I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy. --Warren Buffett
It’s normal to spend money on a daily basis, but what’s not normal is not noticing that some of these expenses are actually more impulsive than necessary. In this app, you will learn about the simplest ways to save money, what are the usual culprits for not being able to save, and further tips on cutting costs efficiently.
Why Do We End Up Wasting Money? Nobody really likes to waste money. If given a clean chance to, you would really like to save or set aside money for more important things. What people have trouble with is finding that “clean chance” to start saving. Oftentimes there are small windows opening, giving way to a chance to save up. However, 90% of the time people fail to take it. Why do people fail to take the small and frequent chances to save up?
1. Believing There’s Always Another Time for Saving It’s common for people to put off saving because they are either already in the middle of a financial crisis or simply caught up in a shopping spree. It could also be said that people don’t feel financially secure, so they think that starting to save might just make things difficult. What happens is the development of this mindset – “I can start later.” Sometimes, this “later” never comes, or when it does, there are emergencies and other more pressing financial matters need attention. In the end, there’s really no better time to start saving than now.
2. Letting Money Run its Own Course Without organized finances and set goals, people end up buying things they want randomly and impulsively.
Oftentimes, because people put off saving, they are unable to produce money to buy whatever they set out to purchase. It takes months, if not weeks, for them to produce the right amount to afford what they need. Sometimes, their goals are pushed so far from their expected deadline or, in some occasions, even entirely forgotten.
3. Thinking Independence/ Not Being Tied Down Doesn’t Require Saving People with families are not the only ones who should think about saving money. At some point in your life, you will grow old, become obsolete in your career or simply experience financial difficulties. During these trying times, you will wish you had some “backup” stored up somewhere to help you survive. Aside from that, just because you are flying solo, it doesn’t mean that the things you buy impulsively doesn’t add up to much.
It might surprise you but most single (not in a relationship) individuals spend twice as much, if not equivalent, as a person who has teenager or a family. Weekly take-out dinners, designer clothes, exclusive DVD sets, and entertainment systems are infinitely more expensive than a month’s worth of diapers.