Can we guess seven things people who are good with money will never buy? Click here to find out, along with the best money management tips!
The way we spend defines who we are, don’t you think?
People who are good with money look for quality over quantity and aren’t typically big spenders unless it’s a life-changing decision.
You don’t need loads of money to be able to be good with it. You could even be living out on the streets, off-grid, or in an igloo munching away on whale meat — the key is to apply a handful of money spending tips that should serve you and your money well for years to come.
So here we have seven things people who are good with money will never buy, and neither should you.
1. Brand New Cars Are a Waste of Money
For people who spend wisely, brand new cars really don’t make financial sense. When you think a car can lose over 20% of its value in the first year, why do it to yourself? Also, within the first month, it can lose 10% or more of its value!
As the saying goes, a fool and his money are soon parted!
People who are good with money often go for an older second-hand vehicle, which can still certainly look the part. Furthermore, they’re more likely to keep their used car for longer.
2. They Never Lease Cars
While we’re on the topic, leased cars are a no-go area for people who are good with money. These people probably picture a truckload of money being poured into an oversized toilet when thinking about leasing a car — sheer madness!
You have to deal with down payments to start with, and then you’re throwing money at something that you can never own.
Again, keeping a used car for the long term makes the most financial sense.
3. They Use Credit Wisely
Paying for things on credit is a perfectly acceptable way to spend, as it can increase your credit rating if you regularly pay the money back.
However, using credit to buy extravagantly, knowing that it will be challenging to pay that money back, is a pathway to ruin. It doesn’t matter whether it’s $10 or $10,000 — people who are clever with their money avoid credit for big purchases and instead use it as a tool or backup option.
4. Unaffordable Houses Are Not an Option
Do you want to end up a pauper in a castle? You can head over to Britain and see lords, dukes, and barons in their stately homes struggling away to make ends meet and keep their estates afloat.
Like the many people who are good with money, you have to succumb to the fact that you might not be able to afford your dream home — right now, at least.
By being realistic with your home choice, you save yourself from being tied up with a heavy mortgage and potentially other debts that you take on for furnishing and decorating the place.
5. Brand Names Are off the Menu
Whether it’s brand names or luxury items, people who are good with their money generally aren’t concerned with them. In actuality, the people who tend to buy brand names and show them off can be insecure and very haphazard with their money.
Clever spenders decide to use their money on health, fitness, wellness, and education more these days. These things are seen as having so much more value than owning an expensive brand name.
Did you ever see Elon Musk swaggering into an interview flashing a Gucci t-shirt and off-white hat, for example?
6. Quality Over Quantity
People who spend well often choose quality over quantity so that they’re not overwhelmed with things they don’t really need. Plus, when these people opt for quality, the items they buy last much longer than inferior quality stuff.
A good example is a pair of jeans. Someone good with money might buy a few very durable, high-quality pairs. Someone bad with money might keep buying jeans all year round, and most of them end up ripping, shrinking, or fading in an ugly way.
It’s hard when we are constantly bombarded with adverts and consumerism day in day out, but if you can learn to ignore most of it, you can keep your cash firmly where it belongs — in your wallet.
It’s a skill of understanding what not to buy, especially in the heat of the moment.
7. Expensive Weddings Are a No-No
One area where people lose so much money that could be spent more wisely on other pursuits is weddings. They don’t have to cost a fortune, and they can be so wonderful, even on a strict budget.
People who spend wisely don’t blow all their savings on a wedding — it’s that simple. Instead, clever spenders would rather use that money for longer-term plans such as saving for a home, buying a car, or traveling the world!
Just think about what you could do with 20K-100K that you might have spent on a single wedding day!
If you think that you only need to consider some healthy food, keep the guest list to close friends and family, and a venue, the costs don’t need to exceed $10,000. And if you head down to Vegas, it could be a lot cheaper!
These Are Things People Who Are Good With Money Will Never Buy
There are many things people who are good with money will never buy because they see a lot of the consumerist items out there as complete nonsense.
A sensible mindset is what makes a good spender, as well as being realistic with what you’ve got and setting a budget for things.
One last great piece of advice is this — if it’s something that costs more than $20, give it a couple of days before you buy it. If you really need the item, you’ll get it, but if it’s not so important, it could just fade away into nonexistence and save you some bucks.
For more entertaining and money-related reads, check out our Money Tips section.