No! I Will Show You How To Be Rich - Thrift

February 11, 2016 money advice

Thrift is an important part to gaining wealth. Every dollar you invest instead of spend grows to give you more wealth.

Don’t confuse thrift with being cheap. thrift is making intelligent decisions about your money whereas cheap is avoiding spending money to the point that it impacts others. For example, doing your laundry only when you have a full load is thrifty. Doing your laundry at your neighbor’s house to save money on soap and water is cheap.

So how do you become thrifty?

Only Buy Things You Need

Differentiate between things you need and things you want. Think to yourself, do I really need this? Often things we buy just because we want them end up being clutter that we eventually throw away.

Use Things Up

Use things until they break or are no longer usable. You might want a new bigger TV even though you have a decent TV at home. You’ll save money by using the decent TV until it breaks or is fully obsolete. Getting rid of a perfectly good item is a waste - you never get your original cost back and the money you save will grow your investments.

Take Care Of Your Things

Be gentle with your possessions, get a case for your phone, be gentle when driving your car. They’ll last longer and be more reliable causing you less grief.

Practice Thrift Everywhere

Be thrifty in everything you do. Take care of your company’s equipment, don’t get greedy when someone takes you out for a meal. Being considerate with other people’s money reinforces your thriftiness and shines your reputation.

Learn From Others

Listen carefully to the people around you and learn from their expensive mistakes. Is your co-worker complaining about how much it costs to fill up their truck’s gas tank? Perhaps purchasing a truck isn’t the best idea. Does your friend go out to eat everyday but complain about unexpected expenses? Maybe packing your lunch a few days a week isn’t so bad.