How to make a lot of money is very important. But how to use money, spend money smartly and effectively is even more important. Because this is related to how much wealth and money you can own. The concepts of using the money below will assist you in improving your intelligence using money and spending money.
Taiwan’s richest prodigy, Wang Yung-Ching, once said: “earning a money will not earn a dollar. Saving a new currency is to earn a currency. ”
China’s richest man, Li Jiacheng, once said, “The higher the age, the more important it is to manage money, rather than making money.”
The founder of Wal-Mart, the richest man in America before, Sam Walton also pointed out: “It is important to spend money in a smart and wise way, just like spending 100 million in a smart way all the time ”.
All of the richest people in the world do not make an appointment but have a common view. They argue that compared to earning money, spending money, using money is an important factor that directly affects their huge assets.
So how to spend money or use money to be considered right, smart and effective? Through 5 concepts, the use of co-workers below will help you improve your intelligence and spend your money effectively.
- 1 1, BUILDING AND PLANNING LIFE, FINDING OUT WHY WHY SPEND MONEY?
- 2 2, DISTINGUISH CLEARLY THE MONEY BEING USED FOR INVESTMENT OR SPENDING
- 3 3, FINDING GAPS FROM FIXED EXPENDITURES IS BETTER THAN MINIMIZING VOLATILE EXPENDITURES
- 4 4, BEST INK TO RUN CHEAP, SOMETIMES HAVE TO SPEND MORE MONEY
- 5 5, REVIEW THE DISPOSABLE SPENDING BILL EACH WEEK, TRAINING HOW TO MINIMIZE THE SHOPPING BEHAVIOR
1, BUILDING AND PLANNING LIFE, FINDING OUT WHY WHY SPEND MONEY?
Whether the goal is spending or accumulating money, the goal is to make our lives better. Therefore, the first step to spending money, using money in a smart and effective way is to build money philosophy.
Financial master Fujikawa Futoshi who once directed the support of tens of thousands of well-known financial plans in Japan, in his book “8 Efficient Money Practices Helps My Life Never Lose Money” pointed out that: “In order to build money successfully, the first thing is to have motivation.”
The motivation here includes a number of issues such as: why should we accumulate, save money? How much to save, how much to save? When will this amount be accumulated?
Simply stated, if you want to accumulate money effectively, you must have all three factors: your goals, your money and the term. Moreover, these three factors cannot be planned arbitrarily. Which must be built on the basis of life planning.
In it, the purpose factor is at the top. Moreover the more realistic the better. For example, after 5 years there must be a purchase of a house. 3 years later, there must be a fund for marriage. 2 years later must have money to go abroad to study … To achieve these goals must encourage yourself to try to accumulate money. At the same time learn how to remedy your spending habits. Make yourself increasingly closer to your goal.
2, DISTINGUISH CLEARLY THE MONEY BEING USED FOR INVESTMENT OR SPENDING
Fujikawa Futoshi also emphasized pointing out that people with money to use money and spend money will not only calculate in a specific way. But will also try our best to minimize unnecessary expenses. Spend money, use money on things worth investing.
Although ordinary wage earners will find it difficult to train their eyes to see business opportunities as accurately as those with money. But at least they have to distinguish what investment is and what is spending before using the currency. Minimize unnecessary consumption costs.
For example, buying food to maintain health, energy and life for the body. That is investment. But if you buy junk food, it will become spending. Likewise, if you gather to eat and drink with friends, you just need to complain together, chatting on topics that have no nutritional ingredients. So those are just acts that take time and money. But if you can share your thoughts, broaden your horizons, create a great social relationship … So that’s an investment.
3, FINDING GAPS FROM FIXED EXPENDITURES IS BETTER THAN MINIMIZING VOLATILE EXPENDITURES
Saving spending, eating frugally is not necessarily a smart way to spend. In living expenses can be divided into: fixed expenditures are certain amounts to be spent. For example, network money, utility bills, gas, telephone bills, education investment for children, home loans, etc.
Other expenses such as meals, social transactions, entertainment, living expenses … are volatile expenses.
The author of the book “Art of Money Saving,” Yajoi Sunohara said, the review of fixed expenditures has a long and big effect on saving money.
The reason is that by eliminating or minimizing daily expenses, it is easy for people to feel their quality of life diminishing. Generate feeling of gut, embarrassment and money. Not only is there a limited effect but it cannot be sustained.
On the contrary, if a gap can be found from fixed expenditures. Reducing your savings not only without suffering can also be as effective as opening up new resources.
For example, if the working time in the company office is relatively long. Moreover, if the company and housing have wireless networks. So the phone doesn’t need to register the package online. Thus, monthly savings can be a small expense.
4, BEST INK TO RUN CHEAP, SOMETIMES HAVE TO SPEND MORE MONEY
Compare commodity prices from many different stores to find the cheapest items are always human nature. But always waste more time.
Yajoi Sunohara has advised that: for daily life items that are frequently used in large quantities. Maybe try to find some relatively cheap stores near your house to buy. So later there will be no need to regularly compare prices. Avoid wasting time.
Expanding this concept, many people often fall into the trap of taking away the tray. For example, hear the news on Monday, gas prices will rise to several dong. Set aside the weekend evening to refuel. As a result, queuing for more than an hour without saving 20 USD. Yet wasting a whole weekend evening.
Or take an afternoon in line just in exchange for a free movie ticket, discount coupon … Or even buy a bunch of discounted goods, finally discover that it’s coming soon expired. If carefully calculated, these spending behaviors do not save at all.
5, REVIEW THE DISPOSABLE SPENDING BILL EACH WEEK, TRAINING HOW TO MINIMIZE THE SHOPPING BEHAVIOR
Reviewing after the incident happened, there is also a great effect in building rational consumption habits. The author of the book “Saving money, still being able to live well” Junpei Yasuda once suggested an effective method of modulating those pungent spending behaviors: reviewing the shopping bill after spending each week .
No need to hold a high-level analytical research computer. It is enough to just use the memo to mark the spending items.
The object changed. If you were really interested in the things you bought before. But a week has passed without touching it. You will easily discover that it doesn’t matter if you don’t have it. Review and review consumption habits many times, you will quickly find blind spots in spending.
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