I was rich yesterday

Have you heard that sentence before (I was rich yesterday)? Lots of people have experienced this, even a millionaire. Believe me. They maybe received their paycheck yesterday, or won a lottery ticket, or got a big profit from the shares trading, but they have lost their money today. Why?

This is the secret. Maybe many people know this secret but only some of them really practice it. And the result is? They never short of money and live rich like a millionaire although they are not one of the millionaires yet. So, what is the secret?

Control your expenses, or budgeting, or financial planning, anything that you wan to call it. It is so simple. The only thing that you have to do is control your money flow or cash flow. Then the question rises, how?

There are many ways that you can do in order to save your money. Here are some points that may save your cash from running out of your pocket fast:

1. Never spend recklessly. Before you go out for shopping, anything from groceries to vehicles, list down all of the stuff that you want to buy and the quantity. The list may look something like this:-

Bread

Rice

Chicken (4kg)

1 Lettuce

2 Potato chips

This will prevent you from excess expenditure and of course, save your money. And remember, unless bring the list along when you go for shopping; the list is nothing but a garbage!

2. Do not buy unnecessary things. Have you ever go out for shopping and end up buying all those discounted or promotion stuff? Then, you were broke, right? That is an example of buying unnecessary things. You will lose your money now and then. Why I said that? The answer is in the next point.

3. Prevent continuous out flow of money. Why it is continuous? This is because when you buy useless or not so useful things, you have to do the maintenance right? For example, if you have 2 Mercedes Benz, 1 BMW, 1 Cadillac, 1 Jet boat and 1 Kawasaki Vulcan, imagine how much do you need to spend only to do the maintenance for this things, which is unnecessary for me. In my personal opinion, it is just nice to have only one car that works and has low maintenance cost. And if you really want to cut off your continuous lost, just get rid of those ‘rubbish’ things!

4. Spread the costs. Before, I used to live alone and have to pay all of costs of living by myself. Imagine how much my money flow out at that time. It’s really painful. Now I live with 3 other friends and we share almost all of our expenses. This has lifted some of my financial problem away from me. For example, now I can rent the same apartment for a cheaper price as the cost is divided by 4.

5. Have a doctor buried your credit card in your body. I’m not saying you have to really do that. Of course you can, but do not ever mention my name =). What I want to say is try not to do your spending with a credit card. You may happy now, but you will SUFFER tomorrow. Consider buying only things that are really necessary with credit card. For example, purchase a book from Amazon.com. Book is considered as a good investment as people always learn to live better, don’t they?

If you can practice all of these points above, I am sure that you will not end up saying ‘I was rich yesterday’. But you will say ‘I was rich yesterday and still rich today’. Unbelievable? Believe it!

Cheers

one more step to become the next millionaire

Categories: Financial, planning