In today’s world, many people are struggling to meet their financial goals. That’s because they spend more time buying the things they don’t need. Contrary to popular belief, achieving your financial freedom has nothing to do with how much you earn. But how well you manage your finances. It starts with your buying habits. Financially disciplined people don’t spend money on anything that will derail them from their goals. That’s why in this article, you will learn about the things financially disciplined people never buy.
You may think that millionaires live a luxury lifestyle. But that’s not always true. A lot of them are more frugal than you think. That’s because every millionaire is more concerned about growing their wealth than spending it.
So, here are 7 things financially disciplined people never buy;
#1. Brand New Cars
Financially disciplined people seldom buy new cars. Even if they have a few million dollars in their bank account, they wouldn’t want to buy a new car. They would prefer to buy a car that’s 3-5 years old.
According to experts, new cars tend to lose their value by 10% during their first month. And within a year, they would lose 20% of their value.
But, when you buy a used car, you would enjoy the best value. And if you decide to use it for a while, you would save a lot from it.
So, if you want to grow your wealth and achieve your financial goals, don’t buy brand new cars. Their value depreciates faster compared to used cars. It’s one of the things financially disciplined people never buy.
#2. They Don’t Buy Houses They Can’t Afford
It’s quite unfortunate that society gives the impression that buying expensive houses is a symbol of success. And some people unconsciously believe that what they buy reflects their values and personalities. That explains why most people end up buying houses they can’t afford.
If you want to achieve financial freedom, try not to buy a house you can’t afford. It could derail you from your financial goals and plunge you into debt.
However, if you purchase a house that you can afford, it’s easier to pay off your mortgage and move on to other things in life.
But how do you know if you can afford the house you want to buy? The affordability of a house goes beyond its purchase price.
There are other variables you need to check. So, here are some signs that you can afford the home you want to buy.
- Look beyond the purchase price. The purchase price of the house may be relatively cheap. But the utilities could be alarming. So, watch out for the cost of utilities, trash disposal, homeowners insurance, and general maintenance, etc.
- You can make the full 10-20% down payment on your own without withdrawing from your emergency fund.
- You spend less than 30% of your income on housing.
- After making a down payment for the house, you still have some cash left over.
- The debt to income ratio is very low.
#3. They Seldom Buy Things on Credit
One of the things financially disciplined people never do is buying things on credit. It doesn’t matter whether the amount involved is large or small. If you are good with money, you won’t want to incur such debt.
It’s almost impossible for people who understand money to incur credit card debt. That’s because it comes with a high interest rate. Most times, the charge is a 20% interest rate or more per transaction.
There are several people out there wallowing in debt because of their credit card balance. Unless it’s a life or death situation, try not to take credit card cash advances. It could derail you from your financial goals.
#4. Luxury Goods From Brand-Name Designers
One of the things financially disciplined people never buy is luxury goods from brand-name designers.
Like I mentioned earlier, financially disciplined people are more concerned about growing their wealth, developing themselves, and supporting a course of action. They try as much as possible to avoid anything that will make them spend more.
Surprisingly, most ultra-wealthy people around the world today care less about brand names, tags, and labels, etc.
Times are changing fast. Unlike what you may think, showing off wealth is completely different from being wealthy. That explains why the top 1% in the United States spend less on materials goods.
#5. Latest Technology
The latest technology is one of the things financially disciplined people never buy.
Not buying the latest technology doesn’t mean you are not tech-savvy. It means spending on the latest technology is not a priority in your scale of preference.
You don’t have to buy the newest iPhone when everybody is buying it. The device will be more expensive by then.
But after a while, the price will reduce drastically. That’s the best time frugal people buy their technology. Most times, people who understand money save hundreds of dollars by not buying the latest technology.
So, if you want to be more financially disciplined, you must be patient. You don’t have to buy anything when every other person is buying. Wait for the price to drop. By then, you can get yours. And that comes with big savings.
#6. Lottery Tickets
A lottery ticket is one of the things financially disciplined people never buy. Do you know why? The odds are against you.
Generally, the odds of you winning a lottery ticket is 1 in 300 million. That means you have better odds of becoming a millionaire than holding a winning lottery ticket. I know it’s surprising, but it’s the truth.
So, instead of a financially disciplined person buying lottery tickets, they would rather invest in stocks.
#7. Fancy Vacation
It’s cool to go on a fancy vacation. It enables you to freshen your mind, relax, and have a renewed energy for work. However, if you want to achieve financial independence, a fancy vacation isn’t for you.
It’s strongly advised not to invest too much on fancy vacations if you want to achieve financial freedom. Of course, you can still go on holiday. But going on a trip to a lovely 5-star resort in Barbados is something you shouldn’t do if you want to be financially disciplined.
If you want to achieve financial freedom, take note of these 7 things financially disciplined people never buy.
You don’t have to impress anybody. Be yourself and spend your money according to your income. Remember that broke people stay broke by trying to act rich. But rich people stay rich and wealthy by acting broke…