Save money
The habit of saving from the first moment is fundamental for Phillip: “It is about thinking if you want to spend that money today on your fifth pair of shoes because suddenly you feel that you really need them, when in reality you are only going to use them once. “.
Short-term gratification and long-term satisfaction are at stake. The author takes it to extremes such as, for example, when it comes to eating out.
“A lot of people don’t realize how much money they can save if they choose to bring food and drinks from home to the office,” he said. This is how he also explained that a coffee in a bar can cost a few dollars, while making it at home only costs a few cents.
Spotify, Netflix, and other subscriptions also become fixed expenses without much impact on quality of life.
Avoid debt
For the author, you never have to buy something that you can’t afford. “Do you want a smartphone, but don’t have money to buy it? Then don’t buy it, ”explains Müller.
Many debts occur when people become addicted to the fleeting pleasure that comes from making a purchase.
“Leave a note in your wallet that says: do I really need that? Over time, you’re going to start asking yourself that question, and then you won’t need the note anymore, ”he said.
Do not hide debts, if you have them
Before looking for a quick solution to pay off debts, it is important to take stock of the situation. Otherwise, you can make the mistake of creating new debts to pay off old ones.
Once the debts are cleared, think about an amount that can be paid each month and calculate, based on this figure, how many months it would take to pay off the debt. It is recommended to use half of the money to pay the debts and save the other half.
Contact creditors
Müller advises being proactive and contacting your creditors before they contact you.
If it is not possible to pay, it is better to communicate it openly instead of waiting for them to call you to ask you for explanations for the defaults ”.
According to him, if the financial situation is disclosed honestly, the other party will usually make you a counter offer, such as extending the payment term or waiving interest.
Avoid status symbols
A luxury car or a watch that seems more valuable than a house should not be the status symbols necessary to become a millionaire.
The path to financial freedom is to consume mindfully, not to spend big.
“Do you really need to spend two or three months’ salary to go on vacation somewhere far away, when you could rest much better somewhere close to home?” Müller asked.
Self-control temptation
Temptation takes different forms for each person. If you can’t control yourself during sales, just don’t go ahead of all the deals. If online shopping is your vice, you can use applications to temporarily block access to online stores.
Alternatives to the impulsive solutions offered by temptation should be sought.
Source From: Ambito
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