How to keep your money

bankonsteemit (46)in #money • 7 years ago (edited)

There are three keys to having money

You have to make money
You have to make your money work for you
You have to keep your money

If your spending habits are bad, it does not matter how much money you make, you'll not be able to keep your money. People with multi million dollar fortunes like MC hammer and Mike Tyson have lost it all because they were not able to keep their money. I'm going to go over six ways for you to spend less money, so you can keep more of it.

Before you go shopping write down the things you need and then, only buy the things that are on your list (BUDGET)

Stores are designed to get you to spend as much money as possible, which is why I'm serious about what I just said, because on one hand, I want you to make as much money as you can per customer and on the other hand I want you to keep as much money as you can.
When you go shopping without a list, it's really easy to get distracted when you see that big red sale sign, and you have nothing telling you not to buy it. Here's the thing and read this very carefully, if something normally cost $250 and you buy it on sale for $100, you did not save $150, you spent $100, it starts with your mindset.

Don't spend money on drinking and smoking (ADDICTIONS)

I can tell you that this one is going to hurt some people's feelings, but it's a lot of money that's not being put to good use. The average American smoker spends $1500 a year on cigarettes in the suburbs but if you're smoker in the city, you'd be spending a lot more, if you're a heavy smoker in New York you could be spending $7000 a year on smoking and the average spends $1 out of every $100 that they make on liquor, neither of these two things are necessities and you can keep a lot more money, if you never spend money on them.

If you struggle with controlling your spending habits, don't carry your credit or debit card, pay with cash

When we use a little piece of plastic to buy things, we don't feel the same pain as if we take our cold hard cash that we worked so hard for and then just, give it away.
MacDonald found that when somebody pays for their order with cash, their average order size is $4.50 but when somebody pays with with the credit card, their average order size goes up to $7. People spend up to 12-18% more when we use a credit card than if we use cash because we don't feel the same pain of spending money.

Keep a running calculator on all of your expenses

I know what you're probably thinking, "who has time to keep track of everything single thing they spend? Well, it's actually really important. When you're trying to get more sales for your business, analytics are super important because it's hard to improve something, if you can't measure it. The exact same applies for your finances, if you don't know where your money is going, how can you improve your cash outflow, I need you know where every single penny you make goes. You need to know how much money you're spending on entertainment, how much you're spending on food, how much you're spending on shopping, how much money you're spending on eating out, you have to know all of these things. Once you figure out where your money is going, then you can see how you need to reallocate your budget, but you can't do that unless you keep a running record of this.

Pay your shit on time

Some people fail to pay their bills on time, they have the money to pay it, but it's either they forget or just neglect it. Then they get a late notice, which comes with an extra fee just because they're a couple of days late, pretty funny right? It's not funny, I hate wasting money and Kate fees are a complete waste of money, if you're paying late fees, you're taking your money and throwing it down the drain, pay your stupid bills on time, so you don't have to pay unnecessary fees.

Don't spend more than you need to for things that are not related to your business.

Let me give you an example, somebody hit our family care once when I was younger and the side mirror was broken and there was a large dent, we took it to a shop to get fixed but the shop owner wanted #60k that's about $170. Now it's not like that was a crazy amount, it's a lot of money but it's not insane but you have to remember, you have other pressing responsibilities, my pops duct tape the side mirror back to the car and later found something cheaper. You've got to do what you've got to do especially, when you're trying to start a business or you're trying to improve your financial future . It's not the most glamorous but sometimes you've got to put in the sacrifice and make every single penny count for a better tomorrow.

You can tell us, other things you can do to keep your money, we'd love to know. Drop your comments