12 Things People who are Good with Money Never Buy: Frugal Living Tips to Help you Build Passive Income.
Building Wealth that last
Do you want to be good with money? It’s not difficult, but it does require some discipline. One of the best ways to start is by avoiding unnecessary purchases. Millionaires are good with money because they understand the importance of living below their means. In this blog post, we will discuss 10 things that people who are good with money never buy. Keep these tips in mind, and you’ll be on your way to financial success!
Here are the 12 things that good money people never buy:
1. Expensive cars/new cars
A flashy car might make you look wealthy, but it’s not a good investment. Cars lose value as soon as you drive them off the lot, and they require costly repairs and insurance premiums.
Your car’s value decreases around 20% to 30% by the end of the first year. From years two to six, depreciation ranges from 15% to 18% per year, according to recent data from Black Book, which tracks used-car pricing. As a rule of thumb, in five years, cars lose 60% or more of their initial value. Nicole Arata on Nerd Wallet
Millionaires invest their money in assets that will grow over time, such as stocks or real estate. They look for long-term investment. They also look for a car at a good price and not brand new, unless they can afford to lose that money.
2. Luxury clothing
Designer clothes are good for impressing people with your wealth. However, wealthy people understand the value of a dollar and know better than to spend it on status symbols. Instead, good with money people focus their spending on items that will last them many years or improve in quality over time — such as good-quality shoes or winter coats.
3. Daily coffee
Coffee is a good example of an impulse purchase that we can all easily avoid. Buying even one cup per day can add up to hundreds of dollars per month — money which would be better spent on something else! If you’re having trouble cutting back, try making your coffee at home and bringing it with you to work or school. You’ll be surprised by how much money you can save without missing out on anything! Think about the numbers — $5 times 20 weekdays on average in a month will cost you a whopping — $100 on Coffee. You could instead make coffee at home and save about $70 or more.
4. Expensive dinners
They avoid expensive dinners because they know that good food doesn’t need to cost so much. They will eat at home and cook simple meals, rather than spending a lot of money eating out. It’s good for your health and good for your wallet! Another great tip that my wife does at the beginning of the week is meal prep for our lunches/dinners. This saves us on our wallet and our waistline. This is another one of those expenses that adds up to a lot money by the end of the month.
5. Cigarettes/bad habits
This one is a no-brainer. Cigarettes and other bad habits cost money — lots of it. Millionaires don’t waste their hard-earned cash on things that will only ruin their health in the long run. If you’re trying to quit smoking, there are many helpful resources online and through your local community center or hospital. The same goes for any other bad habit that you may have.
6. Lottery tickets
Buying lottery tickets is a waste of money. For one thing, the odds of winning are incredibly low. For another, even if you do win, the payout will be much less than what you paid for the ticket over time.
Millionaires invest their money in things that have a good return on investment — such as stocks, bonds, or real estate. Lottery tickets are not good investments!
7. Expensive gym memberships
Savvy people don’t waste money on expensive gym memberships when they can get the same workout for free at home. They know that good health is important and will do what it takes to achieve their fitness goals without spending a fortune.
8. Credit card interest
If they carry a credit card balance, they will always make more than the minimum payments and avoid paying any interest on their debt. They know that high-interest rates can quickly add up to thousands of dollars in unnecessary expenses over time! Plenty of resources to help you get out of this debt and a lot of great books as well.
9. Outdated technology
They never waste their hard-earned cash on outdated technology. They’ll buy high-quality, reliable products that are built to last for years instead of months or even weeks! They normally save for it and pay in cash.
10. Quality over quantity
They know that quality is more important than quantity. They will choose things based on how well they work or what purpose they serve, not just because something looks good to them at the time of purchase. Too many of us make fast impulse decisions that cost us a lot of money. A great trick to help with this is — Tell yourself you will come back tomorrow if it’s something you want, most of the time your brain will tell you in this amount of time that it’s something you don’t need.
11. Cable/Netflix service
They rarely waste their hard-earned cash on cable or Netflix services when there are so many other affordable options available. Why pay for something you don’t need? Instead, they will invest their money in things that will benefit them more in the long run. I’m bad about this one, I have about five different movie/tv service’s and that is insane! Time to cut back on this, all of that adds up to another hefty amount in a month and that could be going to an investment.
12. Unnecessary expenses
They are careful about what they spend their money on and know that there are a lot of unnecessary expenses out there! They can easily identify what these are by keeping track of their spending habits. They write it down or type it in a phone app. Once they know where their money is going, they can start to cut back on the things that aren’t important.
There are plenty of other things people with good money skills avoid buying or spending on. What would you add to this list? Share your thoughts in the comments below!
Thank you for reading and please FOLLOW to see the other side of this, “what are some of the best investments that millionaires invest in?” Coming soon.