They believe that financial independence is more important than displaying high social status.
This is how millionaires think. Reading this book, I've had a lot of time to ponder and think about what value based spending really looks like for me. Initially, I thought that it meant being able to buy nice things for myself and enjoy going out socially and not worrying about money. Upon really thinking about this deeply, I have come to find that this is not true. Why? I can't even list the last 5 times I went out to hang out with people and buy things. Why can't I remember? Maybe it's because my memory is not that good, or it's because moments where I spend money aren't even special to me anymore because I have gotten in to the habit of doing them all the time. Spending is no longer something I do to treat myself, but rather something I do out of habit. The problem with this is that without even realizing it, I have been trapped in to lifestyle inflation.
What am I doing about this?
Since I have realized this, - it's been about 2 weeks, I have decided to really analyze my spending and consider the consequences of every spend I make. Normally, I would say "yes" to everything without even thinking about it. Now, I consider the question with an open mind and offer suggestions.
Examples:
Partner: Should we go out for dinner, date night?
Me: What if we spend the night in and cook?
Partner: Should we buy takeaways for dinner?
Me: What if we cook dinner at home, something simple like noodles?
Partner: I really feel like takeaways...
Me: What if we just get a $1 frozen coke?
The point I am trying to illustrate is that a lot of the time we can achieve the same thing by putting a bit more effort in to the decisions we make.
I've decided to stop making excuses and to instead be mindful, to take time to think about what I am doing.
Chapter Review:
This chapter speaks about how those who are financially free mostly don't have new cars. The book claims that most people only get to their position by buying used cars that are mostly 10 years (or more) old. One of the biggest things I have always held close to my mind whilst shopping is that the sole purpose of a sales person is to sell products and they are willing to do anything in order to sell products. Most times, sales representatives also make a commission when they sell products like houses or cars and so the incentive is high for them - even if they know that the product won't actually last you or suit you. How many times have you come home after buying a new laptop, car, or anything really and thought - did I really need this? Lots of people suffer from this. The way around this is to slow down. I always like to wait 10 days or 3 visits to a shop looking at the same product before I buy it. What this does is it gives me time to consider what living without the product is like for those 10 days and it makes me think - actually I am fine without said product....
Learn to grow some balls:
Another thing you need to learn to do is to stand up for yourself. The world is full of offers to spend money, and as the customer - those selling want you to buy. So, don't be shy. Here are some tips to follow:
If someone asks you if you would like something just respond: "I'd like to think about it, I'll get back to you".
Don't budge when they try to persuade you. It's their job to manipulate you - don't let them.
Negotiate! Buying a car? Buying a fridge at an appliance shop? These are just 2 of the places that almost always allow for room to negotiate changes in the costs.
Please drop a comment below if you have feedback for the blog or questions to ask.
Prodigious Accumulators of Wealth have
a lot of things in common. Some of these are listed below:
Our Household operates on a fairly well-thought out annual budget.
I know how much our household spends on food, clothing and shelter.
I never buy clothes that are not on sale.
They also say things and agree with statements like:
It's much easier in America to have a high income than it is to accumulate wealth.
Economic Outpatient Care is the next chapter of this book which I will be reviewing next time. Stay tuned!
Please drop a comment below if you have feedback for the blog or questions to ask.