Changing Your Spending Habits
There are basically three categories of consumers:
- Those that spend beyond their means, relying on credit to pull them through.
- Those that live just within their means but without savings.
- Those that live below their means, using the rest of the money for investing and savings.
Studies show that ninety percent of the nation’s wealth is held by ten percent of the people.
They also show that if the wealth was redistributed equally, it would make its way back to the ten percent in a short period of time.
This has to do completely with people’s spending habits. You know what category you are currently in, but is that category one that guarantees you financial wellbeing? If not, you will need to work to change your spending habits and build a strategy for future budgeting and investing.
Figure out what your long term goals are and have the discipline to figure out your budget and stick with it. This will mean adjusting your lifestyle to accommodate your new budget. Your goal is to out figure your finances so you are spending below your means and investing or saving the rest.
This doesn’t mean you can’t enjoy life.
If you design your budget to offer you a meager amount of entertainment and enjoyment, you will become resentful of the budget and break it and probably go back to your old spending habits.
