Maintain a Budget that Works
Maintaining a family budget is the largest key to living rich on any income. It’s important to feel satisfied that the basic needs of the household are covered, small values are saved, and incremental investments are made. Whether you practice zero-based budgeting, use percentages as guidelines, or insist on using an app, finding what works for your family is what matters.
Work with your family members to establish weekly money-meetings where any expected or upcoming costs can be openly discussed. Communication and budgeting in this way helps everyone in the family know what can be spent in which category and helps ensure savings and investment goals are met each month.
It’s important to identify the purchases that increase your quality of life and the ones that grow in value over time. In contrast, it’s just as important to notice purchases in which enjoyment is short-lived, the item bought decreases in value over time, or value is quickly decreased to zero.
Simply put, purchases that decrease in value quickly, like cars, are not good assets to own. Real estate, investment accounts, and other items that grow in value over time are great additions to your wealth-building portfolio.
Make Your Daily Decisions Intentional
Most consumers spend money multiple times throughout the day without even thinking about it. What if you were able to analyze each purchase and decide if it makes you happy, adds value to your life, and/or will be useful for a long period of time?
Making smart purchases means not buying substitute, cheaper items just because they are on clearance. Being a smart consumer, focused on getting the true value for your money, means saving up and buying the full-priced name-brand item you’ll use for years into the future because it’s exactly what you wanted.
Eating nutritious foods promotes health and longevity, so it’s worth it to pay a little more for nutrient-dense items instead of buying cheap empty-calorie foods. Good quality clothing staples, sturdy cookware, and even a comfortable mattress can fall into this category because these are timeless items that you’d use every day and get plenty of value from.
Do What Makes You Happy
The belief that material things create happiness is probably practiced by the same people that swipe their cards without looking at the total. When you take a step back and see that experiences are what ignite the senses and the mind, you’ll see how “living rich” can be experienced by anyone at any time.
Spending time enjoying scenery, being with those you love, or appreciating art costs nothing, yet fills the soul with happiness and appreciation. Living rich is doing what makes you happy and expressing your ability to enjoy life itself, with or without a value attached to it.
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