5 habits that can make you rich

June 14, 2007

1. Record your spending habits
It’s a simple enough strategy, but it can make a huge difference when it comes to getting your spending under control. The very act of writing down your spending will make you more aware of your habits
2. Do your research
When it comes to big-ticket items like consumer electronics, cars and so on, it’s very important to carefully research the product before making a purchase. This has gotten a lot easier with a number of online resources which provide product reviews by professionals and ordinary users as well as price information.
3. Be flexible and patient
Very often, you can save quite a lot of money by waiting a little or by buying a different brand to your usual one. For example, if you go to a supermarket there will be a different set of brands on sale every week in each category. If you buy the items that are on sale, instead of sticking to your regular brand, you can save quite a bit of money.
4. Look at the big picture
Quite often, we end up overspending on small things like coffee and cigarettes, which don’t seem expensive but add up to a considerable amount over a long period.
5. Save and invest every month
Saving and investing in a disciplined and regular manner is a very important aspect of managing your finances properly. Start investing as early as possible and get the power of compound interest to build yourself an adequate retirement fund.

Source: Rediff