolish.
Do not be cheap
Spend money on quality, or you might be spending more in the long run. Cheap products may look like they have saved you some bucks, but what happens when you need to buy another one next week and the week after that. You would end up spending more.
Never try to impress people
It is true that people who matter do not care how much you spend. Also, people who want you to spend to impress them should not matter in your life. So, why try to spend and impress those who matter when they do not care or those who want you to spend when they do not matter? Real friends care about just you and not how much you are willing to spend. You cannot make everyone happy; you are not a box of chocolates.
Avoid timeshare programs on holiday
A basic understanding of this concept is when people come together to pay and secure a property for a period, probably a vacation or holiday. These people spend their time together for the duration of time they paid for. This may be termed “Spending some quality time with friends”, but it usually ends up burning a hole in your pocket.
Never pay for mentorship
A mentor is supposed to be someone that guides you on a particular part, right? How is this person supposed to lead you alright if he or she is doing it for a price? A mentor who commands a fee for mentorship is definitely not mentoring you for the right reason. A true mentor only wants to bring out the best in you without asking for anything in return. However, a token of appreciation from time to time and acknowledgment when you get to the top through their guidance are the least things you can do.
Reducing your rate of driving
Great thoughts are mostly conceived when you walk, according to a certain philosopher. Most people hop into their cars even to buy groceries down the road, and it is a habit that needs to be stopped. Why spend money unnecessarily on fuel and car maintenance when you can simply do the walk? It helps the planet too!
Avoid pyramid or multi-level marketing schemes
There are a lot of multi-marketing business schemes in the world today. They come with the impression that you can be your own boss from selling some of their products. Things are not always as rosy as they make them look. How do you save money when you spend almost all of it buying expensive items in the hopes of reselling?
Avoid programs that claim to coach you on business
These kinds of programs are now all over the internet and the business world today. People keep claiming to have ways to make millions and billions. It is no crime to want to learn these things, but you do not have to do them at a cost. There may be a million videos and materials that you can get on the internet for free and still get the same information you would have paid for.
Never pay for a potential job, screening, or casting call
Are you looking for that dream job, screening, or casting call? Have you got a chance to get it, but a fee is demanded of you first? If yes, it is time to run away. You will be given firm guarantees as to the effectiveness of your payment, and some even go as far as promising you refunds. Do not patronize them, instead invest time in yourself and make sure you can spot the opportunity and grab it before it passes by. Remember, if fools do not visit the market, bad wares won’t be sold.
Cut down on the premium packages
This is probably one of the things most people spend their money on. There are basic packages, and there are premium packages. Well, the difference between these two packages may be something as little as a birthday reminder, but the difference in prices between the two packages may be significant, so why subscribe to the premium packages? If you feel the need to upgrade from basic packages to premium packages, it’s okay, but you need to be sure you are not satisfied with the basic package.
Don’t always spend money on buying fresh foods in bulk
Fresh foods are mostly perishables, so why buy them and store them when they can get spoilt anytime? The sale prices and promos should not tempt you into spending money that could have been used for something more important. Reducing the amount of food waste is a great way to feed the world, protect the planet, and ultimately save money.
Never waste money on electricity and water
I am saying you should ‘never waste’ and not ‘never pay.’ These two items, electricity and water, are essential for our survival but wasting them will dig a hole in your pocket. It is always better to make every drop of water or every kilowatt of electricity count. You might be taking this point for granted but ask struggling countries, and you will definitely see the need to conserve.
Never spend your money on pedigree pets
Studies have shown that some people end up abandoning their pets because they cannot keep up with the expenses. These pets can be expensive to acquire and maintain, so steer clear of them if you can.
Never spend money on playing lotteries or gambling
There is always this feeling that you will win whenever you play until you don’t. Hunches and calculated debts make gamblers go broke, so train your mind to resist the urge to gamble or play lotteries.
Never spend money on anything you won’t remember
There are some things you will spend money on and be full of regrets. Have you ever spent money on an expensive dinner and wonder why you spent so much on such a bad meal? It would be something you want to forget, so avoid spending money on such things. Have fun, and enjoy your money, just not on things that would not bring back fond memories.
I want to believe you now have a pretty good idea of those things that you should not spend money on. There may be other things as these things differ from person to person, but I know these few points may give you a head-start. So, if this blog was insightful, like and share it, subscribe to my platform, and let me hear your views and comments.
Recommended books for further reading:
- The Five Rules Successful Stock Investing: Morningstar’s Guide to Building Wealth and Winning in the Market
- Investing QuickStart Guide: The Simplified Beginner’s Guide to Successfully Navigating the Stock Market, Growing Your Wealth & Creating a Secure Financial Future
- The Barefoot Investor: The Only Money Guide You’ll Ever Need
- Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week
- Investing Demystified: How to create the best investment portfolio whatever your risk level