First of all I want to start this off by saying SAVE, but I wanted to write this because I believe too many people get wrapped into penny pinching. Set a percentage goal to save of your earnings mine 50% currently however when I earn more I hope to increase this to 70%.
when you focus on just saving there an opportunity cost from the time you waste searching for deals, lets say every time you shop you spend an extra hour searching for the cheapest product and you go every week that’s one hour you could’ve be working towards business’s or learning about investments.
I found saving as much as possible was hard because I only saw slow growth and the future potential wasn’t much better, I still am In the early stages of business and investing but the potential up side I see to the work i’m putting in now is much greater than if I were to shop for the best deals instead.
I set a time limit on my self to find a cheaper alternative dependent on what it is im buying lets say its a holiday and it costs £1000 but I want to pay £800 I might spend an hour on that as Im not gonna be earning £200 an hour else where whereas if its a t shirt or something smaller and I want it £5 cheaper I might spend 5 minutes on it, its all relative and should be adapted to want you believe your time is worth.
If you want to be truly rich I believe you need to change your mindset from how can I just live on the bare minimum to how can I earn the maximum amount of money for my time its a simple change but it will make a difference (living on a little is a good way to start out in investing and business but I don’t think it should ever be anyones aim)