Warren Buffett, 7 things to avoid wasting your money. Do you want to succeed in life? Do you want to live with all the possible comfort? We are sure your answer is YES. Today we will talk about managing your finances better and controlling unnecessary expenses.
Gambling is detrimental to your finances although Warren Buffett states that there's nothing wrong with playing once in a while. If you expect to increase your income and generate wealth it will only lead you to bankruptcy. Every time you play on these machines like slot machines, it is very likely that your ambition will make you want to spend more and more which make you spend all your money in a matter of minutes. Luck is for mediocre people success is for those who don't rely on luck.
2. BUYING A HOUSE
Surprisingly unlike the poor, the rich don't own a house. A least not at the beginning of their journey toward success. Instead, they rent a house while building the necessary assets to be able to buy that same house. One of the mistakes that poor people make is getting into debt to buy a house which is completely destructive to their economy. Putting all your assets, all your savings, and possibly adding debt in one place is risky. Furthermore, owning a house won't make you money on the contrary it will generate expenses. The risk ends up being too high. Buffet doesn't mean having a house of your own to share with your family is completely wrong what's wrong is buying a house with a lot of debt that will lead you to bankruptcy slowly.
3. PAYING FOR A GYM WITHOUT COMMITMENT
According to statistics around 61 million people were gym members in 2017, but reports show that almost 70 percent of students with memberships stop using them after the first few months. Most gyms rely on people paying their dues and not showing up. People join gyms to improve their health and physical fitness. Gyms offer a variety of equipment and various classes to choose from, however, many people join the gyms without being committed to exercising regularly. Having a gym membership doesn't make sense if you don't use it regularly. There are smarter free entertainment options. There are many low-cost and free options for fitness. Many people prefer outdoor exercise such as walking, playing sports with friends, running, or hiking. Train your mind and be persistent until you can commit to an exercise routine.
4. LUXURY BRANDS
As mentioned earlier, the poor buy things they don't need regardless of the price. We know that millionaires can afford fashionable clothes, mansions, luxury cars, and designer clothing among other things, however, this doesn't mean they are spending hard-earned money on material possessions from luxury brands. They can afford to acquire these things in whatever quantity they want but occasionally you see them wearing simple dollar 20 watches or using the same phone for many years so it's not enough to simply avoid buying products you don't need it's necessary to analyze if it's the best option.
5. BUYING A NEW CAR
Buying a new car is one of the worst financial decisions the new generations will make. This is because as soon as you drive the car off the dealership and take it on the road, the vehicle starts to depreciate the value of your car will decrease between 20 and 30 percent by the end of the first year and at the end of 5 years it will lose at least 60 percent of its initial value. Most people borrow money to buy a new car but they're essentially borrowing money to buy an asset that immediately depreciates by 30 percent it's not all bad news if you want to have a shiny car that smells new without getting into debt with the bank you can buy a used car with two or three years of use.
6. WATCHING TV AND PLAYING VIDEO GAMES
An important fact revealed by Warren Buffet is that middle-class and lower-class households waste time watching television or playing video games. This is much more common in these households than in wealthier homes. He explains that first of all, they waste time and money acquiring the latest TV packages, and second they waste their time playing video games instead of using them for more constructive activities or learning how to generate new income and grow their wealth. For example, people from high social classes read much more consistently that poorer people who often spend their free time watching Netflix or other streaming services.
7. EXTRAVAGANT VACATIONS
Having experiences like traveling is very important they are achievements we want to accomplish in our lives. However, if these experiences are not well-planned they can end up being ruined often poor people go into debt to be able to travel for a few weeks. It's undeniable that the experience was great but you will have to pay for it for years causing you to regret making that decision. Therefore, if you want to fully enjoy it, be very careful not to think emotionally and overlook the rational side when planning your dream trip. Don't do it through loans or debts because these vacations can end up being a total nightmare for your wallet. Plan your finances well and choose the right time to have a great trip.
WE HOPE WARREN BUFFET'S WISDOM IS VERY USEFUL TO YOU