Warren Buffet, famous American investor and business tycoon who is well known for spending relatively little for his fortune. Surprisingly, he still lives in the same house in Omaha that he purchased in the 1950s. Buffet is an expert at controlling his lifestyle as steady at ‘up & down’ in his life.
It is an exemplary from Warren Buffet to learn limit your personal indulgences and be minimalist at every steps of life.
From the beginning if we develop good buying habits, it will save us from any disaster in life. For example, if you suffer a sudden decrease in income, cut expenses to the bone would be easier because of your justified buying behavior.
Making a financial plan is ineffective if you don’t control your fancy buying behavior. The habit of buying fancy thing might give you trouble during your financial crisis. In this regards, I want to mention a quote from a popular Indian TV actor “There is nothing wrong in dreaming a luxurious life. What needs to be taken care of is to not let the NEED become GREED. Because NEED can always be met but GREED can never be fulfilled”.
You able to develop good buying habit if you practice the following rules-
Rule 1 # Justify your need. If you need anything luxury items like tab, cell phone, branded T-shirts or GUCCI, put “on hold” till two weeks to realize “ Do you really need it?’ If answer is ‘YES’ do some extra work to earn or cut your monthly budget to meet the fancy expenditures. If the answer is ‘NO’, reward yourself by a good dinner or a nice gift.
Rule 2 # Avoid Duplication of buying. If you have good set of furniture, no need to think even change till it worst to serve you.
Rule 3 # Don’t use Credit Card. Remember credit card is someone else’s money and you have to pay interest. So you are losing in every purchase paying more than regular price.
Rule 4 # Carry shopping Lists. Creating shopping lists before you go to the store and sticking strictly to the items on the list is a healthy spending habit that can prevent impulsive spending.
Rule 5# Don’t be tempted to ‘Sales or % OFF’ promo. Don’t get attracted seeing fancy advertisement of ‘SALE’. If you don’t really need the dress or cosmetics, don’t run to shopping mall. Tell yourself “There will be more sales. Big spenders aren’t usually good savers.’
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