Time is money. The earlier you start investing, the more time your money has to grow. And the sooner you start, the less you have to compromise.
Stash Wealth recommends putting 20-30% of your income toward future goals and paying down debts. Now, a bit about how to use the rest of your paycheck.
Following these four tips will help you stop feeling guilty whenever you go shopping.
1. Buy things you care about
Consciously think about what you value and what you don’t. Stop spending asmuch on the things you don’t care about. Whether it's the best restaurants, the new tour Titleist golf clubs, or semi-annual spa retreats, life is more enjoyable when you treat yourself to the things you value most.
Before making a purchase, ask yourself: "Do I really care if I have this or not?"
2. Choose your company wisely
The people you surround yourself with can be the biggest influence on your spending. You shouldn’t feel obligated to spend money on something you don’t really want to do, especially if it will be a financial burden.
The same goes for feeling pressured to buy things you don't need. If youriPhone 7 is still working, you don’t need the iPhone X just because your friends have one. However, if having the latest tech is important to you, then by all means, upgrade.
Be honest with yourself. If you're just buying it to keep up appearances, it's probably not worth it.
3. Find your frugal
There's a big difference between being frugal and being cheap.
Frugal spenders know what they value and are willing to spend on it. All purchases are not created equal. Cheap spenders, on the other hand, nickel and dimeeverything.This is a surefire way never to get rich.
Being cheap might save you a buck at the moment, but it will not pay off long term. You may spend more money fixing or replacing a cheap purchase than if you'd sprung for the higher-quality version the first time.
4. A money challenge
Next time you’re out shopping, don’t look at the price tag of items that catch your eye. Instead, consider how much you'd be willing to spend on each item. Once you’ve got that number in mind, check the price. If the item costs more than you were willing to pay, walk away. If it’s the same price or less, treat yo’self!
Planning for tomorrow is just as important as enjoying your life today.
When I founded Stash Wealth, we invented the Stash Plan® specifically to focus on building a plan around lifestyle so our clients can enjoy today without feeling guilty tomorrow.
