Making Millions by Controlling Your Spending - dummies

Making Millions by Controlling Your Spending

By Robert Doyen, Meg Schneider

Part of Making Millions For Dummies Cheat Sheet

Building wealth can’t happen until you assess your spending habits and eliminate the ones that prevent you from saving and investing your money to meet your long-term financial goals. Keeping spending in check and living within your means are essential to making millions. Here are some tips for controlling your spending:

  • Take your credit cards out of your wallet. Store them someplace that’s secure (like a locked filing cabinet) and use them only for emergencies or truly special purchases.

  • Before you start shopping for something, decide how much the item is worth to you. If you can’t find it for that amount or less, don’t buy it.

  • Use envelopes or a folder with compartments to allocate your cash for the pay period. Label each envelope or compartment with specific items, such as “Haircuts,” “Lunch Money,” “Clothes,” and so on.

  • Give yourself an allowance (in cash) each pay period. This is money you can spend however you like, but when the cash is gone, you have to wait until your next allowance to spend more.