Another Black Friday season is here and we all have the urge to shop almost everything.
So, when Black Friday is over, should we get broke?
Great deals are everywhere already, I can see that!
I can see 50% discounts or more on almost every product I have been coming across since the beginning of this season.
In this guide, we want to look at how we can make more deals on the stuff we like with this Black Friday shopping guide.
No one likes to be broke, but yet frugality is the hardest thing to do…
How does it sound to spend all your savings on things that add no much value to your life and the next day begin to look for someone to borrow you money?
When you have the urge to spend your money, it would be hard to hold back and do nothing.
Most people with this spending habit see no reasons to learn how to spend less and save more, believing that money would keep coming.
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Even if they never get broke, how can they grow their wealth?
I’m not here to condemn your spending habits but to show you how you can grow your wealth.
The best strategy to spend less is to know how to reduce your spending habits.
No wonder, most billionaires like Warren Buffet, Richard Branson, Jim Walton and the rest make a lot of emphasis on their frugal habits as the key to their success in life.
According to Sergei Klebnikov in Billionaire Spending Habits, Bill Gate wears $10 wristwatch and washes plates by himself.
“Gates remains old-fashioned in that he still likes to wash the dishes at home every night for his family. Dishwashers use electricity, after all!” Said, Sergei.
The intention of many people who live beyond their means is to show off. But unfortunately, they gain nothing from it.[Tweet “I’m going to show you the big difference between the rich and the poor, which you’ve never heard before – why the rich won’t get poor and the poor won’t get rich?”]
And yet the rich would come outside to tell us they don’t spend on things that will make their account balance reduce but increase.
You can’t eat your cake and still have it.
If you can’t do without big stuff, this post will show you five good ways to learn how to spend less and save more while taking advantage of this Black Friday season.
TABLE OF CONTENT
Five practical ways to learn how to spend less and save more
There’re many ways to reduce your spending habits and start living a simple life. In this guide, I would provide you with the best five strategies to help you cool down your urge before committing your hard-earned money into something.
Limit your access to funds
When you limit your access to your funds, you spend less. This doesn’t mean you shouldn’t pay your rent or put foods on the table for your family but to curb you if shopping is your hobby.
In my childhood, my dad would say I was extravagant. And to impose “save more spend less” strategy on me, he seized my passbook and restricted me from having access to my bank account many times.
I wasn’t happy with his approach until the day he told me he was only helping me.
How was he helping me?
That wasn’t bad though.
But until now, I won’t stop asking,
Do billionaires really spend less, if they do, why do we call them billionaires, is it not because they spend in billions?
So, I think there is something billionaires are not telling us about how they grow their fortunes.
Out of my curiosity, I came across the boots theory by Captain Samuel Vimes, which broke the top secrets of billionaires to me.
Apply the boots theory
The boots theory is a theory of unfair spending, which suggests that buying quality over quantity can help reduce spending habits. As a save more spend less strategy, the theory reveals the ways and manners we hurt ourselves while trying to economize.
Assuming you and your friend go for shopping and each of you buy a pair of boot. If you go for a cheap boot at $20 and your friend goes for the quality boot at $50, you will be the one hurting yourself.
Since $20 boot is inferior to $50, you might have to replace your cheap boot every four month and at the end of the year spend $60 in total. Hence, buying cheap products can make you spend above your budget at the long run.
In order to spend less and save more, boots theory, holds that when you buy quality, your spending habits will reduce. And only then, you can save more.
Buy things you need
Often times that we buy things, we end up spending a lot of our money on things that add no value to our lives and that results to being extravagant. Things you need can negatively affect your well-being if you don’t get them, but things you want don’t.
So, you need to set your priority right.
Prioritizing your needs can help you focus on your needs rather than your wants and reduce your spending habits.
Sometimes, spending on your needs can cost you more than your wants at a time. But because your needs are met based on priority, you won’t be spending unnecessarily. And at the long run, your annual expenses won’t tear your budget.
Don’t be a brand loyalist
Having a soft spot for a particular brand is dangerous. It can make you spend unnecessarily beyond your means. Meanwhile, most popular brands only improve on names not value.
You could be fooling yourself showing interest in such a brand just to flaunt. There’re other brands in the market which are better. But because they’re not popular, nobody wants to buy them.
Pay attention to sales promotions
When sales go down, most companies offer sales promotion to motivate consumers. Showing interest in this can also help you save more and spend less. It usually happens during festive periods.
And to know when it happens in your area, you have to pay attention to news and advertisements both online and offline.
There’re different types of sales promotion that can benefit you.
And these include:
Discounts – This is the most common sales promotion. You can get a lot of this online. Next time you want to shop, ensure the store you’re patronizing has something good for you.
Gifting – This is offered during festive period like Christmas and New Year when people desire to exchange gifts with family and friends. Companies also apply this tactics to strengthen customer relations.
Coupons – This is used when companies realize that their prices are too higher than normal. Instead of bringing down the prices, they offer sales coupons to their potential customers. Thus coupon is a form of incentivize customers.
Recurring Promos – This include promotions that recur regularly. They’re such that customers are already looking out for as the period is fast approaching. They include Cyber Monday, Black Friday and Back to School Sales and so on.
Other sales promotional services to help you minimize your spending habits include buy one and get one free, cash back and rebates, exhibitions, trade fair, exchange offer and free trial and so on.
There’s nothing happening in your life that has no effects on your finances. If your lifestyle makes you spend above your means, you will definitely have problems with your finances. Against this, I wrote this Black Friday shopping guide to teach you how to spend less and save more during the season.
Black Friday sales are great deals. But if care isn’t taken you might end up begging your friends when Black Friday is over in order to survive before your next salary.
I have explained five good “save more spend less” strategies that can help you reduce your spending habits, live a normal life and grow your wealth tremendously. If you can find a way to implement these strategies, no matter how small your income is, what makes sense most is to see it grow.
Based on these strategies, the rich save and invest their money in businesses while the poor spend theirs on luxury and live on loans. Consequently, the rich become richer and the poor become poorer.