A lot of times we are confronted with the decisions to spend or save.
We are almost always carrying out Cost to Benefit Analysis. Is this thing what the money?
But in this post I'll be sharing my intensive-thought based approach to making rational money decisions.
I will list them in bullets -
- I always go about with more money than I need in a day. I'm fortunate to not suffer from the common syndrome of spending more when I have more in my wallet.The only syndrome I suffer from is making sure I spend all in my bank account, that's why I budget what I leave in the bank, I avoid having too much in my bank accounts. Read here for full understanding.
- I buy either 1 shirt or 1 trouser or 1 shoe every month.
- I never cut down on my feeding expense. Remember the quote, "It's what a bird eats that will sustain it in its flight" (paraphrased). I make sure I eat expensive, because quality food is very expensive.
- I cut down on my transportation expenses.
- I exercise daily and eat well (here again) to reduce my frequency of illness. Been seeing remarkable results.
- I use Airtel Postpaid line. Reduces my monthly phone call expense.
- I don't go out often. My friends have given up inviting me to events, even their weddings. Not originally a cost saving scheme, it's more of a habit that's beyond me to correct. Coincidentally, it's saving me money.
- I buy books and read a lot. I'm always willing to exchange money for knowledge/skill.
- I have 3 paid online sites. I speculate on opportunities with a part of my salary.
- My wardrobe amazes my sister. "What are you doing with all these body sprays, deodorants...? and this, what is it?" More gist here.
- I spend my spare time thinking, reading and writing. Saves me a lot of cash. I can't remember the last time I spent on impulse. Ok, I think I do. When I bought my Microsoft Surface RT.
- I don't read the daily mails from Jumia.com.ng and Dealdey.com I like to need a thing before I buy it. I enjoy the delight of searching for what I need and not the other way round.
- I don't have an ego. And I'm not kidding. There is nothing you'll say or do that will make me feel little. Saves me from spending to prove a point or save my ego.
- I don't promise what I don't want to do. And it's really tough to do.
- I don't care what people think or say. Even they don't care. So I don't follow fashion or some new trend.
- I'm trying to position myself for the financial revolution that will soon happen in Nigeria. I've been reading a lot on finance and accounting. Result: I've been finding it hard to exchange my money for something of less value. And I always consider the Time Value of Money.
- I close late at work. I go home too tired to notice the merchants on the road. Result: I spend less in traffic.