In the following article you will know 5 unnecessary purchases that people who know how to manage their money avoid. Keep this in mind so as not to fall for them.
It is common to think that people with money do not have to worry when buying. However, those who manage their money wisely are the most careful when selecting their spending.
In fact, people who know how to manage their money, no matter how much they have, are not spenders. There is a wise phrase that says “It is not how much money you have, but how much you can keep in your pocket”.
Good management of personal finances ends up being more related to your lifestyle than to your financial knowledge. Understanding that living with less is better is not something we are taught in the capitalist culture in which we live. However, it is a valuable concept to learn.
Managing our money wisely has a direct connection to our habits. It doesn’t matter if you have a lot or a little, if you don’t have the right habits, money sooner or later disappears; all thanks to unnecessary purchases.
For this reason we want to show you some unnecessary purchases that do not contribute anything to your economy. Even the wealthiest men take care of them.
Unnecessary purchases that you should always avoid.
1. Buying the house of your dreams could be an unnecessary purchase.
The purchase of a property is one of the greatest goals of any person. It not only means the joy of having your own home, but it is also considered one of the largest investments in the personal and/or family economy.
Currently, both the government and the banks have developed financing programs to offer their customers payment facilities; making acquiring a property easier and easier.
In this case, the advice is as follows. Do not be tempted to buy the house of your dreams just because you can afford to pay the monthly installments. You could end up paying for it your whole life.
If you want to invest in a property, make sure you can pay it off as soon as possible so that you can live debt free and open up the opportunity to invest in a second property. This will give you the option of being able to sell or rent to have extra money.
Buying an expensive property will limit your ability to save, invest and, of course, have a quick retirement.
Also read: Rent or buy a property. What is the best decision?
2. If you can’t pay for what you want to buy with your credit card, don’t do it. It is an unnecessary purchase.
There is no doubt that credit cards are a great temptation. After all, they offer us the opportunity to acquire those things that we cannot buy with cash due to lack of cash.
That’s the big credit card trap and chances are you’ve fallen for it several times.
Did you read right? With them you can buy, even if you don’t have the money. They give you the instant satisfaction of owning a product, with the future concern of how to pay for it.
This small banking service is one of the most important sources of unnecessary purchases. Maintaining a balance on a credit card means that you will have to pay interest every month, which is usually very high.
If you don’t have the money to pay, don’t use your credit card. It is a solution for the present but a problem for your financial future.
3. Don’t buy a new car. It is an unnecessary purchase.
This information is not unknown and although most people already know it, they continue to fall into error. A new car is one of the worst investments there is and as a result, an unnecessary purchase.
You can do the research and check this data. A vehicle can lose between 10% and 20% as soon as it leaves the dealership. As the years go by, this percentage increases. In two years, that car you bought could be worth 30% or even 50% less. Does this sound like a good investment to you?
Not all used cars are in bad shape or will need immediate repair. If you do your research, you’re sure to find a great vehicle that won’t lose value like a new car does.
4. Do not buy products based on the brand.
Pretending is no longer a good way to demonstrate wealth. Having or not having luxury items is no longer a sign of wealth. Anyone with a credit card can fall for unnecessary expenses.
Instead of acquiring material things, you should invest in your education and your health. At least that’s what many millionaires are doing. They prefer to invest in their privacy, in good exercise routines and of course in their continuous learning.
If you need a product, do a good search. You will surely find very good quality options without paying a ridiculous price for the brand.
Some will say that good products cost money and are usually “brand name”. However, this is not always the case.
Think for example in the case of mobile phones or laptops. Brands like Samsung or Lenovo offer excellent quality products at prices well below Apple’s. However, many people prefer to pay double but show off the apple.
5. Stop buying things just because they are cheap.
Finding something at a good price doesn’t mean you have to buy it.
Those who are expert managers of their money don’t fill their closets with fashionable clothes or buy a lot of cheap things that won’t last.
On the contrary, they try to avoid withdrawing money from their accounts as much as possible and if they have to, they will buy good quality products at a good price. They will buy products that last.
Do not be guided by fashion or consumerism. Go against the grain and avoid unnecessary purchases. Use your money wisely if you want to have a financial future that allows you to live with peace of mind and, above all, free time.
And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
