Many people need to focus on not spending money on things that they do not need. This desire to spend, in some cases, has severely affected the ability to develop an Emergency Fund as well as create an investment portfolio. Even if you read my book, The Confident Investor, I cannot help you if you are not setting aside money on a regular basis to invest in your financial well-being.
I recently read an article on The Simple Dollar that helps with this problem. If you find that you (or members of your family) feel like money is burning a hole in your pocket, jump over and read this article. The two points that I thought were most interesting:
- Don't buy anything without coming up with 5 reasons to not buy it!
- Wait ten seconds before putting anything into your cart.
The article suggests 4 questions that you should ask yourself before every purchase:
- Can I find this exact item at a lower price elsewhere?
- Do I have something similar to this that’s unused or underused at home?
- Will I actually enjoy this?
- What’s wrong with this item?
It is a very good article. Jump over and learn how to control your spending urges.