On the issues of money and spending, there are a lot of so-called experts out there with tips and tricks for how to use your finances in just the right way to make it into that upper echelon of those who are considered “successful.” In reality, all you need to do is look at how truly successful people spend their money and pick up on the creative and thoughtful habits that they apply to everyday transactions.
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Here are nine smart spending habits that successful people have.
Value Experiences
Forget material goods. According to Silvia Lupone, who transitioned from a globetrotting traveler to a successful business owner of Stingray Villa in Cozumel, experiences with those you love and care about are far better to spend money on than things.
“More often than not, successful people spend their money on things that are not tangible,” said Lupone. “Besides enhancing their lives, this too creates memories and facilitates personal development which lasts longer.”
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Budget for Your Spending
Stay within your budget as much as you can. It’s easier said than done, but not impossible.
“Create a monthly budget and stick to it the majority of the time,” said Dr. Annie Cole, Ed.D. money coach and founder of Money Essentials for Women. “Creating wealth and financial well-being is more about what you do everyday than what you do once in a while. If you practice sticking to a budget and not spending beyond your means, it will become second nature to do so after just a few months.”
Look for Quality Over Quantity
In Lupone’s opinion, good products last longer than cheap ones do — which saves money over time. This holds true in a business context or a personal life setting, and he believes that successful people know this and prefer paying more up front for better services or items.
Plan Your Meals
It might not seem like a fancy tip, but charting out the meals you want to make each week, along with the groceries you need to purchase and the cost, will only help you reach your financial goals sooner.
“Plan your meals ahead of time and only buy what you need at the grocery store,” advised Cole. “Groceries can take up a large portion of monthly expenses, but there are easy ways to keep those expenses under control.”
Cole’s step-by-step meal plan tips include planning meals around low-cost items like rice, potatoes and vegetables, buying produce that’s in season, and looking for sales and bulk discounts.”
Invest in Yourself
If you are looking for an area to not just spend your money but grow it and get a great return on your investment, all you have to do is put it into the person you see in the mirror.
“Continuous learning is a key characteristic of wealthy individuals,” said Lupone. “They read books, attend seminars or get mentored by those who have made it before them. They invest in education because it always gives the best returns.”
He added, “Stingray Villa’s prosperity has always been attributed directly to my commitment to set aside some money for studying more about hospitality as well as management skills.”
Discover Free Fun
Going out for some relaxing or exciting activities is important for a well-balanced life, but many people have anxiety about the bill. Thankfully, there are plenty of hobbies and events that you can get involved with, all without costing you a dime.
“Fall in love with activities that don’t cost anything,” said Cole. “For example: Invite friends over for a potluck dinner and play games, go for a walk in nature, draw, read, play with your kids and pets. The less you find your purpose or joy from buying things, the less you’ll feel drawn to spend money.”
Keep an Eye on Expenses
Spending without regard as to what’s in your account is a quick way to crash and burn when it comes to money. Do the hard thing: analyze your bills, track your spending, and make sure you are not going overboard with extravagant purchases.
“People who know how to handle their finances manage them well by knowing where every single penny goes — no random purchases!” said Lupone. “To illustrate this point further, let me say that I do an analysis on the financial status of my villa weekly, ensuring all expenditures are consistent with what I want in the long run.”
Have a Money Mindset
“Know your financial goals like the back of your hand,” said Cole. If you have these goals in your mind and understand them to be an essential part of you, it will be easier to stay on the path of smart spending.
“The more ingrained your long-term goals are, the more inspired you’ll be every day to make simple choices that align with your goals,” added Cole.
As an example, Cole posed that if you are working hard to invest and retire a decade early — and you’re focused on this daily — you’ll find it easy to say no to less important purchases like clothes, coffees or impulse buys.
Keep an Emergency Fund
It never hurts to save some money for when you need to spend it in a pinch.
“Being ready for tomorrow is one thing that distinguishes achievers from other people,” Lupone said. “Successful individuals always know anything can happen at any time, hence the need for a savings account.”
Lupone concluded, “These practices are not only good for rich people, but anyone else who wants to improve their financial status. By being aware of what we spend on and making wise decisions about how much should be spent, even an ordinary person can grow his/her wealth steadily until stability becomes inevitable.”
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This article originally appeared on GOBankingRates.com: 9 Smart Spending Habits That Successful People Have
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