There are a few different ways to spend money. Two of the big categories are that you can spend money on important things or you can spend money on unimportant things. It might look a little goofy seeing that laid out for you in sentence format, but people have a real problem with money, and it’s often because they don’t distinguish between these two ways of thinking.
With that in mind, think about some of the best ways to save and keep your money specifically for the important things. First of all, avoid risky or expensive situations. Any event where there is a high amount of risk involved typically has a financial consequence associated with it. Paying debts associated with risky behavior is definitely going to be in the unimportant category, though unfortunately it often ends up in the essential category because you have to pay for whatever expenses you incurred.
Also, take a minute to minimize your needs and desires, at least mentally. When you start paring things down, you’ll quickly see what you believe is important and what you think is more a matter of convenience. Third, don’t get caught in the consumer cycle. Advertisers and promoters are very good at telling you that things are important. However, if you find no eventual intrinsic value and stuff, then you will find that psychological marketers have hoodwinked you:
Avoid Risk Situations
If you don’t want to spend unnecessary money, then don’t get in unnecessary accidents! For example, you should always drive defensively because you don’t want to get in a car accident and have to pay all of the associated fees. Even if the accident was not your fault, you still might end up having to pay for things like more expensive insurance moving forward, car repairs, or medical bills. If you want to save money for the important things, avoid any situation where an accident can derail your financial plans.
Minimize Your Needs and Desires
When you live a minimal lifestyle, you tend only to have the things that are important to you. It is difficult for many people to get into this kind of life flow, but when they do, they’ll find a lot of their stress and financial trouble will just melt away. It can take a concentrated effort to figure out how to approach minimal living, but nearly everyone who tries it is happy they did.
Don’t Get Caught In the Consumer Cycle
How familiar are you with the consumer cycle? Or, sometimes it is referred to as the consumer culture. Essentially, every company wants you to keep buying more and more of everything that they produce because it makes them more money. Even if you don’t need something, they make it feel like you do, and that feeling compels you to purchase and consume more. If you want to really figure out how to save money for the important things, you need to figure out how to break free from the consumer cycle.
For millennials, that can be the trap of subscription services. So many companies that sell beauty and health products try to get you to commit to a monthly or bi-monthly subscription. If you don’t need it all the time, don’t buy into the common trap.
How do you stay frugal and smart with your money? Let us know in the comments below!
