Financial Habits You Need To Get Rich (Part 2)

Part 2 of this series will cover four big things to decrease your spending and hopefully make you realise that the things that you do now, you totally take for granted and honestly, don’t need as often as you may think.

Live Below Your Means
Okay, so what does this actually mean?

Living below your means is a typical thing that you may already be doing without realising.
It simply means that even though you have enough money at the time to afford a $35 steak for dinner, you opt for the $23 one instead, because you know you will still enjoy it without the hefty price tag.

It means that you don’t go out and buy a boat, or book a holiday, or shop for a new outfit every weekend. Even though you know you can afford things, doesn’t mean that you should have them.

Think of it this way, if I spent $70 on a new outfit every month, within a month I could have saved that $280 to put towards something much more rewarding, such as an asset (e.g. a trailer to hire out, bitcoin/virtual money, stocks etc.)

Don’t Waste Money On Unnecessary Things
It’s just a fact that the most common unnecessary purchases are clothes, food and drinks.

If you’re out and you have to buy take-away then so be it, but there are the possibilities to eat before you go, take your own, or find a supermarket close by where things are much cheaper.

Certain consumables such as iced coffees, soft drinks and chocolate bars are also a bank-killer, and even though they’re regularly on sale and they provide people with a quick pick-me-up, they’re unnecessary and an apple would do the same job for much cheaper.

Op Shops are also great to save on clothes, there are some people that are willing to give away just about anything, and you can find some real winners in second hand clothes!

Live In A Cheap House
This may seem like a huge no-no to you, but if your rent is $150+ per week, you should be searching for somewhere cheaper.

Even though you don’t want to be living in a run-down shack, we’re sure that a few extra cockroaches won’t harm you, there are plenty of cheap solutions to that.

As long as you’ve got a roof over your head and the facilities to live comfortably, the low price tag should be a blessing in disguise. The amount of money you can save over a few years may even be enough to put down a deposit on your own house.

Don’t Finance A New Car.
This is one of the biggest mistakes that anyone can make. Buying a brand new car from the dealership is a huge waste of money.

Why not?
We don’t want you wasting your money, that’s why! By the time that you drive out of the dealership, your vehicle automatically loses 10% of its value ($50,000 car is now worth $40,000).

Not only this, but after just its first year out of the factory, it has already lost around 20% of its value, and will continue to fall annually.

On top of this value loss, you also have to pay insurance on the vehicle, which is generally about 10%+ of its value, which ends up costing you more than what the vehicle is worth.

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