There are many ways that we waste our income. For some of us we only live from hand to mouth and there is no way for you to change but the majority of us find creative ways to spend our well earned cash and are not able to save.
Here are 3 traps that we fall into.
Lifestyle inflation - we all have dreams about things that we will buy when get a little more money. We work hard, get an increase and spend the increase and don't see the benefits of making more money. We are not better off than before the increase. Recently I went to see some friends in one of the more affluent areas in Johannesburg. They had an impressive house, impressive staff to help them keep the house in order but they had less disposable income than what I had and their savings were less than mine. They had fallen into the trap.
Pay yourself first - We need to put away at least 10% of our salaries into various funds that can help you earn more than just keeping it in the bank. Speak to a financial advisor and put your money away before you get your hands on the money. Putting money in a savings account also doesn't help those of us that fall for the temptation to use that money. Put it somewhere where it is out of sight and not that easy to get back.
Consumer traps - But 3 and only pay for 2, we have all seen this kind of special or discount that we think is awesome and we take advantage of that. Do you need that special? Is the product something that you need? If I am looking for a certain thing and I see it on special I will but it but if I am not looking for it I will not buy it. That is my best recommendation. People fall for the trap countless times and end up with multiple purchases of the same thing that they don't need more of. Avoid these traps.
Hey this is so true, for instance when it's black Friday we run or sleep near our consumers shop. We buy unnecessary things we don't even need.
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