You’re doing your best to repay your debts and start saving money but what if nothing comes of it? Perhaps it’s time to reconsider your attitude toward spending! Incidentally, all the people who have achieved genuine success in business project and investments and who have earned billions of dollars are very pragmatic about their purchases!
Here’s something that happens to all of us: we see a pretty but useless thing being offered at a discount, we buy it, and then we come home and regret our decision. All too often, we spend money on impulse purchases which is what distinguishes us from rich people, to whom buying an extra pair of jeans holds little attraction. As billionaire Warren Buffett once said, ’If you buy things you don’t need, soon you will have to sell things you need.” An effective way to avoid unnecessary spending is to make a shopping list before going to the store.
Expensive real estate
Buying luxury houses at inflated prices is a dubious investment. That is why rich people prefer to buy promising real estate while it’s still cheap to make a profit later on when its price skyrockets.
It’s the people with modest incomes who usually accept extended warranty offers when buying new equipment. They worry about the possibility of the gadget breaking down and as a result, choose to overpay to be on the safe side. In fact, this is hardly necessary; according to U.S. News Money, manufacturer warranties are more than enough.
Clothing and footwear from high-end brands
Rich people can afford luxurious and expensive clothes from the newest and trendiest designer collections. However, if their life doesn’t involve frequent social events, they prefer to steer clear of such purchases. Remember how Steve Jobs used to dress? Similarly, Bill Gates’ watch costs $10; and Russian billionaire Roman Abramovich is perfectly okay with appearing in public wearing bargain basement t-shirts. Even the wife of the heir to the British throne often goes out sporting mass market outfits!
Latest versions of popular gadgets
A wealthy person will not rush out to buy the latest model of a trendy smartphone or watch even if his or her gadget is out of fashion, time-worn, or obsolete. Millionaires use different reasoning when it comes to making purchases: they ask themselves whether the expenditure will be worthwhile at this particular moment. As for electronic gadgets, they become outdated and depreciate in value way too quickly!
Loans, fees, and penalties for late payments
Rich people don’t take out loans and never lose money on fines, penalties, and commissions for one simple reason: they always pay everything on time, avoiding delays. As billionaire investor, Mark Cuban said, ’If you use a credit card, you don’t want to be rich.”
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